BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1113|
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THIRD READING
Bill No: SB 1113
Author: Knight (R)
Amended: 4/1/14
Vote: 21
SENATE VETERANS AFFAIRS COMMITTEE : 6-0, 4/8/14
AYES: Hueso, Knight, Block, Lieu, Nielsen, Roth
NO VOTE RECORDED: Correa, Vacancy
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 4/24/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/14
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : Property taxation: disabled veterans: refunding
SOURCE : Author
DIGEST : This bill, if a claim for a refund is filed for the
disabled veterans exemption on or after January 1, 2015, extends
the period of time for which a refund is required to be made
from four years to eight years.
ANALYSIS : Existing law allows the Legislature to partially or
wholly exempt from property taxes the value of a disabled
veteran's home if the veteran has lost one or more limbs, is
totally blind, or is totally disabled, as a result of a
service-connected injury, known as the "disabled veterans'
exemption."
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SB 1113
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This bill, if a claim for a refund is filed for the disabled
veterans' exemption on or after January 1, 2015, extends the
period of time for which a refund is required to be made from
four years to eight years.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
This bill is estimated to result in reduced local property
taxes of about $332,000 annually. Under Proposition 98, this
reduction in local property tax revenues would lead to an
increase in state General Fund support for K-14 education of
approximately 40% to 50%, or potentially $166,000 annually.
The exact amount would depend on the specific factors which
determine the annual Proposition 98 minimum funding guarantee.
The Board of Equalization would incur minor costs (less than
$10,000) to inform and advise county assessors and the public
of the law changes and address implementation issues.
SUPPORT : (Verified 5/23/14)
Board of Equalization (source)
American Legion, Department of California
AMVETS, Department of California
Board of Equalization Chairman Jerome Horton
Board of Equalization Member George Runner
California Assessors' Association
California Association of County Veterans Service Officers
California State Commanders Veterans Council
California Taxpayers Association
Howard Jarvis Taxpayers Association
City of Santa Clarita
Veterans Caucus of the California Democratic Party
Veterans of Foreign Wars, Department of California
Vietnam Veterans of America, California State Council
OPPOSITION : (Verified 5/23/14)
Department of Finance
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SB 1113
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ARGUMENTS IN SUPPORT : According to the author, "SB 1113
changes the statute of limitations on refunds associated with
disabled veterans, allowing a disabled veteran to receive a
refund of property taxes paid within the last eight years,
instead of the current four, when the federal government issues
the veteran a retroactive 100 percent disability rating.
Qualified veterans who receive a 100 percent disability rating
from the U.S. Department of Veterans Affairs are given a special
property tax reduction (up to $124,932 or $187,399 in 2014 and
equivalent amounts adjusted for inflation in future years).
California law specifies that a home becomes eligible for the
exemption as of the effective date of the veteran's 100 percent
disability rating. Veterans are entitled to claim a refund for
taxes overpaid for up to four years of back taxes paid, but some
veterans encounter bureaucratic delays long than four years and
therefore lose the ability to claim the full exemption. SB 1113
seeks to balance Veterans' need to receive added relief, with
government's need for certainty and closure, by extending the
statute of limitations to 8 years, which is the amount of time
that back taxes may be collected from taxpayers for escape
assessments related to unrecorded changes in ownership."
ARGUMENTS IN OPPOSITION : The Department of Finance argues,
"While [the Department of] Finance understands this bill seeks
to provide additional relief to disabled veterans and their
spouses, we note that it does so at a cost of almost $250,000
per year to local governments, of which approximately half would
become an annual obligation to the state."
AL:k 5/23/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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