Tax-Property Article § 7-208 provides an exemption for the dwelling of a veteran who has a disability that the Veterans’ Administration (“VA”) has determined is 100% service-connected, permanently and totally disabling. The disability cannot be due to the misconduct of the veteran. The exemption is for the disabled veteran’s dwelling, which must be their principal residence. The dwelling includes the lot or curtilage and structures necessary to use the property as a residence, such as a garage or utility shed. The disabled veteran must own the dwelling. An Attorney General's Opinion further provides that the exemption may be granted where the rating is less than 100% disability provided the VA finds that the veteran is permanently unemployable. See 61 Op. Attorney Gen. 836 (1976).

The legislative objective is to afford tax relief to those veterans whose service-connected disabilities are so disabling that they prevent them from engaging in gainful employment. The law also provides that the disabled veteran may be awarded a 100% service-connected permanent and total disability posthumously, which would enable the surviving spouse to apply for the surviving spouse exemption.

To qualify for the exemption, there must be a VA rating of a 100% service-connected permanent and total disability. The veteran must provide: 1) the dd-214 form that shows that the veteran has an honorable discharge or release under honorable circumstances; and 2) a copy of the veteran’s final disability rating decision from the VA.

The Department must accept an application for an exemption for a specific dwelling the individual intends to purchase before the house is purchased. Within 15 days of receipt, the Department must process the application and send the applicant a letter of preliminary approval or denial. If the application is preliminarily approved, the letter must include the amount of the tax exemption for the specific dwelling. Once the applicant becomes owner the exemption must be processed. The applicant does not have to file another application.

When a veteran seeks to transfer an exemption from one dwelling to a subsequently acquired residence, the Supervisor has the option of accepting the prior certification of a 100% service-connected permanent and total disability from the VA.

​ Section 7-103 of the Tax-Property Article states that the Department and the Supervisor shall periodically review the list of exempt property to make certain of the continued entitlement to the exemption.

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