Property taxation: disabled veterans’ exemption: household income.

Plain English Breakdown

The bill summary and digest do not provide specific details on how much property value can be exempted or if it increases beyond current levels.

Disabled Veterans' Property Tax Exemption: Household Income

The bill excludes service-connected disability payments from household income calculations for disabled veterans seeking property tax exemptions until January 1, 2037.

What This Bill Does

• Changes the definition of 'household income' to exclude service-connected disability payments for disabled veterans seeking property tax exemptions until January 1, 2037.
• Corrects an error in how certain parts of the law are referenced.
• Imposes additional duties on local tax officials without state funding to support them.

Who It Names or Affects

• Disabled veterans who own homes in California and qualify for property tax exemptions.
• Local tax officials responsible for assessing property taxes.

Terms To Know

Service-connected disability payments

Money given to veterans because of injuries or illnesses that happened while they were serving in the military.

Property Tax Exemption

A reduction in property taxes for certain groups, like disabled veterans, based on their situation.

Limits and Unknowns

• The bill only applies until January 1, 2037.
• It does not specify how much money will be saved or lost by excluding service-connected disability payments from household income calculations.
• Local agencies might face new duties without state funding to support them.

Official Summary Text

SB 888, as amended, Seyarto.
Property taxation: disabled veterans’ exemption: household income.
The California Constitution provides that all property is
taxable,
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, until January 1, 2037, 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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