What SB 296 does
An act to add and repeal Section 205.5.1 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
The California Constitution provides that all property is taxable and requires that it be assessed at the same percentage of fair market value, unless otherwise provided by the California Constitution or federal law. The California Constitution and existing property tax law provide various exemptions from taxation, including, among others, a disabled veterans’ exemption and a veterans’ organization exemption.
This bill would exempt from taxation, as provided, 50% of that part of the full value of the property that does not exceed $1,000,000 that is owned by, and that constitutes the principal place of residence of, a veteran, the veteran’s spouse, or the veteran and the veteran’s spouse jointly, if, among other things, the veteran is 100% disabled. The bill would provide an unmarried surviving spouse a property exemption in the same amount that they would have been entitled to if the veteran were alive and if certain conditions are met. In the case of a disabled veteran or unmarried surviving spouse whose household income does not exceed a specified amount for the relevant assessment year, as prescribed, the bill would exempt 100% of that part of the full value of the property that does not exceed $1,000,000 from taxation. The bill would require certain documentation to be provided to the county assessor to receive the exemption and would prohibit any other real property tax exemption from being granted to the claimant if receiving the exemption provided by the provisions of this bill. The bill would make these exemptions applicable for property tax lien dates occurring on or after January 1, 2027, but occurring before January 1, 2032. By imposing additional duties on local tax officials, the bill would impose a state-mandated local program.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill also would include additional information required for any bill authorizing a new tax expenditure.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
This bill would take effect immediately as a tax levy.
Summary from the Legislative Counsel's Digest of the enrolled text, August 25, 2026. Read the full text on leginfo.
How it got here
Senator Archuleta introduced SB 296 on February 10, 2025, with coauthors Senators Arreguín, Cervantes, Choi, Cortese, Durazo, Gonzalez, Grayson, Grove, Jones, McNerney, Padilla, Pérez, Richardson, Rubio, Seyarto, Smallwood-Cuevas, and Weber Pierson. The text was amended 4 times, 3 in the Assembly and 1 in the Senate, and heard in 9 committee hearings before its final floor votes.
- Senate Floor, May 29, 2025: 38 ayes, 0 noes.
- Assembly Floor, August 19, 2026: 78 ayes, 0 noes.
- Senate Floor, August 24, 2026: 40 ayes, 0 noes.
Committee votes along the way:
- Senate Revenue and Taxation, March 26, 2025: Do pass, but first be re-referred to the Committee on [Military and Veterans Affairs], 5-0.
- Senate Military and Veterans Affairs, April 28, 2025: Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar, 4-0.
- Senate Appropriations, May 12, 2025: Placed on suspense file, 7-0.
- Senate Appropriations, May 23, 2025: Do pass, 6-0.
- Assembly Military and Veterans Affairs, July 1, 2025: Do pass as amended, and be re-referred to the Committee on [Revenue and Taxation] with recommendation: To Consent Calendar, 8-0.
- Assembly Revenue and Taxation, June 29, 2026: Do pass as amended and be re-referred to the Committee on [Appropriations], 7-0.
- Assembly Appropriations, August 13, 2026: Do pass as amended., 11-0.
Who supports and opposes SB 296
The Senate Floor Analyses analysis dated August 21, 2026 lists 14 organizations in support and 0 in opposition. When Senate Revenue and Taxation first listed positions on March 24, 2025, the count was 2 in support and 0 opposed. By the Senate Floor Analyses analysis of August 21, 2026 it was 14 to 0.
In support: AMVETS, Department of California; Antelope Valley Economic Development & Growth Enterprise; California Assessors’ Association; California Association of County Veterans Service Officers; California Association of Realtors; California State Board of Equalization; California State Commanders Veterans Council; California State Retirees; and 6 more.
Read the Senate Floor Analyses analysis.
What happens next
It reached the Governor's desk on August 27, 2026. Bills presented after the Legislature adjourned on August 31 must be signed or vetoed within thirty days.
The Governor can sign the bill, veto it, or let it become law without a signature. Until the decision, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect. If signed, most provisions take effect January 1, and implementation moves to the agencies named in the bill.
What it means for aerospace organizations
Two decisions follow from a bill at this stage. The first is whether to weigh in with the Governor's office before the thirty-day window closes. The second is how to prepare for implementation if it becomes law: which agency writes the rules, when the comment period opens, and which obligations begin January 1.
The aerospace group at Capitol Axis handles that for aerospace clients.
Questions about SB 296
What does SB 296 do?
This bill would exempt from taxation, as provided, 50% of that part of the full value of the property that does not exceed $1,000,000 that is owned by, and that constitutes the principal place of residence of, a veteran, the veteran’s spouse, or the veteran and the veteran’s spouse jointly, if, among other things, the veteran is 100% disabled. The bill would provide an unmarried surviving spouse a property exemption in the same amount that they would have been entitled to if the veteran were alive and if certain conditions are met. In the case of a disabled veteran or unmarried surviving spous
Has SB 296 passed the California Legislature?
It reached the Governor's desk on August 27, 2026. Bills presented after the Legislature adjourned on August 31 must be signed or vetoed within thirty days.
Who supports and opposes SB 296?
The Senate Floor Analyses analysis dated August 21, 2026 lists 14 organizations in support and 0 in opposition. Supporters include AMVETS, Department of California; Antelope Valley Economic Development & Growth Enterprise; California Assessors’ Association.
What happens next with SB 296?
The Governor can sign it, veto it, or let it become law without a signature. Until then, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect.