Property taxation: veterans’ exemption.

Plain English Breakdown

The official source material does not provide specific details on financial impacts or constitutional limits on full property value exemptions.

Veterans' Property Tax Exemption

This law allows veterans and their families to receive both the homeowners’ exemption and the veterans’ exemption on property taxes, removes limits on how much property they can own while still getting these exemptions, and lets the Legislature increase the amount of the veterans’ exemption.

What This Bill Does

• Allows a dwelling that receives the veterans' exemption or the disabled veterans' exemption to also receive the homeowners' exemption.
• Removes prohibitions on receiving the veterans' or deceased veterans' exemption based on the amount of property owned by a veteran, their parent, or spouse.
• Authorizes the Legislature to exempt property eligible for the veterans’ exemption up to its full value.

Who It Names or Affects

• Veterans who own homes in California
• Unmarried spouses of deceased veterans
• Parents of deceased veterans

Terms To Know

Homeowners' exemption

A tax break that reduces the amount of property taxes a homeowner has to pay.

Veterans' exemption

A special tax break for veterans who meet certain military service requirements.

Limits and Unknowns

• The bill does not specify how much money will be spent on these changes.
• It is unclear if the full value of property can always be exempted due to limits set by the Constitution and existing laws.

Official Summary Text

ACA 5, as introduced, Schiavo.
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 veteran’s 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 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. 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 veteran’s unmarried spouse who owns more than $10,000 of property, a deceased veteran’s unmarried parent who owns more than $5,000 of property, or a deceased veteran’s 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 veteran’s parent or spouse owns.

Current Bill Text

Download Bill PDF