AB 3209: Property tax: exemption: principal residence: disabled veterans and their unmarried surviving spouses.

Existing property tax law, pursuant to the authorization of the California Constitution, provides a disabled veterans property tax exemption for the principal place of residence of a veteran, veteran that is owned by the veteran, the veterans spouse, or the veteran and veterans spouse jointly, if the veteran, because of injury or disease 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. 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. if the veteran is blind in both eyes, has lost the use of 2 or more limbs, or is totally disabled as a result of injury or disease incurred in military. Existing property tax law also exempts property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran, as provided. Existing law exempts that part of the full value of the residence that does not exceed $100,000, or $150,000, depending on whether the household income of the veteran or the unmarried surviving spouse of a veteran exceeds $40,000, adjusted for inflation, as specified.

This bill, beginning with the 201920 fiscal year and for each fiscal year thereafter, would fully exempt from taxation the principal residence of a veteran who is totally disabled as a result of injury or disease incurred in military service. would instead exempt the full value of the principal place of residence of a veteran and the unmarried surviving spouse of a veteran.

Existing law requires the state 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 those provisions, 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.