HouseBill EngrossedText property- tax;SB-1393 Property taxation:

exemption;disabled veterans’ exemption.

veterans;skip to content home accessibility FAQ feedback sitemap login x Quick Search:

disabilitiesBill StateNumber ofBill ArizonaKeyword HouseHome ofBill RepresentativesInformation Fifty-seventhCalifornia LegislatureLaw FirstPublications RegularOther SessionResources HOUSEMy BILLSubscriptions 2672My ANFavorites ACTBill AMENDINGInformation SECTION>> 42-11111,Bill ARIZONASearch REVISED>> STATUTES;Text Bill Text PDF2 Add To My Favorites | Version:

RELATING03/27/00 TO- PROPERTYAmended TAXSenate EXEMPTIONS.03/15/00 - Amended Senate 01/25/00 - Introduced SB-1393 Property taxation:

(TEXTdisabled OFveterans’ BILLexemption.(1999-2000) BEGINSText ON>> NEXTVotes PAGE)>> -History i>> -Bill H.B.Analysis >> Today's Law As Amended >> Compare Versions >> Status >> Comments To Author >> Add To My Favorites >> SHARE THIS:

2672SB1393:v97#DOCUMENTBill BeStart itAmended enacted IN  bySenate the March 15, 2000 LegislatureAmended of IN  theSenate State March 27, 2000 ofCALIFORNIA Arizona:LEGISLATURE— 1999–2000 REGULAR SESSION Senate Bill No.

Section1393Introduced  by  1.Senator Leslie (Coauthor(s):

SectionSenator 42-11111,Johannessen, ArizonaMonteith, RevisedMorrow) Statutes,(Coauthor(s): is amended to read:

42-11111.Assembly Member Ashburn, Bates, Bock, Campbell, Cox, Cunneen, Dickerson, Frusetta, House, Leach, Maldonado, Oller, Robert Pacheco, Pescetti, Runner, Zettel)January 25, 2000An act to amend and repeal Section 205.5 of, to add Sections 276.1, 276.2, and 276.3 to, and to repeal and add Section 276 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTSB 1393, as amended, Leslie.

ExemptionProperty fortaxation: property;

widowsdisabled andveterans’ widowers;exemption.Existing property tax law provides, pursuant to the authorization of the California Constitution, for the exemption from property taxation of the home of a disabled veteran, or a veteran’s spouse in the case in which the veteran has, as a result of a service-connected disease or injury, died while on active duty in military service.

personsExisting withproperty atax totallaw specifies an exemption amount of $40,000 and permanentincreases disability;that amount to $100,000 in the case in which the disabled veteran is completely disabled.

veteransExisting withlaw increases these amounts to $60,000 and $150,000, respectively, if the exemption claimant’s income does not exceed an amount stated in a disability;specified statute.

definitionsExisting A.law also repeals the higher exemption amounts with regard to totally disabled veterans as of January 1, 2001.This bill would eliminate this repeal and would, for purposes of an income threshold, substitute an income level of $40,000 for the amount specified by a certain statute.

TheThis propertybill ofwould widowsprovide andfor widowers,the ofannual personsadjustment withof totalthat andincome permanentlevel disabilitiesfor andinflation offor veteransthe with2002 serviceassessment oryear nonserviceand connectedeach disabilitiesassessment whoyear arethereafter.Existing residentsproperty oftax thislaw stategenerally isrequires exemptan fromaffidavit taxationfor asthe provideddisabled byveterans’ articleexemption IX,to sectionbe 2,filed Constitutionno oflater Arizona,than and subject to the conditionsFebruary and15 limitsfollowing prescribedthe byrelevant thislien section.date.

B.It also provides for partial exemptions, each applicable as provided and contingent upon an affidavit being no later than the December 10 following the lien date, of the lesser of either certain amounts of assessed value or 80% of the full value of the real property to which the exemption is to be applied.This bill would, if the exemption would have been available but for the claimant not having received a disability rating from the United States Department of Veterans Affairs, allow an exemption in the amount that would have been allowed had a proper affidavit for that exemption been filed on the effective date of that disability rating.

PursuantThis bill would condition this exemption upon the subsequent filing of an affidavit.This bill would also revise and recast current partial exemption provisions to articlerequire IX,the sectioncancellation 2,or subsectionrefund F,of Constitutioneither 90% or 85% of Arizona,those taxes, including any interest and penalties, levied on that portion of the exemptionsproperty’s fromassessed taxationvalue that would have been exempted under thisa sectiontimely areexemption allowedapplication, depending upon whether an affidavit is filed either before, or on or after, the December 10 following the lien date.This bill would, in the case in which the subject real property was only acquired after the lien date, also require the cancellation or refund of those taxes levied on either the full exemption amount or a prorated amount, depending upon whether an affidavit is filed either prior to the fiscal year beginning in the same year as the lien date, or after the beginning of ASthat PROVIDEDfiscal INyear.This SUBSECTIONSbill C,would Dalso ANDprovide Efor OFthe THIStermination SECTION.of a disabled veterans’ exemption upon that subject property being transferred to a 3rd party that is not eligible for that exemption.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.Digest Key Vote:

C.MAJORITY   Appropriation:

THENO   PROPERTYFiscal OFCommittee: A VETERAN WITH A SERVICE CONNECTED DISABILITY WHOSE DISABILITY RATING BY THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS IS ONE HUNDRED PERCENT IS FULLY EXEMPT FROM TAXATION.

AYES   SURVIVINGLocal SPOUSEProgram: OF A VETERAN WHOSE PROPERTY IS ELIGIBLE FOR THE EXEMPTION UNDER THIS SUBSECTION MAY CONTINUE TO CLAIM THE FULL EXEMPTION AS LONG AS THE SURVIVING SPOUSE USES THE PROPERTY AS THE SURVIVING SPOUSE'S PRIMARY RESIDENCE AND THE SURVIVING SPOUSE DOES NOT REMARRY.

D.YES  Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 205.5 of the Revenue and Taxation Code, as amended by Section 16.5 of Chapter 1087 of the Statutes of 1996, is amended to read:205.5. (a) Property that is owned by, and that constitutes the principal place of residence of, a veteran is exempted from taxation on that part of the full value of the residence that does not exceed forty thousand dollars ($40,000), if the veteran is blind in both eyes or has lost the use of two or more limbs as a result of injury or disease incurred in military service or that does not exceed one hundred thousand dollars ($100,000), if the veteran is totally disabled as a result of injury or disease incurred in military service.

THEThe PROPERTYforty OFthousand Adollar VETERAN($40,000) WITHexemption Ashall NONSERVICEbe CONNECTEDsixty DISABILITYthousand WHOSEdollars DISABILITY($60,000), RATINGand BYthe THEone UNITEDhundred STATESthousand DEPARTMENTdollar OF($100,000) VETERANSexemption AFFAIRSshall ISbe ONEone HUNDREDhundred PERCENTfifty ORthousand LESSdollars OR($150,000), WITHin Athe SERVICEcase CONNECTEDof DISABILITYan WHOSEeligible DISABILITYveteran RATINGwhose BYhousehold THEincome UNITEDdoes STATESnot DEPARTMENTexceed OFthe VETERANSamount AFFAIRSof ISforty LESSthousand THANdollars ONE($40,000), HUNDREDas PERCENTadjusted ISfor EXEMPTthe INcurrent THEassessment AMOUNTyear OFas $4,188.provided in subdivision (g).(b) For purposes of this section, “veteran” means either of the following:(1) A veteran as specified in subdivision (o) of Section 3 of Article XIII of the Constitution without regard to any limitation contained therein on the value of property owned by the veteran or the veteran’s spouse.(2) Any 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 died while on active duty in military service.

THEThe LIMITUnited UNDERStates THISDepartment SUBSECTIONof ISVeterans FURTHERAffairs LIMITEDshall BYdetermine MULTIPLYINGwhether THEan TOTALinjury EXEMPTIONor AMOUNTdisease BYis THEservice PERCENTAGEconnected.(c) (1) Property OFthat THEis VETERAN'Sowned DISABILITY,by, ASand RATEDthat BYconstitutes THEthe UNITEDprincipal STATESplace DEPARTMENTof OFresidence VETERANSof, AFFAIRS.the unmarried surviving spouse of a veteran is exempt from taxation on that part of the full value of the residence that does not exceed forty thousand dollars ($40,000), in the case of a veteran who was blind in both eyes or had lost the use of two or more limbs, or one hundred thousand dollars ($100,000), in the case of a veteran who was totally disabled provided that either of the following conditions is met:(A) The deceased veteran during his or her lifetime qualified in all respects for the exemption 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 forty thousand dollar ($40,000) exemption shall be sixty thousand dollars ($60,000), and the one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), 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 current 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 paragraph (2) 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).

E.The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), 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 current assessment year as provided in subdivision (g).(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.

THEThe PROPERTYexemption OFprovided Aby WIDOWthis ORparagraph WIDOWERshall ORbe Ashown PERSONon WITHthe Alocal TOTALroll ANDand PERMANENTshall DISABILITYreduce ISthe EXEMPTfull INvalue THEof AMOUNTthe OF:corporate property.

1.Notwithstanding any provision of 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;

$4,188losing ifthe use of a limb means that the person'slimb totalhas assessmentbeen doesamputated notor exceedits $28,459.use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis;

Forand abeing veterantotally withdisabled ameans servicethat the United States Department of Veterans Affairs or nonservicethe connectedmilitary disability,service from which the $4,188veteran limitwas underdischarged thishas paragraphrated isthe furtherdisability limitedat by100 multiplyingpercent or has rated the totaldisability exemptioncompensation amountat 100 percent by reason of being unable to secure or follow a substantially gainful occupation.(f) An exemption granted to a claimant in accordance with the percentageprovisions of thethis veteran'ssection disability,shall asbe ratedin bylieu of the Unitedveteran’s Statesexemption departmentprovided by subdivisions (o), (p), (q), and (r) of veteransSection affairs.3 of Article XIII of the Constitution and any other real property tax exemption to which the claimant may be entitled.

2.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 under the provisions of this section;

Noprovided, exemptionthat if two or more veterans qualified pursuant to this section coown a property in which they reside, each is entitled to the person'sexemption totalto assessmentthe exceedsextent $28,459.of his or her interest.(g) To determine, for taxes that attach as a lien in 2002 and in each calendar year thereafter, whether the lower or higher exemption amount, or the lower or higher pair of exemption amounts, governs the amount of an exemption under this section, each household income amount applied under subdivision (a) or (c) for taxes that attached as a lien during the immediately preceding calendar year shall be adjusted by an inflation factor that is 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.SEC.

C.2. Section 205.5 of the Revenue and Taxation Code, as amended by Section 17 of Chapter 1087 of the Statutes of 1996, is repealed.Section 276 of the Revenue and Taxation Code is repealed.276.(a)A claimant for the disabled veterans’ property tax exemption may qualify for a partial exemption if the claimant fails to file the required affidavit with the assessor by 5 p.m.

F.on February 15 of the calendar year in which the fiscal year begins, but files the claim on or before the following December 10.

OnLate-filed orclaims beforefor Decemberthe 31forty ofthousand eachdollar year,($40,000) theexemption departmentprovided shallin increaseSection the205.5 followingshall amountsreceive based on the averagelesser annualof percentagethirty-two increase,thousand ifdollars any,($32,000) inor the80 GDPpercent priceof deflator in the twofull mostvalue recentof completethe statedwelling. fiscal years:

1.Late-filed claims for the sixty thousand dollar ($60,000) exemption provided in Section 205.5, when filed in conjunction with late-filed claims for the forty thousand dollar ($40,000) exemption, shall receive the lesser of forty-eight thousand dollars ($48,000) or 80 percent of the full value of the dwelling.

TheLate-filed totalclaims allowablefor exemptionthe amountsixty UNDERthousand SUBSECTIONSdollar D($60,000) ANDexemption, Ewhen OFfiled THISin SECTIONconjunction andwith timely filed claims for the totalforty assessmentthousand limitdollar amount($40,000) underexemption, subsectionshall Breceive Ethe lesser of thisfifty-six section.thousand dollars ($56,000) or forty thousand dollars ($40,000) plus 80 percent of the full value of the dwelling over forty thousand dollars ($40,000).

-Late-filed 1claims -for H.B.the one hundred thousand dollar ($100,000) exemption provided in Section 205.5 shall receive the lesser of eighty thousand dollars ($80,000) or 80 percent of the full value of the dwelling.

2672Late-filed 2.claims for the one hundred fifty thousand dollar ($150,000) exemption provided in Section 205.5, when filed in conjunction with late-filed claims for the one hundred thousand dollar ($100,000) exemption, shall receive the lesser of one hundred twenty thousand dollars ($120,000) or 80 percent of the full value of the dwelling.

TheCommencing totalwith incomethe limit1990–91 amountsassessment underyear, subsectionlate-filed Eclaims H,for paragraphsthe 1one andhundred 2fifty thousand dollar ($150,000) exemption, when filed in conjunction with timely filed claims for the one hundred thousand dollar ($100,000) exemption, shall receive the lesser of one hundred forty thousand dollars ($140,000) or one hundred thousand dollars ($100,000) plus 80 percent of the full value of the dwelling over one hundred thousand dollars ($100,000).(b)On those claims filed pursuant to subdivision (a) after November 15, this section.exemption may be applied to the second installment, and if applied to the second installment, the first installment will still become delinquent on December 10, and the delinquent penalty provided for in this division will attach if the tax amount due is not paid.If this exemption is applied to the second installment and if both installments are paid on or before December 10, or if the reduction in taxes from this exemption exceeds the amount of taxes due on the second installment, a refund shall be made to the taxpayer upon a claim submitted by the taxpayer to the auditor.Section 276 is added to the Revenue and Taxation Code, to read:276. (a) Except as otherwise provided by subdivision (b), for property for which the disabled veterans’ exemption described in Section 205.5 was available, but for which a timely application was not filed, a partial exemption shall be applied in accordance with whichever of the following is applicable:(1) Ninety percent of any tax, including any interest or penalty thereon, levied upon that portion of the assessed value of the property that would have been exempt under a timely and appropriate application shall be canceled or refunded, provided that an appropriate application for exemption is filed prior to December 10 of the calendar year in which a timely application was not filed.(2) If an appropriate application for exemption is filed on or after the date specified in paragraph (1), 85 percent of any tax, including any interest or penalty thereon, levied upon that portion of the assessed value of the property that would have been exempt under a timely and appropriate application shall be canceled or refunded.

D.A cancellation or refund may be granted under this paragraph only with respect to those taxes that attached as a lien on the lien date in 1999 or a later calendar year.(b) If a late-filed claim for the sixty thousand dollar ($60,000) exemption or the one hundred fifty thousand dollar ($150,000) exemption is filed in conjunction with a timely filed claim for the forty thousand dollar ($40,000) or one hundred thousand dollar ($100,000) exemption, the amount of any exemption allowed under the late-filed claim under subdivision (a) shall be determined on the basis of that portion of the exemption amount, otherwise available under subdivision (a), that exceeds forty thousand dollars ($40,000) or one hundred thousand dollars ($100,000), as applicable.Section 276.1 is added to the Revenue and Taxation Code, to read:276.1. For property for which the disabled veterans’ exemption described in Section 205.5 would have been available but for the taxpayer’s failure to receive a disability rating from the United States Department of Veterans Affairs (USDVA), an exemption shall apply in that amount that would have been allowed if the claimant had filed an appropriate application for the exemption on the effective date of his or her disability rating from the USDVA, provided that the claimant subsequently files an appropriate application.Section 276.2 is added to the Revenue and Taxation Code, to read:276.2. If the disabled veterans’ exemption as described in Section 205.5 would have been available for a property, but for that property being acquired by a person eligible for that exemption only after the lien date, and an appropriate application for that exemption is filed on or before the lien date in the calendar year next following the calendar year in which the property was acquired, an exemption shall be allowed in accordance with whichever of the following is applicable:(a) If the property was acquired after the lien date, but prior to the fiscal year commencing in that same calendar year, there shall be cancelled or refunded the amount of any taxes, including any interest and penalties thereon, levied on that portion of the assessed value of the property that would have been exempt under a timely and appropriate application.(b) If the property was acquired during a calendar year after the beginning of the fiscal year commencing in that same calendar year, there shall be cancelled or refunded an amount that is equal to the product of both of the following:(1) The amount of any taxes, plus interest and penalties thereon, levied on that portion of the assessed value of the property that would have been exempt under a timely and appropriate application.(2) A ratio, the numerator of which is the number of days during the fiscal year in which the property was acquired that the claimant owns the property, and the denominator of which is 365.Section 276.3 is added to the Revenue and Taxation Code, to read:276.3. In the event that property receiving a disabled veterans’ exemption as described in Section 205.5 is sold or otherwise transferred to a person that is not eligible for that exemption, the exemption shall cease to apply on the date of that sale or transfer.SEC.