Committee amends and advances bill to add targeted $25,000 property tax exemption for needy disabled veterans

The Senate Taxation Committee on [date not specified] amended and advanced House Bill 12-41, a proposal to increase the exempted value for property-tax relief for 100% disabled veterans and surviving spouses.

Rep. Phil Jensen (District 33), the bill’s prime sponsor in committee, said the bill preserves the existing $200,000 exemption and would add an additional $25,000 of non-taxable property value targeted to veterans with limited incomes. Explaining the amendment, Jensen said it would “provide property tax relief for another $25,000 of property value” for qualifying veterans and described the change as focusing resources on those “truly needy.” He summarized income thresholds for the targeted increase, stating limits for couples and singles during his explanation.

Committee members debated whether imposing income limits changes the original intent of a program created for all 100% disabled veterans regardless of income. Sen. Amber Holt argued the program was designed to benefit all 100% disabled veterans and opposed adding income tests. “It was established for a 100% disabled veterans regardless of their income,” she said, urging caution about making substantive policy changes without complete data.

Pennington County Director of Equalization Shannon Rittberger testified that she was not opposed to the amendment but cautioned about administrative and fiscal consequences. “When you grant an exemption or a tax break or anything like that, it results in a shift in taxes to everybody else,” Rittberger said, noting county offices will need clear administrative rules to determine qualification.

Committee members asked for better data about how many veterans would be affected. Rep. Jensen cited an estimate of about 3,585 100% disabled veterans statewide from a source he referred to as “Wendy,” but said the number likely to get the additional, income-targeted exemption would be much smaller. Multiple senators said they wanted Department of Revenue data before finalizing larger-dollar increases.

The committee held a voice vote on the amendment and the chair declared the amendment passed. Later, after extended debate about data and program intent, senators voted on a procedural '40 first day' motion (a scheduling/processing motion) moved by a committee member; the roll call recorded six yays and one nay, and the chair said HB 12-41 as amended will be placed at the 30 first day. No final floor-level adoption occurred in committee; the bill moves forward as amended to the next procedural stage.