Did SB 1357 Pass in California? Disabled Veterans Bill

California Senate Bill 1357 did not pass. Introduced by Senator Archuleta in February 2022, the bill would have created a full property tax exemption for veterans rated 100 percent disabled and a larger partial exemption for others, but it never made it into law. The proposed Revenue and Taxation Code Section 205.5.1 does not appear in the code, and the existing disabled veterans’ exemption under Section 205.5 remains the operative framework for California homeowners today.

What Happened to SB 1357

Senator Archuleta introduced SB 1357 on February 18, 2022. It cleared the Senate Governance and Finance Committee and the Committee on Military and Veterans Affairs, was amended on June 15, 2022, and then moved through the Assembly’s Revenue and Taxation, Military and Veterans Affairs, and Appropriations committees between June and August of that year. Deliberations in the Assembly focused on the fiscal impact: a full exemption for 100 percent disabled veterans would have reduced revenue for local governments and school districts that rely on property tax collections.¹

Despite clearing those committee hurdles, the bill does not appear in current California code. Section 205.5.1 was never added, and Section 205.5 was never amended by its provisions. Whether the bill failed a floor vote, was vetoed, or stalled before completion, the result for homeowners is the same: the framework SB 1357 proposed never took effect.

What the Bill Would Have Changed

SB 1357 would have created a new Section 205.5.1 with three tiers of relief. Veterans rated 100 percent disabled by the VA or their military branch, including those blind in both eyes or with the loss of use of two or more limbs at a 100 percent rating, would have received a full exemption on their principal residence. Veterans rated totally disabled from a service-connected injury or disease would also have been fully exempt. Veterans who were blind in both eyes or had lost the use of two or more limbs but held a rating between 10 and 99 percent would have received a partial exemption calculated as $700,000 multiplied by their disability rating percentage, adjusted annually for inflation.

The exemption would have covered the veteran, the veteran’s spouse, or both jointly, as long as the property served as their principal residence. It carried a sunset built in, applying to tax lien dates from January 1, 2023, through December 31, 2032, with the authorizing section repealing itself on January 1, 2034.²

Why the Outcome Matters for Veteran Homeowners

The gap between what SB 1357 proposed and what current law provides is substantial. Section 205.5 does not eliminate a qualifying veteran’s property tax bill. It exempts a fixed dollar amount of assessed value, not the whole property. For a 100 percent disabled veteran whose home is assessed at $800,000, current law exempts roughly $181,000 of that value. SB 1357 would have exempted the entire $800,000. In a high-cost California county, the difference easily runs several thousand dollars per year.

The partial tier would also have been significantly more generous. A veteran with a 50 percent rating would have received an exemption on $350,000 of assessed value under SB 1357, well above the current basic exemption of $180,671. In practical terms, the bill proposed shifting California from one of the more modest disabled veteran property tax programs to one of the most generous.²

The Exemption That Actually Applies

Because SB 1357 did not become law, Revenue and Taxation Code Section 205.5 continues to govern. The exemption applies to the principal residence of a veteran who meets one of three qualifying conditions resulting from a service-connected injury or disease: blindness in both eyes, loss of use of two or more limbs, or total disability.³

“Totally disabled” has a specific meaning. The VA or the veteran’s military branch must have assigned a 100 percent disability rating, or rated the veteran’s disability compensation at 100 percent because the veteran cannot hold a substantially gainful occupation.⁴

The exemption also extends to the unmarried surviving spouse of a qualifying deceased veteran, if the veteran either qualified during their lifetime or died from a service-connected disease as determined by the VA.³

Exemption Amounts for 2026

Both tiers adjust annually using an inflation factor tied to the California Consumer Price Index. The current figures:

Basic exemption: $180,671 of assessed value, available to all qualifying veterans regardless of income.
Low-income exemption: $271,009 of assessed value, available when the veteran’s household income falls below an annually adjusted limit.⁵

Claiming this exemption means giving up any other real property tax exemption you might otherwise take, including the standard veterans’ exemption and the homeowners’ exemption. These benefits cannot be stacked.³

How to Apply

Claims go to the county assessor’s office where the property is located. You will file Form BOE-261-G (Claim for Disabled Veterans’ Property Tax Exemption) with proof of disability, typically a VA letter, and proof of honorable or other-than-dishonorable service such as a DD-214. Veterans with a 100 percent VA rating generally do not need to submit additional medical documentation beyond the VA’s rating letter.⁴

Timing matters. To get the full exemption in your first qualifying year, file between the eligibility event date and the following January 1, or within 90 days of the eligibility event, whichever is later. Filing after that window still gets you the exemption, but only at 85 percent for that initial year.⁴

If you claim the low-income exemption, you must re-file every year between January 1 and February 15 to confirm your household income still qualifies. Filing late but before December 10 reduces the exemption to 90 percent for that year, and filing after December 10 drops it to 85 percent.⁴

1
California Legislative Information. SB 1357 – Property Taxation: Exemption: Disabled Veteran Homeowners
2
California Legislative Information. California Senate Bill 1357 – Property Taxation: Exemption: Disabled Veteran Homeowners
3
California Legislative Information. California Revenue and Taxation Code 205-5
4
California Board of Equalization. Disabled Veterans Exemption
5
California Board of Equalization. LTA 2025/014 – Disabled Veterans Exemption Increases for 2026