Today's Law As Amended


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SB-871 Property taxation: homeowners’, veterans’, and disabled veterans’ exemptions.(2023-2024)



As Amends the Law Today


SECTION 1.

 Section 218 of the Revenue and Taxation Code is amended to read:

218.
 (a) The homeowners’ property tax exemption is in the amount of the assessed value of the dwelling specified in this section, as authorized by subdivision (k) of Section 3 of Article XIII of the California Constitution. That exemption shall be in the amount of seven thousand dollars ($7,000) of the full value of the dwelling.
(b) (1) The (A)  Except as provided in subparagraph (B), the  exemption does not extend to property that is rented, vacant, under construction on the lien date, or that is a vacation or secondary home of the owner or owners, nor does it apply to property on which an owner receives the veterans’ veteran’s  exemption.
(B) Notwithstanding subparagraph (A), if Senate Constitutional Amendment 6 of the 2023–24 Regular Session is approved by the voters at the statewide general election scheduled for November 5, 2024, then commencing January 1, 2025, the exemption applies to property on which an owner receives the veterans’ exemption described in Section 205 or the disabled veterans’ exemption under Section 205.5.
(2) Notwithstanding paragraph (1), if a person receiving the exemption is not occupying the dwelling on the lien date because the dwelling was damaged in a misfortune or calamity, the person shall be deemed to occupy that same dwelling as their principal place of residence on the lien date, provided the person’s absence from the dwelling is temporary and the person intends to return to the dwelling when possible to do so. Except as provided in paragraph (3), when a dwelling has been totally destroyed, and thus no dwelling exists on the lien date, the exemption provided by this section shall not be applicable until the structure has been replaced and is occupied as a dwelling.
(3) A dwelling that was totally destroyed in a disaster for which the Governor proclaimed a state of emergency, that qualified for the exemption provided by this section prior to the commencement date of the disaster and that has not changed ownership since the commencement date of the disaster, shall be deemed occupied by the person receiving the exemption on the lien date provided the person intends to reconstruct a dwelling on the property and occupy the dwelling as their principal place of residence when it is possible to do so.
(4) Notwithstanding paragraph (1), if a person receiving the exemption is not occupying the dwelling because they are confined to a hospital or other care facility, the person shall be deemed to occupy that dwelling as their principal place of residence, provided that all of the following conditions are met:
(A) The person would occupy the dwelling if they were not confined to the hospital or other care facility.
(B) The person intends to return to the dwelling when possible to do so.
(C) The dwelling is not rented or leased to a person that is not described in Section 267(c)(4) of Title 26 of the United States Code.
(c) For purposes of this section, all of the following apply:
(1) “Owner” includes a person purchasing the dwelling under a contract of sale or who holds shares or membership in a cooperative housing corporation, which holding is a requisite to the exclusive right of occupancy of a dwelling.
(2) (A) “Dwelling” means a building, structure, or other shelter constituting a place of abode, whether real property or personal property, and any land on which it may be situated. A two-dwelling unit shall be considered as two separate single-family dwellings.
(B) “Dwelling” includes the following:
(i) A single-family dwelling occupied by an owner thereof as their principal place of residence on the lien date.
(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as their principal place of residence.
(iii) A condominium occupied by an owner thereof as their principal place of residence on the lien date.
(iv) Premises occupied by the owner of shares or a membership interest in a cooperative housing corporation, as defined in subdivision (i) of Section 61, as their principal place of residence on the lien date. Each exemption allowed pursuant to this subdivision shall be deducted from the total assessed valuation of the cooperative housing corporation. The exemption shall be taken into account in apportioning property taxes among owners of shares share  or membership interests in the cooperative housing corporations so as to benefit those owners who qualify for the exemption.
(d) The exemption provided for in subdivision (k) of Section 3 of Article XIII of the California Constitution shall first be applied to the building, structure, or other shelter and the excess, if any, shall be applied to any land on which it may be located.
SEC. 2.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII  B of the California Constitution because the duties imposed on a local agency or school district by this act are necessary to implement, or were expressly included in, a ballot measure approved by the voters in a statewide or local election, within the meaning of Section 17556 of the Government Code.
SEC. 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. 4.
 Notwithstanding the requirements of Sections 9040, 9043, 9044, 9061, 9082, and 9094 of the Elections Code, or any other law, the Secretary of State shall submit Senate Constitutional Amendment 6 of the 2023–24 Regular Session to the voters for their approval at the statewide general election scheduled for November 5, 2024.
SEC. 5.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.