VA HB175

Allows localities to adopt ordinances providing a total real property tax exemption for surviving spouses of Armed Forces members who died in the line of duty, regardless of the assessed value of the dwelling, effective January 1, 2026

Current law limits the full exemption to homes valued at or below the locality's average assessed value for single-family residential dwellings, with only the excess value above average being taxable

The exemption applies to the surviving spouse's principal residence and continues as long as the spouse does not remarry, with no restriction on moving to a different residence

Exemption covers the dwelling and up to one acre of land (or more if the locality provides greater acreage under other exemption programs), including improvements used for housing vehicles or household goods

Qualifying property includes homes held directly, in revocable trusts, irrevocable trusts with life estates, or as a tenant for life, with prorated exemptions for jointly owned properties