Starting in 2027, qualifying veterans and some surviving spouses could pay less property tax on their main home through 2031.
Eligible veteran homeowners would receive a property tax break on up to $1 million of home value: 50%, or 100% if household income is within the limit.
An eligible unmarried surviving spouse could receive the same home-value tax break the veteran would have received, with a full exemption for households within the income limit.
The state would track the home value and taxpayers covered by the exemption and report the results to lawmakers each year.
County assessors would exempt part of an eligible veteran homeowner’s home value from property taxes. The home must be the veteran’s main residence and owned by the veteran, their spouse, or both. The veteran must be blind in both eyes, have lost use of two or more limbs, or be rated totally disabled due to a service-related injury or illness. The exemption replaces other real property tax exemptions for the same claimant and home. A claimant must give the county assessor documents showing eligibility, including a disability rating letter. The exemption applies to property tax dates from January 1, 2027, through December 31, 2031.
County assessors would grant an unmarried surviving spouse an exemption based on the amount the veteran or spouse would have qualified for. The property must be the unmarried surviving spouse’s main residence and must have been the veteran’s main residence when the veteran died. The veteran must have qualified during life, or died from a service-connected injury or illness, and must have lived in California on January 1 of the year they died. The survivor must provide eligibility documents to the assessor. The exemption applies to property tax dates from January 1, 2027, through December 31, 2031.
The State Board of Equalization would collect available county data and report on the exemption to the Legislature. Reports cover the amount of assessed value exempted and the number and type of taxpayers receiving the exemption. The Board must use county assessor data to the extent it is available. The state will not reimburse local agencies for property tax revenue lost under the bill. Reports are due by June 1 each year from 2027 through 2031.
No hearings or votes scheduled.