In Louisiana, properties are assessed at 10% of fair market value. The homestead exemption in Louisiana exempts the first $7,500 of assessed value from property taxes. Currently, disabled veterans with a 100% disability rating may receive an additional $7,500 exemption, meaning the first $15,000 of their property's assessed value is exempt from property taxes. The amendment would replace the existing exemption for disabled veterans with a 100% disability rating and expand exemptions to include disabled veterans with disability ratings between 50% and 99%.

Under the amendment, veterans with a service-related disability rating of 50% or more (but below 70%) would receive an additional property tax exemption of $2,500 of assessed value after the first $7,500 homestead property tax exemption, bringing their total exemption to $10,000. Veterans with a service-related disability rating of 70% or more (but below 100%) would receive an additional exemption of $4,500, bringing their total exemption to $12,000. The total assessed value of a property owned by a veteran that is totally disabled or that is rated as 100% unemployable by the U.S. Department of Veterans Affairs would be exempt from property taxes.

The property tax exemptions would be extended to the surviving spouse of a deceased disabled veteran whether or not the exemption was claimed on the property prior to the veteran's death.

The amendment would provide that tax revenue lost due to increased property tax exemptions would be absorbed by the local taxing authority. It would also provide that local taxing authorities cannot create additional taxes for other taxpayers during future reappraisals or millage adjustments because of the exemptions.