Senator Seyarto's proposal to modify California's disabled veterans' property tax exemption would exclude disability payments from household income calculations, potentially expanding access to higher-value tax benefits for eligible veterans and their surviving spouses. The measure addresses the existing two-tier exemption system, which provides either $100,000 or $150,000 in property tax relief based on household income thresholds.

The bill maintains current eligibility requirements for veterans who are blind in both eyes, have lost the use of two or more limbs, or are totally disabled due to service-connected injuries. Under existing law, veterans whose household income falls below $40,000 qualify for the higher exemption amount of $150,000, while those above this threshold receive the standard $100,000 exemption. Both the income threshold and exemption amounts continue to adjust annually based on changes in the California Consumer Price Index.

Local tax officials would need to implement these changes without state reimbursement for lost property tax revenues or administrative costs. The measure includes provisions for county assessors to accept electronically generated disability verification letters from the U.S. Department of Veterans Affairs and allows them to issue preliminary eligibility determinations through electronic means.