Amends TCA Title 67, Chapter 5, Part 7.

Under present law, there must be paid from the general funds of the state to certain disabled veterans the amount necessary to pay or reimburse such taxpayers for all or part of the local property taxes paid for a given tax year on that property that the disabled veteran owned and used as the disabled veteran's residence as provided by law. Such reimbursement must be paid on the first $175,000 of the full market value of such property. In determining the amount of relief to a taxpayer, the effective assessed value on the first $175,000 of full market value must be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization. The effective assessed value must be determined by multiplying the full market value of the property up to $175,000 by 25 percent. The full market value of the property must be determined by adjusting the appraised value of the property as shown on the records of the assessor of property by a factor that reflects the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization. For the purposes of this tax relief, a "disabled veteran" means a person who has served in the armed forces of the United States, and who has: (1) Acquired in connection with such service a disability from paraplegia or permanent paralysis of both legs and lower part of the body resulting from traumatic injury or disease to the spinal cord or brain, or from legal blindness, or from loss or loss of use of two or more limbs from any service-connected cause; (2) Acquired 100 percent permanent total disability, as determined by the United States veterans' administration, and such disability resulting from having served as a prisoner of war; or (3) Acquired service-connected permanent and total disability or disabilities, as determined by the United States department of veterans' affairs. Under no conditions can property tax relief extend to any person who was dishonorably discharged from any of the armed services. The determination of the United States veterans' administration concerning the disability status of a veteran must be conclusive for purposes of this section. This bill deletes (2) and (3) under the requirements needed to be considered a disabled veteran and provides, instead, that, in addition to (1), a disabled veteran is a person who has: (2) Acquired a combined disability rating of 100 percent, as determined by the United States department of veterans affairs; or (3) Acquired a disability rating of 100 percent for a permanent and total service-connected disability, as determined by the United States department of veterans affairs, including for a disability from having served as a prisoner of war. This bill adds a taxpayer who is a disabled veteran under (3) must be paid from the general funds of the state the amount necessary to pay or reimburse such taxpayer for all of the local property taxes paid for a given tax year on property that the disabled veteran owned and used as the disabled veteran's residence.