Virginia · Property taxVirginia disabled veteran property tax exemption: starting it at closing and the seller's refund

Virginia exempts from real property tax the real property – including the joint property of married individuals – of a veteran rated by the U.S. Department of Veterans Affairs as having a 100 percent service-connected, permanent and total disability, who occupies it as the principal place of residence. The locality must exempt the dwelling and the land it sits on up to one acre, or more acreage if it gives more under its elderly and disabled relief program; a house or manufactured home the veteran owns is exempt even if the veteran doesn't own the land. If the qualified veteran acquires the property, the exemption begins on the date of acquisition, and the previous owner may be entitled to a refund of a pro rata portion of the year's real property taxes. A surviving spouse qualifies if the veteran died on or after January 1, 2011, as long as the spouse doesn't remarry, and keeps the exemption after moving to a different principal residence (Va. Code §58.1-3219.5). The veteran files with the commissioner of the revenue, on local forms, an affidavit or written statement naming the veteran and any spouse occupying the property, stating whether it is jointly owned and certifying that it is the principal residence, plus VA documentation of the rating, and refiles only if the principal residence changes. The veteran may apply before buying by also filing the purchase agreement; the commissioner must decide within 20 business days and state the exemption amount, which takes effect only when the veteran becomes the owner (§58.1-3219.6). The seller's share of the year's taxes is credited from the date of divestment (§58.1-3360).