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Alternative Tax Exemption for Veterans

Veterans in the ż School ż may be eligible to receive an exemption on their school tax bill. Think you might be eligible? Want to know how to receive your exemption? Please read on for more information.

What is the Alternative Tax Exemption for Veterans?

In 1984, the New York State legislature amended the Real Property Tax Law and enacted Section 458-a, granting an exemption to veterans for towns, counties, cities and villages. In 2013, the State passed an amendment allowing school districts to offer the exemption to qualified veterans or certain of their family members. The alternative veterans exemption is based on a percentage of assessed value subject to maximum levels of exemption.

When did ż adopt the exemption?

Eligible veterans in ż could begin receiving the exemption in the 2015-2016 school year.

How much is the exemption?

In general, qualifying property receives an exemption of 15% of its assessed value. An additional 10% exemption is available where the veteran can document service in a combat theatre or zone. A third exemption is available for veterans who received a service-connected disability compensation rating that is equal to one-half (1/2) of that rating. The exemption percentages are stackable but subject to maximum levels of exemption.

Are all properties owned by a veteran eligible?

The exemption is limited to the primary residence of a veteran and is available for property owned by honorably discharged veterans or certain of their family members.

Who is eligible for the exemption?

Veterans who served on active duty during one of the following periods of war may qualify for at least the basic 15% alternative veterans exemption:

Persian Gulf Conflict                   8/2/90-

Vietnam War                                2/28/61-5/7/75

Korean War                                  6/27/50-1/31/55

World War II                                12/7/41-12/31/46

At least part of the veteran's service must fall within one of the above-defined periods of war. Generally, reservists who engaged only in active duty for training or who were activated for only short periods of time are not eligible.

Veterans may qualify for the exemption without having served during a "period of war" if they were awarded an Expeditionary Medal and were discharged or released under honorable conditions.

Additionally, certain veterans who served as crewmembers in the U.S. Merchant Marines, qualifying members of the American Field Service and certain individuals who served with Pan American World Airways during World War II are eligible to receive the exemption.

How do I apply for the exemption?

For details on how to apply, please contact the Town of Islip Assessor's Office at 631-224-5585.

How does the exemption affect non-veteran taxpayers?

Non-veteran taxpayers will see an average increase to their tax bill of $19. To estimate your specific increase, you can use the following formula:

Tax Increase = Assessed Value/100 * 0.04848