If you bought your home with eligible funds after leaving the service, the assessed value is reduced, typically by up to $7,500. Eligible funds include military retired pay, bonus or insurance payments, monthly payments for a service-connected or non-service-connected disability or death, compensation paid to prisoners of war, and mustering out pay. A home bought or modified with a grant for a specially adapted house for a veteran with serious disabilities is 100 percent exempt.
Apply to the assessor, or the city or town clerk, where the property is located, and be ready to show which eligible funds went into the purchase. Ask them whether your jurisdiction offers this exemption and what the filing deadline is.
Official proof of honorable service and documentation tracing the eligible funds, such as retired pay, bonus, insurance, prisoner of war compensation or mustering out pay records, into the purchase of the property.
