BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1341
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          Date of Hearing:  May 11, 2009

                     ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
                             Charles M. Calderon, Chair

                    AB 1341 (Saldana) - As Amended:  April 2, 2009

          Majority vote.  

          SUBJECT  :  Property taxation:  disabled veterans' exemption. 

           SUMMARY  :  Deletes obsolete references to outdated disabled  
          veterans' exemption amounts and corrects an erroneous reference  
          to a non-existing section in the Revenue and Taxation Code  
          (R&TC).  Specifically,  this bill  : 

          1)Deletes obsolete references to the disabled veterans' basic  
            exemption amount of $40,000 and the low-income exemption  
            amount of $60,000, which were increased by the Legislature in  
            1989 to $100,000 and $150,000, respectively. 

          2)Corrects a transposition error in R&TC Section 276, intending  
            a cross reference to R&TC Section 4985, rather than Section  
            4895, relating to a disabled veterans' partial exemption for  
            outstanding property taxes. 

          3)Makes a minor, technical change to the provision relating to  
            the procedure for canceling outstanding property taxes when a  
            claim for the exemption is filed late. 

           EXISTING LAW  :
           
          1.Authorizes a property tax exemption for the principal  
            residence of a disabled veteran or his/her spouse, including  
            an unmarried surviving spouse of a person who has died as a  
            result of a service-connected injury or death while on active  
            duty in military service. 

          2.Specifies that the amount of property tax exemption is equal  
            to the assessed value of the property, up to $100,000, as  
            adjusted.  The amount of the property tax exemption is  
            increased to $150,000, as adjusted, for low-income claimants.   


          3.Provides that the exemption amounts and income limitation must  








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            be adjusted annually for the change in the California Consumer  
            Price Index for all items, as determined by the California  
            Department of Industrial Relations.  For the 2008-09 fiscal  
            year, the basic exemption amount as adjusted for inflation was  
            $111,296, the low-income exemption amount, as adjusted for  
            inflation, was $166,944, and the maximum household income, as  
            adjusted for inflation, for low-income classification was  
            $49,969.  

          4.Requires that a claim for the disabled veterans' property tax  
            exemption be filed with the local county assessor, and  
            provides that, once granted, the basic exemption remains in  
            continuous effect unless any of the following conditions  
            occur:

               a.     The title to property changes;

               b.     The property is altered so the property no longer  
                 qualifies as a dwelling;

               c.     The owner is no longer considered disabled; or,

               d.     The owner does not occupy the property as his/her  
                 principal place of residence on the property tax lien  
                 date.

          5.Provides that a claim for low-income exemption be filed each  
            year to verify income eligibility.  The annual filing period  
            is between January 1 and February 15; however, if a claim is  
            filed after the deadline, the claimant may still receive the  
            exemption at a reduced level. 
           
          FISCAL EFFECT  :  The Board of Equalization staff estimates that  
          this bill will have no revenue impact.

           COMMENTS  :   

          1)According to the author, the purpose of this bill is "to  
            delete a reference to outdated exemption amount levels as a  
            housekeeping measure" and to correct a transposition error in  
            R&TC Section 276, relating to the provisions of law for  
            canceling taxes due. 

           2)Related Legislation  . 









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          SB 824 (Senate Revenue and Taxation Committee), introduced in  
            the 2009-10 Legislative Session, contains, among other  
            provisions, a provision that is identical to AB 1341 - it
          deletes the outdated disabled veterans' exemption amounts and  
            corrects the same erroneous cross-reference in R&TC Section  
            276. 

            SB 1777 (Senate Revenue and Taxation Committee), introduced in  
            the 2007-08 Legislative Session, would have deleted the  
            obsolete reference to the outdated exemption amounts and would  
            have corrected the transposition error in R&TC Section 276  
            intending a cross reference to Section 4985, rather than  
            Section 4895.  SB 1777 was vetoed by the Governor.  

                    "I am returning Senate Bill 1777 without my signature.

                    "The historic delay in passing the 2008-2009 State  
          Budget has 
                    Forced me to prioritize the bills sent to my desk at  
          the end of the 
                    year's legislative session.  Given the delay, I am  
          only signing bills that
                    are the highest priority for California.  This bill  
          does not meet
                    that standard and I cannot sign it at this time."

            SB 320 (Royce), Chapter 1077, Statutes of 1989, and SB 2195  
            (Soto), Chapter 1086, Statutes of 1989, permanently increased  
            the amounts for the disabled veterans' exemption from $40,000  
            and $60,000 to $100,000 and $150,000, respectively. 



           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           
          Analysis Prepared by  :  Oksana Jaffe / REV. & TAX. / (916)  
          319-2098 








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