Committee hears bill to convert veterans and active‑duty homestead exemptions into property‑tax credits

The Senate Committee on Finance and Revenue heard testimony on Wednesday, June 4, 2025, on Senate Bill 10 94, which would replace existing property tax exemptions for active‑duty military service members, disabled veterans and qualifying surviving spouses with capped, indexed property‑tax credits and allow existing participants to opt into the new credit program.

Supporters told the committee the measure would remove administrative uncertainty that has discouraged some eligible people from taking current benefits. Eric Chancellor, speaking on behalf of county assessors and tax collectors, said the Department of Revenue’s rule interpretation created ‘‘a fair amount of complexity’’ and that the bill would restore a simpler, more predictable benefit. ‘‘You go in and you get — you know what you get,’’ Chancellor said, adding the bill would avoid front‑ and back‑end remapping that can change a household’s tax trajectory.

Why it matters: County assessors said the current exemption system can trigger reassessments when a beneficiary returns from deployment or when rules are applied differently across counties. The change to credits and fixed, capped amounts — and to a 3 percent annual growth adjustment in the dash‑1 amendment rather than indexing to the consumer price index — was described by assessors as administratively simpler and more predictable for recipients and for county tax offices.

Support and technical detail: Jenna Jones of the League of Oregon Cities testified as neutral on SB 10 94 and said the posted amendment appeared revenue neutral; several county assessors backed the bill. Scott Langton, Deschutes County assessor, offered to answer technical questions. Mike Gorman, Morrow County assessor and tax collector, said the bill would let applicants know their benefit ‘‘as soon as they apply’’ rather than waiting until tax statements are mailed in October.

Other testimony emphasized that the change is meant to preserve benefits while avoiding an outcome in which returning service members face an unpredictable increase or change in tax liability because of a remapping (remav) process. Assessors described cases where they had advised applicants that entering or remaining in the current assessed‑value exemption program could produce a higher tax bill once remapping occurred.

What the bill would do: Testimony summarized the bill’s main features as (1) creating a property‑tax credit for qualifying homesteads of active‑duty military members, disabled veterans and surviving spouses (including residents of nonprofit homes for the elderly), (2) capping and indexing those credits, (3) allowing current exemption participants to opt into the credit program, and (4) stopping new enrollments in the existing assessed‑value exemption programs after a transition period as written in the measure.

Process and next steps: Committee members noted there was no fiscal impact statement available at the hearing. Chair Meek indicated the committee would not move the bill forward without the fiscal information and planned to ‘‘tee this up for action as soon as we get that’’; the public hearing on SB 10 94 was closed with no formal vote taken.

Closing note: Witnesses uniformly urged clarity that would avoid placing veterans and service members in a position of uncertain future tax liability; assessors said the bill would restore a simpler administrative path for counties while preserving benefits for eligible residents.