BILL NUMBER: SB 1458	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 6, 2016

INTRODUCED BY   Senator Bates

                        FEBRUARY 19, 2016

   An act to amend Section 205.5 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   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.
   This bill 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.  
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 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 person who is serving in or has served in and has been
discharged under other than dishonorable conditions from service in
the United States Army, Navy, Air Force, Marine Corps, or Coast
Guard, and served either in time of war or in time of peace in a
campaign or expedition for which a medal has been issued by Congress,
or in time of peace and because of a service-connected disability
was released from active  duty.   duty, and who
has been determined by the United States Department of Veterans
Affairs to be eligible for federal veterans' health and medical
benefits. 
   (B) Any person who would qualify as a veteran pursuant to
subparagraph (A) except that he or she has, as a result of a
service-connected injury or disease, 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. For purposes of this paragraph, a family
member who resides at the residence is not 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 veteran who was blind
in both eyes, had lost the use of two or more limbs, or was totally
disabled provided that either of the following conditions is met:
   (A) The deceased veteran during his or her lifetime qualified 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 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 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).
   (3) Beginning with the 2012-13 fiscal year and for each fiscal
year thereafter, 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 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 property of a corporation as 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 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 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 the use of a limb
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 means that 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 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 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 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.
  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.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.