SB 82: Property taxation: disabled veterans’ exemption: eligibility letters.
- Session Year: 2023-2024
- House: Senate
- Latest Version Date: 2023-10-11
Current Status:
Passed
(2023-10-11: Chaptered by Secretary of State. Chapter 773, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
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.
This bill would require a county assessor to accept an electronically generated letter of service-connected disability, as defined, in lieu of an original letter of service-connected disability, at the discretion of the claimant, for purposes of verifying eligibility for the above-described exemption. By imposing duties on local tax officials, the bill would impose a state-mandated local program.
This bill would incorporate additional changes to Section 205.5 of the Revenue and Taxation Code proposed by AB 1361 to be operative only if this bill and AB 1361 are enacted and this bill is enacted last.
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.
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.
This bill would require a county assessor to accept an electronically generated letter of service-connected disability, as defined, in lieu of an original letter of service-connected disability, at the discretion of the claimant, for purposes of verifying eligibility for the above-described exemption. By imposing duties on local tax officials, the bill would impose a state-mandated local program.
This bill would incorporate additional changes to Section 205.5 of the Revenue and Taxation Code proposed by AB 1361 to be operative only if this bill and AB 1361 are enacted and this bill is enacted last.
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.
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.
This bill would require a county assessor to accept an electronically generated letter of service-connected disability, as defined, in lieu of an original letter of service-connected disability, at the discretion of the claimant, for purposes of verifying eligibility for the above-described exemption. By imposing duties on local tax officials, the bill would impose a state-mandated local program.
This bill would incorporate additional changes to Section 205.5 of the Revenue and Taxation Code proposed by AB 1361 to be operative only if this bill and AB 1361 are enacted and this bill is enacted last.
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.
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.
This bill would require a county assessor to accept both original and an electronically generated letters letter of service-connected disability, as defined, in lieu of an original letter of service-connected disability, at the discretion of the claimant, for purposes of verifying eligibility for the above-described exemption. By imposing 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.
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.
This bill would require a county assessor to accept both original and electronically generated letters of service-connected disability, as defined, for purposes of verifying eligibility for the above-described exemption. By imposing 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.
(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 (i), 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 (i), 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 (h).
(b)(1)For purposes of this section, veteran means either of the following:
(A)A person who is serving in or has served in and has been discharged under other than dishonorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and served either in time of war or in time of peace in a campaign or expedition for which a medal has been issued by Congress, or in time of peace and because of a service-connected disability was released from active duty, and who has been determined by the United States Department of Veterans Affairs to be eligible for federal veterans health and medical benefits.
(B)Any person who would qualify as a veteran pursuant to subparagraph (A) except that they have, 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 their 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.
(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 (i), 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 their 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.
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 (i), 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 (h).
(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 (i), 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 (h).
(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 their 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)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 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)(1)The county assessor shall accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, for purposes of verifying eligibility for an exemption pursuant to this section.
(2)For purposes of this subdivision, letter of service-connected disability means a letter from the United States Department of Veterans Affairs that provides a benefit summary of the claimants service-connected disability for purposes of claiming disabled veterans exemptions.
(g)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. Other real property tax exemptions shall not be granted to any other person with respect to the same residence for which an exemption has been granted pursuant to this section. However, 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 their interest.
(h)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.
(i)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.
(j)The amendments made to this section by Chapter 871 of the Statutes of 2016 shall apply for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter.
SEC. 1.5.Section 205.5 of the Revenue and Taxation Code is amended to read:205.5.(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 (i), 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 (i), 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 (h).
(b)(1)For purposes of this section, veteran means either of the following:
(A)A person who is serving in or has served in and has been discharged under other than dishonorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and served either in time of war or in time of peace in a campaign or expedition for which a medal has been issued by Congress, or in time of peace and because of a service-connected disability was released from active duty, and who has been determined by the United States Department of Veterans Affairs to be eligible for federal veterans health and medical benefits.
(B)Any person who would qualify as a veteran pursuant to subparagraph (A) except that they have, 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 their 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.
(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 (i), 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 their 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.
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 (i), 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 (h).
(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 (i), 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 (h).
(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 their 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)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 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)(1)The county assessor shall accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, for purposes of verifying eligibility for an exemption pursuant to this section.
(2)For purposes of this subdivision, letter of service-connected disability means a letter from the United States Department of Veterans Affairs that provides a benefit summary of the claimants service-connected disability for purposes of claiming disabled veterans exemptions.
(g)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. Other real property tax exemptions shall not be granted to any other person with respect to the same residence for which an exemption has been granted pursuant to this section. However, 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 their interest.
(h)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.
(i)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.
(j)The amendments made to this section by Chapter 871 of the Statutes of 2016 shall apply for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter.
(k)The county assessor may provide written or electronic determination of preliminary eligibility for an exemption under this section.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 205.5 of the Revenue and Taxation Code proposed by both this bill and Assembly Bill 1361. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 205.5 of the Revenue and Taxation Code, and (3) this bill is enacted after Assembly Bill 1361, in which case Section 1 of this bill shall not become operative.
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.
(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 (i), 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 (i), 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 (h).
(b)(1)For purposes of this section, veteran means either of the following:
(A)A person who is serving in or has served in and has been discharged under other than dishonorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and served either in time of war or in time of peace in a campaign or expedition for which a medal has been issued by Congress, or in time of peace and because of a service-connected disability was released from active duty, and who has been determined by the United States Department of Veterans Affairs to be eligible for federal veterans health and medical benefits.
(B)Any person who would qualify as a veteran pursuant to subparagraph (A) except that they have, 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 their 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.
(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 (i), 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 their 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.
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 (i), 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 (h).
(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 (i), 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 (h).
(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 their 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)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 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)(1)The county assessor shall accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, for purposes of verifying eligibility for an exemption pursuant to this section.
(2)For purposes of this subdivision, letter of service-connected disability means a letter from the United States Department of Veterans Affairs that provides a benefit summary of the claimants service-connected disability for purposes of claiming disabled veterans exemptions.
(g)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. Other real property tax exemptions shall not be granted to any other person with respect to the same residence for which an exemption has been granted pursuant to this section. However, 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 their interest.
(h)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.
(i)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.
(j)The amendments made to this section by Chapter 871 of the Statutes of 2016 shall apply for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter.
SEC. 1.5.Section 205.5 of the Revenue and Taxation Code is amended to read:205.5.(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 (i), 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 (i), 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 (h).
(b)(1)For purposes of this section, veteran means either of the following:
(A)A person who is serving in or has served in and has been discharged under other than dishonorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and served either in time of war or in time of peace in a campaign or expedition for which a medal has been issued by Congress, or in time of peace and because of a service-connected disability was released from active duty, and who has been determined by the United States Department of Veterans Affairs to be eligible for federal veterans health and medical benefits.
(B)Any person who would qualify as a veteran pursuant to subparagraph (A) except that they have, 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 their 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.
(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 (i), 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 their 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.
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 (i), 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 (h).
(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 (i), 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 (h).
(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 their 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)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 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)(1)The county assessor shall accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, for purposes of verifying eligibility for an exemption pursuant to this section.
(2)For purposes of this subdivision, letter of service-connected disability means a letter from the United States Department of Veterans Affairs that provides a benefit summary of the claimants service-connected disability for purposes of claiming disabled veterans exemptions.
(g)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. Other real property tax exemptions shall not be granted to any other person with respect to the same residence for which an exemption has been granted pursuant to this section. However, 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 their interest.
(h)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.
(i)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.
(j)The amendments made to this section by Chapter 871 of the Statutes of 2016 shall apply for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter.
(k)The county assessor may provide written or electronic determination of preliminary eligibility for an exemption under this section.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 205.5 of the Revenue and Taxation Code proposed by both this bill and Assembly Bill 1361. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 205.5 of the Revenue and Taxation Code, and (3) this bill is enacted after Assembly Bill 1361, in which case Section 1 of this bill shall not become operative.
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.
(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 (i), 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 (i), 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 (h).
(b)(1)For purposes of this section, veteran means either of the following:
(A)A person who is serving in or has served in and has been discharged under other than dishonorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and served either in time of war or in time of peace in a campaign or expedition for which a medal has been issued by Congress, or in time of peace and because of a service-connected disability was released from active duty, and who has been determined by the United States Department of Veterans Affairs to be eligible for federal veterans health and medical benefits.
(B)Any person who would qualify as a veteran pursuant to subparagraph (A) except that they have, 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 their 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.
(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 (i), 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 their 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.
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 (i), 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 (h).
(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 (i), 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 (h).
(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 their 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)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 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)(1)The county assessor shall accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, for purposes of verifying eligibility for an exemption pursuant to this section.
(2)For purposes of this subdivision, letter of service-connected disability means a letter from the United States Department of Veterans Affairs that provides a benefit summary of the claimants service-connected disability for purposes of claiming disabled veterans exemptions.
(g)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. Other real property tax exemptions shall not be granted to any other person with respect to the same residence for which an exemption has been granted pursuant to this section. However, 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 their interest.
(h)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.
(i)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.
(j)The amendments made to this section by Chapter 871 of the Statutes of 2016 shall apply for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter.
SEC. 1.5.Section 205.5 of the Revenue and Taxation Code is amended to read:205.5.(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), (i), 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), (i), 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). (h).
(b)(1)For purposes of this section, veteran means either of the following:
(A)A person who is serving in or has served in and has been discharged under other than dishonorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and served either in time of war or in time of peace in a campaign or expedition for which a medal has been issued by Congress, or in time of peace and because of a service-connected disability was released from active duty, and who has been determined by the United States Department of Veterans Affairs to be eligible for federal veterans health and medical benefits.
(B)Any person who would qualify as a veteran pursuant to subparagraph (A) except that they have, 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 their 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.
(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), (i), 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 their 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.
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), (i), 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). (h).
(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), (i), 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). (h).
(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 their 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)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 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)(1)The county assessor shall accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, for purposes of verifying eligibility for an exemption pursuant to this section.
(2)For purposes of this subdivision, letter of service-connected disability means a letter from the United States Department of Veterans Affairs that provides a benefit summary of the claimants service-connected disability for purposes of claiming disabled veterans exemptions.
(f)(g)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 Other real property tax exemption may exemptions shall not 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 section. However, 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 their interest.
(g)(h)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)(i)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)(j)The amendments made to this section by the act adding this subdivision Chapter 871 of the Statutes of 2016 shall apply for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter.
(k)The county assessor may provide written or electronic determination of preliminary eligibility for an exemption under this section.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 205.5 of the Revenue and Taxation Code proposed by both this bill and Assembly Bill 1361. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 205.5 of the Revenue and Taxation Code, and (3) this bill is enacted after Assembly Bill 1361, in which case Section 1 of this bill shall not become operative.
SEC. 2.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.
(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 (i), 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 (i), 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 (h).
(b)(1)For purposes of this section, veteran means either of the following:
(A)A person who is serving in or has served in and has been discharged under other than dishonorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and served either in time of war or in time of peace in a campaign or expedition for which a medal has been issued by Congress, or in time of peace and because of a service-connected disability was released from active duty, and who has been determined by the United States Department of Veterans Affairs to be eligible for federal veterans health and medical benefits.
(B)Any person who would qualify as a veteran pursuant to subparagraph (A) except that they have, 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 their 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.
(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 (i), 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 their 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.
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 (i), 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 (h).
(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 (i), 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 (h).
(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 their 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)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 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)(1)The county assessor shall accept both original and an electronically generated letters letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, for purposes of verifying eligibility for an exemption pursuant to this section.
(2)For purposes of this subdivision, letter of service-connected disability means a letter from the United States Department of Veterans Affairs that provides a benefit summary of the claimants service-connected disability for purposes of claiming disabled veterans exemptions.
(g)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. Other real property tax exemptions shall not be granted to any other person with respect to the same residence for which an exemption has been granted pursuant to this section. However, 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 their interest.
(h)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.
(i)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.
(j)The amendments made to this section by Chapter 871 of the Statutes of 2016 shall apply for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter.
SEC. 2.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.
(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), (i), 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), (i), 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). (h).
(b)(1)For purposes of this section, veteran means either of the following:
(A)A person who is serving in or has served in and has been discharged under other than dishonorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and served either in time of war or in time of peace in a campaign or expedition for which a medal has been issued by Congress, or in time of peace and because of a service-connected disability was released from active duty, and who has been determined by the United States Department of Veterans Affairs to be eligible for federal veterans health and medical benefits.
(B)Any person who would qualify as a veteran pursuant to subparagraph (A) except that they have, 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 their 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.
(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), (i), 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 their 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.
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), (i), 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). (h).
(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), (i), 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). (h).
(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 their 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)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 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)(1)The county assessor shall accept both original and electronically generated letters of service-connected disability for purposes of verifying eligibility for an exemption pursuant to this section.
(2)For purposes of this subdivision, letter of service-connected disability means a letter from the United States Department of Veterans Affairs that provides a benefit summary of the claimants service-connected disability for purposes of claiming disabled veterans exemptions.
(f)(g)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 Other real property tax exemption may exemptions shall not 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 section. However, 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 their interest.
(g)(h)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)(i)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)(j)The amendments made to this section by the act adding this subdivision Chapter 871 of the Statutes of 2016 shall apply for property tax lien dates for the 201718 fiscal year and for each fiscal year thereafter.
SEC. 2.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.
|
Date
|
Status
|
|---|---|
| Oct 11, 2023 | Chaptered by Secretary of State. Chapter 773, Statutes of 2023. |
| Oct 11, 2023 | Approved by the Governor. |
| Sep 15, 2023 | Enrolled and presented to the Governor at 3 p.m. |
| Sep 11, 2023 | Assembly amendments concurred in. (Ayes 39. Noes 0. Page 2606.) Ordered to engrossing and enrolling. |
| Sep 6, 2023 | In Senate. Concurrence in Assembly amendments pending. |
| Sep 6, 2023 | Read third time. Passed. (Ayes 79. Noes 0. Page 2956.) Ordered to the Senate. |
| Aug 28, 2023 | Read third time and amended. |
| Aug 28, 2023 | Ordered to third reading. |
| Aug 24, 2023 | Ordered to third reading. |
| Aug 24, 2023 | From consent calendar on motion of Assembly Member Bryan. |
| Aug 17, 2023 | Read second time. Ordered to consent calendar. |
| Aug 16, 2023 | From committee: Do pass. Ordered to consent calendar. (Ayes 15. Noes 0.) (August 16). |
| Jul 11, 2023 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (July 10). Re-referred to Com. on APPR. |
| Jun 21, 2023 | From committee: Do pass and re-refer to Com. on REV. & TAX. with recommendation: To consent calendar. (Ayes 9. Noes 0.) (June 20). Re-referred to Com. on REV. & TAX. |
| May 11, 2023 | Referred to Coms. on M. & V.A. and REV. & TAX. |
| May 4, 2023 | In Assembly. Read first time. Held at Desk. |
| May 4, 2023 | Read third time. Passed. (Ayes 37. Noes 0. Page 1003.) Ordered to the Assembly. |
| May 2, 2023 | Read second time. Ordered to consent calendar. |
| May 1, 2023 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| Apr 26, 2023 | Set for hearing May 1. |
| Apr 24, 2023 | From committee: Do pass and re-refer to Com. on APPR with recommendation: To consent calendar. (Ayes 4. Noes 0. Page 854.) (April 24). Re-referred to Com. on APPR. |
| Apr 12, 2023 | Set for hearing April 24. |
| Mar 29, 2023 | From committee: Do pass and re-refer to Com. on M. & V.A. with recommendation: To consent calendar. (Ayes 8. Noes 0. Page 573.) (March 29). Re-referred to Com. on M. & V.A. |
| Mar 14, 2023 | Set for hearing March 29. |
| Mar 14, 2023 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F. |
| Jan 25, 2023 | Referred to Coms. on GOV. & F. and M. & V.A. |
| Jan 17, 2023 | From printer. May be acted upon on or after February 13. |
| Jan 13, 2023 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 11, 2023 | Unfinished Business SB82 Seyarto Concurrence | Senate Floor |
Passed |
|
| Sep 6, 2023 | SB 82 Seyarto Senate Third Reading By Hoover | Assembly Floor |
Passed |
|
| Aug 16, 2023 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 10, 2023 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Revenue and Taxation |
Passed |
|
| Jun 20, 2023 | Do pass and be re-referred to the Committee on [Revenue and Taxation] with recommendation: To Consent Calendar | Assembly Standing Committee on Military and Veterans Affairs |
Passed |
|
| May 4, 2023 | Consent Calendar SB82 Seyarto | Senate Floor |
Passed |
|
| Apr 24, 2023 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Military and Veterans Affairs |
Passed |
|
| Mar 29, 2023 | Do pass, but first be re-referred to the Committee on [Military and Veterans Affairs] with the recommendation: To Consent Calendar | Senate Standing Committee on Governance and Finance |
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.
|
Organization
|
Position
|
Date
|
|---|---|---|
| American Legion-Department of California | ** Support | |
| AMVETS-Department of California | ** Support | |
| California Assessors Association | ** Support | |
| California Association Of County Veterans Service Officers | ** Support | |
| California State Commanders Veterans Council | ** Support | |
| Military Officers Association of America-California Council of Chapters | ** Support | |
| Vietnam Veterans Association, California State Council | ** Support | |
| Vietnam Veterans Of America, California State Council | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 82 |
UNFINISHED BUSINESS
Bill No: SB 82
Author: Seyarto (R)
Amended: 8/28/23
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 8-0, 3/29/23
AYES: Caballero, Seyarto, Blakespear, Dahle, Durazo, Glazer, Skinner, Wiener
SENATE MILITARY & VETERANS COMMITTEE: 4-0, 4/24/23
AYES: Archuleta, Grove, Alvarado-Gil, Menjivar
NO VOTE RECORDED: Umberg
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 37-0, 5/4/23 (Consent)
AYES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Grove, Hurtado, Jones, Laird, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
NO VOTE RECORDED: Blakespear, Gonzalez, Limón
ASSEMBLY FLOOR: 79-0, 9/6/23 - See last page for vote
SUBJECT: Property taxation: disabled veterans’ exemption: eligibility letters
SOURCE: Author
DIGEST:
This bill requires a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, when verifying eligibility for the disabled veterans’ exemption.
Assembly Amendments
resolve conflicts with AB 1361 (Hoover, 2023).
ANALYSIS:
Existing law:
- Provides that all property is taxable unless explicitly exempted by the Constitution or federal law (Article XIII, Section One).
- Allows the Legislature to partially or wholly exempt from property tax the value of a disabled veteran’s principal place of residence if the veteran has lost two or more limbs, is totally blind, or is totally disabled as a result of a service-connected injury (Article XIII, Section Four).
- Requires the taxpayer to have served in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and been discharged under conditions other than dishonorable to claim the exemption.
- Defines “totally disabled” to mean that the United States Department of Veteran Affairs (USDVA) 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.
- Provides that qualifying taxpayers can file a claim for the exemption when they receive a rating letter from the USDVA indicating a 100 percent disability rating or that the disability compensation is at the 100 percent level, so long as they provide:
- Proof of the veteran's disability, which is generally a letter from the USDVA.
- Proof that the character of service was under "other than dishonorable" conditions, such as a DD-214, or other letter from the USDVA indicating the character of service.
This bill:
- Requires a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, when verifying eligibility for the disabled veterans’ exemption.
- Defines “letter of service-connected disability.
- Makes conforming changes.
- Contains provisions that resolve conflicts in case both this measure and AB 1361 (Hoover, 2023) are enacted.
Background
Recently, the Placer County Assessor’s Office noticed that some of the electronically-generated letters from USDVA they received from claimants did not include a date or the disability rating, and, as a result, instituted a policy to require the original letter to grant the claim. This bill requires a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability to prevent the situation from occurring again.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Assembly Appropriations Committee, “Negligible costs to county assessors to accept an electronically generated service-connected disability letter in lieu of an original letter. While these costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates, it is unlikely a county would submit a claim.”
SUPPORT: (Verified 9/6/23)
American Legion-Department of California
AMVETS-Department of California
California Assessors Association
California Association of County Veterans Service Officers
California State Commanders Veterans Council
Military Officers Association of America-California Council of Chapters
Vietnam Veterans Association-California State Council
OPPOSITION: (Verified 9/6/23)
None received
ARGUMENTS IN SUPPORT: According to the author, “SB 82 establishes universal standards between counties on document requirements for the Disabled Veterans Property Tax Exemption. This clarification of acceptable documents will serve to remove arbitrary barriers to well-deserved benefits for our Veterans and their families.”
ASSEMBLY FLOOR: 79-0, 9/6/23
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Grayson
Prepared by: Colin Grinnell / GOV. & F. / (916) 651-4119
9/6/23 19:06:14
**** END ****
SENATE THIRD READING
STR Bill Id:SB 82
Author:(Seyarto)
As Amended Ver:August 28, 2023
Majority vote
SUMMARY
This bill requires a county assessor to accept from the United States Department of Veterans Affairs (USDVA) an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, when verifying eligibility for the disabled veterans' property tax exemption, and is double-jointed with Assembly Bill 1361.
Major Provisions
- Requires a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, when verifying eligibility for the disabled veterans' exemption.
- Defines "letter of service-connected disability" as a letter from the United States Department of Veterans Affairs (USDVA) that provides a benefit summary of the claimant's service-connected disability for purposes of claiming disabled veterans’ exemptions.
- Provides that the state shall not reimburse local agencies for property tax revenue losses, instead stating that should the Commission on State Mandates determine that the bill imposes a reimbursable mandate, reimbursement must be made pursuant to existing statutory provisions.
- Is double-jointed with Assembly Bill 1361, which permits a county assessor to provide written or electronic determination of preliminary eligibility for the disabled veterans' property tax exemption.
COMMENTS
This bill is intended to address a purported deviation in practices between county assessors in establishing eligibility for the property tax exemption made available to disabled veterans, their spouses, and their surviving spouses. According to the author, some assessors accept electronically-generated letters establishing disability from the USDVA, while a few others accept only printed originals.
According to the Author
"SB 82 establishes universal standards between counties on document requirements for the disabled veterans' property tax exemption. This clarification of acceptable documents will serve to remove arbitrary barriers to well-deserved benefits for our veterans and their families."
Arguments in Support
The California Assessors’ Association states: "We believe it is our duty to continue to support our nation's disabled veterans and that we continue to adjust to the ever-changing times of technological advances and use them as a tool to support our communities."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Appropriations Committee, negligible costs to county assessors to accept an electronically generated service-connected disability letter in lieu of an original letter. While these costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates, it is unlikely a county would submit a claim.
VOTES
SENATE FLOOR: 37-0-3
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Grove, Hurtado, Jones, Laird, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ABS, ABST OR NV: Blakespear, Gonzalez, Limón
ASM MILITARY AND VETERANS AFFAIRS: 9-0-2
YES: Soria, Davies, Addis, Boerner, Juan Carrillo, Mathis, Petrie-Norris, Ta, Valencia
ABS, ABST OR NV: Alvarez, Muratsuchi
ASM REVENUE AND TAXATION: 10-0-1
YES: Irwin, Wallis, Bains, Grayson, Pacheco, Jim Patterson, Petrie-Norris, Ta, Valencia, Zbur
ABS, ABST OR NV: Luz Rivas
ASM APPROPRIATIONS: 15-0-1
YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Sanchez, Soria, Weber, Wilson
ABS, ABST OR NV: Pellerin
UPDATED
VERSION: August 28, 2023
CONSULTANT: Christian Burkin / M. & V.A. / (916) 319-3550 FN: 0001295
SENATE THIRD READING
STR Bill Id:SB 82
Author:(Seyarto)
As Amended Ver:March 14, 2023
Majority vote
SUMMARY
Requires a county assessor to accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability.
Major Provisions
- Requires a county assessor to accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, when verifying eligibility for the disabled veterans' exemption.
- Defines "letter of service-connected disability" as a letter from the United States Department of Veterans Affairs (USDVA) that provides a benefit summary of the claimant's service-connected disability for purposes of claiming disabled veterans' exemptions.
COMMENTS
Modernizing the qualification process: According to the author, a number of veterans have experienced frustration when certain assessors would not accept electronically generated USDVA letters for the purpose of qualifying for the disabled veterans exemption. In these instances, it was argued that a physical letter was required because digital letters created by the USDVA portal did not always include the dates and disability ratings necessary to verify the taxpayer is eligible for the exemption. This bill creates uniformity statewide by requiring a county assessor to accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability. However, assessors indicate that the USDVA is instituting a new system that will ensure this information is included in future electronically generated letters. As a result of this new system, this bill may not be necessary.
According to the Author
"SB 82 establishes universal standards between counties on document requirements for the Disabled Veterans Property Tax Exemption. This clarification of acceptable documents will serve to remove arbitrary barriers to well-deserved benefits for our veterans and their families."
Arguments in Support
This bill is supported by several veteran's organizations and the California Assessors' Association, which notes, in part:
Currently, part of the application process to determine eligibility for this exemption is that the veteran must submit their letters of service-connected disability in printed or paper format. SB 82 will amend [Revenue and Taxation Code Section] 205.5(f)(1) and at the discretion of the submitter, would also allow for the acceptance of electronically produced letters of service-connected disability. We believe it is our duty to continue to support our nation's disabled veterans and that we continue to adjust to the ever-changing times of technological advances and use them as a tool to support our communities.
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
Negligible costs to county assessors to accept an electronically generated service-connected disability letter in lieu of an original letter. While these costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates, it is unlikely a county would submit a claim.
VOTES
SENATE FLOOR: 37-0-3
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Grove, Hurtado, Jones, Laird, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ABS, ABST OR NV: Blakespear, Gonzalez, Limón
ASM MILITARY AND VETERANS AFFAIRS: 9-0-2
YES: Soria, Davies, Addis, Boerner, Juan Carrillo, Mathis, Petrie-Norris, Ta, Valencia
ABS, ABST OR NV: Alvarez, Muratsuchi
ASM REVENUE AND TAXATION: 10-0-1
YES: Irwin, Wallis, Bains, Grayson, Pacheco, Jim Patterson, Petrie-Norris, Ta, Valencia, Zbur
ABS, ABST OR NV: Luz Rivas
ASM APPROPRIATIONS: 15-0-1
YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Sanchez, Soria, Weber, Wilson
ABS, ABST OR NV: Pellerin
UPDATED
VERSION: March 14, 2023
CONSULTANT: Christian Burkin / M. & V.A. / (916) 319-3550 FN: 0001319
Date of Hearing: August 16, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
SBPCA Bill Id:SB 82
Author:(Seyarto) – As Amended Ver:March 14, 2023
Policy Committee: | Military and Veterans Affairs | Vote: | 9 - 0 |
Revenue and Taxation | 10 - 0 | ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: Yes
SUMMARY:
This bill requires a county assessor to accept from the United States Department of Veterans Affairs (USDVA) an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, when verifying eligibility for the disabled veterans' property tax exemption.
FISCAL EFFECT:
Negligible costs to county assessors to accept an electronically generated service-connected disability letter in lieu of an original letter. While these costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates, it is unlikely a county would submit a claim.
COMMENTS:
- Purpose. According to the author, this bill establishes “universal standards between counties on document requirements for the Disabled Veterans’ Property Tax Exemption. This clarification will serve to remove arbitrary barriers to well-deserved benefits for our Veterans and their families.”
- Background. The Constitution allows the Legislature to partially or wholly exempt from property tax the value of a disabled veteran’s principal place of residence that is owned by the veteran, the veteran's spouse, or the veteran and the veteran's spouse jointly, if the veteran is disabled as a result of injury or disease incurred in military service, or if the veteran has, as a result of a service-connected injury or disease, died while on active duty in military service. The property tax exemption is on that part of the full value of the residence that does not exceed $100,000, or $150,000 if the household income of the claimant does not exceed $40,000, as adjusted for inflation, as specified.
Generally, a qualifying taxpayer can file a claim for the exemption when they receive a rating letter from the U. S. Department of Veterans Affairs (USDVA) indicating a 100% disability rating or that the disability compensation is at the 100% level. All claimants must provide:
- Proof of the veteran's disability, which is generally a letter from the USDVA.
- Proof that the character of service was under "other than dishonorable" conditions, such as a DD-214, or other letter from the USDVA indicating the character of service.
According to the author, a number of veterans have experienced frustration when certain assessors would not accept electronically generated USDVA letters for the purpose of qualifying for the disabled veterans’ exemption. In these instances, the assessors argued an original letter was required because the digital letters created by the USDVA portal did not include the dates and disability ratings necessary to verify these taxpayers are eligible for the exemption. However, according to the California Assessors’ Association (CAA), the USDVA has recently updated its system so that all the pertinent information is contained in the electronic version of the letters. In addition, CAA indicates county assessors are already updating their acceptance policies.
This bill requires a county assessor to accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability.
- Related Legislation. AB 1361 (Hoover) authorizes a county assessor to provide, in written or electronic form, a determination of preliminary eligibility for the disabled veterans’ property tax exemption. AB 1361 is pending on the Senate Floor.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: July 10, 2023
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Jacqui Irwin, Chair
SBPCA Bill Id:SB 82
Author:(Seyarto) – As Amended Ver:March 14, 2023
Majority vote. Fiscal committee.
SENATE VOTE: 37-0
SUBJECT: Property taxation: disabled veterans' exemption: eligibility letters
SUMMARY: Requires a county assessor to accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability, as specified. Specifically, this bill:
- Requires a county assessor to accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, when verifying eligibility for the disabled veterans' exemption.
- Defines "letter of service-connected disability" as a letter from the United States Department of Veterans Affairs (USDVA) that provides a benefit summary of the claimant's service-connected disability for purposes of claiming disabled veterans' exemptions.
- Provides that the state shall not reimburse local agencies for property tax revenue losses, instead stating that should the Commission on State Mandates determine that the bill imposes a reimbursable mandate, reimbursement must be made pursuant to existing statutory provisions.
EXISTING LAW:
- Provides that all property is taxable unless explicitly exempted by the California Constitution or the laws of the United States. (California Constitution, Article XIII, Section 1.)
- Limits the maximum amount of ad valorem property taxation to 1% of the full cash value of the property. Generally, the Constitution restricts the full cash value of a property to the assessed value upon a change of ownership in, or new construction on, the property. This is referred to as the base year value, which may be adjusted upwards for inflation at no more than 2% annually. (California Constitution, Article XIIIA, Section 1 and 2.)
- Authorizes the Legislature to exempt the home of a disabled veteran, or their eligible surviving spouse, from property taxation. (California Constitution, Article XIII, Section 4.) In implementing this authorization, the Legislature exempts $100,000 of the value of an eligible disabled veteran's principal residence from property taxation, or $150,000 if the disabled veteran has a household income of $40,000, or less. These amounts are all adjusted for inflation beginning on specified dates and this exemption is also known as the "disabled veteran's exemption". A disabled veteran meets the qualifications of the exemption if they are rated by the USDVA as 100% disabled or unemployable as a result of a service connected injury or disease. (Revenue and Taxation Code (R&TC) Section 205.5.)
- Provides that qualifying taxpayers can file a claim for the exemption when they receive a rating letter from the USDVA indicating a 100% disability rating or that the disability compensation is at the 100% level, so long as they provide:
- Proof of the veteran's disability, which is generally a letter from the USDVA; and,
- Proof that the character of service was under "other than dishonorable" conditions, such as a DD-214, or other letter from the USDVA indicating the character of service. (R&TC Section 205.5.)
FISCAL EFFECT: The State Board of Equalization (BOE), in its staff analysis of this bill, states that this bill would have no impact on General Fund revenues.
COMMENTS:
- The author has submitted the following statement in support of this bill:
SB 82 establishes universal standards between counties on document requirements for the Disabled Veterans Property Tax Exemption. This clarification of acceptable documents will serve to remove arbitrary barriers to well-deserved benefits for our veterans and their families.
- Writing in support of this bill, the California Assessors' Association notes, in part:
Currently, part of the application process to determine eligibility for this exemption is that the veteran must submit their letters of service-connected disability in printed or paper format. SB 82 will amend R&TC 205.5(f)(1) and at the discretion of the submitter, would also allow for the acceptance of electronically produced letters of service-connected disability. We believe it is our duty to continue to support our nation's disabled veterans and that we continue to adjust to the ever-changing times of technological advances and use them as a tool to support our communities.
- Modernizing the qualification process: According to the author, a number of veterans have experienced frustration when certain assessors would not accept electronically generated USDVA letters for the purpose of qualifying for the disabled veterans exemption. In these instances, it was argued that a physical letter was required because digital letters created by the USDVA portal did not always include the dates and disability ratings necessary to verify the taxpayer is eligible for the exemption. This bill creates uniformity statewide by requiring a county assessor to accept an electronically generated letter of service-connected disability in lieu of an original letter of service-connected disability. However, assessors indicate that the USDVA is instituting a new system that will ensure this information is included in future electronically generated letters. As a result of this new system, this bill may not be necessary.
- Double referred: The Assembly Rules Committee ordered a double referral of SB 82: first, to the Military and Veterans Affairs Committee and, second, to the Revenue and Taxation Committee. SB 82 passed the Assembly Military & Veterans Affairs Committee with a vote of 9-0 on June 20, 2023.
- Related legislation: AB 1361 (Hoover) authorizes a county assessor to provide a preliminary determination of a taxpayer's eligibility for the disabled veteran's property tax exemption in written or electronic form. AB 1361 is currently pending hearing by the Senate Military and Veterans Affairs Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
American Legion, Department of California
Amvets, Department of California
California Association of County Veterans Service Officers
California State Commanders Veterans Council
Military Officers Association of America, California Council of Chapters
Vietnam Veterans of America, California State Council
Opposition
None on file
Analysis Prepared by: Wesley Whitaker / REV. & TAX. / (916) 319-2098
Date of Hearing:
ASSEMBLY COMMITTEE ON MILITARY AND VETERANS AFFAIRS
Esmeralda Soria, Chair
SBPCA Bill Id:SB 82
Author:(Seyarto) – As Amended Ver:March 14, 2023
SENATE VOTE: 37-0
SUBJECT: Property taxation: disabled veterans’ exemption: eligibility letters
SUMMARY: Requires a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability. Specifically, this bill:
- Requires a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, when verifying eligibility for the disabled veterans’ exemption.
- Defines “letter of service-connected disability” as a letter from the United States Department of Veterans Affairs (USDVA) that provides a benefit summary of the claimant’s service-connected disability for purposes of claiming disabled veterans’ exemptions.
- Provides that the state shall not reimburse local agencies for property tax revenue losses, instead stating that should the Commission on State Mandates determine that the bill imposes a reimbursable mandate, reimbursement must be made pursuant to existing statutory provisions.
EXISTING LAW:
- Provides that all property is taxable unless explicitly exempted by the California Constitution or federal law. (California Constitution, Article XIII, Section 1.)
- Allows the Legislature to exempt from property taxation in whole or in part the home of a veteran or veteran's 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, or if the veteran has, as a result of a service-connected injury or disease, died while on active duty in military service, unless the home is receiving another real property exemption. (California Constitution, Article XIII, Section 4, Subdivision (a).)
- Exempts from property taxes the principal place of residence of a veteran, that is owned by the veteran, the veteran's spouse, or the veteran and the veteran's spouse jointly, if the veteran is disabled as a result of injury or disease incurred in military service, or if the veteran has, as a result of a service-connected injury or disease, died while on active duty in military service. The property tax exemption is on that part of the full value of the residence that does not exceed $100,000, or $150,000 if the household income of the claimant does not exceed $40,000, as adjusted for inflation, as specified. (Revenue and Taxation Code Section 205.5.)
- Requires that anyone claiming the disabled veterans' exemption file a claim with the County Assessor. (Revenue and Taxation Code Section 227.)
FISCAL EFFECT: This bill is keyed fiscal, but was moved to second reading from the Senate Committee on Appropriations pursuant to Senate Rule 28.8.
COMMENTS: This bill is intended to address a purported deviation in practices between county assessors in establishing eligibility for the property tax exemption made available to disabled veterans, their spouses, and their surviving spouses. According to the author, some assessors accept electronically-generated letters establishing disability from the USDVA, while a few others accept only printed originals.
Notably, the California Assessors’ Association supports the bill, writing: “We believe it is our duty to continue to support our nation’s disabled veterans and that we continue to adjust to the ever-changing times of technological advances and use them as a tool to support our communities.”
According to the author, “SB 82 establishes universal standards between counties on document requirements for the disabled veterans’ property tax exemption. This clarification of acceptable documents will serve to remove arbitrary barriers to well-deserved benefits for our veterans and their families.”
USDVA disability ratings
Disability ratings are assigned in 10 point increments, from 10 to 100 percent. A 100 percent disabled veteran is very likely going to depend heavily upon disability compensation from the USDVA. The amount of compensation is based on the severity of the disability, and the size of the veteran’s household, including dependent parents.
REGISTERED SUPPORT / OPPOSITION:
Support
American Legion, Department of California
AMVETS, Department of California
California Assessors' Association
California Association of County Veterans Service Officers
California State Commanders Veterans Council
Military Officers Association of America, California Council of Chapters
Vietnam Veterans of America, California State Council
Opposition
None on file.
Analysis Prepared by: Christian Burkin / M. & V.A. / (916) 319-3550
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 82 |
CONSENT
Bill No: SB 82
Author: Seyarto (R)
Amended: 3/14/23
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 8-0, 3/29/23
AYES: Caballero, Seyarto, Blakespear, Dahle, Durazo, Glazer, Skinner, Wiener
SENATE MILITARY & VETERANS COMMITTEE: 4-0, 4/24/23
AYES: Archuleta, Grove, Alvarado-Gil, Menjivar
NO VOTE RECORDED: Umberg
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Property taxation: disabled veterans’ exemption: eligibility letters
SOURCE: Author
DIGEST:
This bill requires a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, when verifying eligibility for the disabled veterans’ exemption.
ANALYSIS:
Existing law:
- Provides that all property is taxable unless explicitly exempted by the Constitution or federal law (Article XIII, Section One).
- Allows the Legislature to partially or wholly exempt from property tax the value of a disabled veteran’s principal place of residence if the veteran has lost two or more limbs, is totally blind, or is totally disabled as a result of a service-connected injury (Article XIII, Section Four).
- Requires the taxpayer to have served in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and been discharged under conditions other than dishonorable to claim the exemption.
- Defines “totally disabled” to mean that the USDVA 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.
- Provides that qualifying taxpayers can file a claim for the exemption when they receive a rating letter from the USDVA indicating a 100 percent disability rating or that the disability compensation is at the 100 percent level, so long as they provide:
- Proof of the veteran's disability, which is generally a letter from the USDVA.
- Proof that the character of service was under "other than dishonorable" conditions, such as a DD-214, or other letter from the USDVA indicating the character of service.
This bill:
- Requires a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, when verifying eligibility for the disabled veterans’ exemption.
- Defines “letter of service-connected disability.
- Makes conforming changes.
Background
Recently, the Placer County Assessor’s Office noticed that some of the electronically-generated letters from USDVA they received from claimants did not include a date or the disability rating, and, as a result, instituted a policy to require the original letter to grant the claim. This bill requires a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability to prevent the situation from occurring again.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 5/3/23)
American Legion-Department of California
AMVETS-Department of California
California Association of County Veterans Service Officers
California State Commanders Veterans Council
Military Officers Association of America-California Council of Chapters
Vietnam Veterans Association-California State Council
OPPOSITION: (Verified 5/3/23)
None received
ARGUMENTS IN SUPPORT: According to the author, “SB-82 establishes universal standards between counties on document requirements for the Disabled Veterans Property Tax Exemption. This clarification of acceptable documents will serve to remove arbitrary barriers to well-deserved benefits for our Veterans and their families.”
Prepared by: Colin Grinnell / GOV. & F. / (916) 651-4119
5/3/23 15:07:37
**** END ****
SENATE COMMITTEE ON MILITARY AND VETERANS AFFAIRS
Senator Bob Archuleta, Chair
2023 - 2024 Regular
Bill No: SB 82 Hearing Date: 4/24/23
Author: | Seyarto | ||
Version: | 3/14/23 As Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Jenny Callison | ||
Subject: Property taxation: disabled veterans’ exemption: eligibility letters
DESCRIPTION
Summary:
The California Constitution provides that all property is taxable unless explicitly exempted by the Constitution or federal law. The Constitution limits the maximum amount of any ad valorem tax on real property at 1% of full cash value, plus any locally-authorized bonded indebtedness. Assessors reappraise property whenever it is purchased, newly constructed, or when ownership changes.
The Constitution allows the Legislature to partially or wholly exempt from property tax the value of a disabled veteran’s principal place of residence if the veteran has lost two or more limbs, is totally blind, or is totally disabled as a result of a service-connected injury. The taxpayer must have served in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and been discharged under conditions other than dishonorable. This disabled veterans’ exemption is available to disabled veteran taxpayers or their unmarried surviving spouses, so long as the surviving spouse receives a U.S. Department of Veterans Affairs (VA) determination that the spouse’s death was service-connected. The exemption applies instead of other real property exemptions, like the homeowners’ exemption. Once granted, the exemption applies until title to the property changes, the property is no longer the veteran’s principal residence, or the veteran is no longer disabled.
Current law defines “totally disabled” to mean that the VA 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. State law also contains specific definitions for blindness and the loss of two or more limbs.
Generally, qualifying taxpayers can file a claim for the exemption when they receive a rating letter from the VA indicating a 100 percent disability rating or that the disability compensation is at the 100 percent level. All claimants must provide:
- Proof of the veteran's disability, which is generally a letter from the VA.
- Proof that the character of service was under "other than dishonorable" conditions, such as a DD-214, or other letter from the VA indicating the character of service.
Recently, the Placer County Assessor’s Office noticed that some of the electronically-generated letters from VA they received from claimants did not include a date or the disability rating, and, as a result, instituted a policy to require the original letter to grant the claim. The author wants to require a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability.
Existing law:
Provides, pursuant to the authorization of the California Constitution, a disabled veteran’s property tax exemption for the principal place of residence of a veteran or a veteran’s 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.
This bill:
Requires a county assessor to accept an electronically generated letter of service-connected disability, as defined, in lieu of an original letter of service-connected disability, at the discretion of the claimant, for purposes of verifying eligibility for the above-described exemption. By imposing duties on local tax officials, the bill would impose a state-mandated local program.
BACKGROUND
Under current law, county assessors are granted flexibility in determining proof of a veteran applying for the Disabled Veterans Property Tax Exemption. This flexibility has directly led to certain counties in the state holding unreasonable requirements that act as a barrier to entry for veterans who clearly qualify for the well-deserved benefits.
COMMENT
A majority of assessors recognize the potential barriers and have a policy in place to ensure veterans access. Some counties decided not to accept electronically-generated
VA letters because they did not always include the dates and disability ratings necessary to verify the taxpayer is eligible for the exemption. The measure ensures uniformity statewide by requiring a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability.
The California Constitution requires the state to reimburse local governments for the costs of new or expanded state mandated local programs. Because SB 82 requires assessors to accept electronically-generated letters from USDVA, Legislative Counsel says that it imposes a new state mandate. The measure provides that the state shall not reimburse local agencies for property tax revenue losses, instead stating that should the Commission on State Mandates determine that the bill imposes a reimbursable mandate, reimbursement must be made pursuant to existing statutory provisions.
According to the author: “SB-82 establishes universal standards between counties on document requirements for the Disabled Veterans Property Tax Exemption. This clarification of acceptable documents will serve to remove arbitrary barriers to well-deserved benefits for our Veterans and their families.”
Some assessors indicate that the VA is instituting a new system that will ensure this information is included in future electronically-generated letters. As a result of this new system, SB 82 may not be necessary.
POSITIONS
Sponsor: Author.
Support:
American Legion, Department of California
Amvets, Department of California
California Association of County Veterans Service Officers
California State Commanders Veterans Council
Military Officers Association of America, California Council of Chapters
Vietnam Veterans of America, California State Council
Oppose: None on file.
-- END --
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Anna M. Caballero, Chair
2023 - 2024 Regular
Bill No: | SB 82 | Hearing Date: | 3/29/23 |
Author: | Seyarto | Tax Levy: | No |
Version: | 3/14/23 | Fiscal: | Yes |
Consultant: | Grinnell | ||
Property taxation: disabled veterans’ exemption: eligibility letters
Requires a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability.
Background
The California Constitution provides that all property is taxable unless explicitly exempted by the Constitution or federal law. The Constitution limits the maximum amount of any ad valorem tax on real property at 1% of full cash value, plus any locally-authorized bonded indebtedness. Assessors reappraise property whenever it is purchased, newly constructed, or when ownership changes.
The Constitution allows the Legislature to partially or wholly exempt from property tax the value of a disabled veteran’s principal place of residence if the veteran has lost two or more limbs, is totally blind, or is totally disabled as a result of a service-connected injury. The taxpayer must have served in the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, and been discharged under conditions other than dishonorable. This disabled veterans’ exemption is available to disabled veteran taxpayers or their unmarried surviving spouses, so long as the surviving spouse receives a U.S. Department of Veterans Affairs (USDVA) determination that the spouse’s death was service-connected. The exemption applies instead of other real property exemptions, like the homeowners’ exemption. Once granted, the exemption applies until title to the property changes, the property is no longer the veteran’s principal residence, or the veteran is no longer disabled.
Current law defines “totally disabled” to mean that the USDVA 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. State law also contains specific definitions for blindness and the loss of two or more limbs.
Generally, qualifying taxpayers can file a claim for the exemption when they receive a rating letter from the USDVA indicating a 100 percent disability rating or that the disability compensation is at the 100 percent level. All claimants must provide:
- Proof of the veteran's disability, which is generally a letter from the USDVA.
- Proof that the character of service was under "other than dishonorable" conditions, such as a DD-214, or other letter from the USDVA indicating the character of service.
Recently, the Placer County Assessor’s Office noticed that some of the electronically-generated letters from USDVA they received from claimants did not include a date or the disability rating, and, as a result, instituted a policy to require the original letter to grant the claim. The author wants to require a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability.
Proposed Law
Senate Bill 82 requires a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability, at the discretion of the claimant, when verifying eligibility for the disabled veterans’ exemption.
The bill defines “letter of service-connected disability,” and makes conforming changes.
State Revenue Impact
Pending.
Comments
1. Purpose of the bill. According to the author, “SB-82 establishes universal standards between counties on document requirements for the Disabled Veterans Property Tax Exemption. This clarification of acceptable documents will serve to remove arbitrary barriers to well-deserved benefits for our Veterans and their families.”
2. Paper chase. SB 82 responds to Placer County’s decision not to accept electronically-generated USDVA letters because they did not always include the dates and disability ratings necessary to verify the taxpayer is eligible for the exemption. The measure ensures uniformity statewide by requiring a county assessor to accept an electronically-generated letter of service-connected disability in lieu of an original letter of service-connected disability. However, Assessors indicate that the USDVA is instituting a new system that will ensure this information is included in future electronically-generated letters. As a result of this new system, SB 82 may not be necessary.
3. Mandate. The California Constitution requires the state to reimburse local governments for the costs of new or expanded state mandated local programs. Because SB 82 requires assessors to accept electronically-generated letters from USDVA, Legislative Counsel says that it imposes a new state mandate. The measure provides that the state shall not reimburse local agencies for property tax revenue losses, instead stating that should the Commission on State Mandates determine that the bill imposes a reimbursable mandate, reimbursement must be made pursuant to existing statutory provisions.
4. Coming and going. The Senate Rules Committee ordered a double referral of SB 82: first, to the Governance and Finance Committee to consider its tax implications, and second to the Military and Veterans Affairs Committee.
5. Related legislation. SB 726 (Archuleta) creates a new, alternative disabled veterans’ exemption that would exempt the full value of a disabled veteran’s residence up to $863,790 subject to several requirements. The Committee will hear the measure at its April 12, 2023 hearing.
Support and Opposition
(3/24/23)
Support: None submitted.
Opposition: None submitted.
-- END --
Discussed in Hearing
2MIN
Assembly Floor
5MIN
Assembly Standing Committee on Revenue and Taxation
Bill Author
Bill Co-Author(s):