SB 1458, as amended, Bates. Property taxation: exemptions: disabled veterans.
Existing property tax law provides, pursuant to the authorization of the California Constitution, a disabled veteran’s 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 an 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. That law defines a veteran for its purposes as a person who, among other things, is serving in or has served in and has been discharged under honorable conditions from service in the United States Army, Navy, Air Force, Marine Corps, or Coast Guard.
Thisbegin delete billend deletebegin insert
bill, for property tax lien dates for the 2017- 18 fiscal year and each fiscal year thereafter,end insert would expand that definition of veteran to include a person who has been discharged in other than dishonorable conditions from service under those same conditions and who has been determined by the United States Department of Veterans Affairs to be eligible for federal veterans’ health and medical benefits.
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.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
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 on that part of the full value of the residence that
7does not exceed one hundred thousand dollars ($100,000), as
8adjusted for the relevant assessment year as provided in subdivision
9(h), if the veteran is blind in both eyes, has lost the use of two or
10more limbs, or if the veteran is totally disabled as a result of injury
11or disease incurred in military service. The one hundred thousand
12dollar ($100,000) exemption shall be one hundred fifty thousand
13dollars ($150,000), as adjusted for the relevant assessment year as
14provided in subdivision (h), in the
case of an eligible veteran whose
15household income does not exceed the amount of forty thousand
16dollars ($40,000), as adjusted for the relevant assessment year as
17provided in subdivision (g).
18(b) (1) For purposes of this section, “veteran” means either of
19the following:
20(A) A person who is serving in or has served in and has been
21discharged under other than dishonorable conditions from service
22in the United States Army, Navy, Air Force, Marine Corps, or
23Coast Guard, and served either in time of war or in time of peace
24in a campaign or expedition for which a medal has been issued by
25Congress, or in time of peace and because of a service-connected
26disability was released from active duty, and who has been
P3 1determined by the United States Department of Veterans
Affairs
2to be eligible for federal veterans’ health and medical benefits.
3(B) Any person who would qualify as a veteran pursuant to
4
subparagraph (A) except that he or she has, as a result of a
5service-connected injury or disease, died while on active duty in
6military service. The United States Department of Veterans Affairs
7shall determine whether an injury or disease is service connected.
8(2) For purposes of this section, property is deemed to be the
9principal place of residence of a veteran, disabled as described in
10subdivision (a), who is confined to a hospital or other care facility,
11if that property would be that veteran’s principal place of residence
12were it not for his or her confinement to a hospital or other care
13facility, provided that the residence is not rented or leased to a
14third party. For purposes of this paragraph, a family member who
15resides at the residence is not a third party.
16(c) (1) Property that is owned by, and that constitutes the
17principal place of residence of, the unmarried surviving spouse of
18a deceased veteran is exempt from taxation on that part of the full
19value of the residence that does not exceed one hundred thousand
20dollars ($100,000), as adjusted for the relevant assessment year as
21provided in subdivision (h), in the case of a veteran who was blind
22in both eyes, had lost the use of two or more limbs, or was totally
23disabled provided that either of the following conditions is met:
24(A) The deceased veteran during his or her lifetime qualified
25
for 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.
30The one hundred thousand dollar ($100,000) exemption shall
31be one hundred fifty thousand dollars ($150,000), as adjusted for
32the relevant assessment year as provided in subdivision (h), in the
33case of an eligible unmarried surviving spouse whose household
34income does not exceed the amount of forty thousand dollars
35($40,000), as adjusted for the relevant assessment year as provided
36in subdivision (g).
37(2) Commencing with the 1994-95 fiscal year, property that is
38owned by, and that constitutes the principal place of residence of,
39the unmarried surviving spouse of a veteran as described in
40subparagraph (B) of paragraph (1) of subdivision (b) is exempt
P4 1from taxation on that part of the full value of the residence that
2does not exceed one hundred thousand dollars ($100,000), as
3adjusted for the relevant assessment year as provided in subdivision
4(h). The one hundred thousand dollar ($100,000) exemption shall
5be one hundred fifty thousand dollars ($150,000), as adjusted for
6the relevant assessment year as provided in subdivision (h), in the
7case of an eligible unmarried surviving spouse whose household
8income does not exceed the amount of forty thousand dollars
9($40,000), as adjusted for the relevant assessment year as provided
10in subdivision (g).
11(3) Beginning with the 2012-13 fiscal year and for each fiscal
12year thereafter, property is deemed to be the principal place of
13residence of the unmarried surviving spouse of a deceased veteran,
14who is confined to a hospital or other care facility, if that property
15would be the unmarried surviving spouse’s principal place of
16residence were it not for his or her confinement to a hospital or
17other care facility, provided that the residence is not rented or
18leased to a third party. For purposes of this paragraph, a family
19member who resides at the residence is not a third party.
20(d) As used in this section, “property that is owned by a veteran”
21or “property that is owned by the veteran’s unmarried surviving
22spouse” includes all of the following:
23(1) Property owned by the
veteran with the veteran’s spouse as
24a joint tenancy, tenancy in common, or as community property.
25(2) Property owned by the veteran or the veteran’s spouse as
26separate property.
27(3) Property owned with one or more other persons to the extent
28of the interest owned by the veteran, the veteran’s spouse, or both
29the veteran and the veteran’s spouse.
30(4) Property owned by the veteran’s unmarried surviving spouse
31with one or more other persons to the extent of the interest owned
32by the veteran’s unmarried surviving spouse.
33(5) So much of the property of a corporation as constitutes the
34principal place of residence of a veteran or a veteran’s unmarried
35surviving
spouse when the veteran, or the veteran’s spouse, or the
36veteran’s unmarried surviving spouse is a shareholder of the
37corporation and the rights of shareholding entitle one to the
38possession of property, legal title to which is owned by the
39corporation. The exemption provided by this paragraph shall be
40
shown on the local roll and shall reduce the full value of the
P5 1corporate property. Notwithstanding any law or articles of
2incorporation or bylaws of a corporation described in this
3paragraph, any reduction of property taxes paid by the corporation
4shall reflect an equal reduction in any charges by the corporation
5to the person who, by reason of qualifying for the exemption, made
6possible the reduction for the corporation.
7(e) For purposes of this section, being blind in both eyes means
8having a visual acuity of 5/200 or less, or concentric contraction
9of the visual field to 5 degrees or less; losing the use of a limb
10means that the limb has been amputated or its use has been lost
11by reason of ankylosis, progressive muscular dystrophies, or
12paralysis; and being totally disabled means that the United States
13Department of
Veterans Affairs or the military service from which
14the veteran was discharged has rated the disability at 100 percent
15or has rated the disability compensation at 100 percent by reason
16of being unable to secure or follow a substantially gainful
17occupation.
18(f) An exemption granted to a claimant pursuant to this section
19shall be in lieu of the veteran’s exemption provided by subdivisions
20(o), (p), (q), and (r) of Section 3 of Article XIII of the California
21Constitution and any other real property tax exemption to which
22the claimant may be entitled. No other real property tax exemption
23may be granted to any other person with respect to the same
24residence for which an exemption has been granted pursuant to
25this section; provided, that if two or more veterans qualified
26pursuant to this section coown a property in which they reside,
27each
is entitled to the exemption to the extent of his or her interest.
28(g) Commencing on January 1, 2002, and for each assessment
29year thereafter, the household income limit shall be compounded
30annually by an inflation factor that is the annual percentage change,
31measured from February to February of the two previous
32assessment years, rounded to the nearest one-thousandth of 1
33percent, in the California Consumer Price Index for all items, as
34determined by the California Department of Industrial Relations.
35(h) Commencing on January 1, 2006, and for each assessment
36year thereafter, the exemption amounts set forth in subdivisions
37(a) and (c) shall be compounded annually by an inflation factor
38that is the annual percentage change, measured from February to
39February of the two previous
assessment years, rounded to the
40nearest one-thousandth of 1 percent, in the California Consumer
P6 1Price Index for all items, as determined by the California
2Department of Industrial Relations.
3
(i) The amendments made to this section by the act adding this
4subdivision shall apply for property tax lien dates for the 2017-18
5fiscal year and for each fiscal year thereafter.
Notwithstanding Section 2229 of the Revenue and
7Taxation Code, no appropriation is made by this act and the state
8shall not reimburse any local agency for any property tax revenues
9lost by it pursuant to this act.
This act provides for a tax levy within the meaning of
11Article IV of the Constitution and shall go into immediate effect.
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