S.F. 3261 makes the following changes to the disabled veterans homestead exclusion:

• Eliminates the eight-year limit on the spousal benefit.
• Allows a spouse to carry over the benefit for a new property, provided that the new property is less than or equal to the estimated market value of the property that was first subject to the exclusion.
• Allows a person applying and qualifying for the exclusion to receive a prorated tax abatement equal to the benefit in the current taxes payable year. (Under current law, applications must be made in the current assessment year, and the exclusion is effective the following taxes payable year.)
• Removes the exclusion on properties that are sold to non-qualifying owners, so that the new owners will not receive the benefit in the following taxes payable year.

Effective date. Effective for taxes payable beginning in 2018.