Bill Text: CA SB871 | 2023-2024 | Regular Session | Amended
Bill Title: Property taxation: homeowners’, veterans’, and disabled veterans’ exemptions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-07-01 - July 1 hearing postponed by committee. [SB871 Detail]
Download: California-2023-SB871-Amended.html
|
Amended
IN
Senate
September 01, 2023 |
|
Amended
IN
Senate
March 22, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 871
| Introduced by Senator Archuleta |
February 17, 2023 |
An act to amend Section 218 of the Revenue and Taxation Code, relating to property taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 871, as amended, Archuleta.
Property taxation: homeowners’, veterans’, and disabled veterans’ exemptions.
The California Constitution declares that all property is taxable and establishes or authorizes various exemptions from tax for real property, including a homeowners’ exemption in the amount of $7,000 of the full value of a dwelling that may be applied unless the dwelling receives another real property exemption. The California Constitution and existing property tax law establish a veterans’ exemption in the amount of $4,000, as specified, for a veteran who meets certain military service requirements, and generally exempts from property taxation the same value of property of a deceased veteran’s unmarried spouse and parents. The California Constitution and existing property tax law establish a disabled veteran’s veterans’
exemption in the amount of $100,000 or $150,000 for the principal place of residence of a veteran or a veteran’s spouse, as specified.
Existing property tax law establishing the homeowners’ exemption specifies that the exemption may not be applied to a property on which the owner receives the veteran’s veterans’ exemption.
This bill would remove this specification and would instead prohibit the application of the homeowners’ exemption to a property on which the owner receives another exemption, except for the veterans’ exemption or the disabled veterans’
exemption. provide that if Senate Constitutional Amendment 6 is approved by the voters at the statewide general election scheduled for November 5, 2024, then commencing January 1, 2025, notwithstanding that prohibition, the homeowners’ exemption also applies to property on which an owner receives the veterans’ exemption or the disabled veterans’ exemption. By imposing additional duties on local tax officials, the 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 no reimbursement
is required by this act for a specified reason.
Existing law requires the state 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 those provisions, 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, but its operative date would depend on voter approval of Senate Constitutional Amendment ____ of the 2023–24 Regular Session.
This bill would take effect immediately as a tax levy.
Existing law contains provisions related to elections and voting, including a requirement that a constitutional amendment submitted to the people by the Legislature shall appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal by the Legislature and that the Secretary of State mail state voter information guides to voters.
This bill would require the Secretary of State, notwithstanding specified provisions of existing law relating to elections and voting, to submit Senate Constitutional Amendment ____ 6
of the 2023–24 Regular Session to the voters for their approval at the statewide general election scheduled for November 5, 2024.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 218 of the Revenue and Taxation Code is amended to read:218.
(a) The homeowners’ property tax exemption is in the amount of the assessed value of the dwelling specified in this section, as authorized by subdivision (k) of Section 3 of Article XIII of the California Constitution. That exemption shall be in the amount of seven thousand dollars ($7,000) of the full value of the dwelling.(b) (1) The (A) Except as provided in subparagraph (B), the exemption does not extend to property that is rented, vacant, under construction on the lien date, or that
is a vacation or secondary home of the owner or owners, nor does it apply to property on which an owner receives another exemption, except for the veteran’s exemption described in Section 205 or the disabled veteran’s exemption under Section 205.5. the veteran’s exemption.
(B) Notwithstanding subparagraph (A), if Senate Constitutional Amendment 6 of the 2023–24 Regular Session is approved by the voters at the statewide general election scheduled for November 5, 2024, then commencing January 1, 2025, the exemption applies to property on which an owner receives the veterans’ exemption described in Section 205 or the
disabled veterans’ exemption under Section 205.5.
(2) Notwithstanding paragraph (1), if a person receiving the exemption is not occupying the dwelling on the lien date because the dwelling was damaged in a misfortune or calamity, the person shall be deemed to occupy that same dwelling as their principal place of residence on the lien date, provided the person’s absence from the dwelling is temporary and the person intends to return to the dwelling when possible to do so. Except as provided in paragraph (3), when a dwelling has been totally destroyed, and thus no dwelling exists on the lien date, the exemption provided
by this section shall not be applicable until the structure has been replaced and is occupied as a dwelling.
(3) A dwelling that was totally destroyed in a disaster for which the Governor proclaimed a state of emergency, that qualified for the exemption provided by this section prior to the commencement date of the disaster and that has not changed ownership since the commencement date of the disaster, shall be deemed occupied by the person receiving the exemption on the lien date provided the person intends to reconstruct a dwelling on the property and occupy the dwelling as their principal place of residence when it is possible to do so.
(c) For purposes of this section, all of the following apply:
(1) “Owner” includes a person purchasing the dwelling under a contract of sale or who holds shares or membership in a cooperative housing corporation, which holding is a requisite to the exclusive right of occupancy of a dwelling.
(2) (A) “Dwelling” means a building, structure, or other shelter constituting a place of abode, whether real property or personal property, and any land on which it may be situated. A two-dwelling unit shall be considered as two separate single-family dwellings.
(B) “Dwelling” includes the following:
(i) A single-family dwelling occupied by an owner thereof as
their principal place of residence on the lien date.
(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as their principal place of residence.
(iii) A condominium occupied by an owner thereof as their principal place of residence on the lien date.
(iv) Premises occupied by the owner of shares or a membership interest in a cooperative housing corporation, as defined in subdivision (i) of Section 61, as their principal place of residence on the lien date. Each exemption allowed pursuant to this subdivision shall be deducted from the total assessed valuation of the cooperative housing corporation. The exemption shall be taken into account in apportioning property taxes among owners of
share or membership interests in the cooperative housing corporations so as to benefit those owners who qualify for the exemption.
(d) The exemption provided for in subdivision (k) of Section 3 of Article XIII of the California Constitution shall first be applied to the building, structure, or other shelter and the excess, if any, shall be applied to any land on which it may be located.
SEC. 2.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the duties imposed on a local agency or school district by this act are necessary to implement, or were expressly included in, a ballot measure approved by the voters in a statewide or local election, within the meaning of Section 17556 of the Government Code.SEC. 2.SEC. 3.
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.SEC. 4.
Notwithstanding the requirements of Sections 9040, 9043, 9044, 9061, 9082, and 9094 of the Elections Code, or any other law, the Secretary of State shall submit Senate Constitutional AmendmentThis act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. However, Sections 1 and 2 shall become operative only if Senate Constitutional Amendment ____ of the 2023–24 Regular Session is approved by the voters and, in that event, shall become operative on January 1, 2025.
