BILL ANALYSIS Ó
SENATE COMMITTEE ON VETERANS AFFAIRS
Senator Jim Nielsen, Chair
2015 - 2016 Regular
Bill No: SB 1183 Hearing Date: 4/12/16
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|Author: |Bates |
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|Version: |3/28/16 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Wade Teasdale |
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Subject: Property taxation: exemptions: disabled veterans
DESCRIPTION
Summary:
Exempts completely from property taxation the home of any person
eligible for the "disabled veterans property tax exemption."
Existing law:
1)Authorizes the Legislature to exempt partially or fully from
property tax, the home of a disabled veteran - or the
veteran's spouse, including an unmarried surviving spouse - if
the veteran's disabling injury incurred in military service;
and the veteran is blind in both eyes; lost the use of two or
more limbs; or is totally disabled.
[California Constitution, Article XIII, Section 4(a)]
a) Applies also to the veteran's spouse, including an
unmarried surviving spouse, if the veteran has, as a result
of a service-connected injury or disease, died while on
active duty in military service.
b) Does not apply if the home is receiving another real
property exemption.
1)Provides a partial exemption for eligible disabled veterans.
(RTC Section 205.5)
2)Defines a veteran for its purposes as a person who, among
other things, is serving in or has served in and has been
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discharged under honorable conditions from service in the
United States Army, Navy, Air Force, Marine Corps, or Coast
Guard. (RTC Section 205.5)
This bill:
Provides a full exemption for the home of any person qualified
to receive the disabled veterans' property tax exemption.
BACKGROUND
Disabled Veterans Property Tax Exemption
California provides qualified disabled veterans and their
unmarried surviving spouses with a property tax exemption that
applies to their home's assessed value. Eligibility provisions
require that the claimant demonstrate award of disability rating
from the United States Department of Veterans Affairs (USDVA)
that:
1) Rates the veteran's disability at 100%; or
2) Rates the veteran's disability compensation at 100%
because the veteran is unable to secure and maintain
gainful employment.
The law also allows surviving spouses to receive the exemption
if the spouse's death was service-connected. To be eligible for
the exemption, surviving spouses must receive a USDVA
determination that the spouse's death was service-connected. A
USDVA determination is necessary for (1) active duty personnel
deaths (i.e., the service person was not a "veteran") and (2)
veterans without a 100% rating when alive, but whose cause of
death is deemed service-connected. Surviving spouses of veterans
with a 100% disability rating during their lifetime continue to
receive the exemption after the veteran's death so long as they
do not remarry.
The exemption amount depends upon the claimant's income.
According to the State Board of Equalization, Fiscal year
2016-17, the basic exemption adjusted for inflation will be
$127,510. If the claimant's income is less than $57,258, the
exemption amount will be $191,266. In 1990, 8,483 disabled
veterans' exemptions were provided to eligible homeowners. For
2015, there were 37,653 eligible homeowners. In the last 25
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years, this is a 344% increase.
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| | | Lower |
| Qualification | | Income |
| | | Exemption |
| | Basic | Amount |
| | | $40,000 |
| | Exemptio| adjusted |
| | | for |
| | n | inflation |
| | | $57,258 |
| | Amount | |
| | | |
| | | |
| | | |
|-------------------------------------+-------------+-------------|
| Disabled Veteran | $100,000 | $150,000 |
| | | |
| Disability Rating = 100% | adjuste | adjuste |
| Disability Compensation = | d for | d for |
| 100% | inflati | inflati |
| Blind | on | on |
| Lost Two or More Limbs | | |
| | $127,510 | $191,266 |
| Spouse of Military Personnel | | |
| Surviving Spouse: Disabled | | |
| Veteran | | |
| Surviving Spouse: Active | | |
| Duty Death | | |
| Surviving Spouse: | | |
| | | |
| Posthumous service-connected | | |
| | | |
| death finding | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|-------------------------------------+-------------+-------------|
| Claims Granted: 37,653 | 33,196 | 4,457 |
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| Source: California State Board of Equalization, Legislative |
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|and Research Division, 2016 |
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COMMENT
Committee Comments :
SB 1183 is virtually identical to AB 1556, introduced into the
Assembly earlier this year. Due to the late amendment
(3/28/2016) of SB 1183 into its current form, the measure's
likely supporters have not yet adopted positions on this
measure; however, the list of support and opposition for AB
1556, according to the Assembly Revenue and Taxation Committee
analysis (as of 3/31/2016) is as follows:
Support:
American G. I. Forum of California
AMVETS-Department of California
American Legion- Department of California
California Association of County Veteran Service Officers
California State Commanders Service Council
Howard Jarvis Taxpayers Association
VFW-Department of California
Vietnam Veterans of America, California State Council
Opposition: None on file
Related/Prior Legislation :
AB 1556 (Mathis/Weber, pending Assembly Revenue and Taxation
Committee, 2016) exempts fully from property tax the home of a
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totally disabled veteran, as defined, or his/her unmarried
surviving spouse, by repealing the limitations imposed on the
assessed value of the disabled veteran's principal residence
eligible for the exemption and the amount of his/her household
income.
AB 2568 (Houston, held, Senate Revenue and Taxation Committee,
2008) Exempts fully from property tax the personal residence
of a disabled veteran and his/her spouse.
SB 1485 (Jeffries, held Senate Appropriations Committee, 2007)
Increases the property tax exemption currently provided to
disabled veterans and their surviving spouses beginning in
2008-09. Specifically, 1) increases the exemptions for
households with income of up to $48,825, from $161,420 to
$250,000; 2) increases the exemption for households with
incomes over $48,825, from $107,613 to $200,000; 3) provides
that future exemption amounts will continue to be indexed for
inflation.
SB 1005 (Florez, held Senate Revenue and Taxation Committee,
2005) fully exempts from property taxation the principal
residence of the unmarried surviving spouse of a veteran who
died as a result of a service-connected disease or injury.
Also, fully exempts from property taxation the principal
residence of the unmarried surviving spouse of a qualified
public safety officer who died in the line of duty.
SB 764 (Morrow, Chapter 544, Statutes of 2004 ), for assessment
years beginning on and after January 1, 2006, increases these
exemption amounts by a specified inflation factor. Also
imposes a state-mandated local program by requiring local tax
officials to annually adjust these increased exemption amounts
in accordance with a specified inflation factor.
POSITIONS
Sponsor: Paralyzed Veterans of America, Cal-Diego Chapter.
Support: See Committee Comments
Oppose: See Committee Comments
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