Property taxation: disabled veterans’ exemption: household income.

Senator Seyarto's proposal to modify California's disabled veterans' property tax exemption would exclude service-connected disability payments from household income calculations used to determine eligibility for enhanced property tax benefits. The current system provides exemptions of $100,000 or $150,000 on the primary residence for qualifying disabled veterans, with the higher amount available to those whose household income does not exceed $40,000.

The bill maintains existing exemption thresholds while changing how household income is calculated for eligibility purposes. Under the amended rules, veterans receiving service-connected disability payments would no longer have those payments counted toward the $40,000 income limit. The legislation also includes technical corrections to cross-references within the current statute.

Local governments would implement these changes without state reimbursement for resulting property tax revenue reductions. While the Commission on State Mandates retains authority to determine if other aspects of implementation create reimbursable state-mandated costs, the bill explicitly prevents compensation to local agencies for lost property tax income. As a tax levy, the provisions would take effect immediately upon enactment rather than following the standard January 1 implementation timeline for new legislation.