CITY OF MENIFEE
SUBJECT: One-Time Property Tax Rebate for Disabled Veterans MEETING DATE: February 23, 2026
TO: Veterans and Military Families Advisory Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Mariana Mitchell, Community Services Director -------------------------------------------------------------------------------------------------------------------------------
RECOMMENDED ACTION
1. Review the feasibility and provide feedback for a one-time $250 City-sponsored Property Tax Rebate Program for 100% Disabled Veterans.
DISCUSSION
At its July 19, 2023, meeting, the City Council requested staff explore the idea of a City-sponsored property tax exemption program for disabled veterans. While acknowledging that the state already offers such a program, the City Council asked staff to explore options for supplementing it by providing additional benefits to Menifee veterans who own homes. At the September 15, 2025, meeting, the Veterans and Military Families Advisory Committee (VMFAC) reviewed potential program structures and recommended against pursuing a City exemption program due to significant ongoing costs and administrative requirements. Subsequently, at the October 1, 2025 City Council meeting, it was requested that an alternative City-sponsored one-time $250 property tax rebate for 100% disabled veterans in honor of the nation’s Semiquincentennial (250th birthday) be reviewed by the VMFAC.
Background: Property Tax Structure and Existing State Program For some background on property tax structure, a homeowner’s property tax bill is composed of three types of property taxes: Ad valorem, voter-approved debt-related special assessments, and other special assessments.
1. Ad Valorem: The ad valorem portion of the tax is levied by the Riverside County Assessor-County Clerk-Recorder’s office and it amounts to a 1% tax on the assessed valuation of properties. By state statute, assessed values increase each year by the lesser of 2% or the inflation factor noted in the California Consumer Price Index (CCPI). The City receives roughly 12.9% of the ad valorem tax the county collects on City properties.
City of Menifee Staff Report
Property Tax Rebate for Disabled Veterans
September 15, 2025
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2. Debt-Related Assessments: The voter-approved debt-related assessments, which typically stem from school district or water district general obligation bonds, are also determined based on a percentage of the assessed value of a home. The City does not receive any portion of these assessments.
3. Special Assessments: Special assessments are specific tax charges, not based on the assessed value of a property, placed on a homeowner’s tax bill at the direction of the property owner and by the authority of other taxing agencies with legal authority, such as cities, school districts, water districts and parks districts. The City receives 100% of the special assessments it puts on the property tax roll, such as the assessments for community facilities districts (CFDs), landscape and lighting maintenance districts (LLMDs), and county services areas (CSAs). These monies are deposited into restricted Special Revenue Funds to pay for services/improvements provided in their respective areas.
Existing State Program
As previously reviewed, the state program exempts qualified veterans from paying a certain amount of ad valorem taxes, which is the first type of tax. The program, known as the Disabled Veterans' Exemption, reduces the property tax liability on the primary home for veterans who, due to a service-connected injury or disease, have been rated 100% disabled or are being compensated at the 100% rate due to unemployability, as determined by the Veterans Administration. The veterans’ exemption does not apply to the other two types of property tax.
There are two levels to the state’s Disabled Veterans' Exemption program:
The basic exemption, which in 2026 provides an exemption from paying taxes on the first $180,671 of a home’s assessed value, and;
The low-income exemption, which in 2026 provides an exemption from paying taxes on the first $271,009 of a home’s assessed value, for veterans whose annual household income does not exceed a specified limit, which is $81,131 for 2026.
Veterans can claim the exemption that is most beneficial to them, but only one exemption can be claimed. The exemption amounts increase each year, based on the inflation factor denoted in the CCPI.
Potential Menifee Program: (One-Time $250 Property Tax Rebate) for 100% Disabled Veterans
Menifee is home to a large veteran population. The U.S. Census Bureau’s 2023 American Community Survey estimates there are 8,317 veterans living in the City, although only a portion of them qualify for the state’s Disabled Veterans’ Exemption. Based on more recent figures obtained by the County of Riverside, approximately 1,900 Menifee veterans participate in the state Disabled Veterans Exemption Program. It is unknown how many 100% disabled veterans there are in the City who are not eligible to claim the county’s exemption. The proposed new program would provide a one-time $250 property tax rebate to 100% disabled veterans.
Administratively, if the program is approved, the City would need to determine the most cost effective and efficient method to implement it. Elements to consider include factors such as timing, application, and proof of property tax payment before issuing a rebate. With an estimated eligible City of Menifee Staff Report
Property Tax Rebate for Disabled Veterans
September 15, 2025
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population of at least 1,900, the individual rebate would amount to $250, but aggregate costs to the City could exceed $475,000.
FISCAL IMPACT
The fiscal impact of the implementing a one-time $250 City-sponsored Property Tax Rebate Program for 100% disabled veterans will ultimately be affected by various factors, including the number of eligible veteran participants and actual program participants. Based on the updated population number of 1,900, as received by Riverside County, of the number of qualified Menifee residents participating in the state Disabled Veterans' Exemption, direct rebate costs could total $475,000. Additionally, there would be costs associated with staff time to administer the program.
ATTACHMENTS
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