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Department of Taxation and Finance

Eligible Funds Exemption - Eligibility Requirements

Ownership requirements

Legal title of the property must be in the name of a qualified owner:

  • the veteran
  • spouse of the veteran
  • unremarried surviving spouse of a veteran
  • dependent father or mother
  • children (under 21 years of age) of the veteran

Legal title may also be in the name of a qualified owner whenever such a person is a life tenant of the property; if title transfers to a trust, such a person becomes a trustee or beneficiary of such trust

The veteran or other qualified owner should submit proof of property purchase using eligible funds - it is important to carefully read Parts II and III of the instructions (RP-458-Ins) before completing the application

Qualified owner should submit copy of deed of ownership of residence, or other proof of ownership

If the qualifying veteran is deceased, the exemption may continue on the eligible property if the title to the property is in the name of one of the other qualifying owners

If a veteran, spouse of a veteran or unremarried surviving spouse of the veteran receiving this exemption sells the property receiving the exemption and purchases a new property within the same taxing jurisdiction, and if the taxing jurisdiction allows a prorated exemption in its local laws, the exemption may transfer to the replacement property; to continue to receive the exemption thereafter, the veteran or other qualified owner must file a new form RP-458 with the assessor on or before the next succeeding taxable status date

Switching to or from the Alternative Veterans' exemption

If a taxing jurisdiction has adopted the Alternative Veterans' Exemption, veterans receiving the Eligible Funds Exemption may: 

  • continue to receive the Eligible Funds Exemption
  • convert to the Alternative Veterans' Exemption

Converting to the Alternative Veterans Exemption requires the veteran to submit Form RP-458-a; once the conversion occurs, veteran may not normally reverse the action, with two exceptions:

  1. the veteran or other qualified owner sells the property and uses the proceeds of the sale to purchase a replacement property in another jurisdiction that does not have the alternative veterans exemption
  2. the taxing jurisdiction has adopted the "change in level of assessment" option, and has adopted an additional option to allow those eligible funds veterans who converted to the alternative veterans exemption to switch back to eligible funds