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Volume 1 - Opinions of Counsel SBEA No. 29

Opinions of Counsel index

Veterans’ exemption (subsistence allowance) - Real Property Tax Law, § 458:

Subsistence allowance money constitutes eligible funds
(1) to the extent of reasonable rental value of the property, where the property was purchased while the veteran attended school or on-the-job training, or
(2) to the extent of the portion exceeding the reasonable cost of subsistence, where property was purchased after the veteran completed the education or training course.

Section 458 of the Real Property Tax Law provides, in part, that real property purchased with eligible funds and owned by a veteran is exempt from taxation (except school taxes, special ad valorem levies and special assessments) to the extent of such moneys so applied, not exceeding $5,000.

Subsistence allowance moneys constitute eligible funds, within the meaning of the veterans’ exemption statute (section 458, Real Property Tax Law) subject to the following limitations:

(1) If property was purchased with such moneys and occupied by the veteran while attending school or college or during on-the-job training, the reasonable rental value of the property would qualify for exemption purposes.

(2) If the property was purchased after completion of education or on-the-job training, only that portion which exceeds the reasonable cost of subsistence while attending school or in training would qualify for exemption purposes. This rule applies whether or not such moneys were used for subsistence purposes. In most cases the reasonable cost of subsistence exceeds the amount of subsistence moneys received.

August 28, 1969