Market value exclusion modified for veterans with a disability by increasing exclusion amount for totally and permanently disabled veterans.

HF 3727 increases property tax relief for Minnesota veterans with service-connected disabilities by raising the market value exclusion amounts. Veterans with a 70% or higher disability rating now qualify for a $200,000 exclusion (up from $150,000), while those with a total and permanent 100% disability qualify for $400,000 (up from $300,000). The bill applies to veterans owning their primary residence ("homestead") in Minnesota, requiring certification of disability by the U.S. Department of Veterans Affairs and honorable military discharge. Surviving spouses of qualifying veterans may also inherit this tax benefit under specific conditions. This change directly reduces taxable value for eligible veterans’ primary homes, lowering their property tax burden.