Veteran tax credits cut after law is misunderstood - Tri-State News, Weather & Sports

Veteran tax credits cut after law is misunderstood

Disabled veterans who once qualified for a hefty tax credit in Vanderburgh County are no longer receiving the same benefits.

Officials say they learned they had been misinterpreting the law. 

Depending on a veterans age, when they served, and the amount of compensation they receive from the VA Clinic, they are eligible for property tax deductions ranging from $12,000 to nearly $40,000.

The law states that to claim the deduction the veteran or spouse must be a property owner.

But until officials realized they misunderstood the law about a year ago, all qualified veterans, whether or not they owned property, were receiving the benefits. And if you didn't own property the money was applied elsewhere.  

"You know all your property tax is covered and you've got all that left over, they'll apply that to your plates, but if you don't own property at all you don't get anything, and I think that's what's upsetting people," Paul Dupont with Veterans Services said.

House Bill 1030 would have amended the law so that qualified veterans would be able to apply the tax credit to DMV taxes, license plates and fees.

Representative Tim Neese,who authored the bill, told 14 News the bill died this week.

Committee Chairman Tim Brown said his committee had more than 100 bills to hear in just six weeks and he decided none of the tax credits would be heard this term.

Supporters of the bill plan to propose it again in a smaller committee meeting, but it will have to wait until next year before action is taken. 

To learn more about Veteran Services in Vanderburgh County, click here.

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