Senator Janet Nguyen Announces Important New Tax Exemption Law For Seniors

Friday, September 23, 2016

Next year, senior citizens will find that filing their taxes will become easier thanks to the passage of AB 1891, authored by Assemblymember Matt Dababneh and coauthored by Senator Janet Nguyen. This new law maintains that once an individual has turned 65 years old, and a school district has previously exempted them from a parcel tax, the district must continue to grant that exemption for as long as the senior is eligible.

“It is important that we remove barriers that could prevent our seniors from receiving the parcel tax exemptions they are eligible for,” said Senator Janet Nguyen. “In this endeavor, I was pleased to join Assemblymember Dababneh and the Howard Jarvis Taxpayers Association to pass this important bill, which will make it so that our seniors do not have to go through the hassle of filing paperwork with a school district year after year.”

Parcel Taxes are imposed on parcels of real property, typically sections of land, and unlike property taxes, are not based on the value of the property; they are a flat tax. Parcel taxes can be imposed by cities, counties, school districts and special districts and are used as a source of additional revenue. These taxes are collected by the County Treasurer at the same time as property tax.

Under current law some school districts grant parcel tax exemptions to seniors based on their age. These school districts require seniors to file the same paperwork every year, even though seniors continue to be eligible for the exemption. Those who qualify for this exemption are seniors over the age of 65, persons receiving Supplemental Security Income for a disability, regardless of age, or those receiving Social Security Disability Insurance, regardless of age.

AB 1891, which will be implemented January 1, 2017, was sponsored by the Howard Jarvis Taxpayers Association and supported by the California Taxpayers Association and the  California Association of Realtors.

Seniors interested in applying for this tax exemption should consult their tax preparer or local school district to determine if the program is available in your district.