SB 56: Property taxation: disabled veterans’ exemption: household income.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The California Constitution provides that all property is taxable, and requires that it be assessed at the same percentage of fair market value, unless otherwise provided by the California Constitution or federal law. The California Constitution and existing property tax law provide various exemptions from taxation, including, among others, a disabled veterans’ exemption. Under existing law, the disabled veterans’ exemption exempts from taxation part of the full value of property that constitutes the principal place of residence of a veteran, the veteran’s spouse, or the veteran and veteran’s spouse jointly, and the unmarried surviving spouse of a veteran, as provided, if the veteran incurred specified injuries or died while on active duty in military service, as described. Existing law exempts that part of the full value of the residence that does not exceed $100,000, or $150,000 if the household income of the claimant does not exceed $40,000, as adjusted for inflation, as specified.

This bill would, until January 1, 2036, exclude service-connected disability payments from the definition of “household income” for purposes of the disabled veterans’ exemption. The bill would also correct an erroneous cross-reference in the above-described provisions. By imposing additional duties on local tax officials, the bill would impose a state-mandated local program.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would include additional information required for any bill authorizing a new tax expenditure.

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 the statutory provisions noted above.

Sponsors

Sponsors by party (alphabetical): Democratic 3 · Republican 11

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. July 15, 2025Set, first hearing. Held in committee and under submission.
2. July 15, 2025July 14 hearing: Placed on REV. & TAX. suspense file.
3. July 2, 2025From committee: Do pass and re-refer to Com. on REV. & TAX. with recommendation: To consent calendar. (Ayes 8. Noes 0.) (July 1). Re-referred to Com. on REV. & TAX.
4. July 2, 2025Coauthors revised.
5. June 19, 2025From committee with author's amendments. Read second time and amended. Re-referred to Com. on M. & V.A.
6. June 9, 2025Re-referred to Coms. on M. & V.A. and REV. & TAX. pursuant to Assembly Rule 96.
7. June 5, 2025Referred to Coms. on REV. & TAX. and M. & V.A.
8. May 29, 2025In Assembly. Read first time. Held at Desk.
9. May 29, 2025Read third time. Passed. (Ayes 38. Noes 0. Page 1322.) Ordered to the Assembly.
10. May 27, 2025Ordered to special consent calendar.
11. May 23, 2025Read second time. Ordered to third reading.
12. May 23, 2025From committee: Do pass. (Ayes 6. Noes 0. Page 1189.) (May 23).