Severely disabled veterans in California may be on the verge of a major property tax break, as a proposal at the Capitol quietly gathers momentum. Assemblyman Jeff Gonzalez’s new bill would cut the taxable value of a qualifying veteran’s primary home in half, and in the lowest income households it would erase the property tax bill altogether, according to supporters. Backers say the goal is simple, if not cheap, keep disabled veterans on fixed incomes in their homes as housing costs climb.
As reported by the Los Angeles Times, Assembly Bill 2022 would exempt 50% of the residential property owned by a fully disabled veteran and provide a 100% exemption if a household’s income does not exceed $40,000. Gonzalez, a Marine Corps veteran and vice chair of the Assembly Committee on Military and Veterans Affairs, told lawmakers the change is aimed at people who became disabled as a result of military service. The bill has already cleared two Assembly committees and was most recently re-referred to the Assembly Appropriations Committee.
What AB 2022 would do
Under the bill, AB 2022 would add Section 205.5.1 to the Revenue and Taxation Code and apply starting with tax lien dates on January 1, 2027, with the exemption scheduled to sunset in 2032, according to the bill text. The measure targets veterans who are rated 100% disabled by the U.S. Department of Veterans Affairs, or who are blind in both eyes, or who have lost the use of two or more limbs, and it extends similar relief to certain unmarried surviving spouses. Eligibility details are spelled out in the full text at the California Legislature.
Who already gets breaks and what would change
California already offers two Disabled Veterans’ Exemptions that reduce the assessed value of a qualified veteran’s home, a basic exemption and a larger low income exemption that are both adjusted annually for inflation, the State Board of Equalization notes. In a staff analysis of related measures, officials at the State Board of Equalization warn that the state does not reimburse local governments for property tax revenue losses and estimate that expanding exemptions would increase annual revenue losses for counties and districts. The staff work also documents the adjusted exemption and income thresholds that are used in practice and highlights administrative changes that county assessors would face if the rules are rewritten.
Other bills on the table
AB 2022 is not the only idea in play. Senate Bill 296, carried by Sen. Bob Archuleta, would grant a full exemption for homeowners with a 100% VA rating and has been promoted by the California State Senate as a dignity measure for veterans. Sen. Kelly Seyarto’s California Legislature bill, SB 888, would instead exclude service connected disability compensation from household income calculations so that more veterans could qualify for the enhanced low income exemption that already exists.
Support, skepticism and the homelessness angle
Veterans’ organizations have lined up behind the concept, and the California Association of Realtors is also on board. Sanjay Wagle, the association’s senior vice president of government affairs, told the Los Angeles Times that property tax relief “could be vital.” Critics, including some educators and analysts, warn that the plan could trim revenues for schools and local services, and they argue that property taxes are only one factor among many that push veterans out of stable housing.
Federal counts show veteran homelessness has been trending down in recent years. The U.S. Department of Veterans Affairs reported 32,882 veterans experiencing homelessness in January 2024, a record low. Supporters of AB 2022 say property tax relief is one more tool to keep those numbers from rising again, while skeptics question how much difference it can make compared with rental costs, mental health care and other pressures.
What comes next
AB 2022 was approved unanimously in two Assembly committees and is scheduled for a hearing in Appropriations on May 13, according to LegiScan. If the Appropriations Committee advances the bill, it would head to a vote of the full Assembly, then to the Senate. Supporters note that the built in sunset date would give lawmakers a chance to see how the policy works on the ground before deciding whether to extend it or let it lapse.
Between now and then, expect county assessors, veterans’ groups and educators to keep pressing their competing fiscal and implementation concerns as AB 2022 works its way through Sacramento. The political question is not whether disabled veterans deserve help, almost everyone agrees they do, but how large a break the state can afford to give them, and for how long.
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