CA SB56

Excludes service-connected disability payments from the definition of "household income" when determining eligibility for the higher $150,000 disabled veterans' property tax exemption (available to those with household income under $40,000, adjusted for inflation)

Applies to disabled veterans who are blind in both eyes, have lost use of two or more limbs, or are totally disabled, as well as unmarried surviving spouses of qualifying deceased veterans

The exclusion of service-connected disability payments remains in effect until January 1, 2036, after which the provision sunsets

Requires the State Board of Equalization to report to the Legislature by January 1, 2035, comparing the number of exemption claims from 2024 to 2033 to assess the law's effectiveness

The state will not reimburse local agencies for property tax revenues lost due to this expanded exemption