Senate Revenue and Taxation Committee
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Senate Revenue and Taxation Committee California State Senate
Follow its sittingsSpeaker 2
Yeah. Just want to say I really appreciate this. And talking to homeowners in Los Angeles, I mean, there's just such a vast array fallout, so to speak, that they face, even in the case of I was talking to a friend and in theory, there's a moratorium on property tax or on rent, I think you could take a rent moratorium. But he said in practice nobody does it because it will affect your credit rating and you still have to pay it back at the end of the day. So even some of the things that we've done that we think would be helpful turns out are actually not that helpful to the people going through the disasters.
So I think something like this is common sense and I really hope we can get over the finish line this
Speaker 7
Thank you so much. I want to thank the author. I'm a big proponent of local control, particularly in times of disasters. It's like they know best of what is needed there. And our our role as in the state is to help provide those resources, so that people can rebuild and get back to their lives.
I think it's traumatic enough, to to lose, one's livelihood. And sometimes, you know, family members, people's lives are are lost as well. So thank you for this. I think you've got support in our side of the house, and hopefully we'll see you across the finish line. And I'm ready to move when you're ready to hear.
Speaker 4
Thank you. Any other committee members wish to make comments or questions? Seeing none, I would like to say that this is thoughtful. I appreciate it, your doggedness on this, Senator Nilo. It's needed.
We've all seen some of the damage that these wildfires have caused and deep emotional distress that puts the folks in and requiring them to get it done in a certain very short time frame, five years seems like a long while, it isn't in this situation. It just adds to their problems. And so with that, I would like to support the bill. Senator, would you like to close?
Speaker 5
Yes. I would very much appreciate, an I vote. And, again, I thank my pal, Senator Serrado, for letting me, go first. Thank you very much.
Speaker 4
Next, we have final item one, and this is Senator Sciarto. Thank you for allowing Senator Nilo to proceed you in order, and, would you proceed with your presentation?
Speaker 3
All right. Well, thank you very much, honorable chair. And I'm here to present SB eight eighty eight. First, I want to start out by thanking the committee for working with my staff on this important bill. And I will be accepting the committee amendments.
SB eight eighty eight addresses a critical flaw in the system that unfairly penalizes disabled veterans by counting their disability benefits as income when determining eligibility for the disabled veterans property tax exemption. In recent years, both California and the federal government have recognized that disability benefits are fundamentally different from earned income and have taken steps to exclude disability benefits from household income calculations. In the 2024 session, the legislature and Congress acted to remove disability income from government housing eligibility calculations. SB eight eighty eight simply extends that same principle to property tax relief for disabled veterans. The problem is clear.
Veterans must be disabled to qualify for the exemption, yet the very disability compensation they are receiving is counted as income, pushing many over the income threshold and making them ineligible for the low income tax exemption. As a result, veterans disability benefits can unintentionally disqualify them from other critical resources, creating a catch-twenty two where veterans lose access to the very relief designed to keep them stable. Disability compensation is not a source of wealth. It is a recognition of service connected injuries and loss of earning capacity. Under current law, veterans with a household income under 81,131 qualify for a higher property tax exemption through the low income category of the disabled veteran's property tax exemption.
Currently, a veteran rated at 100% disability by the VA with a spouse is awarded around $50,000 annually before any additional dependents or special allowances. Social Security benefits also contribute significantly, and as a result, a 100% disabled veteran and spouse who have no earnings from work but solely rely on disability and social security may be disqualified from the low income exemption despite living on fixed benefits and paying for high medical care costs. This bill is a proactive step to keep 100% disabled veterans in their homes and reduce the risk of homelessness or housing instability by ensuring the tax code does not punish them for receiving disability compensation. SB eight eighty eight simply excludes VA service connected disability compensation from the calculation of household income for the purposes of low income disabled veterans property tax exemption so veterans are not penalized after receiving the benefits they have earned. I respectfully ask for an I vote, and I do not have any witnesses today as my as is custom for me.
Speaker 4
Well, I thank the oath for the presentation. Are there any witnesses that wish to come up in support of the bill? Please oppose the microphone.
Speaker 4
Yes. Seeing none, are there any witnesses in opposition to the bill? Seeing none, I I will ask the members of committee, for
Speaker 2
comments or questions. Senator Becker, you're recognized. Another bipartisan measure, common sense measure. What are doing here in the legislature? Common sense, bipartisan measures, I appreciate you bringing this forward.
Yes, this is something that we should do. As soon as you there's things you sort of you come up here and you just assume like, hey, maybe this already happened. But it turns out it hasn't. And, yeah, appreciate you bringing it forward. I'll be supporting it today.
Speaker 7
Thank you. Thank you, Senator Sayardo, and thank you for not giving up on our veterans. I think our veterans, they receive so much more than what we've been able to provide them. I think this is just a fraction of that dignity and respect to helping them stay in California. As we know, affordability has been increasing to those on fixed incomes.
And this is a solution that will help put money back into their pockets and keep them here in California. So thank you so much. I will be supporting it as well, and we'll move it when appropriate.
Speaker 6
you're Thank you, Mr. Chair. I might as well join the party in comments. Heard bipartisan I heard from my other colleague on respect and showing that toward veterans. And I also wanna add on that this measure really helps government become what it's supposed to be for the people, run efficiently and effectively.
And there are times when government gets into silos, and that's why we have the conflicts that we have where we're trying to help, but then we turn around and hurt at the same time. So breaking down the silo and making government work efficient and effective for the people is something this bill does, which is why I'll support it today.
Speaker 4
Again, I wanna thank the, the author. You have been a step that steadfast advocate for veterans and that's quite admirable. This bill promotes basic fairness for those who have sacrificed greatly for our country. I notice you have accepted the committee amendments. Yes.
I'm happy to support your bill. Thank you. Would you like to close?
Speaker 4
Thank you. The motion, has already been given and do pass as amended to the Committee on Military and Veterans Affairs. Please call the roll.
Speaker 1
Senators McNerney. Aye. McNerney. Aye. Alvarado Gill.
Aye. Aye. Ashby. Aye. Ashby aye.
Becker aye. Becker aye. Greyson aye. Rote is
Speaker 4
five zero. The bill is out. Thank the author. We now have three bills which are on proposed for consent. These bills are final item two, s b nine nine nine by senator Weber Pearson, final item four s b ten seventy three by senator Smallwood Cuevas, and final item five by s b eight eight one.
Is there a motion? So moved. Motion is. Please call the roll.
Speaker 4
And now we return to file item Three. Three Yes. Which is s b ten fifty three, property taxation transfer of the base year value disaster relief. Please call the roll.
Speaker 1
This is SB1053 by senator Nilo. Current vote is four zero. Chair and vice chair voting aye. Senator Ashby? Aye.
Ashby, aye.
Speaker 4
The vote is five zero, and the bill is out. The committee will now come to an end.
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