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Volume 1 - Opinions of Counsel SBEA No. 66

Opinions of Counsel index

Veterans’ exemption (eligible funds) (readjustment allowance, “52-20 Club”) - Real Property Tax Law, § 458:

Veterans’ readjustment allowances received by veterans of World War II (“52-20 Club”) are eligible funds within the meaning of section 458 of the Real Property Tax Law and would qualify for exemption if such funds were applied toward the purchase price of real property.

In order to be entitled to the veterans’ exemption provided by section 458 of the Real Property Tax Law, the property must have been purchased with eligible funds and be owned by a member of the exempt class.

The statute specifies that proceeds of a pension, bonus or insurance received by the veteran for military services are to be considered eligible funds for purposes of the exemption.

Readjustment allowances, commonly referred to as “52-20 Club” monies are in the nature of insurance and therefore such proceeds come within the language of the statute and must be considered eligible funds. We have advised local assessing officials that where an applicant is able to substantiate the fact that he has preserved his readjustment allowance and has used such moneys in the purchase of his real property, exemption should be granted to the extent of the monies so used.

April 21, 1972