The Disabled Veterans' Exemption
The Unmarried Surviving Spouse of a Veteran Who Died on Active Duty Exemption
The Unmarried Surviving Spouse of a Deceased Disabled Veteran Exemption

1. What is the Disabled Veterans (or Disabled Veterans' Eligible Surviving Spouse) Exemption?

Answer: Property that is owned by, and the principal residence of, a disabled veteran or their spouse (or unmarried surviving spouses of certain deceased veterans) may be eligible for a substantial property tax exemption that varies in size based upon the amount of their household income (ref. R&T 205.5, 20504 and 20585):

If a veteran is blind in both eyes, or has lost the use of two or more limbs, or is totally disabled as a result of injury or disease incurred in military service, they are entitled to an exemption of up to $111,296 for 2008-09 and $114,634 for 2009-10. The exemption limit is raised to $166,944 for 2008-09 and $171,952 for 2009-10 if an eligible veteran's household income is below a certain limit specified in the law.

The exemption is also available to:

1. The unmarried surviving spouse of a qualifying veteran who died on active duty as the result of a service-connected disease or injury.
2. The unmarried surviving spouse of a qualifying Disabled Veteran if during the veteran's lifetime the veteran was either receiving the exemption or would have qualified for the exemption had the veteran applied for it

2. How does a Disabled Veteran (or their eligible surviving spouse) apply for this exemption?

Answer: A Disabled Veterans' Exemption claim form must be filed with the Assessor's Office along with a letter from the US Department of Veterans Affairs (USDVA) (or from the military service which discharged the veteran) certifying that the veteran has a service-connected disability rating of 100%, along with proof of honorable discharge (DD-214). You may call, fax, or mail a request for the appropriate form, or pick up the claim forms in person at 3701 Power Inn Road, Suite 3000 95826-4329 Sacramento, CA. The forms can also be printed from the Forms section of the Assessor's website.

3. What are the filing periods and deadlines for the Disabled Veterans' (or Eligible Surviving Spouse) Exemption?

Answer: The initial claim for this exemption must be filed by February 15, or within 30 days from the date of issuance printed upon (or postmark of) a "Notice of Supplemental Assessment."

• If a qualified veteran or surviving spouse files before February 15 of the current year, they are entitled to 100% of the exemption for the current year.
• If a qualified veteran or surviving spouse files after February 15 but before December 10 of the current year, they are entitled to 90% of the exemption for the current year.

Once granted, the exemption is continuous until the veteran becomes ineligible because: a) the property is no longer being used as his/her primary residence, or b) their disability rating is lowered below the minimum requirement. There are also provisions for late filing for the exemption discussed elsewhere in this document (see Question 6: "Is the Disabled Veterans' Exemption retroactive to the USDVA's effective rating date?")

4. What does the term 'Totally Disabled' mean?

Answer: The law says that that for property tax purposes, ".being totally disabled means that the US Department of Veterans Affairs or the military service from which the veteran was discharged has rated the disability at 100 percent or has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation." Effective January 1, 2001, veterans who are blind in both eyes, or have lost the use of two or more limbs were given the equivalency of totally disabled. (ref R&T 205.5.e)

5. Must a veteran be 100% disabled or 100% unemployable to qualify for the Disabled Veterans' Exemption?

Answer: Yes. Veterans are eligible for the Disabled Veterans Exemption if they are either 100% disabled or 100% unemployable as determined by the US Department of Veterans Affairs or by the service from which they were discharged.

6. Is the Disabled Veterans' Exemption retroactive to the US Department of Veterans Affair's (USDVA) effective rating date?

Answer: Yes, but the number of years of retroactivity are limited because a retroactive filing is considered a "late filing." Certain other requirements must be met, and an eligible veteran will qualify only for a portion of the exemption in prior years.

• The maximum retroactivity is four years (that is, the current roll and three prior rolls).
• The veteran must have been eligible in any year for which they are claiming the exemption.
• If a qualified veteran files before February 15 of the current year, they are entitled to 100% of the exemption for the current year.
• If a qualified veteran files after February 15 but before December 10 of the current year, they are entitled to 90% of the exemption for the current year.
• For up to three prior roll years, an eligible veteran is entitled to 85% of the exemption.

7. Must the veteran have been a California resident at the time of their enlistment?

Answer: No. This exemption is available to any qualified disabled veteran who resides here regardless of where they originally enlisted in the service.

8. Can the surviving spouse of a Disabled Veteran benefit from this exemption?

Answer: Yes. An unmarried surviving spouse can qualify if:

1. The Disabled Veteran was eligible for the exemption during the veteran's lifetime
2. If the veteran died on active duty as the result of a service-connected disease or injury

A new claim must be completed and submitted with a copy of the couple's marriage certificate and a copy of the veteran's death certificate. In the case of a veteran who died on active duty as the result of a service-connected disease or injury, proof must also be provided to ascertain that the veteran's death was in fact the result of service-connected disease or injury.

9. If the surviving spouse remarries, is the exemption still valid?

Answer: No. The Assessor's Office should be contacted immediately in this circumstance.

10. Can I file for both the Homeowners' Exemption and the Disabled Veterans Exemption?

Answer: No. Only one exemption is allowed.

11. I already have the Disabled Veterans (and Eligible Spouse) Exemption on my current home but plan to buy a new home. Will I be able to transfer the exemption to the supplemental assessment of my new home?

Answer: Yes, an eligible veteran is entitled to the full exemption as applied to any supplemental assessment made against a newly purchased principal residence, even if they have the exemption on their current residence.

However, where the exemption is applied to a supplemental assessment, it can only exempt taxes up to, but not exceeding the amount of supplemental tax owed (i.e., it cannot refund taxes not owed). For example, presume you are entitled to the $111,296 exemption and buy a new home where you receive a net supplemental assessment of $25,500. In this instance the exemption as it applies to the supplemental will be the full $25,500, but no greater. If the supplemental assessment were a refund, there would be no benefit gained from applying the exemption to the supplemental.

12. How is my Disabled Veteran’s exemption affected if my home is damaged or destroyed by misfortune?

Answer: Revenue and Taxation Code Section 279, was amended in 2008 to allow the disabled veteran’s exemption to remaining effect if a home is totally destroyed in a disaster for which the Governor proclaims a state of emergency or disaster. Continued eligibility can be affected under certain other situations explained in detail in Disaster Relief for Properties Receiving the Disabled Veteran’s Exemption.

CLAIM FORMS

Claim forms and instructions related to exemptions for disabled veterans, or for the surviving spouses of disabled veterans, or for the surviving spouses of veterans who died on active duty are available from the Assessor (see Contact Information below). They are also available on the Assessor's Forms web page.

CONTACT INFORMATION:

Sacramento County Assessor's Office: 3701 Power Inn Rd, Suite 3000, Sacramento, CA 95826-4329
Disabled Veterans Exemption Section: call (916) 875-0720 (9am-4pm)
E-mail: assessor@SacCounty.net

Sacramento County Veterans Service Office
California Department of Veterans Affairs  
US Department of Veterans Affairs