The Eligible Funds Exemption is for veterans who bought homes using "eligible funds," including pensions, bonuses, insurance, and mustering out pay. The Veterans Exemption helps veterans and their family members reduce their property taxes.To be eligible, the property must be your primary residence. Obtaining a veterans exemption is not automatic – If you're an eligible veteran, you must submit the initial exemption application form to your assessor. New York offers special benefits for service members, Veterans and their families including property tax exemptions, New York National Guard tuition assistance.