Veterans with 100% service-connected disabilities would pay no Town of Rye property taxes under a proposed local law heading to public hearing on Aug. 20.
The proposed Local Law No. 2, Year 2026 would opt the Town of Rye into a state program under Real Property Tax Law Section 458-a(11), which grants a full property tax exemption to qualifying seriously disabled veterans on their primary residences. The state law, signed by the governor in December 2025 and amended twice this year, requires each municipality to pass its own local law before the exemption takes effect there.
Town Clerk Hope B. Vespia issued the public notice on Aug. 10 announcing the hearing.
Who qualifies
To be eligible, a veteran must have an honorable discharge and be rated 100% disabled by the U.S. Department of Veterans Affairs as a result of military service. The veteran must also be rated individually unemployable by the VA and have received or be eligible for federal assistance toward specially adapted housing. The exemption covers the veteran's primary residence only.
If adopted, the law would exempt qualifying properties from taxation, special district charges, assessments and special ad valorem levies. The exemption applies to assessment rolls based on taxable status dates on or after Oct. 1, 2026, according to the state Department of Taxation and Finance.
What it doesn't cover
Even if the Town Board passes the local law, the exemption would not automatically extend to school district taxes. Under the 2026-27 state budget, school districts must separately adopt a resolution to offer the benefit. The Rye City School District has not publicly indicated whether it plans to do so.
How to weigh in
The hearing begins at 6 p.m. on Aug. 20 at the Crawford Mansion Community Center, 122 North Ridge St., Rye Brook. Residents can also join via Zoom or watch on the Town of Rye's Facebook Live stream. The Zoom link and meeting details are posted on the Town of Rye website.
A copy of the proposed law is available from Vespia at [email protected] or on the Town of Rye website. The Town Clerk's office is at 222 Grace Church St., 3rd Floor, Port Chester, NY 10573.
The notice does not confirm whether the Town Board will vote on the law at the Aug. 20 meeting or at a later session.
