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CA

Bill

SCR 81

Proposes constitutional amendment to increase amount of veterans' property tax deduction from $250 to $2,500 over four years.

2024-2025 Regular Session Introduced by Carmen Amato and 18 co-sponsors

Raises the veterans' property tax deduction from 250 to 2,500 over four years, funded by state reimbursements and subject to voter approval.

Referred to Senate Budget and Appropriations Committee
#constitution #propertytax #veterans
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Bill Summary · SCR 81

Summary — SCR 81

Proposes constitutional amendment to increase the veterans' property tax deduction from $250 to $2,500, phased in over four years.

Purpose / Intent

To raise the annual property tax deduction available to qualifying veteran homeowners (and their surviving spouses) from the current constitutional floor of $250 to $2,500, increasing property tax relief for veterans over a four‑year schedule.

Key provisions

  • Increases the constitutionally‑mandated veterans' property tax deduction on the following schedule:
    • Tax year 2025: $1,000
    • Tax year 2026: $1,500
    • Tax year 2027: $2,000
    • Tax year 2028 and thereafter: $2,500
  • Eligibility: homeowners who were honorably discharged from active service in any branch of the U.S. Armed Forces; a surviving spouse of a qualified veteran continues to be eligible after the veteran’s death.
  • Funding/reimbursement: State reimburses municipalities for the property tax loss attributable to the deduction; the fiscal analysis assumes statutory reimbursement equals 102% of the deduction amount (includes a 2% allowance for municipal administrative costs).
  • Because this is a proposed constitutional amendment, it would require voter approval to become effective.

Who is affected

  • Primary beneficiaries: qualifying veteran homeowners and their surviving spouses.
  • Municipalities: experience an immediate property tax base loss but receive State reimbursements (net revenue gain per the fiscal analysis).
  • State budget: increased expenditures to reimburse municipalities through the Property Tax Relief Fund (or comparable State mechanism).

Fiscal impact (Office of Legislative Services estimates)

  • Estimated additional State costs (reimbursements plus 2% administrative allowance):
    • FY 2026: $89.0 million
    • FY 2027: $140.4 million
    • FY 2028: $186.0 million
    • FY 2029: $226.3 million (peak)
    • FY 2030: $214.1 million (decline expected thereafter)
  • Local net revenue gain (municipalities) projected to be modestly positive:
    • Peaks at about $4.4 million in FY 2029
  • Estimates assume the number of deduction recipients continues a recent downward trend (~5.4% annual decline), which moderates long‑term costs.

Procedural / timeline notes

  • Classified as a concurrent resolution proposing a constitutional amendment; would require placement before voters for approval.
  • Introduced May 15, 2025 and (per provided status) was referred to the Senate Budget and Appropriations Committee.
  • Companion measure: ACR 58.
  • Background: The last voter‑approved increase of this deduction occurred in 1999 (from $50 to $250, phased over four years); the deduction has been $250 since 2003.

Prepared from committee report and the legislative fiscal estimate (Office of Legislative Services).

Compiled from official sources — confirm details with the bill’s official record.

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