By Doenne Brown

LINCOLN, Neb. — A bill introduced Jan. 22, 2025, in the Nebraska Legislature would expand benefits for disabled veterans by broadening the state’s definition of who qualifies and creating a new vehicle tax exemption.

Legislative Bill 650 updates Nebraska’s definition of a “disabled veteran” to align with federal law under 5 U.S. Code § 2108. Previously, the state limited the designation largely to veterans with multiple amputations, loss of limb use, or severe blindness. Under the proposed change, a disabled veteran would include any veteran honorably separated from service who has a verified service-connected disability or is receiving disability compensation or retirement benefits.

The expanded definition would allow more Nebraska veterans to qualify for state tax savings and other veteran-specific identifications and benefits outside the federal Veterans Administration.

LB650 also creates a new tax exemption for disabled veterans by allowing them to register one personal vehicle that is exempt from the Motor Vehicle Tax and Motor Vehicle Fee. Those taxes are based on a vehicle’s value and typically decline over the first 10 years of ownership. For new vehicles, the motor vehicle tax alone can exceed $600 annually in the early years of registration.

The exemption does not apply to sales tax at the time of purchase or to other fees such as plate fees or wheel taxes, which would still be required.

To claim the exemption, veterans must first register with the Nebraska Department of Veterans Affairs Military and Veteran Registry. https://www.nebraska.gov/va_registry/index.cgi 

Once registered, the exemption can be requested when registering or renewing a vehicle in person through a county treasurer’s office, by mail, or online. Veterans may need to provide their Social Security number if it is not already associated with their registration record.

The exemption request must be made within 30 days of purchasing a vehicle. For renewals, the request must be submitted before the final day of the registration’s expiration month. Requests made outside those timeframes would not take effect until the next renewal period.

Additional information and assistance are available through local county Veterans Service offices or the Nebraska Department of Veterans Affairs website.  https://veterans.nebraska.gov/cvso