HB 1397 Summary

• Expands motor vehicle registration fee exemptions to include disabled veterans with 150% or greater service-connected disability ratings and those with extra-schedular ratings resulting in 100% total disability, in addition to existing exemptions under Public Law 79-663.

• Changes motor vehicle sales and use tax from full exemption to a credit equal to the percentage of the disabled veteran's disability compensation rating for veterans with 50% or greater service-connected disabilities.

• Establishes a motor vehicle excise tax credit equal to the percentage of disability compensation rating for disabled veterans with 50% or greater service-connected disabilities who register vehicles with distinctive license plates.

• Creates an aircraft excise tax credit equal to the percentage of disability compensation rating for disabled veterans with 50% or greater service-connected disabilities, limited to one aircraft per veteran.

• Permits surviving spouses of qualifying disabled veterans who have not remarried and are receiving dependency and indemnity compensation to retain exemptions or credits for one motor vehicle and one aircraft.