Mandatory 100% Disabled Veterans Tax Exemption Update – July 2026
July 28, 2026
Since our March 11, 2026 post, the 2026-2027 New York State Budget has amended Real Property Tax Law § 458-a(11) again. Part EE of Chapter 59 of the Laws of 2026 restores local discretion, which means the 100% Disabled Veterans Tax Exemption is no longer automatic for school districts and instead may be offered only if the district adopts a resolution. In that respect, the budget amendment reverses the legislative change described in our March 11 update.
The budget amendment took effect immediately, but, like the February amendment, it applies to assessment rolls based on taxable status dates occurring on or after Oct. 1, 2026, so it should not affect taxpayers immediately.
From an operational standpoint, school districts should no longer assume the exemption will be implemented automatically and should instead coordinate with the assessor and tax receiver regarding whether the board will adopt the exemption and adjust communications, levy planning and projections accordingly. The amendment also requires a school district that adopts the exemption to notify the Department of Veterans' Services within 30 days, although the statute provides that a failure to give notice does not invalidate the adoption.
The budget bill also revises certain eligibility requirements, including that individual veterans must have been discharged under qualifying conditions and must produce documentation from the U.S. Department of Veteran Affairs that shows the Department considers them permanently and totally disabled as a result of military service.
School district clients with questions regarding this information memo, please contact Katie Schafer, any attorney in Bond’s school law practice or the attorney at the firm with whom you regularly communicate.
