Legislative Update: FY 2027 NYS Budget Review

The NYSAA Legislative Committee’s review of the of the FY2027 NYS Budget is ongoing.  Here are the topics that have generated significant interest.

FY2027 NYS Executive Budget – Revenue Bill:

Part T    Enact STAR Program Technical Corrections

Part U   Extend the Telecom Assessment Ceiling Program for Four Years

Part V    Expanding the Rent Increase Exemption for Senior Citizens and Persons with Disabilities

Click here to review the budget language for Parts T-V.

Increases the maximum income to $75,000 by local option - click here for bill language.

Click here to review the revenue bill in its entirety.

 100% Disabled Veteran Exemption – LOCAL OPTION 

Click here to review the budget language, Revenue Bill, Part EE.

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The following questions and answers were obtained indirectly from the NYS Department of Veterans Services and are being shared as a courtesy for informational purposes only. The information has not been independently verified by the NYS Assessors Association. Members are encouraged to consult their local attorney. 

Q: I understand that TDIU is not required for the exemption. However, does it qualify for the total exemption? 

A: No. A TDIU designation does not qualify. Only a 100% permanent and total VA disability compensation rating qualifies. 

Q: If the veteran held this new total tax exemption at the time of their passing, will their surviving spouse be able to continue receiving it?

A: If the veteran holds this tax exemption at the time of their passing, the surviving spouse will be able to continue to receive it after the veteran passes away. The following language from Section 458-a, subsection (c), verifies this: “Where a veteran is also the unremarried surviving spouse of a veteran, such person may also receive any exemption to which the deceased spouse was entitled.”   

Q: If a local government decides not to opt in to this new total exemption, will any of the existing veteran’s property tax exemptions be impacted negatively?

A: No! Definitely not. If a local government decides not to opt in, there will be no adverse impacts on any existing veteran’s real property tax exemptions available in that locality.

Q: Does this apply to the surviving spouse of a veteran who was 100% (not P&T)?

A: No. This would apply to the surviving spouse of a veteran who had a 100% permanent and total rating from the VA, but not the surviving spouse of a veteran who had a 100% rating without a permanent and total designation from the VA.

Q: Is there a specific form for this exemption? Or will we use the standard 458rp and 458rp-dis?

A: There is no “special form” for this exemption. It is part of Section 458-a of the Real Property Tax Law, and thus the same forms that are used now for the Alternative Veterans Property Tax Exemption will still be used here.

Q: Is this the final edition of the bill that assessors will use in areas that opt in?

A: Barring any amendments that are unforeseen at this time, this will be the provision that is used by the property assessors based on taxable status occurring on and after October 1, 2026.   

Q: This appears to include veterans with qualifying conditions such as MST, PTSD, and TBI who may not have received a fully honorable discharge, provided their discharge was not dishonorable or a bad conduct discharge. Is it fair to understand the intent of this language as extending eligibility to veterans whose discharge status may have been affected by difficult or mitigating circumstances, including qualifying conditions or prior policies affecting LGBT service members?

A: This language references the New York State Restoration of Honor Act. The Restoration of Honor Act provides a pathway to restore access to state benefits for veterans who unjustly received a less-than-honorable administrative separation due to their chain of command’s misunderstanding of a mental health condition caused or worsened by military service, or due to laws or policies that discriminated against the service member’s sexual orientation, gender identity, or gender expression.  

The Legislative Committee will continue to review the budget and associated legislative bills and will provide ongoing updates.

Maggie Alix, Legislative Committee Chair

Scott Shedler, IAO, Legislative Liaison