Vehicle tax exemption proposed for disabled veterans

Disabled veterans would be exempt from motor vehicle taxes under a bill heard by the Transportation and Telecommunications Committee Feb. 2.

Sen. Bruce Bostelman
Sen. Bruce Bostelman

Under LB508, sponsored by Brainard Sen. Bruce Bostelman, a veteran with a 100 percent service-connected disability who was honorably discharged and is drawing on Social Security would be eligible for the motor vehicle tax exemption for one vehicle owned and used for their personal transportation.

A veteran’s surviving spouse who receives dependency and indemnity compensation also would be eligible for the exemption. The bill would take effect Jan. 1, 2022.

Bostelman said the bill would provide much-needed financial relief for disabled veterans and their families who have suffered from a significant loss of income.

“Those individuals have sacrificed a great deal for our nation and any financial support will go a long way,” he said.

Supporting the bill was Greg Holloway, representing the Nebraska Veteran’s Council. As a veteran with a 100 percent service-connected disability, Holloway said he understands how important financial relief is to disabled veterans with fixed incomes.

“I have the ability to earn other income, but it’s very difficult,” he said. “Any money you can actually save will go back into feeding my family or buying that set of tires my car needs.”

No one testified in opposition to LB508 and the committee took no immediate action on it.

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