Property Tax Exemption, VA Disability Compensation

Effective November 12, 2013 PA 161 of 2013 provides for property tax exemption for the following honorably discharged disabled veterans:

  1. Veteran is determined by the U.S. Department of Veterans Affairs to be permanently and totally disabled as a result of their military service and are entitled to veterans benefits at the 100% rate; or
  2. Veteran has a certificate from the U.S. Department of Veterans Affairs or its successors that they have received pecuniary assistance under the Specially Adaptive Housing Grant Program; or
  3. Veteran is rated by the U.S. Department of Veteran Affairs as Individually Unemployable (due to service connected conditions and receiving VA disability payments at the 100% rate).

Un-remarried, surviving spouses of a veteran who was otherwise eligible under one of the above criteria are also eligible for the property tax exemption.

Eligible veterans should contact their local taxing official to apply for this exemption.  This must be applied for each year.  Veterans should provide a copy of their Summary of Benefits letter which is mailed to them by VA in early December of each year.  If you do not have a copy of this letter you can contact VA at (800) 827-1000. 

Surviving spouses should provide their taxing official with VA documents which verifies the veteran’s eligibility for the exemption. 

Additionally, both the veteran and the surviving spouse will need to complete Michigan Department of Treasury Form 5107 and present this to your taxing official along with supporting documentation verifying your eligibility.

Additional information is available on the Department of Treasury website.

If you have questions on your eligibility for this exemption please call Grand Traverse County Veterans Affairs at 231-995-6070.

For questions concerning your property tax contact your local taxing official.