SB-56 • 2026

Property taxation: disabled veterans’ exemption: household income.

Budget Education Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Seyarto
Last action: 2025-07-15
Official status: Set, first hearing. Held in committee and under submission.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific information regarding an increase in the exemption amount or additional workload for local tax officials. The bill summary also lacks detailed information on performance indicators and data collection requirements.

Disabled Veterans' Property Tax Exemption: Income Adjustment

The bill excludes service-connected disability payments from household income calculations for disabled veterans seeking property tax exemptions until January 1, 2036.

What This Bill Does

Excludes service-connected disability payments from the definition of 'household income' for purposes of the disabled veterans’ exemption until January 1, 2036.

Who It Names or Affects

Disabled veterans who own property in California and qualify for the disabled veterans’ exemption.
Local tax officials responsible for assessing and collecting property taxes.

Terms To Know

Service-connected disability payments: Money given to disabled veterans by the government because of injuries or illnesses related to their military service.
Property Tax Exemption: A reduction in property taxes for certain groups, like disabled veterans, based on specific criteria.

Limits and Unknowns

The bill does not provide funding for local agencies that might lose tax revenue due to the changes.
It is unclear how many veterans will be affected by this change in household income calculation.

Bill History

2025-07-15 California Legislative Information
Set, first hearing. Held in committee and under submission.
2025-07-15 California Legislative Information
July 14 hearing: Placed on REV. & TAX. suspense file.
2025-07-02 California Legislative Information
From committee: Do pass and re-refer to Com. on REV. & TAX. with recommendation: To consent calendar. (Ayes 8. Noes 0.) (July 1). Re-referred to Com. on REV. & TAX.
2025-07-02 California Legislative Information
Coauthors revised.
2025-06-19 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on M. & V.A.
2025-06-09 California Legislative Information
Re-referred to Coms. on M. & V.A. and REV. & TAX. pursuant to Assembly Rule 96.
2025-06-05 California Legislative Information
Referred to Coms. on REV. & TAX. and M. & V.A.
2025-05-29 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-05-29 California Legislative Information
Read third time. Passed. (Ayes 38. Noes 0. Page 1322.) Ordered to the Assembly.
2025-05-27 California Legislative Information
Ordered to special consent calendar.
2025-05-23 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
From committee: Do pass. (Ayes 6. Noes 0. Page 1189.) (May 23).
2025-05-16 California Legislative Information
Set for hearing May 23.
2025-05-12 California Legislative Information
May 12 hearing: Placed on APPR. suspense file.
2025-05-02 California Legislative Information
Set for hearing May 12.
2025-04-29 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 4. Noes 0. Page 918.) (April 28). Re-referred to Com. on APPR.
2025-03-28 California Legislative Information
Set for hearing April 28.
2025-03-12 California Legislative Information
From committee: Do pass and re-refer to Com. on M. & V.A. with recommendation: To consent calendar. (Ayes 5. Noes 0.) (March 12). Re-referred to Com. on M. & V.A.
2025-03-05 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2025-02-26 California Legislative Information
Set for hearing March 12.
2025-01-29 California Legislative Information
Referred to Coms. on REV. & TAX. and M. & V.A.
2025-01-08 California Legislative Information
From printer. May be acted upon on or after February 7.
2025-01-07 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 56, as amended, Seyarto.
Property taxation: disabled veterans’ exemption: household income.
The California Constitution provides that all property is taxable, and requires that it be assessed at the same percentage of fair market value, unless otherwise provided by the California Constitution or federal law. The California Constitution and existing property tax law provide various exemptions from taxation, including, among others, a disabled veterans’ exemption. Under existing law, the disabled veterans’ exemption exempts from taxation part of the full value of property that constitutes the principal place of residence of a veteran, the veteran’s spouse, or the veteran and veteran’s spouse jointly, and the unmarried surviving spouse of a veteran, as provided, if the veteran incurred specified injuries or died while on active duty in military service, as described. Existing law exempts 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.
This bill
would
would, until January 1, 2036,
exclude service-connected disability payments from the definition of “household income” for purposes of the disabled veterans’ exemption. The bill would also correct an erroneous cross-reference in the above-described provisions. By imposing additional duties on local tax officials, the bill would impose a state-mandated local program.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve,
detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
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 law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for
purposes of ad valorem property taxation.
This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
This bill would take effect immediately as a tax levy.

Current Bill Text

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