CA SB888

Excludes service-connected disability payments from "household income" calculations 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 due to military service, as well as unmarried surviving spouses of qualifying veterans

Contains a sunset date of January 1, 2037, after which the service-connected disability payment exclusion expires and prior law is restored

Requires the State Board of Equalization to report to the Legislature by January 1, 2036, comparing claim numbers from 2025-2034 to evaluate the program's effectiveness

Provides no state reimbursement to local agencies for lost property tax revenues resulting from this exemption expansion