BILL NUMBER: SB 1183 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 28, 2016
INTRODUCED BY Senator Bates
FEBRUARY 18, 2016
An act to amend Section 205.5 of the Revenue and Taxation
Code, relating to taxation. taxation,
to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1183, as amended, Bates. Income taxes: rates.
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 bill would 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.
The Personal Income Tax Law imposes taxes upon taxable income at
specified rates. Proposition 30, known as the Schools and Local
Public Safety Protection Act of 2012, which was approved by the
voters at the November 6, 2012, statewide general election, provides
the tax rates applicable to specified amounts of taxable income that
is over $250,000 for taxable years beginning on or after January 1,
2012, and before January 1, 2019.
This bill would state the intent of the Legislature, for taxable
years beginning on or after January 1, 2019, to modify the tax rates
applicable to taxable income under the Personal Income Tax Law.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 205.5 of the Revenue
and Taxation Code is amended to read:
205.5. (a) Property that constitutes the principal place of
residence of a veteran, that is owned by the veteran, the veteran's
spouse, or the veteran and the veteran's spouse jointly, is exempted
from taxation on that part of the full value of the
residence that does not exceed one hundred thousand dollars
($100,000), as adjusted for the relevant assessment year as provided
in subdivision (h), if the veteran is blind in both eyes,
has lost the use of two or more limbs, or if the veteran is totally
disabled as a result of injury or disease incurred in military
service. The one hundred thousand dollar ($100,000)
exemption shall be one hundred fifty thousand dollars ($150,000), as
adjusted for the relevant assessment year as provided in subdivision
(h), in the case of an eligible veteran whose household income does
not exceed the amount of forty thousand dollars ($40,000), as
adjusted for the relevant assessment year as provided in subdivision
(g).
(b) (1) For purposes of this section, "veteran" means either of
the following:
(A) A veteran as specified in subdivision (o) of Section 3 of
Article XIII of the California Constitution without regard
to any Constitution, except for the limitation
contained therein on the value of property owned
by the veteran or the veteran's spouse.
(B) Any A person who would qualify
as a veteran pursuant to paragraph (1) except that he or she has, as
a result of a service-connected injury or disease, as determined
by the United States Department of Veterans Affairs, died
while on active duty in military service. The United States
Department of Veterans Affairs shall determine whether an injury or
disease is service connected.
(2) For purposes of this section, property is deemed to be the
principal place of residence of a veteran, disabled as described in
subdivision (a), who is confined to a hospital or other care
facility, if that property would be that veteran's principal place of
residence were it not for his or her confinement to a hospital or
other care facility, provided that the residence is not rented or
leased to a third party. A For the purposes
of this paragraph, a family member that resides at the
residence is not considered to be a third party.
(c) (1) Property that is owned by, and that constitutes the
principal place of residence of, the unmarried surviving spouse of a
deceased veteran is exempt from taxation on that part of the
full value of the residence that does not exceed one hundred
thousand dollars ($100,000), as adjusted for the relevant assessment
year as provided in subdivision (h), in the case of a
if the deceased veteran who was blind in
both eyes, had lost the use of two or more limbs, or was totally
disabled disabled, provided that either
of the following conditions is met:
(A) The deceased veteran during his or her lifetime qualified
in all respects for the exemption pursuant to
subdivision (a), or would have qualified for the exemption
under the laws effective on January 1, 1977, except that the veteran
died prior to January 1, 1977.
(B) The veteran died from a disease that was service
connected service-connected, as determined by
the United States Department of Veterans Affairs.
The one hundred thousand dollar ($100,000) exemption shall be one
hundred fifty thousand dollars ($150,000), as adjusted for the
relevant assessment year as provided in subdivision (h), in the case
of an eligible unmarried surviving spouse whose household income does
not exceed the amount of forty thousand dollars ($40,000), as
adjusted for the relevant assessment year as provided in subdivision
(g).
(2) Commencing with the 1994-95 fiscal year, property
Property that is owned by, and that constitutes
the principal place of residence of, the unmarried surviving spouse
of a veteran as described in subparagraph (B) of
paragraph (1) of subdivision (b) is exempt from taxation on
that part of the full value of the residence that does not exceed one
hundred thousand dollars ($100,000), as adjusted for the relevant
assessment year as provided in subdivision (h). The one hundred
thousand dollar ($100,000) exemption shall be one hundred fifty
thousand dollars ($150,000), as adjusted for the relevant assessment
year as provided in subdivision (h), in the case of an eligible
unmarried surviving spouse whose household income does not exceed the
amount of forty thousand dollars ($40,000), as adjusted for the
relevant assessment year as provided in subdivision (g).
taxation.
(3) Beginning with the 2012-13 fiscal year and for each
fiscal year thereafter, property Property is
deemed to be the principal place of residence of the unmarried
surviving spouse of a deceased veteran, who is confined to a hospital
or other care facility, if that property would be the unmarried
surviving spouse's principal place of residence were it not for his
or her confinement to a hospital or other care facility, provided
that the residence is not rented or leased to a third party. For
purposes of this paragraph, a family member who resides at the
residence is not considered to be a third party.
(d) As used in this section, "property that is owned by a veteran"
or "property that is owned by the veteran's unmarried surviving
spouse" includes all of the following:
(1) Property owned by the veteran with the veteran's spouse as a
joint tenancy, tenancy in common, or as community property.
(2) Property owned by the veteran or the veteran's spouse as
separate property.
(3) Property owned with one or more other persons to the extent of
the interest owned by the veteran, the veteran's spouse, or both the
veteran and the veteran's spouse.
(4) Property owned by the veteran's unmarried surviving spouse
with one or more other persons to the extent of the interest owned by
the veteran's unmarried surviving spouse.
(5) So much of the That portion of the
property of a corporation as that
constitutes the principal place of residence of a veteran or a
veteran's unmarried surviving spouse when the veteran, or
the veteran's spouse, or the veteran's unmarried surviving
spouse is a shareholder of the corporation and the rights of
shareholding entitle one to the possession of property, legal title
to which is owned by the corporation. The exemption provided by this
paragraph shall be shown on the local roll and shall reduce the full
value of the corporate property. Notwithstanding any
provision of law or articles of incorporation or bylaws of
a corporation described in this paragraph, any reduction of property
taxes paid by the corporation shall reflect an equal reduction in any
charges by the corporation to the person who, by reason of
qualifying for the exemption, made possible the reduction for the
corporation.
(e) For purposes of this section, being
the following definitions shall apply:
(1) "Being blind in both
eyes means having a visual acuity of 5/200 or less, or concentric
contraction of the visual field to 5 degrees or less; losing
eyes" means that the veteran is a blind person, as
that term is defined in Section 19153 of the Welfare and Institutions
Code as that section read on January 1, 2016.
(2) "Lost the use of a
limb two or more limbs" means that the limb has
been amputated or its use has been lost by reason of ankylosis,
progressive muscular dystrophies, or paralysis; and being
totally disabled paralysis.
(3) "Totally disabled" means that
the veteran has a disability which the United States
Department of Veterans Affairs or the military service from which the
veteran was discharged has rated the disability
at 100 percent or percent, the veteran is so
severely disabled as to be unable to move without the aid of an
assistive device, or the veteran has rated the disability
compensation at 100 percent by reason of being unable to secure or
follow a substantially gainful occupation.
(f) An exemption granted to a claimant in accordance with
the provisions of pursuant to this section
shall be in lieu of the veteran's exemption provided by subdivisions
(o), (p), (q), and (r) of Section 3 of Article XIII of the California
Constitution and any other real property tax exemption to which the
claimant may be entitled. No other real property tax exemption may be
granted to any other person with respect to the same residence for
which an exemption has been granted under the provisions of
pursuant to this section; provided, that if two
or more veterans qualified pursuant to this section coown a property
in which they reside, each is entitled to the exemption to the extent
of his or her interest.
(g) Commencing on January 1, 2002, and for each assessment year
thereafter, the household income limit shall be compounded annually
by an inflation factor that is the annual percentage change, measured
from February to February of the two previous assessment years,
rounded to the nearest one-thousandth of 1 percent, in the California
Consumer Price Index for all items, as determined by the California
Department of Industrial Relations.
(h) Commencing on January 1, 2006, and for each assessment year
thereafter, the exemption amounts set forth in subdivisions (a) and
(c) shall be compounded annually by an inflation factor that is the
annual percentage change, measured from February to February of the
two previous assessment years, rounded to the nearest one-thousandth
of 1 percent, in the California Consumer Price Index for all items,
as determined by the California Department of Industrial Relations.
(g) The amendments made to this section by the act adding this
subdivision shall apply for property tax lien dates for the 2017-18
fiscal year and for each fiscal year thereafter.
SEC. 2. Notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made by this act and
the state shall not reimburse any local agency for any property tax
revenues lost by it pursuant to this act.
SEC. 3. 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.
SEC. 4. This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.
SECTION 1. It is the intent of the Legislature,
for taxable years beginning on or after January 1, 2019, to modify
the tax rates applicable to taxable income under the Personal Income
Tax Law.