CA SB888

Excludes service-connected disability payments from "household income" calculations when determining eligibility for the higher $150,000 disabled veterans' property tax exemption (versus the standard $100,000 exemption)

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 their unmarried surviving spouses

The higher exemption amount currently requires household income not to exceed $40,000 (adjusted annually for inflation); this change prevents VA disability payments from counting against that limit

Contains a sunset date of January 1, 2037, after which the exclusion of disability payments from household income calculations expires

Requires the State Board of Equalization to report to the Legislature by January 1, 2036, comparing the number of exemption claims from 2025 to 2034 to assess the policy's effectiveness