AB 1556: Property taxation: exemptions: disabled veterans.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-05-16
Existing property tax law provides, pursuant to the authorization of the California Constitution, a disabled veterans property tax exemption for the principal place of residence of a veteran or a veterans spouse, including an unmarried surviving spouse, if the veteran, because of injury incurred in military service, is blind in both eyes, has lost the use of 2 or more limbs, or is totally disabled, as those terms are defined, or if the veteran has, as a result of a service-connected injury or disease, died while on active duty in military service. Existing law exempts that part of the full value of the residence that does not exceed $100,000, or $150,000, if the veterans household income does not exceed $40,000, adjusted annually for inflation, as specified.
This bill, for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter, commencing with the lien date for the 201718 fiscal year, would instead exempt that portion of the full value of the principal place of residence of a veteran or veterans spouse that does not exceed $2,100,000, adjusted annually for inflation, as specified. The bill would also define the term blind in both eyes to mean that the veteran is a blind person, as defined in a specific statute. The bill would also specify that a totally disabled veteran includes a veteran so severely disabled as to be unable to move without the aid of an assistive device. The bill would make other technical and conforming changes to the disabled veterans property tax exemption. The bill would repeal these provisions on the earlier of January 1, 2020, or the first property tax lien date following a determination by the Commission on State Mandates that these provisions impose reimbursable costs mandated by the state that are payable from the General Fund.
By changing the manner in which local tax officials administer the disabled veterans property tax exemption, this bill would impose a state-mandated local program.
Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
This bill would take effect immediately as a tax levy.
Existing property tax law provides, pursuant to the authorization of the California Constitution, a disabled veterans property tax exemption for the principal place of residence of a veteran or a veterans spouse, including an unmarried surviving spouse, if the veteran, because of injury incurred in military service, is blind in both eyes, has lost the use of 2 or more limbs, or is totally disabled, as those terms are defined, or if the veteran has, as a result of a service-connected injury or disease, died while on active duty in military service. Existing law exempts that part of the full value of the residence that does not exceed $100,000, or $150,000, if the veterans household income does not exceed $40,000, adjusted annually for inflation, as specified.
This bill would, beginning with property tax lien dates for the 201718 fiscal year, bill, for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter, would instead exempt that portion of the full value of the principal place of residence of a veteran or veterans spouse. spouse that does not exceed $2,100,000, adjusted annually for inflation, as specified. The bill would also define the term blind in both eyes to mean that the veteran is a blind person, as defined in a specific statute. The bill would also specify that a totally disabled veteran includes a veteran so severely disabled as to be unable to move without the aid of an assistive device. The bill would make other technical and conforming changes to the disabled veterans property tax exemption.
By changing the manner in which local tax officials administer the disabled veterans property tax exemption, this bill would impose a state-mandated local program.
Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
This bill would take effect immediately as a tax levy.
Existing property tax law provides, pursuant to the authorization of the California Constitution, a disabled veterans property tax exemption for the principal place of residence of a veteran or a veterans spouse, including an unmarried surviving spouse, if the veteran, because of injury incurred in military service, is blind in both eyes, has lost the use of 2 or more limbs, or is totally disabled, as those terms are defined, or if the veteran has, as a result of a service-connected injury or disease, died while on active duty in military service. Existing law exempts that part of the full value of the residence that does not exceed $100,000, or $150,000, if the veterans household income does not exceed $40,000, adjusted for inflation, as specified.
This bill would would, beginning with property tax lien dates for the 201718 fiscal year, instead exempt the full value of the principal place of residence of a veteran or veterans spouse. The bill would also define the term blind in both eyes to mean that the veteran is a blind person, as defined in a specific statute. The bill would also specify that a totally disabled veteran includes a veteran so severely disabled as to be unable to move without the aid of an assistive device. The bill would make other technical and conforming changes to the disabled veterans property tax exemption.
By changing the manner in which local tax officials administer the disabled veterans property tax exemption, this bill would impose a state-mandated local program.
Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
This bill would take effect immediately as a tax levy.
Existing property tax law provides, pursuant to the authorization of the California Constitution, a disabled veterans property tax exemption for the principal place of residence of a veteran or a veterans spouse, including an unmarried surviving spouse, if the veteran, because of injury incurred in military service, is blind in both eyes, has lost the use of 2 or more limbs, or is totally disabled, as those terms are defined, or if the veteran has, as a result of a service-connected injury or disease, died while on active duty in military service. Existing law exempts that part of the full value of the residence that does not exceed $100,000, or $150,000, if the veterans household income does not exceed $40,000, adjusted for inflation, as specified.
This bill would instead exempt the full value of the principal place of residence of a veteran or veterans spouse. The bill would also define the term blind in both eyes to mean that the veteran is a blind person, as defined in a specific statute. The bill would also specify that a totally disabled veteran includes a veteran so severely disabled as to be unable to move without the aid of an assistive device. The bill would make other technical and conforming changes to the disabled veterans property tax exemption.
By changing the manner in which local tax officials administer the disabled veterans property tax exemption, this bill would impose a state-mandated local program.
Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
This bill would take effect immediately as a tax levy.
Existing property tax law provides, pursuant to the authorization of the California Constitution, a disabled veterans property tax exemption for the principal place of residence of a veteran or a veterans spouse, including an unmarried surviving spouse, if the veteran, because of injury incurred in military service, is blind in both eyes, has lost the use of 2 or more limbs, or is totally disabled, as those terms are defined, or if the veteran has, as a result of a service-connected injury or disease, died while on active duty in military service. Existing law exempts that part of the full value of the residence that does not exceed $100,000, or $150,000, if the veterans household income does not exceed $40,000, adjusted for inflation, as specified.
This bill would instead exempt the full value of the principal place of residence of a veteran or veterans spouse. The bill would also define the term blind in both eyes to mean that the veteran is a blind person, as defined in a specific statute. The bill would also specify that a totally disabled veteran includes a veteran so severely disabled as to be unable to move without the aid of an assistive device. The bill would make other technical and conforming changes to the disabled veterans property tax exemption.
By changing the manner in which local tax officials administer the disabled veterans property tax exemption, this bill would impose a state-mandated local program.
Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
This bill would take effect immediately as a tax levy.
(a)Property that constitutes the principal place of residence of a veteran and that is owned by the veteran, the veterans spouse, or the veteran and the veterans spouse jointly is exempted from taxation on that part of the full value of the residence that does not exceed two million one hundred thousand dollars ($2,100,000), as adjusted for the relevant assessment year as provided in subdivision (g), if the veteran is blind in both eyes, has lost the use of two or more limbs, or if the veteran is totally disabled as a result of injury or disease incurred in military service.
(b)(1)For purposes of this section, veteran means either of the following:
(A)A veteran as specified in subdivision (o) of Section 3 of Article XIII of the California Constitution, except for the limitation on the value of property owned by the veteran or the veterans spouse.
(B)A person who would qualify as a veteran pursuant to paragraph (1) except that he or she has, as a result of a service-connected injury or disease, as determined by the United States Department of Veterans Affairs, died while on active duty in military service.
(2)For purposes of this section, property is deemed to be the principal place of residence of a veteran, disabled as described in subdivision (a), who is confined to a hospital or other care facility, if that property would be that veterans principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. For the purposes of this paragraph, a family member that resides at the residence is not a third party.
(c)(1)Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a deceased veteran is exempt from taxation on that part of the full value of the residence that does not exceed two million one hundred thousand dollars ($2,100,000), as adjusted for the relevant assessment year as provided in subdivision (g), if the deceased veteran was blind in both eyes, had lost the use of two or more limbs, or was totally disabled, provided that either of the following conditions is met:
(A)The deceased veteran during his or her lifetime qualified for the exemption pursuant to subdivision (a), or would have qualified for the exemption under the laws effective on January 1, 1977, except that the veteran died prior to January 1, 1977.
(B)The veteran died from a disease that was service-connected, as determined by the United States Department of Veterans Affairs.
(2)Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran described in subparagraph (B) of paragraph (1) of subdivision (b) is exempt from taxation on that part of the full value of the residence that does not exceed two million one hundred thousand dollars ($2,100,000), as adjusted for the relevant assessment year as provided in subdivision (g).
(3)Property is deemed to be the principal place of residence of the unmarried surviving spouse of a deceased veteran, who is confined to a hospital or other care facility, if that property would be the unmarried surviving spouses principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. For purposes of this paragraph, a family member who resides at the residence is not a third party.
(d)As used in this section, property that is owned by a veteran or property that is owned by the veterans unmarried surviving spouse includes all of the following:
(1)Property owned by the veteran with the veterans spouse as a joint tenancy, tenancy in common, or as community property.
(2)Property owned by the veteran or the veterans spouse as separate property.
(3)Property owned with one or more other persons to the extent of the interest owned by the veteran, the veterans spouse, or both the veteran and the veterans spouse.
(4)Property owned by the veterans unmarried surviving spouse with one or more other persons to the extent of the interest owned by the veterans unmarried surviving spouse.
(5)That portion of the property of a corporation that constitutes the principal place of residence of a veteran or a veterans unmarried surviving spouse when the veteran, the veterans spouse, or the veterans unmarried surviving spouse is a shareholder of the corporation and the rights of shareholding entitle one to the possession of property, legal title to which is owned by the corporation. The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property. Notwithstanding any law or articles of incorporation or bylaws of a corporation described in this paragraph, any reduction of property taxes paid by the corporation shall reflect an equal reduction in any charges by the corporation to the person who, by reason of qualifying for the exemption, made possible the reduction for the corporation.
(e)For purposes of this section, the following definitions shall apply:
(1)Being blind in both eyes means that the veteran is a blind person, as that term is defined in Section 19153 of the Welfare and Institutions Code as that section read on January 1, 2016.
(2)Lost the use of two or more limbs means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis.
(3)Totally disabled means that the veteran has a disability which the United States Department of Veterans Affairs or the military service from which the veteran was discharged has rated at 100 percent, or rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation, or the veteran is so severely disabled as to be unable to move without the aid of an assistive device.
(f)An exemption granted to a claimant pursuant to this section shall be in lieu of the veterans exemption provided by subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the California Constitution and any other real property tax exemption to which the claimant may be entitled. No other real property tax exemption shall be granted to any other person with respect to the same residence for which an exemption has been granted pursuant to this section; provided, that if two or more veterans qualified pursuant to this section coown a property in which they reside, each is entitled to the exemption to the extent of his or her interest.
(g)Commencing on January 1, 2018, and for each assessment year thereafter, the exemption amounts set forth in subdivisions (a) and (c) shall be compounded annually by an inflation factor that is the annual percentage change, measured from February to February of the two previous assessment years, rounded to the nearest one-thousandth of 1 percent, in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations.
(h)The amendments made to this section by the act adding this subdivision shall apply for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter. commencing with the lien date for the 201718 fiscal year.
(i)This section shall remain in effect only until, and is repealed as of, the earlier of either of the following:
(1)January 1, 2020.
(2)The first property tax lien date following a determination by the Commission on State Mandates that the amendments made to this section by the act adding this subdivision impose reimbursable costs mandated by the state pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code that are payable from the General Fund.
SEC. 2.Section 205.5 is added to the Revenue and Taxation Code, to read:205.5.(a)Property that constitutes the principal place of residence of a veteran and that is owned by the veteran, the veterans spouse, or the veteran and the veterans spouse jointly is exempted from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (h), if the veteran is blind in both eyes, has lost the use of two or more limbs, or is totally disabled as a result of injury or disease incurred in military service. The one-hundred-thousand-dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of an eligible veteran whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g).
(b)(1)For purposes of this section, veteran means either of the following:
(A)A veteran as specified in subdivision (o) of Section 3 of Article XIII of the California Constitution without regard to any limitation contained therein on the value of property owned by the veteran or the veterans spouse.
(B)Any person who would qualify as a veteran pursuant to paragraph (1) except that he or she has, as a result of a service-connected injury or disease, died while on active duty in military service. The United States Department of Veterans Affairs shall determine whether an injury or disease is service connected.
(2)For purposes of this section, property is deemed to be the principal place of residence of a veteran, disabled as described in subdivision (a), who is confined to a hospital or other care facility if that property would be that veterans principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. A family member that resides at the residence is not considered to be a third party.
(c)(1)Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a deceased veteran is exempt from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of a veteran who was blind in both eyes, had lost the use of two or more limbs, or was totally disabled provided that either of the following conditions is met:
(A)The deceased veteran during his or her lifetime qualified in all respects for the exemption or would have qualified for the exemption under the laws effective on January 1, 1977, except that the veteran died prior to January 1, 1977.
(B)The veteran died from a disease that was service connected as determined by the United States Department of Veterans Affairs.
The one-hundred-thousand-dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of an eligible unmarried surviving spouse whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g).
(2)Commencing with the 199495 fiscal year, property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran as described in subparagraph (B) of paragraph (1) of subdivision (b) is exempt from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (h). The one-hundred-thousand-dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of an eligible unmarried surviving spouse whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g).
(3)Beginning with the 201213 fiscal year and for each fiscal year thereafter, property is deemed to be the principal place of residence of the unmarried surviving spouse of a deceased veteran who is confined to a hospital or other care facility if that property would be the unmarried surviving spouses principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. For purposes of this paragraph, a family member who resides at the residence is not considered to be a third party.
(d)As used in this section, property that is owned by a veteran or property that is owned by the veterans unmarried surviving spouse includes all of the following:
(1)Property owned by the veteran with the veterans spouse as a joint tenancy, tenancy in common, or community property.
(2)Property owned by the veteran or the veterans spouse as separate property.
(3)Property owned with one or more other persons to the extent of the interest owned by the veteran, the veterans spouse, or both the veteran and the veterans spouse.
(4)Property owned by the veterans unmarried surviving spouse with one or more other persons to the extent of the interest owned by the veterans unmarried surviving spouse.
(5)So much of the property of a corporation as constitutes the principal place of residence of a veteran or a veterans unmarried surviving spouse when the veteran, or the veterans spouse, or the veterans unmarried surviving spouse is a shareholder of the corporation and the rights of shareholding entitle one to the possession of property, legal title to which is owned by the corporation. The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property. Notwithstanding any provision of law or articles of incorporation or bylaws of a corporation described in this paragraph, any reduction of property taxes paid by the corporation shall reflect an equal reduction in any charges by the corporation to the person who, by reason of qualifying for the exemption, made possible the reduction for the corporation.
(e)For purposes of this section, being blind in both eyes means having a visual acuity of 5/200 or less, or concentric contraction of the visual field to 5 degrees or less; losing the use of a limb means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis; and being totally disabled means that the United States Department of Veterans Affairs or the military service from which the veteran was discharged has rated the disability at 100 percent or has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation.
(f)An exemption granted to a claimant in accordance with the provisions of this section shall be in lieu of the veterans exemption provided by subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the California Constitution and any other real property tax exemption to which the claimant may be entitled. No other real property tax exemption may be granted to any other person with respect to the same residence for which an exemption has been granted under the provisions of this section, provided that, if two or more veterans qualified pursuant to this section coown a property in which they reside, each is entitled to the exemption to the extent of his or her interest.
(g)Commencing on January 1, 2002, and for each assessment year thereafter, the household income limit shall be compounded annually by an inflation factor that is the annual percentage change, measured from February to February of the two previous assessment years, rounded to the nearest one-thousandth of 1 percent, in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations.
(h)Commencing on January 1, 2006, and for each assessment year thereafter, the exemption amounts set forth in subdivisions (a) and (c) shall be compounded annually by an inflation factor that is the annual percentage change, measured from February to February of the two previous assessment years, rounded to the nearest one-thousandth of 1 percent, in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations.
(i)This section shall become operative on the earlier of either of the following:
(1)January 1, 2020.
(2)The first property tax lien date following a determination by the Commission on State Mandates that the amendments made by the act adding this section impose reimbursable costs mandated by the state pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code that are payable from the General Fund.
SEC. 2.SEC. 3.Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
SEC. 3.SEC. 4.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4.SEC. 5.This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
(a)Property that constitutes the principal place of residence of a veteran, veteran and that is owned by the veteran, the veterans spouse, or the veteran and the veterans spouse jointly, jointly is exempted from taxation on that part of the full value of the residence that does not exceed two million one hundred dollars ($2,100,000), as adjusted for the relevant assessment year as provided in subdivision (g), if the veteran is blind in both eyes, has lost the use of two or more limbs, or if the veteran is totally disabled as a result of injury or disease incurred in military service.
(b)(1)For purposes of this section, veteran means either of the following:
(A)A veteran as specified in subdivision (o) of Section 3 of Article XIII of the California Constitution, except for the limitation on the value of property owned by the veteran or the veterans spouse.
(B)A person who would qualify as a veteran pursuant to paragraph (1) except that he or she has, as a result of a service-connected injury or disease, as determined by the United States Department of Veterans Affairs, died while on active duty in military service.
(2)For purposes of this section, property is deemed to be the principal place of residence of a veteran, disabled as described in subdivision (a), who is confined to a hospital or other care facility, if that property would be that veterans principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. For the purposes of this paragraph, a family member that resides at the residence is not a third party.
(c)(1)Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a deceased veteran is exempt from taxation on that part of the full value of the residence that does not exceed two million one hundred dollars ($2,100,000), as adjusted for the relevant assessment year as provided in subdivision (g), if the deceased veteran was blind in both eyes, had lost the use of two or more limbs, or was totally disabled, provided that either of the following conditions is met:
(A)The deceased veteran during his or her lifetime qualified for the exemption pursuant to subdivision (a), or would have qualified for the exemption under the laws effective on January 1, 1977, except that the veteran died prior to January 1, 1977.
(B)The veteran died from a disease that was service-connected, as determined by the United States Department of Veterans Affairs.
(2)Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran described in subparagraph (B) of paragraph (1) of subdivision (b) is exempt from taxation. taxation on that part of the full value of the residence that does not exceed two million one hundred dollars ($2,100,000), as adjusted for the relevant assessment year as provided in subdivision (g).
(3)Property is deemed to be the principal place of residence of the unmarried surviving spouse of a deceased veteran, who is confined to a hospital or other care facility, if that property would be the unmarried surviving spouses principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. For purposes of this paragraph, a family member who resides at the residence is not a third party.
(d)As used in this section, property that is owned by a veteran or property that is owned by the veterans unmarried surviving spouse includes all of the following:
(1)Property owned by the veteran with the veterans spouse as a joint tenancy, tenancy in common, or as community property.
(2)Property owned by the veteran or the veterans spouse as separate property.
(3)Property owned with one or more other persons to the extent of the interest owned by the veteran, the veterans spouse, or both the veteran and the veterans spouse.
(4)Property owned by the veterans unmarried surviving spouse with one or more other persons to the extent of the interest owned by the veterans unmarried surviving spouse.
(5)That portion of the property of a corporation that constitutes the principal place of residence of a veteran or a veterans unmarried surviving spouse when the veteran, the veterans spouse, or the veterans unmarried surviving spouse is a shareholder of the corporation and the rights of shareholding entitle one to the possession of property, legal title to which is owned by the corporation. The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property. Notwithstanding any law or articles of incorporation or bylaws of a corporation described in this paragraph, any reduction of property taxes paid by the corporation shall reflect an equal reduction in any charges by the corporation to the person who, by reason of qualifying for the exemption, made possible the reduction for the corporation.
(e)For purposes of this section, the following definitions shall apply:
(1)Being blind in both eyes means that the veteran is a blind person, as that term is defined in Section 19153 of the Welfare and Institutions Code as that section read on January 1, 2016.
(2)Lost the use of two or more limbs means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis.
(3)Totally disabled means that the veteran has a disability which the United States Department of Veterans Affairs or the military service from which the veteran was discharged has rated at 100 percent percent, or rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation, or the veteran is so severely disabled as to be unable to move without the aid of an assistive device.
(f)An exemption granted to a claimant pursuant to this section shall be in lieu of the veterans exemption provided by subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the California Constitution and any other real property tax exemption to which the claimant may be entitled. No other real property tax exemption shall be granted to any other person with respect to the same residence for which an exemption has been granted pursuant to this section; provided, that if two or more veterans qualified pursuant to this section coown a property in which they reside, each is entitled to the exemption to the extent of his or her interest.
(g)Commencing on January 1, 2018, and for each assessment year thereafter, the exemption amounts set forth in subdivisions (a) and (c) shall be compounded annually by an inflation factor that is the annual percentage change, measured from February to February of the two previous assessment years, rounded to the nearest one-thousandth of 1 percent, in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations.
(g)
(h)The amendments made to this section by the act adding this subdivision apply for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter.
SEC. 2.Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4.This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
(a)Property that constitutes the principal place of residence of a veteran, that is owned by the veteran, the veterans spouse, or the veteran and the veterans spouse jointly, is exempted from taxation if the veteran is blind in both eyes, has lost the use of two or more limbs, or if the veteran is totally disabled as a result of injury or disease incurred in military service.
(b)(1)For purposes of this section, veteran means either of the following:
(A)A veteran as specified in subdivision (o) of Section 3 of Article XIII of the California Constitution, except for the limitation on the value of property owned by the veteran or the veterans spouse.
(B)A person who would qualify as a veteran pursuant to paragraph (1) except that he or she has, as a result of a service-connected injury or disease, as determined by the United States Department of Veterans Affairs, died while on active duty in military service.
(2)For purposes of this section, property is deemed to be the principal place of residence of a veteran, disabled as described in subdivision (a), who is confined to a hospital or other care facility, if that property would be that veterans principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. For the purposes of this paragraph, a family member that resides at the residence is not a third party.
(c)(1)Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a deceased veteran is exempt from taxation if the deceased veteran was blind in both eyes, had lost the use of two or more limbs, or was totally disabled, provided that either of the following conditions is met:
(A)The deceased veteran during his or her lifetime qualified for the exemption pursuant to subdivision (a), or would have qualified for the exemption under the laws effective on January 1, 1977, except that the veteran died prior to January 1, 1977.
(B)The veteran died from a disease that was service-connected, as determined by the United States Department of Veterans Affairs.
(2)Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran described in subparagraph (B) of paragraph (1) of subdivision (b) is exempt from taxation.
(3)Property is deemed to be the principal place of residence of the unmarried surviving spouse of a deceased veteran, who is confined to a hospital or other care facility, if that property would be the unmarried surviving spouses principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. For purposes of this paragraph, a family member who resides at the residence is not a third party.
(d)As used in this section, property that is owned by a veteran or property that is owned by the veterans unmarried surviving spouse includes all of the following:
(1)Property owned by the veteran with the veterans spouse as a joint tenancy, tenancy in common, or as community property.
(2)Property owned by the veteran or the veterans spouse as separate property.
(3)Property owned with one or more other persons to the extent of the interest owned by the veteran, the veterans spouse, or both the veteran and the veterans spouse.
(4)Property owned by the veterans unmarried surviving spouse with one or more other persons to the extent of the interest owned by the veterans unmarried surviving spouse.
(5)That portion of the property of a corporation that constitutes the principal place of residence of a veteran or a veterans unmarried surviving spouse when the veteran, the veterans spouse, or the veterans unmarried surviving spouse is a shareholder of the corporation and the rights of shareholding entitle one to the possession of property, legal title to which is owned by the corporation. The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property. Notwithstanding any law or articles of incorporation or bylaws of a corporation described in this paragraph, any reduction of property taxes paid by the corporation shall reflect an equal reduction in any charges by the corporation to the person who, by reason of qualifying for the exemption, made possible the reduction for the corporation.
(e)For purposes of this section, the following definitions shall apply:
(1)Being blind in both eyes means that the veteran is a blind person, as that term is defined in Section 19153 of the Welfare and Institutions Code as that section read on January 1, 2016.
(2)Lost the use of two or more limbs means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis.
(3)Totally disabled means that the veteran has a disability which the United States Department of Veterans Affairs or the military service from which the veteran was discharged has rated at 100 percent, the veteran is so severely disabled as to be unable to move without the aid of an assistive device, or the veteran has percent or rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation. occupation, or the veteran is so severely disabled as to be unable to move without the aid of an assistive device.
(f)An exemption granted to a claimant pursuant to this section shall be in lieu of the veterans exemption provided by subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the California Constitution and any other real property tax exemption to which the claimant may be entitled. No other real property tax exemption shall be granted to any other person with respect to the same residence for which an exemption has been granted pursuant to this section; provided, that if two or more veterans qualified pursuant to this section coown a property in which they reside, each is entitled to the exemption to the extent of his or her interest.
(g)The amendments made to this section by the act adding this subdivision apply for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter.
SEC. 2.Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4.This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
(a)Property that constitutes the principal place of residence of a veteran, that is owned by the veteran, the veterans spouse, or the veteran and the veterans spouse jointly, is exempted from taxation if the veteran is blind in both eyes, has lost the use of two or more limbs, or if the veteran is totally disabled as a result of injury or disease incurred in military service.
(b)(1)For purposes of this section, veteran means either of the following:
(A)A veteran as specified in subdivision (o) of Section 3 of Article XIII of the California Constitution, except for the limitation on the value of property owned by the veteran or the veterans spouse.
(B)A person who would qualify as a veteran pursuant to paragraph (1) except that he or she has, as a result of a service-connected injury or disease, as determined by the United States Department of Veterans Affairs, died while on active duty in military service.
(2)For purposes of this section, property is deemed to be the principal place of residence of a veteran, disabled as described in subdivision (a), who is confined to a hospital or other care facility, if that property would be that veterans principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. For the purposes of this paragraph, a family member that resides at the residence is not a third party.
(c)(1)Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a deceased veteran is exempt from taxation if the deceased veteran was blind in both eyes, had lost the use of two or more limbs, or was totally disabled, provided that either of the following conditions is met:
(A)The deceased veteran during his or her lifetime qualified for the exemption pursuant to subdivision (a), or would have qualified for the exemption under the laws effective on January 1, 1977, except that the veteran died prior to January 1, 1977.
(B)The veteran died from a disease that was service-connected, as determined by the United States Department of Veterans Affairs.
(2)Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran described in subparagraph (B) of paragraph (1) of subdivision (b) is exempt from taxation.
(3)Property is deemed to be the principal place of residence of the unmarried surviving spouse of a deceased veteran, who is confined to a hospital or other care facility, if that property would be the unmarried surviving spouses principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. For purposes of this paragraph, a family member who resides at the residence is not a third party.
(d)As used in this section, property that is owned by a veteran or property that is owned by the veterans unmarried surviving spouse includes all of the following:
(1)Property owned by the veteran with the veterans spouse as a joint tenancy, tenancy in common, or as community property.
(2)Property owned by the veteran or the veterans spouse as separate property.
(3)Property owned with one or more other persons to the extent of the interest owned by the veteran, the veterans spouse, or both the veteran and the veterans spouse.
(4)Property owned by the veterans unmarried surviving spouse with one or more other persons to the extent of the interest owned by the veterans unmarried surviving spouse.
(5)That portion of the property of a corporation that constitutes the principal place of residence of a veteran or a veterans unmarried surviving spouse when the veteran, the veterans spouse, or the veterans unmarried surviving spouse is a shareholder of the corporation and the rights of shareholding entitle one to the possession of property, legal title to which is owned by the corporation. The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property. Notwithstanding any law or articles of incorporation or bylaws of a corporation described in this paragraph, any reduction of property taxes paid by the corporation shall reflect an equal reduction in any charges by the corporation to the person who, by reason of qualifying for the exemption, made possible the reduction for the corporation.
(e)For purposes of this section, the following definitions shall apply:
(1)Being blind in both eyes means that the veteran is a blind person, as that term is defined in Section 19153 of the Welfare and Institutions Code as that section read on January 1, 2016.
(2)Lost the use of two or more limbs means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis.
(3)Totally disabled means that the veteran has a disability which the United States Department of Veterans Affairs or the military service from which the veteran was discharged has rated at 100 percent, the veteran is so severely disabled as to be unable to move without the aid of an assistive device, or the veteran has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation.
(f)An exemption granted to a claimant pursuant to this section shall be in lieu of the veterans exemption provided by subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the California Constitution and any other real property tax exemption to which the claimant may be entitled. No other real property tax exemption may shall be granted to any other person with respect to the same residence for which an exemption has been granted pursuant to this section; provided, that if two or more veterans qualified pursuant to this section coown a property in which they reside, each is entitled to the exemption to the extent of his or her interest.
SEC. 2.Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4.This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.
(a)Property that constitutes the principal place of residence of a veteran, that is owned by the veteran, the veterans spouse, or the veteran and the veterans spouse jointly, is exempted from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (h), if the veteran is blind in both eyes, has lost the use of two or more limbs, or if the veteran is totally disabled as a result of injury or disease incurred in military service. The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of an eligible veteran whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g).
(b)(1)For purposes of this section, veteran means either of the following:
(A)A veteran as specified in subdivision (o) of Section 3 of Article XIII of the California Constitution without regard to any Constitution, except for the limitation contained therein on the value of property owned by the veteran or the veterans spouse.
(B)Any A person who would qualify as a veteran pursuant to paragraph (1) except that he or she has, as a result of a service-connected injury or disease, as determined by the United States Department of Veterans Affairs, died while on active duty in military service. The United States Department of Veterans Affairs shall determine whether an injury or disease is service connected.
(2)For purposes of this section, property is deemed to be the principal place of residence of a veteran, disabled as described in subdivision (a), who is confined to a hospital or other care facility, if that property would be that veterans principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. A For the purposes of this paragraph, a family member that resides at the residence is not considered to be a third party.
(c)(1)Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a deceased veteran is exempt from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of a if the deceased veteran who was blind in both eyes, had lost the use of two or more limbs, or was totally disabled disabled, provided that either of the following conditions is met:
(A)The deceased veteran during his or her lifetime qualified in all respects for the exemption pursuant to subdivision (a), or would have qualified for the exemption under the laws effective on January 1, 1977, except that the veteran died prior to January 1, 1977.
(B)The veteran died from a disease that was service connected service-connected, as determined by the United States Department of Veterans Affairs.
The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of an eligible unmarried surviving spouse whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g).
(2)Commencing with the 199495 fiscal year, property Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran as described in subparagraph (B) of paragraph (1) of subdivision (b) is exempt from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (h). The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of an eligible unmarried surviving spouse whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g). taxation.
(3)Beginning with the 201213 fiscal year and for each fiscal year thereafter, property Property is deemed to be the principal place of residence of the unmarried surviving spouse of a deceased veteran, who is confined to a hospital or other care facility, if that property would be the unmarried surviving spouses principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. For purposes of this paragraph, a family member who resides at the residence is not considered to be a third party.
(d)As used in this section, property that is owned by a veteran or property that is owned by the veterans unmarried surviving spouse includes all of the following:
(1)Property owned by the veteran with the veterans spouse as a joint tenancy, tenancy in common, or as community property.
(2)Property owned by the veteran or the veterans spouse as separate property.
(3)Property owned with one or more other persons to the extent of the interest owned by the veteran, the veterans spouse, or both the veteran and the veterans spouse.
(4)Property owned by the veterans unmarried surviving spouse with one or more other persons to the extent of the interest owned by the veterans unmarried surviving spouse.
(5)So much of the That portion of the property of a corporation as that constitutes the principal place of residence of a veteran or a veterans unmarried surviving spouse when the veteran, or the veterans spouse, or the veterans unmarried surviving spouse is a shareholder of the corporation and the rights of shareholding entitle one to the possession of property, legal title to which is owned by the corporation. The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property. Notwithstanding any provision of law or articles of incorporation or bylaws of a corporation described in this paragraph, any reduction of property taxes paid by the corporation shall reflect an equal reduction in any charges by the corporation to the person who, by reason of qualifying for the exemption, made possible the reduction for the corporation.
(e)For purposes of this section, being the following definitions shall apply:
(1)Being blind in both eyes eyes means having a visual acuity of 5/200 or less, or concentric contraction of the visual field to 5 degrees or less; losing that the veteran is a blind person, as that term is defined in Section 19153 of the Welfare and Institutions Code as that section read on January 1, 2016.
(2)Lost the use of a limb two or more limbs means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis; and being totally disabled paralysis.
(3)Totally disabled means that the veteran has a disability which the United States Department of Veterans Affairs or the military service from which the veteran was discharged has rated the disability at 100 percent or percent, the veteran is so severely disabled as to be unable to move without the aid of an assistive device, or the veteran has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation.
(f)An exemption granted to a claimant in accordance with the provisions of pursuant to this section shall be in lieu of the veterans exemption provided by subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the California Constitution and any other real property tax exemption to which the claimant may be entitled. No other real property tax exemption may be granted to any other person with respect to the same residence for which an exemption has been granted under the provisions of pursuant to this section; provided, that if two or more veterans qualified pursuant to this section coown a property in which they reside, each is entitled to the exemption to the extent of his or her interest.
(g)Commencing on January 1, 2002, and for each assessment year thereafter, the household income limit shall be compounded annually by an inflation factor that is the annual percentage change, measured from February to February of the two previous assessment years, rounded to the nearest one-thousandth of 1 percent, in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations.
(h)Commencing on January 1, 2006, and for each assessment year thereafter, the exemption amounts set forth in subdivisions (a) and (c) shall be compounded annually by an inflation factor that is the annual percentage change, measured from February to February of the two previous assessment years, rounded to the nearest one-thousandth of 1 percent, in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations.
SEC. 2.Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4.This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.
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Date
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Status
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|---|---|
| Apr 28, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended. |
| May 27, 2016 | Joint Rule 62(a), file notice suspended. (Page 4943.) |
| May 27, 2016 | Joint Rule 62(a), file notice suspended. |
| May 27, 2016 | In committee: Held under submission. |
| May 25, 2016 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| May 17, 2016 | Re-referred to Com. on APPR. |
| May 16, 2016 | Read second time and amended. |
| May 12, 2016 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (May 9). |
| May 2, 2016 | Re-referred to Com. on REV. & TAX. |
| Jan 4, 2016 | Read first time. To print. |
| Apr 4, 2016 | In committee: Set, first hearing. Referred to suspense file. |
| Mar 29, 2016 | Re-referred to Com. on REV. & TAX. |
| Mar 28, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended. |
| Mar 10, 2016 | In committee: Hearing postponed by committee. |
| Feb 29, 2016 | Re-referred to Com. on REV. & TAX. |
| Feb 25, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended. |
| Feb 1, 2016 | Referred to Com. on REV. & TAX. |
| Jan 5, 2016 | From printer. May be heard in committee February 4. |
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Date
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Description
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Location
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Votes
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| May 9, 2016 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Revenue and Taxation |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| American G. I. Forum of California | ** Support | May 27, 2016 |
| American Legion- Department of California | ** Support | May 27, 2016 |
| AMVETS-Department of California | ** Support | May 27, 2016 |
| California Association of County Veteran Service Officers | ** Support | May 27, 2016 |
| California State Commanders Service Council | ** Support | May 27, 2016 |
| Howard Jarvis Taxpayers Association | ** Support | May 27, 2016 |
| VFW-Department of California | ** Support | May 27, 2016 |
| Vietnam Veterans Of America, California State Council | ** Support | May 27, 2016 |
Date of Hearing: May 25, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
ABPCA Bill Id:AB 1556
Author:(Mathis) – As Amended Ver:May 16, 2016
Policy Committee: | Revenue and Taxation | Vote: | 9 - 0 |
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Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill expands the Disabled Veterans’ Exemption, which exempts a portion of eligible veterans’ home from property taxes. Specifically, this bill:
- Increases the amount of a home’s value that is exempt from property taxes $100,000, or $150,000 for low-income households, to $2.1 million for all eligible households, regardless of income level. This exemption amount commences with lien dates for the 2017-18 fiscal year, and is repealed either by January 1, 2020 or when the Commission on State mandates determines that there are reimbursable costs that are payable from the General Fund.
- Adjusts the exemption amount by inflation starting on January 1, 2018.
- Modifies the definition of disabled for the purposes of this tax exemption to include veterans who are blind in both eyes, have lost the use of two or more limbs, or are unable to move without the aid of an assistive device.
FISCAL EFFECT:
- Annual local property tax revenue loss of approximately $66 million for FY 2017-18 and FY 2018-19, resulting in GF costs of approximately $32.5 million for those two fiscal years as a result of the Proposition 98 guarantee.
- Unknown fiscal costs due to the changes in the definition of disabled.
- The state does not reimburse local governments for the property tax revenue loss from the Disabled Veterans’ Exemption. Therefore, this bill will result in revenue losses for local governments, especially counties that are home to a greater number of disabled veterans and surviving spouses. According to the Board of Equalization (BOE), the counties with the most disabled veterans’ exemptions are: San Diego (5,391), Riverside (3,732), Sacramento (2,422), Los Angeles (2,092), Solano (1,764), Orange (1,691), Contra Costa (1,147), Monterey (990), and Fresno (959).
COMMENTS:
- Purpose. According to the author, AB 1556 will help ensure that disabled veterans and their spouses receive the care and assistance needed to live within California. The high costs of housing can make disabled veterans financially insecure, and this bill would provide much-needed property tax relief for these individuals.
- Background. The Disabled Veterans’ Exemption exempts a portion of the assessed value of a principal place of residents from property tax for qualified veterans and their spouses. In 2016, most qualified veterans will not pay property taxes on the first $127,510 of their home’s value.
Low-income disabled veterans are granted a more generous exemption: In 2016, disabled veterans and their spouses with a household income of $57,258 or less will be exempt from property taxes on the first $191,266 of their principal place of residence.
- Definition of disabled. Existing law defines the conditions under which a disabled veteran may receive the Disabled Veterans’ Exemption. This includes a veteran who is blind in both eyes, lost use of 2 or more limbs, or has a total disability, which is a veteran who is designated 100 percent disabled by the United States Department of Veterans Affairs or the military service from which he or she was discharged. This will expand eligibility for the Disabled Veterans’ Exemption, but the revenue impact is unknown.
- Previous Legislation. There have been a number of similar efforts to expand the Disabled Veterans’ Exemption. These bills were either held in policy committee or this committee. These bills are:
- SB 764 (Morrow) of 2003 would have increased the exemptions to $200,000 and $250,000;
- AB 1845 (Jefferies) of 2007 would have increased the exemption to $200,000 and $250,000; and,
- AB 2568 (Houston) of 2008 would have granted a full exemption to eligible disabled veterans and their spouses.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: May 9, 2016
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Sebastian Ridley-Thomas, Chair
ABPCA Bill Id:AB 1556 (
Author:Mathis) – As Amended Ver:April 28, 2016
SUSPENSE
Majority vote. Fiscal committee. Tax levy.
SUBJECT: Property taxation: exemptions: disabled veterans
SUMMARY: Expands the property tax exemption available to a totally disabled veteran, as defined, or his/her unmarried surviving spouse. Specifically, this bill:
- Repeals provisions limiting the exempt portion of the full value of an eligible disabled veteran's home to $100,000, as adjusted (or $150,000 in the case of a veteran with household income of $40,000 or less).
- Increases the exempt portion of the full value of the principal residence of a veteran or his/her spouse, as specified, to $2.1 million adjusted annually for inflation, as provided.
- Defines the term "blind in both eyes" as a blind person as defined in Welfare and Institutions Code Section 19153. Specifically, a person who:
- Has not more than 20/200 central visual acuity in the better eye after correction; or,
- Has visual acuity greater than 20/200, but with a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.
- Expands the term "totally disabled veteran" to include a veteran so severely disabled as to be unable to move without the aid of an assistive device.
- Makes other technical and conforming changes to the disabled veterans' property tax exemption provisions.
- Specifies that no appropriation is made and the state will not reimburse local agencies for property tax revenues lost by them pursuant to this bill.
- Imposes a state-mandated local program and provides that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
- Takes effect immediately as a tax levy, but applies for property tax lien dates for the 2017-18 fiscal year (FY) and each FY thereafter.
EXISTING LAW:
- Exempts from property tax, in whole or in part, the home of a veteran who is totally disabled because of injury or disease incurred in military service, or his/her surviving unmarried spouse. [Article XIII, Section 4, California Constitution; Revenue and Taxation Code (R&TC) Section 205.5.] The disabled veterans' exemption is also available to the surviving spouse of a person who has died as a result of service-connected injuries while on active military duty. The amount of the exemption depends on the claimant's income. The basic exemption amount is $100,000, adjusted annually for inflation. For low-income claimants, the exemption amount is $150,000, adjusted annually for inflation, when the veteran's household income does not exceed $40,000, as adjusted. For the fiscal year (FY) 2016-17, the disabled veterans' exemption amount is $191,266 of assessed value for those with a household income below $57,258 (the "low-income" exemption), and $127,510 for all other disabled veterans (the 'basic' exemption).
- Defines a "totally disabled veteran" as a veteran who has a disability rating from the United States Department of Veterans Affairs (USDVA), or the military service from which the veteran was discharged, at 100%, or has a disability compensation rating at 100% because he/she is unable to secure or follow a substantially gainful occupation.
- Allows a surviving spouse of a disabled veteran to receive the exemption if the veteran's death is service-connected, as determined by the USDVA.
- Requires a disabled veteran to file a claim with the local county assessor to receive the exemption. To receive the basic exemption, a claimant needs to file a claim only once. To receive the larger low-income exemption, the claimant must file a claim each year to verify income eligibility.
FISCAL EFFECT: Unknown
COMMENTS:
- Author's Statement. The author has provided the following statement in support of this bill:
"This bill will exempt the full value of a disabled veteran's place of residence from annual property tax. In the event of the disabled veteran's death, the exemption extends to the surviving spouse. In addition, this bill includes new definitions for specific statues of disablement." - "Disabled Veterans' Exemption": Background. Existing law authorizes a property tax exemption for the principal residence of a disabled veteran or for the unmarried surviving spouse of a deceased disabled veteran. For purposes of the exemption, the disability rating must be 100%, generally occurring for a veteran that was blind in both eyes, had lost the use of two or more limbs, or was totally disabled. This exemption is commonly referred to as the "disabled veterans' exemption."
In order to qualify for the property tax exemption, a veteran must receive a disability certification from either the USDVA or the military service from which the veteran was discharged. In addition, the eligible veteran must file a timely claim with the county assessor by the specified deadlines to receive the full amount of the property tax exemption.
The property tax exemption amount is equal to the assessed value of the property, up to $100,000, as adjusted for inflation. If the household income does not exceed $40,000, as adjusted for inflation, the maximum property tax exemption is increased to $150,000, as adjusted for inflation. The exemption amounts and income limitation are adjusted annually for the change in the California Consumer Price Index for all items, as determined by the California Department of Industrial relations. For the 2016-17 fiscal years, the basic exemption amount is $127,510; the low-income exemption amount is $191,266; and the maximum household income for low-income classification is $57,258.
The exemption is only available on a veteran's principal place of residence. Since the home may only receive one property exemption, if a homeowners' exemption has been granted on a property and the owner subsequently qualifies for the disabled veterans' exemption, the homeowners' exemption should be cancelled to allow for the disabled veterans' exemption as it provides the greater benefit.
- What is the Problem? According to the author's office, due to increased housing prices throughout California, many disabled veterans and their spouses are being forced from their homes. The Counties of Los Angeles and San Diego are home to the highest number of California veterans. The median housing prices in 2015 was $475,000 in Los Angeles County and $455,000 in San Diego County – hardly within the existing cap of $100,000 or $150,000 in the case of the low-income exemption. The author states that these veterans "are forced to make staggering payments for housing and medical expenses despite being severely disabled; many are unable to work on account of their injuries." The author argues that the state must ensure that "those who sustained injury during their service are granted the ability to reside within the state, despite our increasing housing prices."
- The Proposed Solution. This bill is intended to expand the property tax exemption for disabled veterans or their unmarried surviving spouses. This bill would accomplish this goal by first repealing the existing limitations imposed on the assessed value of the disabled veteran's principal residence eligible for the exemption and the amount of his/her household income, and then increasing the amount of the assessed value eligible for the exemption to $2.1 million, regardless of the income.
- The Scope of the Disabled Veterans' Exemption. This bill would eliminate only the ad valorem property tax imposed on a disabled veteran's principal residence, but not the special taxes or assessments that might be due on the property. Direct levies, special taxes, and special assessments are not property taxes because they are not based upon the assessed value of the property. Such levies are usually imposed by independent governmental entities within a county; the county has no jurisdiction over most of those levies or the agencies issuing them. Thus, while a disabled veteran's home would be fully exempt from property tax, the veteran would still be required to pay all other local taxes and fees assessed against the property.
BOE staff also estimates that approximately 21% - or 6,971 – of those currently receiving the basic disabled veterans' exemption have assessed values of less than the maximum exemption allowed, i.e., $126,380; and 24% of those currently receiving the low-income disabled veterans' exemption have principal residences with assessed values less than the maximum exemption allowed , i.e., $189,571. Thus, those individuals would receive no benefit from this bill because their homes are already fully exempt from the property tax under the current law. - Expanded Definition of "Totally Disabled." This bill classifies veterans "who are so severely disabled as to be unable to move without the aid of an assistive device" as "totally disabled." It is unclear to Committee staff whether the USDV would necessarily assign the 100% disability rating to a veteran who is unable to move without the aid of an assistive device. Thus, potentially, the expanded definition of "totally disabled" may include veterans who would not qualify as 100% disabled by the USDV.
- The Fiscal Impact on Counties. The disabled veterans' exemption, unlike the homeowner's exemption, does not require the state to reimburse the counties for the full amount of property tax revenues lost. This bill may impact counties that have a large number of eligible disabled veterans and surviving spouses.
- Related Legislation. SB 1104 (Stone) is similar to this bill in that SB 1104 would, among other things, exempt from the property tax the full, instead of partial, value of the principal place of residence of a veteran or veteran's spouse. SB 1104 would also make technical and conforming changes to the disabled veterans' property tax exemption. SB 1104 is currently pending hearing by the Senate Committee on Governance and Finance.
SB 1458 (Bates) would extend the property tax exemption to persons who, among other things, are serving in or have served in and have been discharged under honorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, or Coast Guard. SB 1458 is currently pending hearing by the Senate Committee on Governance and Finance.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Analysis Prepared by: Oksana Jaffe / REV. & TAX. / (916) 319-2098
Date of Hearing: April 4, 2016
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Sebastian Ridley-Thomas, Chair
ABPCA Bill Id:AB 1556 (
Author:Mathis) – As Amended Ver:March 28, 2016
Majority vote. Fiscal committee. Tax levy.
SUBJECT: Property taxation: exemptions: disabled veterans
SUMMARY: Exempts fully from property tax the home of a totally disabled veteran, as defined, or his/her unmarried surviving spouse, by repealing the limitations imposed on the assessed value of the disabled veteran's principal residence eligible for the exemption and the amount of his/her household income. Specifically, this bill:
- Exempts the full, instead of partial, assessed value of the principal residence of a disabled veteran or his/her spouse, as specified, from property tax. Specifically, repeals provisions limiting the exempt portion of the assessed value of an eligible disabled veteran's home to $100,000, as adjusted (or $150,000 in the case of a veteran with household income of $40,000 or less).
- Defines the term "blind in both eyes" as a blind person as defined in Welfare and Institutions Code Section 19153. Specifically, a person who:
- Has not more than 20/200 central visual acuity in the better eye after correction; or,
- Has visual acuity greater than 20/200, but with a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.
- Expands the term "totally disabled veteran" to include a veteran so severely disabled as to be unable to move without the aid of an assistive device.
- Makes other technical and conforming changes to the disabled veterans' property tax exemption provisions.
- Specifies that no appropriation is made and the state will not reimburse local agencies for property tax revenues lost by them pursuant to this bill.
- Imposes a state-mandated local program and provides that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
- Takes effect immediately as a tax levy, but applies for property tax lien dates for the 2017-18 fiscal year (FY) and each FY thereafter.
EXISTING LAW:
- Exempts from property tax, in whole or in part, the home of a veteran who is totally disabled because of injury or disease incurred in military service, or his/her surviving unmarried spouse. [Article XIII, Section 4, California Constitution; Revenue and Taxation Code (R&TC) Section 205.5.] The disabled veterans' exemption is also available to the surviving spouse of a person who has died as a result of service-connected injuries while on active military duty. The amount of the exemption depends on the claimant's income. The basic exemption amount is $100,000, adjusted annually for inflation. For low-income claimants, the exemption amount is $150,000, adjusted annually for inflation, when the veteran's household income does not exceed $40,000, as adjusted. For the fiscal year (FY) 2016-17, the disabled veterans' exemption amount is $191,266 of assessed value for those with a household income below $57,258 (the "low-income" exemption), and $127,510 for all other disabled veterans (the 'basic' exemption).
- Defines a "totally disabled veteran" as a veteran who has a disability rating from the United States Department of Veterans Affairs (USDVA), or the military service from which the veteran was discharged, at 100%, or has a disability compensation rating at 100% because he/she is unable to secure or follow a substantially gainful occupation.
- Allows a surviving spouse of a disabled veteran to receive the exemption if the veteran's death is service-connected, as determined by the USDVA.
- Requires a disabled veteran to file a claim with the local county assessor to receive the exemption. To receive the basic exemption, a claimant needs to file a claim only once. To receive the larger low-income exemption, the claimant must file a claim each year to verify income eligibility.
FISCAL EFFECT: The State Board of Equalization (BOE) staff estimates that this bill will result in a statewide annual loss of $65.9 million.
COMMENTS:
- Author's Statement. The author has provided the following statement in support of this bill:
"This bill will exempt the full value of a disabled veteran's place of residence from annual property tax. In the event of the disabled veteran's death, the exemption extends to the surviving spouse. In addition, this bill includes new definitions for specific statues of disablement." - "Disabled Veterans' Exemption": Background. Existing law authorizes a property tax exemption for the principal residence of a disabled veteran or for the unmarried surviving spouse of a deceased disabled veteran. For purposes of the exemption, the disability rating must be 100%, generally occurring for a veteran that was blind in both eyes, had lost the use of two or more limbs, or was totally disabled. This exemption is commonly referred to as the "disabled veterans' exemption."
In order to qualify for the property tax exemption, a veteran must receive a disability certification from either the USDVA or the military service from which the veteran was discharged. In addition, the eligible veteran must file a timely claim with the county assessor by the specified deadlines to receive the full amount of the property tax exemption.
The property tax exemption amount is equal to the assessed value of the property, up to $100,000, as adjusted for inflation. If the household income does not exceed $40,000, as adjusted for inflation, the maximum property tax exemption is increased to $150,000, as adjusted for inflation. The exemption amounts and income limitation are adjusted annually for the change in the California Consumer Price Index for all items, as determined by the California Department of Industrial relations. For the 2016-17 fiscal years, the basic exemption amount is $127,510; the low-income exemption amount is $191,266; and the maximum household income for low-income classification is $57,258.
The exemption is only available on a veteran's principal place of residence. Since the home may only receive one property exemption, if a homeowners' exemption has been granted on a property and the owner subsequently qualifies for the disabled veterans' exemption, the homeowners' exemption should be cancelled to allow for the disabled veterans' exemption as it provides the greater benefit.
- What is the Problem? According to the author's office, due to increased housing prices throughout California, many disabled veterans and their spouses are being forced from their homes. The Counties of Los Angeles and San Diego are home to the highest number of California veterans. The median housing prices in 2015 was $475,000 in Los Angeles County and $455,000 in San Diego County – hardly within the existing cap of $100,000 or $150,000 in the case of the low-income exemption. The author states that these veterans "are forced to make staggering payments for housing and medical expenses despite being severely disabled; many are unable to work on account of their injuries." The author argues that the state must ensure that "those who sustained injury during their service are granted the ability to reside within the state, despite our increasing housing prices."
- The Proposed Solution. This bill is intended to provide a full property tax exemption to disabled veterans or their unmarried surviving spouses. This bill would accomplish this goal by repealing the existing limitations imposed on the assessed value of the disabled veteran's principal residence eligible for the exemption and the amount of his/her household income.
- The Scope of the Disabled Veterans' Exemption. This bill would eliminate only the ad valorem property tax imposed on a disabled veteran's principal residence, but not the special taxes or assessments that might be due on the property. Direct levies, special taxes, and special assessments are not property taxes because they are not based upon the assessed value of the property. Such levies are usually imposed by independent governmental entities within a county; the county has no jurisdiction over most of those levies or the agencies issuing them. Thus, while a disabled veteran's home would be fully exempt from property tax, the veteran would still be required to pay all other local taxes and fees assessed against the property.
BOE staff also estimates that approximately 21% - or 6,971 – of those currently receiving the basic disabled veterans' exemption have assessed values of less than the maximum exemption allowed, i.e., $126,380; and 24% of those currently receiving the low-income disabled veterans' exemption have principal residences with assessed values less than the maximum exemption allowed , i.e., $189,571. Thus, those individuals would receive no benefit from this bill because their homes are already fully exempt from the property tax under the current law. - Expanded Definition of "Totally Disabled." This bill classifies veterans "who are so severely disabled as to be unable to move without the aid of an assistive device" as "totally disabled." It is unclear to Committee staff whether the USDV would necessarily assign the 100% disability rating to a veteran who is unable to move without the aid of an assistive device. Thus, potentially, the expanded definition of "totally disabled" may include veterans who would not qualify as 100% disabled by the USDV.
- The Fiscal Impact on Counties. The disabled veterans' exemption, unlike the homeowner's exemption, does not require the state to reimburse the counties for the full amount of property tax revenues lost. This bill may impact counties that have a large number of eligible disabled veterans and surviving spouses.
- Related Legislation. SB 1104 (Stone) is similar to this bill in that SB 1104 would, among other things, exempt from the property tax the full, instead of partial, value of the principal place of residence of a veteran or veteran's spouse. SB 1104 would also make technical and conforming changes to the disabled veterans' property tax exemption. SB 1104 is currently pending hearing by the Senate Committee on Governance and Finance.
SB 1458 (Bates) would extend the property tax exemption to persons who, among other things, are serving in or have served in and have been discharged under honorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, or Coast Guard. SB 1458 is currently pending hearing by the Senate Committee on Governance and Finance.
REGISTERED SUPPORT / OPPOSITION:
Support
American G. I. Forum of California
AMVETS-Department of California
American Legion- Department of California
California Association of County Veteran Service Officers
California State Commanders Service Council
Howard Jarvis Taxpayers Association
VFW-Department of California
Vietnam Veterans of America, California State Council
Opposition
None on file
Analysis Prepared by: Oksana Jaffe / REV. & TAX. / (916) 319-2098
