AB 2647: Property taxation: disabled veterans’ exemption: welfare exemption: housing for law enforcement and firefighters.

(1)The California Constitution provides that all property is taxable, and requires that it be assessed at the same percentage of fair market value, unless otherwise provided by the California Constitution or federal law. The California Constitution and existing property tax law provide various exemptions from taxation, including, among others, a disabled veterans exemption. Under existing law, the disabled veterans exemption exempts from taxation that part of the full value of property that constitutes the principal place of residence of a veteran, that is owned by the veteran, the veterans spouse, or the veteran and their spouse jointly, that does not exceed $100,000, or $150,000 in the case of an eligible veteran whose household income does not exceed $40,000, which amounts are subject to annual adjustment for inflation, as provided.

This bill, in lieu of the disabled veterans exemption described above, would exempt from taxation that part of the full value of the residence that does not exceed $863,790, as provided, property owned by, and that constitutes the principal place of residence of, a veteran, the veterans spouse, or the veteran and the veterans spouse jointly, if the veteran is 100% disabled. The bill would provide an unmarried surviving spouse a property exemption in the same amount that they would have been entitled to if the veteran was alive and if certain conditions are met. The bill would require certain documentation to be provided to the county assessor to receive the exemption and would prohibit any other real property tax exemption from being granted to the claimant if receiving the exemption provided by the provisions of this bill. The bill would make these exemptions applicable for property tax lien dates occurring on or after January 1, 2025, but occurring before January 1, 2035.

(2)Existing property tax law, in accordance with the California Constitution, provides for a welfare exemption for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met.

This bill would provide, for property tax lien dates occurring on or after January 1, 2025, that property is exempt from taxation and is within the welfare exemption if that property is owned and operated by a religious, hospital, scientific, or charitable fund, foundation, limited liability company, or corporation meeting specified requirements and if the property is used exclusively for housing and related facilities for law enforcement officers or firefighters.

(3)Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would state that it is the intent of the Legislature to apply those requirements to the disabled veterans exemption added by the bill and would set forth specified information relating to those requirements.

(4)By imposing additional duties on local tax officials, the 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 the statutory provisions noted above.

(5)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.

(6)This bill would take effect immediately as a tax levy.