Bill Text: CA SB1458 | 2015-2016 | Regular Session | Chaptered
Bill Title: Property taxation: exemptions: disabled veterans.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2016-09-30 - Chaptered by Secretary of State. Chapter 871, Statutes of 2016. [SB1458 Detail]
Download: California-2015-SB1458-Chaptered.html
BILL NUMBER: SB 1458 CHAPTERED
BILL TEXT
CHAPTER 871
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2016
APPROVED BY GOVERNOR SEPTEMBER 30, 2016
PASSED THE SENATE AUGUST 25, 2016
PASSED THE ASSEMBLY AUGUST 18, 2016
AMENDED IN ASSEMBLY JUNE 29, 2016
AMENDED IN ASSEMBLY JUNE 23, 2016
AMENDED IN SENATE APRIL 6, 2016
INTRODUCED BY Senator Bates
(Coauthor: Senator Nguyen)
FEBRUARY 19, 2016
An act to amend Sections 205.5 and 5097 of, and to add Sections
4831.1 and 5097.3 to, the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1458, 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, for property tax lien dates for the 2017-18 fiscal year
and each fiscal year thereafter, 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.
Existing property tax law allows the correction of certain errors
resulting in incorrect entries on the property tax roll within 4
years after the making of the assessment.
This bill would extend the time for correcting errors to the roll
related to the disabled veterans' exemption to 8 years.
Existing law requires property taxes to be refunded upon the
filing of a claim within 8 years after making the payment sought to
be refunded if the claim relates to the disabled veterans' exemption.
This bill would instead require a refund on a claim filed within 8
years after making the payment sought to be refunded, or within 60
days of the date of a specified notice, whichever is later.
Existing property tax law authorizes any taxes paid before or
after delinquency to be refunded by the county tax collector within 4
years after the date of payment under specified conditions.
This bill would authorize any taxes paid before or after
delinquency to be refunded by the county tax collector within 8 years
after the date of payment if the amount paid exceeds the amount due
on the property as a result of corrections to the roll that relate to
the disabled veterans' exemption.
By changing the manner in which local county officials administer
property tax refunds with respect to the disabled veterans'
exemption, this bill would impose a state-mandated local program.
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.
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.
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, 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.
(i) The amendments made to this section by the act adding this
subdivision shall apply for property tax lien dates for the 2017-18
fiscal year and for each fiscal year thereafter.
SEC. 2. Section 4831.1 is added to the Revenue and Taxation Code,
to read:
4831.1. Notwithstanding any other law, corrections to the roll
that relate to the disabled veterans' exemption described in Section
205.5 may be corrected within eight years after the making of the
assessment being corrected.
SEC. 3. Section 5097 of the Revenue and Taxation Code is amended
to read:
5097. (a) An order for a refund under this article shall not be
made, except on a claim:
(1) Verified by the person who paid the tax, his or her guardian,
executor, or administrator.
(2) Except as provided in paragraph (3) or (4), filed within four
years after making the payment sought to be refunded, or within one
year after the mailing of notice as prescribed in Section 2635, or
the period agreed to as provided in Section 532.1, or within 60 days
of the date of the notice prescribed by subdivision (a) of Section
4836, whichever is later.
(3) (A) Filed within one year, if an application for a reduction
in an assessment or an application for equalization of an assessment
has been filed pursuant to Section 1603 and the applicant does not
state in the application that the application is intended to
constitute a claim for a refund, of either of the following events,
whichever occurs first:
(i) After the county assessment appeals board makes a final
determination on the application for reduction in assessment or on
the application for equalization of an escape assessment of the
property, and mails a written notice of its determination to the
applicant and the notice does not advise the applicant to file a
claim for refund.
(ii) After the expiration of the time period specified in
subdivision (c) of Section 1604 if the county assessment appeals
board fails to hear evidence and fails to make a final determination
on the application for reduction in assessment or on the application
for equalization of an escape assessment of the property.
(B) Filed within six months, if an application for a reduction in
an assessment or an application for equalization of an assessment has
been filed pursuant to Section 1603 and the applicant does not state
in the application that the application is intended to constitute a
claim for a refund, after the county assessment appeals board makes a
final determination on the application for reduction in assessment
or on the application for equalization of an escape assessment, and
mails a written notice of its determination to the applicant and the
notice advises the applicant to file a claim for refund within six
months of the date of the county assessment appeals board's final
determination.
(4) Filed within eight years after making the payment sought to be
refunded, or within 60 days of the notice prescribed by subdivision
(a) of Section 4836, whichever is later, if the claim for refund is
filed on or after January 1, 2015, and relates to the disabled
veterans' exemption described in Section 205.5.
(b) An application for a reduction in an assessment filed pursuant
to Section 1603 shall also constitute a sufficient claim for refund
under this section if the applicant states in the application that
the application is intended to constitute a claim for refund. If the
applicant does not so state, he or she may thereafter and within the
period provided in paragraph (3) of subdivision (a) file a separate
claim for refund of taxes extended on the assessment which the
applicant applied to have reduced pursuant to Section 1603 or Section
1604.
(c) If an application for equalization of an escape assessment is
filed pursuant to Section 1603, a claim may be filed on any taxes
resulting from the escape assessment or the original assessment to
which the escape relates within the period provided in paragraph (3)
of subdivision (a).
(d) The amendments made to this section by the act adding this
subdivision shall apply to claims for refund filed on or after
January 1, 2015.
SEC. 4. Section 5097.3 is added to the Revenue and Taxation Code,
to read:
5097.3. Notwithstanding any other law, any taxes paid before or
after delinquency may be refunded by the county tax collector or the
county auditor, within eight years after the date of payment, if the
amount paid exceeds the amount due on the property as the result of
corrections to the roll that relate to the disabled veterans'
exemption described in Section 205.5.
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. 6. 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. 7. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
