HouseBill EngrossedText property- tax;SB-2195 Property taxation:

exemption;veterans’ exemption.

combatskip veteransto Statecontent ofhome Arizonaaccessibility HouseFAQ offeedback Representativessitemap Fifty-seventhlogin Legislaturex FirstQuick RegularSearch: Session HOUSE BILL 2406 AN ACT AMENDING SECTIONS 42-11111 AND 42-17151, ARIZONA REVISED STATUTES;

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(TEXT09/30/00 OF- BILLChaptered BEGINS08/25/00 ON- NEXTEnrolled PAGE)04/25/00 - iAmended Senate 04/05/00 - H.B.Amended Senate 03/16/00 - Introduced SB-2195 Property taxation:

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SectionSB2195:v95#DOCUMENTBill 1.Start Senate Bill No.

2195 CHAPTER 1086An act to amend and repeal Section 42-11111,205.5 Arizonaof Revisedthe Statutes,Revenue isand amendedTaxation Code, relating to read:taxation, to take effect immediately, tax levy.

42-11111.[ Filed with Secretary of State  September 30, 2000.

ExemptionApproved forby property;Governor  September 30, 2000.

widows] andLEGISLATIVE widowers;COUNSEL'S DIGESTSB 2195, Soto.

personsProperty withtaxation: a total and permanent disability;

veteransveterans’ withexemption.Existing property tax law provides, pursuant to the authorization of the California Constitution, for the exemption from property taxation of the home of a disability;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.

definitionsExisting A.property tax law specifies an exemption amount of $40,000 and increases that amount to $100,000 in the case in which the disabled veteran is completely disabled.

TheExisting propertylaw ofincreases widowsthese andamounts widowers,to of$60,000 persons with total and permanent$150,000, disabilitiesrespectively, andif ofthe veteransexemption withclaimant’s serviceincome ordoes nonservicenot connectedexceed disabilitiesan whoamount arestated residentsin ofa thisspecified statestatute. is exempt from taxation as provided by article IX, section 2, Constitution of Arizona, and subject to the conditions and limits prescribed by this section.

B.Existing law also repeals the higher exemption amounts with regard to totally disabled veterans as of January 1, 2001.This bill would remove this repeal date.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.The bill would incorporate changes to Section 205.5 of the Revenue and Taxation Code made by SB 1362 to become operative only if both bills are chaptered and this bill is chaptered last.This bill would take effect immediately as a tax levy.Digest KeyBill 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.

PursuantThe toforty-thousand-dollar article($40,000) IX,exemption sectionshall 2,be subsectionsixty F,thousand Constitutiondollars ($60,000), and the one-hundred-thousand-dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), in the case of Arizona,an eligible veteran whose household income as defined in Section 20504 does not exceed the exemptionsamounts fromspecified taxationin underSection 20585.(b) For purposes of this sectionsection, are“veteran” allowedmeans either of the following:(1) A veteran as specified in subdivision (o) of Section 3 of Article XIII of the amountConstitution without regard to any limitation contained therein on the value of ASproperty PROVIDEDowned INby SUBSECTIONSthe Cveteran ANDor Dthe OFveteran’s THISspouse.(2) Any SECTION.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.

C.The United States Department of Veterans Affairs shall determine whether an injury or disease is service connected.(c) (1) Property that is owned by, and that constitutes the principal place of residence of, 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 as specified in Section 20504 does not exceed the amounts specified in Section 20585.(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).

THEThe PROPERTYone-hundred-thousand-dollar OF($100,000) Aexemption COMBATshall VETERANbe WITHone Ahundred SERVICEfifty CONNECTEDthousand DISABILITYdollars THAT($150,000), ISin COMBATthe RELATEDcase ANDof THATan ISeligible RATEDunmarried ASsurviving ONEspouse HUNDREDwhose PERCENThousehold BYincome THEas UNITEDspecified STATESin DEPARTMENTSection OF20504 VETERANSdoes AFFAIRSnot ISexceed FULLYthe EXEMPTamounts FROMspecified TAXATION.in Section 20585.(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.

D.The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property.

THENotwithstanding PROPERTYany OFprovision Aof WIDOWlaw ORor WIDOWER,articles Aof PERSONincorporation WITHor Abylaws TOTALof ANDa PERMANENTcorporation DISABILITYdescribed ANDin Athis VETERANparagraph, WITHany Areduction SERVICEof ORproperty NONSERVICEtaxes CONNECTEDpaid DISABILITYby WHOthe DOEScorporation NOTshall QUALIFYreflect FORan Aequal FULLreduction EXEMPTIONin UNDERany SUBSECTIONcharges Cby OFthe THIScorporation SECTIONto ISthe EXEMPTperson INwho, THEby AMOUNTreason OF: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;

1.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;

$4,188and ifbeing totally disabled means that the person'sUnited totalStates assessmentDepartment doesof notVeterans exceedAffairs $28,459.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 in accordance with the provisions of 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 Constitution and any other real property tax exemption to which the claimant may be entitled.

ForNo aother veteranreal withproperty atax serviceexemption ormay nonservicebe connectedgranted disabilityto WHOany DOESother NOTperson QUALIFYwith FORrespect Ato FULL EXEMPTION UNDER SUBSECTION C OF THIS SECTION, the $4,188same limitresidence underfor thiswhich paragraphan is further limited by multiplying the total exemption amounthas bybeen thegranted percentageunder of the veteran'sprovisions disability, as rated by the United States department of veteransthis affairs.section;

2.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.SEC.

No1.5. Section exemption205.5 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 one hundred thousand dollars ($100,000), if the person'sveteran totalis assessmentblind exceedsin $28,459.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.

C.The one-hundred-thousand-dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), 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) 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.

E.The United States Department of Veterans Affairs shall determine whether an injury or disease is service connected.(c) (1) Property that is owned by, and that constitutes the principal place of residence of, 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 one hundred thousand dollars ($100,000), 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 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 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 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 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).

OnThe orone-hundred-thousand-dollar before($100,000) Decemberexemption 31shall ofbe eachone year,hundred fifty thousand dollars ($150,000), in the departmentcase shallof increasean eligible unmarried surviving spouse whose household income does not exceed the followingamount amountsof basedforty onthousand dollars ($40,000), as adjusted for the averagerelevant annualassessment percentageyear increase,as ifprovided any,in subdivision (g).(d) As used in this section, “property that is owned by a veteran” or “property that is owned by the GDPveteran’s priceunmarried deflatorsurviving 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 twoveteran mostor recentthe completeveteran’s statespouse fiscalas years: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.

1.The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property.

TheNotwithstanding totalany allowableprovision exemptionof amountlaw andor articles of incorporation or bylaws of a corporation described in this paragraph, any reduction of property taxes paid by the totalcorporation assessmentshall limitreflect amountan underequal subsectionreduction Bin Dany 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.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;

2.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;

Theand totalbeing incometotally limitdisabled amountsmeans underthat subsectionthe EUnited G,States paragraphsDepartment 1of andVeterans 2Affairs 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 in accordance with the provisions of this section.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 Constitution and any other real property tax exemption to which the claimant may be entitled.

D.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;

F.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) To determine, for taxes that attach as a lien in 2002 and in each calendar year thereafter, whether the lower or higher exemption amount 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.

For2. Section the205.5 purpose of determining the amountRevenue ofand theTaxation allowableCode, exemptionas pursuantamended toby subsectionSection B17 D of thisChapter section,1087 theof person's total assessment shall not include the valueStatutes of any1996, vehicle that is taxedrepealed.SEC. under title 28, chapter 16, article 3.

E.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.

G.4. Section 1.5 of this bill incorporates amendments to Section 205.5 of the Revenue and Taxation code proposed by both this bill and Senate Bill 1362.

PursuantIt toshall articleonly IX,become sectionoperative 2,if subsection(1) F,both Constitutionbills ofare Arizona,enacted toand qualifybecome foreffective thison THEor exemptionbefore UNDERJanuary SUBSECTION1, D2001, OF(2) THISeach SECTION,bill theamends totalSection income205.5 fromof allthe sourcesRevenue ofand theTaxation claimantCode, and the(3) claimant'sthis spousebill andis theenacted incomeafter fromSenate allBill sources1362, ofin allwhich -case Section 1 -of H.B.this bill shall not become operative.SEC.

24065. This ofact theprovides claimant'sfor childrena whotax residedlevy withwithin the claimantmeaning inof theArticle claimant'sIV residenceof in the yearConstitution immediatelyand precedingshall thego yearinto forimmediate whicheffect. the claimant applies for the exemption shall not exceed: