Senate committee clears bill to let disabled veterans claim homestead exemption when property in trust or LLC

The Senate Revenue & Tax Committee on Monday approved House Bill 1809, a measure that would allow disabled veterans to claim the homestead exemption on a primary residence held in a trust or limited liability company if the veteran is named as the beneficiary or sole member. Senator Matt McKee, State Senator for District 6, presented the bill at the request of tax collectors.

McKee said the issue arises when a disabled veteran’s primary residence is titled in a revocable trust, an irrevocable trust, or an LLC. “As long as the trust or LLC names the disabled veteran as a beneficiary or sole member, the disabled veteran will be able to claim the homestead exemption for their primary residence,” McKee said.

The bill received no public testimony during the committee hearing. Senator Hester moved the committee give the bill a favorable recommendation; Senator Crowell seconded the motion. The committee approved the measure by voice vote. The committee chair announced the bill passed on that voice vote; a recorded roll-call tally was not provided in the hearing record.

The bill was presented as clarifying eligibility related to existing homestead-exemption rules for disabled veterans; proponents said the change aligns tax-administration practice with veterans’ estate-planning choices. No fiscal impact or implementation details beyond the tax-collector request were presented at the hearing.

If enacted, the bill would require county assessors and tax offices to allow the exemption when the ownership structure includes a trust or LLC that names the disabled veteran as beneficiary or sole member. The committee did not discuss appeals procedures, auditing, or specific filing proofs required; those details were not specified during the presentation.

The committee moved on to other business after approving the bill.