On Monday, April 17, 2023, California State President Josh J. Baker gave testimony in the Revenue and Taxation Assembly Committee in support of Assemblymember Josh Hoover’s bill, 7th District, AB 1361 which will, if passed, will allow 100% disabled veterans to be exempt from property tax BEFORE the purchase of a home and not wait for months after the purchase of a home to receive their property taxes back from the state. Under current California Law, 100% VA Disabled Veterans are eligible to apply to their County Tax Assessor’s Office to be exempt from property taxes for the property they own and reside in. Pres. Baker impressed upon the Revenue and Taxation Committee that an overwhelmingly majority of people applying for home loans using this program will be using the VHA Home Loan Program. The VHA Home Loan program has additional fees and expenses and the passage of this bill would help defray the costs of the fees. He also advised the Committee that a majority of the 100% Disabled Veterans Pres. Baker contacted, they were unaware of the current Property Tax Exemption entitlements and the State needs to a better job to communicate with 100% disabled veterans on the many entitlements the State of California provides them. Pres. Baker was joined by Platinum CAL-EANGUS Sponsor Lindsay McCoy with CARE Finance Group to be the expert witnesses during the bill’s hearing. Lindsay advised the Committee on the current process of how County Tax Assessors appraise properties at the time of the sale and how the bill, if passed, can be amended to benefit Veterans applying for the program. The Taxation and Revenue Committee, Chaired by Jacqui Irwin, unanimously voted to pass the bill to the next committee. The bill was referred to the Committee on Appropriations.
On October 13, 2023, California Governor Gavin Newsome signed AB 1361 into law.
“Our state’s disabled veterans have sacrificed so much for our country and freedoms, the least we can do is give them greater access to a tax exemption that they already qualify for,” said Assemblyman Hoover. “Fixing this loophole in the law will provide financial relief to veterans and enhance their buying power when purchasing a home.”
The veteran property tax exemption already exists in the State Constitution, but veterans cannot qualify for it until after they own the home. During the underwriting process, taxes that veterans do not owe are collected and counted against them when qualifying for a mortgage. This means that thousands of dollars are collected at closing that will simply be refunded back to them at a later date. This places unnecessary burdens on veterans and decreases their buying power. AB 1361 will streamline this process by allowing them access to the credit prior to closing on the home.
