Bill Text: CA SB1104 | 2015-2016 | Regular Session | Amended
Bill Title: Property tax: senior and disabled veterans.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [SB1104 Detail]
Download: California-2015-SB1104-Amended.html
BILL NUMBER: SB 1104 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 11, 2016
INTRODUCED BY Senator Stone
FEBRUARY 17, 2016
An act to amend Sections 51 and 205.5 51,
205.5, and 5813 of the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1104, as amended, Stone. Property tax: senior and disabled
veterans.
(1) The California Constitution generally limits ad valorem taxes
on real property to 1% of the full cash value, as defined, of that
property, and provides that the full cash value base may be adjusted
each year by the inflationary rate not to exceed 2% for any given
year.
Existing property tax law implementing this constitutional
authority provides that the taxable value of real property is the
lesser of its base year value compounded annually by an inflation
factor not to exceed 2%, as provided, or its full cash value.
Existing property tax law also provides that the taxable
value of a manufactured home is the lesser of its base
year value compounded annually by an inflation factor not to exceed
2% or its full cash value.
This bill bill, for any assessment year
commencing on or after January 1, 2017, would provide that the
inflation factor shall not apply to the principal place of
residence residence, including a manufactured home,
of a qualified veteran, as defined, who is 65 years
of age or older and on the lien date, was
honorably discharged from military service for any
assessment year commencing on or after either January 1, 2017, or the
veteran's 65th birthday, whichever occurs later.
service, and meets specified requirements.
By changing the manner in which local tax officials calculate the
taxable value of real property owned by senior veterans, this bill
would impose a state-mandated local program.
(2) Existing property tax law provides, pursuant to the
authorization of the California Constitution, a disabled
veterans' 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
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, commencing with the lien date for the 2017-18 fiscal
year and for each fiscal year thereafter, would instead exempt the
full value of the principal place of residence of a veteran or
veteran's spouse. The bill would also make technical and conforming
changes to the disabled veterans' veteran's
property tax exemption.
By changing the manner in which local tax officials administer the
disabled veterans' veteran's property
tax exemption, this bill would impose a state-mandated local program.
(3) 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.
(4) 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.
(5) This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 51 of the Revenue and Taxation Code is amended
to read:
51. (a) For purposes of subdivision (b) of Section 2 of Article
XIII A of the California Constitution, for each lien date after the
lien date in which the base year value is determined pursuant to
Section 110.1, the taxable value of real property shall, except as
otherwise provided in subdivision (b) or (c), be the lesser of:
(1) Its base year value, compounded annually since the base year
by an inflation factor, which shall be determined as follows:
(A) For any assessment year commencing prior to January 1, 1985,
the inflation factor shall be the percentage change in the cost of
living, as defined in Section 2212.
(B) For any assessment year commencing after January 1, 1985, and
prior to January 1, 1998, the inflation factor shall be the
percentage change, rounded to the nearest one-thousandth of 1
percent, from December of the prior fiscal year to December of the
current fiscal year in the California Consumer Price Index for all
items, as determined by the California Department
of Industrial Relations.
(C) For any assessment year commencing on or after January 1,
1998, the inflation factor shall be the percentage change, rounded to
the nearest one-thousandth of 1 percent, from October of the prior
fiscal year to October of the current fiscal year in the California
Consumer Price Index for all items, as determined by the
California Department of Industrial Relations.
(D) The percentage increase for an assessment year determined
pursuant to subparagraph (A), (B), or (C) shall not exceed 2 percent
of the prior year's value.
(E) (i) Notwithstanding any other law,
for any assessment year commencing on or after January 1, 2017,
the percentage increase for an assessment year determined pursuant
to subparagraph (A), (B), or (C) shall not apply to the principal
place of residence residence, including
so much of the land surrounding it as is reasonably necessary
for use of the dwelling as a home, of a qualified
veteran who is 65 years of age or older on the lien date
and was honorably discharged from military service for any
assessment year commencing on or after either January 1, 2017, or the
veteran's 65th birthday, whichever occurs later. For
service.
(ii) For the purpose of this
subparagraph, "veteran" "qualified veteran
" means a person who meets
who meets the following criteria:
(I) He or she meets the criteria
specified in subdivision (o) of Section 3 of Article XIII of the
California Constitution, except for the limitation on the value of
property owned by the veteran or the veteran's spouse.
(II) If the qualified veteran is single, his or her annual income,
as defined in Section 20504, is less than fifty thousand dollars
($50,000).
(III) If the qualified veteran is married, his or her household
combined annual income, as defined in Section 20504, is less than one
hundred thousand dollars ($100,000).
(iii) When claiming the benefit provided by this subparagraph, the
claimant shall provide all information required by, and answer all
questions contained in, an affidavit furnished by the assessor to
determine that the claimant is a qualified veteran. The assessor may
require additional proof of the information or answers provided in
the affidavit before allowing the benefit provided by this
subparagraph.
(2) Its full cash value, as defined in Section 110, as of the lien
date, taking into account reductions in value due to damage,
destruction, depreciation, obsolescence, removal of property, or
other factors causing a decline in value.
(b) If the real property was damaged or destroyed by disaster,
misfortune, or calamity and the board of supervisors of the county in
which the real property is located has not adopted an ordinance
pursuant to Section 170, or any portion of the real property has been
removed by voluntary action by the taxpayer, the taxable value of
the property shall be the sum of the following:
(1) The lesser of its base year value of land determined under
paragraph (1) of subdivision (a) or full cash value of land
determined pursuant to paragraph (2) of subdivision (a).
(2) The lesser of its base year value of improvements determined
pursuant to paragraph (1) of subdivision (a) or the full cash value
of improvements determined pursuant to paragraph (2) of subdivision
(a).
In applying this subdivision, the base year value of the subject
real property does not include that portion of the previous base year
value of that property that was attributable to any portion of the
property that has been destroyed or removed. The sum determined under
this subdivision shall then become the base year value of the real
property until that property is restored, repaired, or reconstructed
or other provisions of law require establishment of a new base year
value.
(c) If the real property was damaged or destroyed by disaster,
misfortune misfortune, or calamity and
the board of supervisors in the county in which the real property is
located has adopted an ordinance pursuant to Section 170, the taxable
value of the real property shall be its assessed value as computed
pursuant to Section 170.
(d) For purposes of this section, "real property" means that
appraisal unit that persons in the marketplace commonly buy and sell
as a unit, or that is normally valued separately.
(e) Nothing in this section shall be construed to require the
assessor to make an annual reappraisal of all assessable property.
However, for each lien date after the first lien date for which the
taxable value of property is reduced pursuant to paragraph (2) of
subdivision (a), the value of that property shall be annually
reappraised at its full cash value as defined in Section 110 until
that value exceeds the value determined pursuant to paragraph (1) of
subdivision (a). In no event shall the assessor condition the
implementation of the preceding sentence in any year upon the filing
of an assessment appeal.
SEC. 2. 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 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.
(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, except for the
limitation on the value of property owned by the veteran or the
veteran's spouse.
(B) 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.
(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 the purposes of this paragraph, a family
member that 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 if the deceased veteran 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.
(2) Property that is owned by, and that constitutes the principal
place of residence of, the unmarried surviving spouse of a veteran
described in subparagraph (B) of paragraph (1) of subdivision (b) is
exempt from taxation.
(3) 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) That portion of the property of a corporation that constitutes
the principal place of residence of a veteran or a veteran's
unmarried surviving spouse when the veteran, 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, the following definitions shall
apply:
(1) "Being" "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.
(2) "Lost the use of 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.
(3) "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) The amendments made to this section by the act adding
this subdivision Senate Bill 1104 of the 2015-
16 Regular Session of the Legislature shall apply for
property tax lien dates for the 2017-18 fiscal year and for each
fiscal year thereafter.
SEC. 3. Section 5813 of the Revenue and
Taxation Code is amended to read:
5813. For (a) For
each lien date after the lien date for which the base year
value is determined, the taxable value of a manufactured home shall
be the lesser of:
(a)
(1) Its base year value, compounded annually since the
base year by an inflation factor, which shall be the percentage
change in the cost of living, as defined in Section 51, provided,
that any percentage increase shall not exceed 2 percent of the prior
year's value; or value.
(b)
(2) Its full cash value, as defined in Section 5803, as
of the lien date, taking into account reductions in value due to
damage, destruction, depreciation, obsolescence, or other factors
causing a decline in value; or value.
(c)
(3) If the manufactured home is damaged or destroyed by
disaster, misfortune, or calamity, its value determined pursuant to
(b) paragraph (2) shall be its base
year value until the manufactured home is restored, repaired or
reconstructed or other provisions of law require establishment of a
new base year value.
(b) (1) Notwithstanding any other law, for any assessment year
commencing on or after January 1, 2017, the percentage increase for
an assessment year determined pursuant to paragraph (1) of
subdivision (a) shall not apply to the principal place of residence
of a qualified veteran who owns a manufactured home as his or her
principal place of residence and who is 65 years of age or older on
the lien date and was honorably discharged from military service.
(2) For the purpose of this subdivision, "qualified veteran"
means a person who meets the following criteria:
(A) He or she meets the criteria specified in subdivision (o) of
Section 3 of Article XIII of the California Constitution, except for
the limitation on the value of property owned by the veteran or the
veteran's spouse.
(B) If the qualified veteran is single, his or her annual
household income, as defined in Section 20504, is fifty thousand
dollars ($50,000) or less.
(C) If the qualified veteran is married, his or her combined
annual household income, as defined in Section 20504, is one hundred
thousand dollars ($100,000) or less.
(3) When claiming the benefit provided by this subdivision, the
claimant shall provide all information required by, and answer all
questions contained in, an affidavit furnished by the assessor to
determine that the claimant is a qualified veteran. The assessor may
require additional proof of the information or answers provided in
the affidavit before allowing the benefit provided by this
subdivision.
SEC. 3. SEC. 4. 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. 4. SEC. 5. 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. 5. SEC. 6. This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.
