Massachusetts HD 4267: A report of the Executive Office of Veterans’ Services (under Section 151 of Chapter 178 of the Acts of 2024) submitting a report entitled: “A Study on Property Tax Abatements and Exemptions for Veterans and Surviving Spouses”

Bill Text

MAURA T. HEALEY JON SANTIAGO, MD, MPH
GOVERNOR SECRETARY

KIMBERLEY DRISCOLL
LIEUTENANT GOVERNOR

COMMONWEALTH OF MASSACHUSETTS
EXECUTIVE OFFICE OF VETERANS’ SERVICES
600 Washington Street, 7
th floor
Boston, MA 02111
TEL: (617) 210-5480 FAX: (617) 210-5755 TTY: (617) 210-5883
www.mass.gov/veterans

December 31, 2024

Steven T. James
House Clerk
State House, Room 145
Boston, MA 02133

Michael D. Hurley
Senate Clerk
State House, Room 335
Boston, MA 02133

Dear Clerk James and Clerk Hurley,

Pursuant to Section 151 of Chapter 178 of the Acts of 2024, please find enclosed “A Study on
Property Tax Abatements and Exemptions for Veterans and Surviving Spouses” from the Executive
Office of Veterans Services, in consultation with the Department of Revenue.

Sincerely,

Jon Santiago

CC:
Senator Michael Rodrigues, Senate Chair of the Joint Committee on Ways and Means
Representative Aaron Michlewitz, House Chair of the Joint Committee on Ways and Means
Senator John Velis, Senate Chair, Joint Committee on Veterans and Federal Affairs
Representative Gerard Cassidy, House Chair, Joint Committee on Veterans and Federal
Affairs

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A Study on
Property Tax Abatements and
Exemptions for Veterans and
Surviving Spouses

December 2024

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Legislative Mandate
The following report is issued pursuant to Section 151 of Chapter 178 of the Acts of 2024, An Act Honoring,
Empowering, And Recognizing Our Servicemembers and Veterans, summarized as follows:
SECTION 151. The Executive Office of Veterans Services, in consultation with the Department of Revenue,
shall study property tax abatements and exemptions for veterans and surviving spouses pursuant to
Chapter 59 of the General Laws. The study shall include, but not be limited to: (i) veteran property tax
exemptions in other states; (ii) the utilization of a sliding scale based on the percentage of a veteran’s
disability for the awarding of such exemption to veterans and spouses; (iii) determination of the relation
of tax abatements and exemptions to United States Department of Veterans Affairs disability rating; (iv)
the financial impact these tax exemptions have on veterans with disabilities; and (v) any anticipated
monetary cost that the exemptions may cause. The office shall file a report of its findings and
recommendations with the Joint Committee on Veterans and Federal Affairs, the clerks of the Senate and
House of Representatives and the Senate and House committees on Ways and Means...

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Table of Contents
Introduction
(i) Veteran Property Tax Exemptions in Other States
(ii) Utilization of a Sliding Scale Based on Disability
(iii) Relation of Tax Exemptions to Disability Rating
(iv) Financial Impact
(v) Anticipated Monetary Cost
Conclusion

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Introduction
Property tax exemptions are a powerful policy tool used by state and municipal governments to increase
the affordability of homeownership for residents. Every state offers some form of property tax exemption
to homeowners with many exemptions associated with veteran status. Several veteran property tax
exemptions are based on VA service-connected disability ratings or injuries sustained as a result of military
service.
United States Department of Veteran Affairs Service-Connected Disability
The United States Department of Veteran Affairs (VA) provides eligible veteran with a service-connected
disability rating between 0% to 100%.
1 This rating is a percentage assigned to a veteran's disability that
was caused or aggravated by their military service, indicating the degree to which their condition impacts
their ability to work and live a normal life. To obtain a service-connected disability rating, veterans submit
a claim to the VA, which then reviews the claim and assigns a rating.
2 Service-connected disability ratings
may change throughout a veteran’s life based on their health as well as policy changes that expand the
VA’s criteria and eligible conditions.
Trends in the National Veteran Population
The percentage of veterans with a service-connected disability has increased since 2008. One study found
that the national percentage of veterans with a service-connected disability doubled between 2008 and
2022, increasing from 15% to 30%.
3 In addition to the increase in the number of veterans with a service-
connected disability, the rating tied to the service-connected disability is also increasing. This same study
found that the percentage of veterans having a “high service-connected disability rating” (70% or more)
increased by fivefold from 2.6% to 12.8% between 2008 and 2022.
3 The study further suggested that the
prevalence of high service-connected disability ratings is more common among younger veterans,
including 16% of post-9/11 veterans and 13% of Gulf War veterans.
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1 U.S. Department of Veterans Affairs. 2024. "Disability." U.S. Department of Veterans Affairs. Accessed December
11, 2024. https://www.va.gov/disability/.
2 U.S. Department of Veterans Affairs. 2024. "About Disability Ratings." U.S. Department of Ve