SCA 4: Property taxation: veterans’ exemption.

The California Constitution declares that all property is taxable and establishes or authorizes various exemptions from tax for real property, including a homeowners exemption in the amount of $7,000 of the full value of a dwelling unless the dwelling receives another real property exemption. If the Legislature increases the homeowners exemption, the California Constitution requires that the Legislature provide a benefit increase to qualified renters comparable to the average increase in benefits to homeowners.

The California Constitution and existing property tax law establish a veterans exemption in the amount of $4,000 for a veteran who meets certain military service requirements and generally exempts from property taxation the same value of property of a deceased veterans unmarried spouse and parents. The California Constitution authorizes and existing property tax law establishes a disabled veterans exemption in the amount of $100,000 or $150,000 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. Existing law prohibits receiving the veterans exemption on property owned by an unmarried person who owns more than $5,000 of property or a married person who owns more than $10,000 of property. Existing law prohibits receiving the deceased veterans exemption on property owned by a deceased veterans unmarried spouse who owns more than $10,000 of property, a deceased veterans unmarried parent who owns more than $5,000 of property, or a deceased veterans married parent who owns more than $10,000 of property.

This measure would allow a dwelling that receives the veterans exemption or the disabled veterans exemption to also receive the homeowners exemption. The measure would authorize the Legislature to exempt property eligible for the veterans exemption in an amount up to the full value of the property. If the Legislature increases the homeowners exemption, the measure would require that the Legislature provide the same increase in the veterans exemption, except as limited by the full value of the property. The bill would remove the above-described prohibitions on a property receiving the veterans or deceased veterans exemption based on the amount of property that a veteran or veterans parent or spouse owns.