(1) The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value, as defined, of that property, and provides that the full cash value base may be adjusted each year by the inflationary rate not to exceed 2% for any given year.
Existing property tax law implementing this constitutional authority provides that the taxable value of real property is the lesser of its base year value compounded annually by an inflation factor not to exceed 2%, as provided, or its full cash value. Existing property tax law also provides that the taxable value of a manufactured home is the lesser of its base year value compounded annually by an inflation factor not to exceed 2% or its full cash value.
This bill, for any assessment year commencing on or after January 1, 2020, and before January 1, 2030, would provide that the inflation factor shall not apply to the principal place of residence, including a manufactured home, of a qualified veteran, as defined, who is 65 years of age or older on the lien date, was honorably discharged from military service, and meets specified requirements.
The bill would require the State Board of Equalization to, on an annual basis beginning January 1, 2021, and until January 1, 2031, review the effectiveness of these tax benefits, as provided, and to submit a report of their review to the Legislature. The bill would require, for these purposes, each county assessor to make information available to the State Board of Equalization upon request.
By changing the manner in which local tax officials calculate the taxable value of real property owned by senior veterans, and by requiring county assessors to make information available to the State Board of Equalization, this bill would impose a state-mandated local program.
(2) Existing law requires the state 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 those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
(3) 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.
(4) This bill would take effect immediately as a tax levy.

Statutes affected:
SB364: 51 RTC, 5813 RTC
02/20/19 - Introduced: 51 RTC, 5813 RTC
05/17/19 - Amended Senate: 51 RTC, 5813 RTC
06/18/19 - Amended Assembly: 51 RTC, 5813 RTC