BILL ANALYSIS �
AB 946
Page 1
Date of Hearing: April 4, 2011
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Henry T. Perea, Chair
AB 946 (Butler) - As Introduced: February 18, 2011
Majority vote.
SUBJECT : Property tax exemption: principal residence:
disabled veterans' exemption.
SUMMARY : Consolidates into Revenue and Taxation Code (R&TC)
Section 279 reference to the effective dates for eligibility of
the disabled veterans' exemption for specified situations.
Specifically, this bill :
1)Adds subdivision (a) to R&TC Section 279 that references the
effective dates property becomes eligible for the disabled
veterans' property tax exemption.
2)Utilizes the language "claimant" and "qualified claimant"
throughout this bill.
3)Removes the language referring to the lien date in order to be
consistent with R&TC Sections 276.2 and 276.3.
4)Adds paragraph 5 to R&TC Section 279 (b), which lists the
events that terminate exemption eligibility, to include when
an unmarried surviving spouse remarries.
EXISTING LAW :
1)Authorizes a property tax exemption for the principal
residence of a disabled veteran or his/her spouse, including
an unmarried surviving spouse. For purposes of this
exemption, the disability rating must be 100%, generally
occurring for a veteran that is blind in both eyes, or has
lost the use of two or more limbs, is totally disabled, or the
veteran dies from an injury that is determined to be
service-related by the United States Department of Consumer
Affairs. The property tax exemption is equal to the assessed
value of the property, up to $100,000, as adjusted for
inflation. If the household income does not exceed $40,000,
as adjusted, the maximum property tax exemption is increased
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to $150,000, as adjusted. The exemption amounts and income
limitation are adjusted annually for the change in the
California Consumer Price Index for all items, as determined
by the California Department of Industrial Relations. For the
2011-12 fiscal year, the disabled veterans' exemption amount
will be $175,269 of assessed value for those with a household
income below $52,470 (low income exemption). For all others,
the disabled veteran's exemption amount will be $116,845
(basic exemption).
2)Provides that a disabled veterans' property tax exemption,
once granted, remains in continuous effect unless any of the
following conditions occurs:
a) The title to the property changes;
b) The property is altered so the property no longer
qualifies as a residence;
c) The owner is no longer considered disabled; or,
d) The owner does not occupy the property as his/her
principal place of residence on the property tax lien date,
unless the disabled veteran is confined to a hospital or
other care facility or the residence was damaged in a
misfortune or calamity.
FISCAL EFFECT : The Board of Equalization (BOE) staff estimates
that there will be no revenue loss from this bill.
COMMENTS :
1)The author provides the following statement in support of this
bill:
"AB 946 will aid the proper administration of the disabled
veterans' property tax exemption. The current laws are widely
dispersed and lack cross references. A comprehensive section
of code will greatly assist tax administrators and tax
practitioners and is particularly useful to those who are new
to this area of law or address these issues infrequently.
"Updating the code to provide complete and accurate
information also serves those families that have sacrificed so
much. It makes certain that the exemption available will be
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granted as of the earliest possible date and will alert
persons receiving the exemption to those events that cause
ineligibility. These are nonsubstantive changes but important
changes."
2)The BOE staff notes that consolidation of the eligibility
provisions, the effective dates, and termination dates will
reduce errors in the administration of the disabled veterans'
exemption.
3)The BOE staff also notes that double-jointing amendments will
be needed should AB 188 (Block) and this bill both become
enacted.
4)Related Legislation:
AB 188 (Block), introduced in the current Legislative Session,
ensures an unmarried surviving spouse that is receiving the
disabled veterans' exemption continues to receive the benefit
if he or she is confined to a hospital or care facility. AB
188 is pending in the Assembly Appropriations Committee.
AB 2568 (Houston), introduced in the 2007-08 Legislative
Session, would have removed the existing maximum exemptions.
AB 2568 was held under submission in this Committee.
AB 322 (Parra), Chapter 278, Statutes of 2003, ensures that a
disabled veteran, who is confined to a hospital or other care
facility, will continue to receive the disabled veterans'
property tax exemption.
REGISTERED SUPPORT / OPPOSITION :
Support
State Board of Equalization
Opposition
None on file
AB 946
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Analysis Prepared by : Myriam Bouaziz and Oksana Jaffe / REV. &
TAX. / (916) 319-2098