SB 1458: Property taxation: exemptions: disabled veterans.

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 an 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. That law defines a veteran for its purposes as a person who, among other things, is serving in or has served in and has been discharged under honorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, or Coast Guard.

This bill, for property tax lien dates for the 201718 fiscal year and each fiscal year thereafter, would expand that definition of veteran to include a person who has been discharged in other than dishonorable conditions from service under those same conditions and who has been determined by the United States Department of Veterans Affairs to be eligible for federal veterans health and medical benefits.

Existing property tax law allows the correction of certain errors resulting in incorrect entries on the property tax roll within 4 years after the making of the assessment.

This bill would extend the time for correcting errors to the roll related to the disabled veterans exemption to 8 years.

Existing law requires property taxes to be refunded upon the filing of a claim within 8 years after making the payment sought to be refunded if the claim relates to the disabled veterans exemption.

This bill would instead require a refund on a claim filed within 8 years after making the payment sought to be refunded, or within 60 days of the date of a specified notice, whichever is later.

Existing property tax law authorizes any taxes paid before or after delinquency to be refunded by the county tax collector within 4 years after the date of payment under specified conditions.

This bill would authorize any taxes paid before or after delinquency to be refunded by the county tax collector within 8 years after the date of payment if the amount paid exceeds the amount due on the property as a result of corrections to the roll that relate to the disabled veterans exemption.

By changing the manner in which local county officials administer property tax refunds with respect to the disabled veterans exemption, this bill would impose a state-mandated local program.

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.

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.

This bill would take effect immediately as a tax levy.