Authorizes the surviving spouse of a deceased veteran with a service connected disability who receives an expanded property tax exemption to transfer the exemption under certain circumstances. (2/3-CA13s1(A)) (1/1/27) (EG SEE FISC NOTE LF RV See Note)

SB 180 proposes a constitutional amendment to Article VII, Section 21(K)(1) of the Louisiana Constitution that modifies the ad valorem tax exemption rules for surviving spouses of disabled veterans. The amendment makes two primary changes to existing law. First, it removes the requirement that a surviving spouse of a deceased disabled veteran must occupy and remain the owner of the property to remain eligible for the exemption, thereby allowing surviving spouses to transfer the property while maintaining exemption eligibility. Second, it creates a one-time transfer mechanism allowing a surviving spouse who has claimed the exemption on one property to transfer that same exemption to a subsequent homestead property, with the transferred exemption value capped at the amount claimed on the prior property in the last year the exemption was applied. The amendment also permits property assessors to request documentation from surviving spouses regarding the prior exemption amount to ensure accurate calculation of the transferred exemption on the new property.

The practical effect of this amendment primarily benefits surviving spouses of disabled veterans who wish to relocate or downsize while preserving their tax benefits. Previously, a surviving spouse who sold a property to purchase a new homestead would lose access to the enhanced exemption unless they maintained continuous ownership and occupancy of the original property. Under the proposed amendment, surviving spouses gain flexibility to acquire different properties and transfer their exemption one time, subject to the limitation that the transferred exemption cannot exceed the value of the exemption they were receiving on their prior homestead. Property assessors will need to develop procedures for documenting and verifying prior exemption amounts when surviving spouses apply for exemption transfers on subsequent properties.

The amendment operates within Louisiana's constitutional framework governing ad valorem tax exemptions found in Article VII, Section 21 of the state constitution. Louisiana law currently extends enhanced property tax exemptions to veterans with service-connected disability ratings of fifty percent or higher, with exemption amounts varying based on disability rating levels ranging from fifty to one hundred percent unemployability. The constitutional framework distinguishes between exemptions for living disabled veterans and exemptions for surviving spouses of deceased disabled veterans, with the latter traditionally subject to stricter occupancy and ownership requirements. This amendment narrows those requirements for surviving spouses while creating a controlled transfer right designed to provide tax relief flexibility while preventing unlimited multiplication of exemptions across multiple properties. The amendment is effective January 1, 2027, and must be approved by Louisiana voters in a statewide election scheduled for November 3, 2026.