exemption

SACRAMENTO — Severely disabled veterans in California could be getting an expanded tax break.

State lawmakers are considering legislation that would exempt from taxation 50% of the residential property owned by a fully disabled veteran, or 100% if their household income does not exceed $40,000.

“I’ve seen firsthand the financial challenges many disabled veterans face just trying to stay in their homes,” Assemblyman Jeff Gonzalez (R-Indio) said Thursday. “We always say we support our veterans, but support has to mean taking meaningful action to make life more affordable for them.”

Gonzalez, who introduced Assembly Bill 2022, is a Marine Corps veteran and vice chair of the Assembly Committee on Military and Veterans Affairs.

The legislation would apply only to veterans who became disabled as a result of their military service. It defines a fully disabled veteran as one who is blind in both eyes, has lost the use of at least two limbs, or is otherwise incapacitated due to an injury or disease. Surviving spouses would be eligible for the same exemptions, provided they do not remarry.

The exemptions would sunset in 2032 so legislators could review the bill’s effect before deciding whether to enact the policy permanently.

California is home to more than 1.8 million former service members, which is the largest veteran population of any state in the nation, according to the most recent census. The California Department of Veterans Affairs estimates there are 184, 283 veterans this year residing in Los Angeles County.

During a legislative hearing earlier this year, Gonzalez told lawmakers that about 380,000 veterans in the state live with service-related disabilities. He explained the rising cost of living in California is especially challenging for those on fixed incomes, and said reducing property tax burdens could help prevent the most vulnerable veterans from ending up on the streets.

“For a veteran who has already sacrificed so much, losing their home is not just a financial hardship, it is a failure of our commitment to them,” Gonzalez said.

The bill has passed two committees with unanimous support and was most recently referred to the Assembly Committee on Appropriations.

There are currently two property tax exemptions offered for fully disabled veterans in California, according to the State Board of Equalization.

The basic property tax exemption, or the $100,000 exemption, is available to all fully disabled veterans. The low-income exemption, or the $150,000 exemption, is available to fully disabled veterans whose annual household income does not exceed a specified amount — currently $81,131 — that is adjusted periodically for inflation. The exemption amount reduces the assessed value of the property, resulting in less property taxes due.

Patrick Murphy, an urban affairs professor at the University of San Francisco who focuses on tax policy, doubts the legislation would have a significant effect on homelessness.

“Homelessness among veterans is a big problem; that is pretty well-documented,” he said. “But I think if we were to list the reasons why veterans end up homeless, the burden of their property taxes would be pretty far down.”

Murphy also cautioned that Assembly Bill 2022 could face potential legal challenges if signed into law.

“Since Prop. 13 is written into the California Constitution, I would almost think there would need to actually be a proposed ballot initiative to change this,” Murphy said.

Proposition 13 mandates that property should be assessed and taxed uniformly based on purchase price. It caps property tax rates at 1% of a property’s value at the time of purchase, and limits annual assessment increases to a maximum of 2%.

Scott Kaufman, legislative director for the Howard Jarvis Taxpayers Assn., believes the legislation is on solid footing.

“I don’t see a problem,” he said. “The disabled veterans exemption already exists in the constitution, so I don’t think Prop. 13 trumps it because they both exist together.”

The California Teacher’s Assn. has raised other concerns with the legislation.

“We oppose tax exemptions that cut into the state’s ability to fully fund public schools by putting Prop. 98 funding at risk,” spokesperson Maggie Sisco wrote in an email.

Proposition 98 guarantees a minimum annual funding amount for K-12 schools and community colleges. The money comes from state funding and local property taxes.

According to the State Board of Equalization, the state does not reimburse local governments for the property tax revenue losses from the Disabled Veterans’ Exemption.

The bill is backed by several veterans organizations, including the American Legion, California State Commanders Veterans Council and Vietnam Veterans of America California State Council.

It also has support from the California Assn. of Realtors. Sanjay Wagle, the association’s senior vice president of government affairs, said property taxes are a concern for many disabled veterans looking to purchase a home.

“A lot of our members have seen them struggling, frankly, to make ends meet,” Wagle said. “This kind of property tax relief could be vital.”

A similar bill, SB 296, is being sponsored in the state Senate by Sens. Bob Archuleta (D-Pico Rivera) and Suzette Martinez Valladares (R-Acton).

Another measure, Senate Bill 888, is also seeking to reduce property tax burdens for disabled veterans.
The legislation, whose author is Sen. Kelly Seyarto (R-Murrieta), would exclude service-related disability payments from being included in the household income used to determine eligibility for exemptions.

Counting unhoused populations is difficult due to the transient nature of homelessness, but the most recent analyzed data from the U.S. Department of Housing and Urban Development indicate veteran homelessness is on the decline nationwide. In 2024, the department’s annual count found 32,882 homeless veterans, the lowest figure since the count began in 2009.

Walt Disney Co.’s ABC is forcefully resisting Federal Communications Commission efforts to soften the network’s programming, accusing the federal agency of an overreach that violates 1st Amendment freedoms.

Last week, the FCC took the unusual step of calling in the licenses of eight Disney-owned television stations for early review. The move — widely interpreted as an effort to chill the network’s speech — came a day after President Trump demanded that ABC fire late-night talk show host Jimmy Kimmel over a joke about First Lady Melania Trump.

The FCC separately has taken aim at ABC’s daytime discussion show, “The View,” which delves deeply into politics.

The FCC has questioned whether the show, which prominently features Trump critics Whoopi Goldberg and Joy Behar, could continue toclaim an exemption to rules that require broadcasters to provide equal time for opponents of political candidates.

In its filing this week with the FCC, Disney’s Houston television station raised the stakes in the dispute over “The View,” calling the commission’s actions “unprecedented” and “beyond the Commission’s authority.” The ABC station’s petition for a declaratory ruling said “The View,” has long qualified as a “bona fide” news interview program with freedom to conduct interviews of legally qualified political candidates.

“The Commission’s actions threaten to upend decades of settled law and practice and chill critical protected speech, both with respect to The View and more broadly,” the Houston station KTRK-TV said in the filing.

The network’s firm stance sets up a clash with the Trump administration, including the president’s hand-picked FCC Chairman Brendan Carr, who has made no secret of his disdain for Kimmel and other ABC programming. Earlier this year, Carr announced that decades-old exemptions from the so-called “equal time rule” for news programs, including “The View,” were no longer valid.

ABC’s strenuous arguments mark a departure for the Disney-owned outlet.

In December 2024, a month after Trump was elected to a second term, the network quickly settled a lawsuit over statements made by news anchor George Stephanopoulos that Trump found offensive. ABC agreed to pay Trump $15 million to end his legal fight — sparking an outcry among free speech advocates, who accused the network of caving on a case it could have won.

“Some may dislike certain—or even most—of the viewpoints expressed on The View or similar shows,” the station said in its filing. “Such dislike, however, cannot justify using regulatory processes to restrict those views. The government does not get to decide ‘what shall be orthodox in politics, nationalism, religion, or other matters of opinion.’”

The station noted that, while the FCC has questioned the exemption for “The View,” which dates back to 2002, the FCC hasn’t showed interest in regulating programs on other networks, “including the many voices — conservative and liberal — on broadcast radio.”

“The danger is that the government will simply decide which perspectives to regulate and which to leave undisturbed,” ABC said.

On April 28, Carr called for a review of Disney’s broadcast licenses two years before any of them were set to expire, citing the agency’s year-old inquiry into Disney’s diversity, equity and inclusion policies and whether they violated federal anti-discrimination rules.