AB 1556, as amended, Mathis. Property taxation: exemptions: disabled veterans.
Existing property tax law provides, pursuant to the authorization of the California Constitution, a disabled veterans’ property tax exemption for the principal place of residence of a veteran or a veteran’s spouse, including an unmarried surviving spouse, if the veteran, because of injury incurred in military service, is blind in both eyes, has lost the use of 2 or more limbs, or is totally disabled, as those terms are defined, or if the veteran has, as a result of a service-connected injury or disease, died while on active duty in military service. Existing law exempts that part of the full value of the residence that does not exceed $100,000, or $150,000, if the veteran’s household income does not exceed $40,000, adjusted for inflation, as specified.
This billbegin delete wouldend deletebegin insert
would, beginning with property tax lien dates for the 2017-18 fiscal year,end insert instead exempt the full value of the principal place of residence of a veteran or veteran’s spouse. The bill would also define the term “blind in both eyes” to mean that the veteran is a blind person, as defined in a specific statute. The bill would also specify that a “totally disabled” veteran includes a veteran so severely disabled as to be unable to move without the aid of an assistive device. The bill would make other technical and conforming changes to the disabled veterans’ property tax exemption.
By changing the manner in which local tax officials administer the disabled veterans’ property tax exemption, this bill would impose a state-mandated local program.
Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
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.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 205.5 of the Revenue and Taxation Code
2 is amended to read:
(a) Property that constitutes the principal place of
4residence of a veteran, that is owned by the veteran, the veteran’s
5spouse, or the veteran and the veteran’s spouse jointly, is exempted
6from taxation if the veteran is blind in both eyes, has lost the use
7of two or more limbs, or if the veteran is totally disabled as a result
8of injury or disease incurred in military service.
9(b) (1) For purposes of this section, “veteran” means either of
10the following:
P3 1(A) A veteran as specified in subdivision (o) of Section 3 of
2Article XIII of the California Constitution, except for the limitation
3on the value of property
owned by the veteran or the veteran’s
4spouse.
5(B) A person who would qualify as a veteran pursuant to
6paragraph (1) except that he or she has, as a result of a
7service-connected injury or disease, as determined by the United
8States Department of Veterans Affairs, died while on active duty
9in military service.
10(2) For purposes of this section, property is deemed to be the
11principal place of residence of a veteran, disabled as described in
12subdivision (a), who is confined to a hospital or other care facility,
13if that property would be that veteran’s principal place of residence
14were it not for his or her confinement to a hospital or other care
15facility, provided that the residence is not rented or leased to a
16third party. For the purposes of this paragraph, a family member
17that
resides at the residence is not a third party.
18(c) (1) Property that is owned by, and that constitutes the
19principal place of residence of, the unmarried surviving spouse of
20a deceased veteran is exempt from taxation if the deceased veteran
21was blind in both eyes, had lost the use of two or more limbs, or
22was totally disabled, provided that either of the following
23conditions is met:
24(A) The deceased veteran during his or her lifetime qualified
25for the exemption pursuant to subdivision (a), or would have
26qualified for the exemption under the laws effective on January 1,
271977, except that the veteran died prior to January 1, 1977.
28(B) The veteran died from a
disease that was service-connected,
29as determined by the United States Department of Veterans Affairs.
30(2) Property that is owned by, and that constitutes the principal
31place of residence of, the unmarried surviving spouse of a veteran
32described in subparagraph (B) of paragraph (1) of subdivision (b)
33is exempt from taxation.
34(3) Property is deemed to be the principal place of residence of
35the unmarried surviving spouse of a deceased veteran, who is
36confined to a hospital or other care facility, if that property would
37be the unmarried surviving spouse’s principal place of residence
38were it not for his or her confinement to a hospital or other care
39facility, provided that the residence is not rented or leased to a
P4 1third party. For purposes
of this paragraph, a family member who
2resides at the residence is not a third party.
3(d) As used in this section, “property that is owned by a veteran”
4or “property that is owned by the veteran’s unmarried surviving
5spouse” includes all of the following:
6(1) Property owned by the veteran with the veteran’s spouse as
7a joint tenancy, tenancy in common, or as community property.
8(2) Property owned by the veteran or the veteran’s spouse as
9separate property.
10(3) Property owned with one or more other persons to the extent
11of the interest owned by the veteran, the veteran’s spouse, or both
12the veteran and the veteran’s spouse.
13(4) Property owned by the veteran’s unmarried surviving spouse
14with one or more other persons to the extent of the interest owned
15by the veteran’s unmarried surviving spouse.
16(5) That portion of the property of a corporation that constitutes
17the principal place of residence of a veteran or a veteran’s
18unmarried surviving spouse when the veteran, the veteran’s spouse,
19or the veteran’s unmarried surviving spouse is a shareholder of
20the corporation and the rights of shareholding entitle one to the
21possession of property, legal title to which is owned by the
22corporation. The exemption provided by this paragraph shall be
23shown on the local roll and shall reduce the full value of the
24corporate property. Notwithstanding any law or articles of
25incorporation or bylaws of a corporation described in this
26paragraph, any reduction of property
taxes paid by the corporation
27shall reflect an equal reduction in any charges by the corporation
28to the person who, by reason of qualifying for the exemption, made
29possible the reduction for the corporation.
30(e) For purposes of this section, the following definitions shall
31apply:
32(1) “Being blind in both eyes” means that the veteran is a blind
33person, as that term is defined in Section 19153 of the Welfare
34and Institutions Code as that section read on January 1, 2016.
35(2) “Lost the use of two or more limbs” means that the limb has
36been amputated or its use has been lost by reason of ankylosis,
37progressive muscular dystrophies, or paralysis.
38(3) “Totally
disabled” means that the veteran has a disability
39which the United States Department of Veterans Affairs or the
40military service from which the veteran was discharged has rated
P5 1
at 100begin delete percent, the veteran is so severely disabled as to be unable
2to move without the aid of an assistive device, or the veteran hasend delete
3begin insert percent orend insert rated the disability compensation at 100 percent by
4reason of being unable to secure or follow a substantially gainful
5
begin delete occupation.end deletebegin insert occupation, or the veteran is so severely disabled as
6to be unable to move without the aid of an assistive device.end insert
7(f) An exemption granted to a claimant pursuant to this section
8shall be in lieu of the veteran’s exemption
provided by subdivisions
9(o), (p), (q), and (r) of Section 3 of Article XIII of the California
10Constitution and any other real property tax exemption to which
11the claimant may be entitled. No other real property tax exemption
12shall be granted to any other person with respect to the same
13residence for which an exemption has been granted pursuant to
14this section; provided, that if two or more veterans qualified
15pursuant to this section coown a property in which they reside,
16each is entitled to the exemption to the extent of his or her interest.
17
(g) The amendments made to this section by the act adding this
18subdivision apply for property tax lien dates for the 2017-18 fiscal
19year and for each fiscal year thereafter.
Notwithstanding Section 2229 of the Revenue and
21Taxation Code, no appropriation is made by this act and the state
22shall not reimburse any local agency for any property tax revenues
23lost by it pursuant to this act.
If the Commission on State Mandates determines that
25this act contains costs mandated by the state, reimbursement to
26local agencies and school districts for those costs shall be made
27pursuant to Part 7 (commencing with Section 17500) of Division
284 of Title 2 of the Government Code.
This act provides for a tax levy within the meaning of
30Article IV of thebegin insert Californiaend insert Constitution and shall go into
31immediate effect.
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