Proposing a constitutional amendment authorizing the legislature to provide for an exemption from ad valorem taxation of all or part of the market value of the residence homestead of the surviving spouse of a veteran who died as a result of a condition or disease that is presumed under federal law to have been service-connected.

Contracts

• Closing Disclosures (CD): For transactions closing on or after January 1, 2026, lenders must adjust projected tax liabilities to reflect this exemption if the borrower provides qualifying VA documentation.
• Escrow Agreements: Standard language remains valid, but the *calculation formula* for the required escrow deposit must account for the reduced tax liability to prevent significant over-collection violations under RESPA.

Hiring/Training

• Tax Consultants & Real Estate Agents: Staff must be trained to identify "federally presumed" service-connected deaths (e.g., Agent Orange, Burn Pits) distinct from standard service-connected disability ratings.
• Mortgage Servicing Staff: Personnel handling escrow analysis must be trained to recognize the specific VA adjudication letters that trigger this exemption to process consumer requests for escrow re-balancing.

Reporting & Record-Keeping

• Verification Documentation: Businesses must integrate intake procedures to collect VA adjudication letters specifically stating the cause of death was a "presumed" service-connected condition.
• Non-Remarriage Affidavits: To maintain eligibility year-over-year, servicers and consultants should require annual confirmation that the surviving spouse has not remarried.

Fees & Costs

• System Updates: One-time IT costs to add a new exemption code to servicing and appraisal software.
• No Filing Fees: There are no government fees to file the exemption application.