- 3 -
|
EF-261-R09-0806-41000810-3
BOE-261 (S2F) REV. 9 (8-06)
VETERANS’ EXEMPTION INFORMATION AND INSTRUCTIONS
(Read carefully)
California law provides for the exemption from taxation of the property to the amount of $4,000 of a resident (a) who is serving in or has
served in and has been discharged under honorable conditions from service in the Armed Forces in time of war or other specified time, (b)
who is the unmarried widow or widower of a deceased veteran, or (c) who is the pensioned parent of a deceased veteran. The claimant must
meet certain property ownership qualifications. No such exemption shall apply if (a) the unmarried veteran or unmarried pensioned parent
owns property valued at $5,000 or more, (b) a married veteran or married pensioned parent who, together with the spouse, owns property
valued at $10,000 or more, or (c) the unmarried widow or widower of a deceased veteran owns property in excess of $10,000. Special provisions
regarding exemptions for a veteran who, because of injury or disease incurred in military service, is blind in both eyes, has lost the use of two or
more limbs, or is totally disabled are not covered in these instructions; a veteran with the above described injuries, or the unmarried widow or
widower of such a veteran, should file BOE-261-G, Disabled Veterans’ Property Tax Exemption.
Beginning in 1981 property was assessed at its full value instead of 25 percent of its value as in prior years, yet the $5,000 ($10,000) limitation
has not been changed. In determining whether the $5,000 ($10,000) limitation disqualifies a claimant the current statute (section 205.1, Revenue
and Taxation Code) provides that whenever assessed value is used to determine eligibility, 25 percent of the assessed value of taxable real and
personal property and the market value of nontaxable personal property are to be used in order to maintain the same proportionate values
as in prior years. Therefore, 25 percent of the assessed value is used for items listed in questions 3, 4, and 5, the taxable portion of your business
(question 6), and the taxable items listed in question 13. The market value is used for items listed in questions 7, 8, 9, 10, 11, 12, the nontaxable
portion of your business which may now include inventory or livestock (question 6), and the nontaxable items listed in question 13. The amount
of encumbrance on property cannot be deducted in determining the value of the property.
The claim for exemption must be filed at the Assessor’s Office by 5 p.m. on February 15 or mailed by that date. The lesser of $3,200 or 80
percent of the full value of the property will be granted if the claim is filed between February 16 and December 10 of the calendar year in which
the fiscal year begins.
Exemption may be allowed only upon (1) personal property assessed to the person entitled to the exemption, (2) real property recorded in the
name of the claimant or in the names of the claimant and spouse as of the lien date, and (3) real property being purchased under an unrecorded
contract of sale where the claimant furnishes or shows the contract to the Assessor and files an affidavit that he or she purchased the property
under such contract and is responsible under the contract for payment of the taxes. In addition, if the claimant is married and does not own
property eligible for the full amount of the exemption, property of the spouse may be exempt for the unused balance of the exemption.
CLAIMANTS WITH MORE THAN ONE TAXABLE PROPERTY
Passage of the Property Tax Relief Act of 1972 makes the choice of the property against which the veterans’ exemption is allowed when a claimant
has more than one taxable property much more important than it previously was. A $7,000 homeowners’ exemption is available to owner-
occupants on January 1 each year of a single living unit, whether in a separate or a multiple-unit structure. It provided, however, that the
homeowners’ exemption and the veterans’ exemption were not allowable on the same property. Anyone who is eligible for a veterans’ exemption
and owns taxable property other than his or her principal place of residence, whether in this county or elsewhere in California, will find it to his or
her advantage to claim the veterans’ exemption on such other property. For example, if you own and occupy a home assessed at $14,000 and
own other property assessed at $2,000, you may claim the homeowners’ exemption on the home and the veterans’ exemption on the other
property. If both claims are approved, your total exempt assessed value will be $9,000 ($7,000 on the home plus $2,000 on the other property)
rather than the $4,000 that would be exempt if you claimed the veterans’ exemption on your home. See instructions for question 14.
CLAIMANTS WITH ONLY ONE TAXABLE PROPERTY
If your dwelling is the only taxable property you own or are purchasing and is your principal place of residence, you will find it to your
advantage to claim the $7,000 homeowners’ exemption. If the property you own is not eligible for the homeowners’ exemption or it is not your
principal place of residence, file your veterans’ exemption claim. To become eligible for the homeowners’ exemption, obtain a copy of the form
on which to claim this exemption from the Assessor, complete it, and file it with the Assessor by February 15.
Check yes or no wherever boxes for such entries are provided. Where dollar amounts are to be entered, show amounts as of 12:01 a.m., January 1.
Question 1. MY LEGAL RESIDENCE ON JANUARY 1 WAS — Enter street number, city, state and zip code where you live when not called elsewhere
for labor or other special or temporary purposes and a telephone number where you can be reached. There can be only one legal residence.
The intent of the applicant that a certain place is his residence must be coupled with the substantial physical presence of the applicant at that
place. However, a person serving in the armed forces does not lose residence by reason of being stationed outside of the state of his or her
residence. Likewise, the fact that a member of the armed forces is present in California does not make him a legal resident. A member not
claiming residence in the State of California should not complete this form, but should complete the form BOE-261-D, Soldier’s and Sailor’s Civil
Relief Act Declaration, which can be obtained from the Assessor.
Question 2. I AM SINGLE, MARRIED, WIDOW, WIDOWER, LEGALLY SEPARATED, DIVORCED, PENSIONED PARENT. MY SPOUSE’S NAME IS — Check
the appropriate box. Check “Divorced” only if the decree is final. If you are a married man, enter the first name, initial, and maiden name of
your wife. The pension referred to here is based upon the service of a deceased veteran.
Question 3. REAL ESTATE LOCATED IN (this) COUNTY — All your parcels in this county must be listed here. If parcel numbers
are preprinted in this question, you need only check the accuracy of those numbers listed and add any that have been omitted. If parcel
numbers are not preprinted, enter the parcel number from your tax bill. If you do not have a parcel number, enter the legal description of
the property, listing either the section, township, and range, or the lot, block, and tract, or the metes and bounds description from your deed.
(Unless otherwise requested, the Assessor will allow the exemption on properties in the order in which they are listed in the answer to this
question.) If you desire that the exemption be applied to other property, you must check one of the boxes in question 14.
Question 4. REAL ESTATE LOCATED OUTSIDE (this) COUNTY — All your parcels outside this county must be listed here. Enter the
name of the county seat and the name of the state as well as the parcel number (if any) or other legal description in sufficient detail so that
the property can be identified. If the property is located in California, enter the assessed value if known (from a tax bill); if located outside the
State of California, enter the market value of the property.
Question 5. BOAT/AIRCRAFT — Enter the California C.F. number of the boat or the F.A.A. number of the aircraft. Show location information in
sufficient detail so that the boat or aircraft can be located by a field deputy.
|