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Volume 1 - Opinions of Counsel SBEA No. 107

Opinions of Counsel index

Veterans’ exemption (eligible funds) (blind annuity) - Real Property Tax Law, § 458:

An annuity paid to a blind veteran constitutes eligible funds but no exemption from real property taxes may be allowed unless the annuity is applied toward the purchase of property or in making payments on the principal of a purchase money mortgage.

Our opinion has been requested as to whether a veteran is eligible for exemption pursuant to section 458 of the Real Property Tax Law in a case where he is receiving a “blind annuity” but has not used such annuity toward the purchase of property owned by him nor in the amortization of a purchase money mortgage.

An annuity paid to a blind veteran constitutes eligible funds for purposes of the veterans’ exemption statute but no exemption on account of such funds may be allowed unless the funds are applied toward the purchase of the property at the time the property was acquired or in making payments on the principal of a purchase money mortgage.

It should also be noted, however, that if the veteran has retained these moneys (e.g., in a savings account) and applies the same toward the cost of an improvement to the property, then such payment would constitute a purchase within the meaning of section 458 and an exemption would be authorized to the extent of the moneys so used.

April 19, 1972

Updated: