BILL ANALYSIS Ó
AB 188
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 188 (Block and Butler)
As Amended June 29, 2011
Majority vote
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|ASSEMBLY: |60-0 |(April 14, |SENATE: |37-0 |(July 14, |
| | |2011) | | |2011) |
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Original Committee Reference: REV. & TAX.
SUMMARY : Ensures that the disabled veterans' property tax
exemption on a principal residence received by an unmarried
surviving spouse will continue to be available to unmarried
surviving spouses who are confined to a hospital or other care
facility.
The Senate amendments consolidate provisions relating to the
effective date when property becomes eligible for the disabled
veterans' exemption, clarify that the exemption terminates for
an unmarried surviving spouse when she or he remarries, and make
several technical conforming changes.
EXISTING LAW:
1)Authorizes a property tax exemption for the principal
residence of a disabled veteran or his or her spouse,
including an unmarried surviving spouse. For purposes of this
exemption, the disability rating must be 100%, generally
occurring for a veteran that is blind in both eyes, or has
lost the use of two or more limbs, is totally disabled, or the
veteran dies from an injury that is determined to be
service-related by the United States Department of Consumer
Affairs. The property tax exemption is equal to the assessed
value of the property, up to $100,000, as adjusted for
inflation. If the household income does not exceed $40,000,
as adjusted, the maximum property tax exemption is increased
to $150,000, as adjusted. The exemption amounts and income
limitation are 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
2011-12 fiscal year (FY), the disabled veterans' exemption
amount will be $175,269 of assessed value for those with a
household income below $52,470 (low income exemption). For
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all others, the disabled veteran's exemption amount will be
$116,845 (basic exemption).
2)Provides that a disabled veterans' property tax exemption,
once granted, remains in continuous effect unless any of the
following conditions occurs:
a) The title to the property changes;
b) The property is altered so the property no longer
qualifies as a residence;
c) The owner is no longer considered disabled; or,
d) The owner does not occupy the property as his or her
principal place of residence on the property tax lien date,
unless the disabled veteran is confined to a hospital or
other care facility or the residence was damaged in a
misfortune or calamity.
AS PASSED BY THE ASSEMBLY , this bill:
1)Extended the disabled veterans' property tax to the disabled
veteran's unmarried spouse who was confined to a hospital or
other care facility.
2)Applied for property tax lien dates for FY 2012-13 and each FY
thereafter.
3)Provided that it would take effect immediately as a tax levy.
FISCAL EFFECT : The Board of Equalization (BOE) staff estimates
that the annual revenue loss from this bill will be negligible.
COMMENTS :
1)The author states that, "In 2003, legislation was enacted to
ensure that a disabled veteran who must leave his or her home
to enter an assisted living facility (and thus is unable to
occupy their home as their principal residence place of
residence) would continue to receive the exemption, provided
the home is not rented out to a third party. However,
inadvertently, the legislation failed to extend these
provisions to another group of persons eligible for the
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exemption: unmarried surviving spouses. AB 188 corrects this
error."
The author also states that, "This bill would assist a widow
or widower who moves to an assisted living facility and does
not want to sell their home with the hope that he or she can
return home. The unexpected loss of the property tax
exemption on top of the significant additional burden of
assisted living costs in inequitable. This bill will help
them continue to afford their home."
2)The BOE staff notes that the original legislation, AB 322
(Parra), Chapter 278, Statutes of 2003, was intended to
include unmarried surviving spouses confined to a hospital or
other care facility. BOE staff further states that this bill
would remedy this unintentional omission.
Analysis Prepared by : Myriam Bouaziz / Oksana Jaffe / REV. &
TAX. / (916) 319-2098
FN: 0001589