BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 946|
|Office of Senate Floor Analyses | |
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CONSENT
Bill No: AB 946
Author: Butler (D)
Amended: As introduced
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 9-0, 07/06/11
AYES: Wolk, Huff, DeSaulnier, Fuller, Hancock, Hernandez,
Kehoe, La Malfa, Liu
ASSEMBLY FLOOR : 74-0, 04/11/11 - See last page for vote
SUBJECT : Property tax exemption: principal residence:
veterans and
unmarried surviving spouses
SOURCE : Author
DIGEST : This bill consolidates into Revenue and Taxation
Code (R&TC) Section 279 reference to the effective dates
for eligibility of the disabled veterans exemption for
specified situations.
ANALYSIS : 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. For purposes of
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this exemption, the disability rating must be 100
percent, 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, 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 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/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.
This bill consolidates into the R&TC Section 279 reference
to the effective dates for eligibility of the disabled
veterans' exemption for specified situations.
This bill:
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1.Adds subdivision (a) to R&TC Section 279 that references
the effective dates property becomes eligible for the
disabled veterans' property tax exemption.
2.Utilizes the language "claimant" and "qualified claimant"
throughout this bill.
3.Removes the language referring to the lien date in order
to be consistent with R&TC Sections 276.2 and 276.3.
4.Adds paragraph 5 to R&TC Section 279 (b), which lists the
events that terminate exemption eligibility, to include
when an unmarried surviving spouse remarries.
Related Legislation
AB 188 (Block), introduced in the current Legislative
Session, ensures an unmarried surviving spouse that is
receiving the disabled veterans' exemption continues to
receive the benefit if he or she is confined to a hospital
or care facility.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 7/7/11)
State Board of Equalization
ASSEMBLY FLOOR : 74-0, 04/11/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Charles Calderon, Campos, Carter,
Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Eng,
Feuer, Fong, Fuentes, Furutani, Galgiani, Garrick, Gatto,
Gordon, Grove, Hagman, Hall, Harkey, Hayashi, Roger
Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor,
Mendoza, Miller, Mitchell, Monning, Morrell, Nestande,
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Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez,
Portantino, Silva, Skinner, Smyth, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Williams, Yamada,
John A. Pérez
NO VOTE RECORDED: Butler, Donnelly, Fletcher, Gorell,
Halderman, Vacancy
AGB:nl 7/7/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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