BILL NUMBER: SB 1113 ENROLLED
BILL TEXT
PASSED THE SENATE MAY 27, 2014
PASSED THE ASSEMBLY AUGUST 19, 2014
AMENDED IN SENATE APRIL 1, 2014
INTRODUCED BY Senator Knight
FEBRUARY 19, 2014
An act to amend Section 890.3 of the Military and Veterans Code,
and to amend Section 5097 of the Revenue and Taxation Code, relating
to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1113, Knight. Property taxation: disabled veterans' exemption:
refunds: statute of limitations.
Existing tax law provides, pursuant to an authorization of the
California Constitution, for the exemption from property taxation of
specified amounts of the assessed value of the home of a disabled
veteran, or a veteran's unmarried surviving spouse in the case in
which the veteran has, as a result of a service-connected disease or
injury, died while on active duty in military service, contingent
upon a claim being filed, as specified. Existing law requires
property taxes to be refunded upon the filing of a claim within 4
years after making the payment sought to be refunded.
This bill would, if a claim for a refund is filed for the disabled
veterans' exemption on or after January 1, 2015, extend the period
of time for which a refund is required to be made from 4 years to 8
years. This bill would also correct an incorrect cross-reference in a
related provision.
By changing the manner in which local county officials administer
property tax refunds with respect to the disabled veterans'
exemption, this bill would impose a state-mandated local program.
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 these
statutory provisions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The disabled veterans' property tax exemption law honors and
recognizes the service and sacrifice that members of the military and
their families gave, and continue to give, to this country.
(b) The disabled veterans' property tax exemption helps disabled
veterans defray the property taxes due on their homes. However, this
benefit provided by the state cannot be granted until the United
States Department of Veterans Affairs issues the disabled veteran a
100 percent disability rating. In some cases, it can take many years
for the veteran to obtain the required 100 percent disability rating.
In these instances, the limitations on refunds of property taxes
paid can preclude veterans from receiving the benefit as of their
effective disability date.
(c) The voters of California have repeatedly affirmed their
support and commitment to disabled veterans and their spouses by
approving needed changes to this constitutionally provided property
tax exemption.
(d) By expanding the period to file a claim for refund, this act
implements subdivision (a) of Section 4 of Article XIII of the
California Constitution, and thereby fulfills a valid public purpose
of relieving economic hardship on persons and their spouses,
including unmarried surviving spouses, that have incurred injury or
death in military service to this country.
SEC. 2. Section 890.3 of the Military and Veterans Code is amended
to read:
890.3. (a) (1) Notwithstanding any other law, on or after January
1, 2001, a claimant is not ineligible for a disabled veterans'
benefit for lack of certification of disability of the veteran with
respect to whom the benefit is sought, if there is a currently
pending application to the United States Department of Veterans
Affairs (USDVA) for certification of disability for that veteran and
the subsequently received certification qualifies the veteran for the
benefit. An entity of state government, or any political subdivision
thereof, to which a claim for a disabled veterans' benefit is made,
shall require the claimant to provide written verification that an
application had been pending with the USDVA at the time the claim for
the disabled veterans' benefit is submitted.
(2) For purposes of this subdivision, "disabled veterans benefit"
means an exemption, privilege, service, or other legal benefit that
is provided pursuant to law by the state, or a political subdivision
thereof, exclusively to a disabled veteran, or his or her surviving
spouse, parent, or child.
(b) (1) For purposes of applying the disabled veterans' property
tax exemption set forth in Section 205.5 of the Revenue and Taxation
Code, any amount of tax, including any interest or penalty thereon,
levied upon that portion of the assessed value of real property that
would have been exempt if the veteran's pending application for
certification of disability had been finalized, shall be canceled or
refunded if both of the following conditions are met:
(A) The certification is received and is forwarded to the county
assessor.
(B) A return is made as required by Section 277 of the Revenue and
Taxation Code.
(2) Any refund issued pursuant to this subdivision is subject to
the limitations periods for refunds set forth in Section 5097 of the
Revenue and Taxation Code.
SEC. 3. Section 5097 of the Revenue and Taxation Code is amended
to read:
5097. (a) An order for a refund under this article shall not be
made, except on a claim:
(1) Verified by the person who paid the tax, his or her guardian,
executor, or administrator.
(2) Except as provided in paragraph (3) or (4), filed within four
years after making the payment sought to be refunded, or within one
year after the mailing of notice as prescribed in Section 2635, or
the period agreed to as provided in Section 532.1, or within 60 days
of the date of the notice prescribed by subdivision (a) of Section
4836, whichever is later.
(3) (A) Filed within one year, if an application for a reduction
in an assessment or an application for equalization of an assessment
has been filed pursuant to Section 1603 and the applicant does not
state in the application that the application is intended to
constitute a claim for a refund, of either of the following events,
whichever occurs first:
(i) After the county assessment appeals board makes a final
determination on the application for reduction in assessment or on
the application for equalization of an escape assessment of the
property, and mails a written notice of its determination to the
applicant and the notice does not advise the applicant to file a
claim for refund.
(ii) After the expiration of the time period specified in
subdivision (c) of Section 1604 if the county assessment appeals
board fails to hear evidence and fails to make a final determination
on the application for reduction in assessment or on the application
for equalization of an escape assessment of the property.
(B) Filed within six months, if an application for a reduction in
an assessment or an application for equalization of an assessment has
been filed pursuant to Section 1603 and the applicant does not state
in the application that the application is intended to constitute a
claim for a refund, after the county assessment appeals board makes a
final determination on the application for reduction in assessment
or on the application for equalization of an escape assessment, and
mails a written notice of its determination to the applicant and the
notice advises the applicant to file a claim for refund within six
months of the date of the county assessment appeals board's final
determination.
(4) Filed within eight years after making the payment sought to be
refunded, if the claim for refund is filed on or after January 1,
2015, and relates to the disabled veterans' exemption described in
Section 205.5.
(b) An application for a reduction in an assessment filed pursuant
to Section 1603 shall also constitute a sufficient claim for refund
under this section if the applicant states in the application that
the application is intended to constitute a claim for refund. If the
applicant does not so state, he or she may thereafter and within the
period provided in paragraph (3) of subdivision (a) file a separate
claim for refund of taxes extended on the assessment which the
applicant applied to have reduced pursuant to Section 1603 or Section
1604.
(c) If an application for equalization of an escape assessment is
filed pursuant to Section 1603, a claim may be filed on any taxes
resulting from the escape assessment or the original assessment to
which the escape relates within the period provided in paragraph (3)
of subdivision (a).
(d) The amendments made to this section by the act adding this
subdivision shall apply to claims for refund filed on or after
January 1, 2015.
SEC. 4. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.