SB 801: Property tax postponement.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2015-09-30
Existing law, on and after February 20, 2009, prohibited a person from filing a claim for postponement of tax, and prohibited the Controller from accepting applications for postponement of tax, under the Senior Citizens and Disabled Citizens Property Tax Postponement Law. Existing law, as of July 1, 2016, makes inoperative the prohibition against a qualifying person, as specified, filing a claim for postponement and the Controller from accepting applications for postponement under the program and repeals this prohibition on January 1, 2017.
This bill, among other things, would eliminate outdated references to certificates of eligibility that were previously used under the postponement law. The bill would permit the Controller to release a lien if there is a foreclosure on an obligation secured by a lien that is senior in recording priority. The bill would standardize the definition of a claimant so that all references include blind and disabled persons, as defined. The bill would eliminate references to certain duties on the part of local tax officials, with respect to lien notices, to conform to the superseding duties of the Controller in preparing and filing the notice of lien for postponed taxes with the county recorder at the time payment is made, and would specify payments by the Controller to the county and the refund by the county of taxes paid when a taxpayer successfully appeals his or her denial of postponement under the law. The bill would clarify that the interest rate on existing loans made prior to the postponement laws suspension will continue to accrue at the rate specified prior to the suspension of the program. The bill would remove references regarding the eligibility of mobilehome properties to participate in the program and would add references specifying that co-op properties are eligible for the program. The bill would also delete and update outdated references and make other technical and conforming changes.
Existing law, on and after February 20, 2009, prohibited a person from filing a claim for postponement of tax, and prohibited the Controller from accepting applications for postponement of tax, under the Senior Citizens and Disabled Citizens Property Tax Postponement Law. Existing law, as of July 1, 2016, makes inoperative the prohibition against a qualifying person, as specified, filing a claim for postponement and the Controller from accepting applications for postponement under the program and repeals this prohibition on January 1, 2017.
This bill, among other things, would eliminate outdated references to certificates of eligibility that were previously used under the postponement law. The bill would permit the Controller to release a lien if there is a foreclosure on an obligation secured by a lien that is senior in recording priority. The bill would standardize the definition of a claimant so that all references include blind and disabled persons, as defined. The bill would eliminate references to certain duties on the part of local tax officials, with respect to lien notices, to conform to the superseding duties of the Controller in preparing and filing the notice of lien for postponed taxes with the county recorder at the time payment is made, and would specify payments by the Controller to the county and the refund by the county of taxes paid when a taxpayer successfully appeals his or her denial of postponement under the law. The bill would clarify that the interest rate on existing loans made prior to the postponement laws suspension will continue to accrue at the rate specified prior to the suspension of the program. The bill would remove references regarding the eligibility of mobilehome properties to participate in the program and would add references specifying that co-op properties are eligible for the program. The bill would also delete and update outdated references and make other technical and conforming changes.
Existing law, on and after February 20, 2009, prohibited a person from filing a claim for postponement, and prohibited the Controller from accepting applications for postponement of ad valorem tax, under the Senior Citizens and Disabled Citizens Property Tax Postponement Law. Existing law, as of July 1, 2016, makes inoperative the prohibition against a qualifying person, as specified, filing a claim for postponement and the Controller from accepting applications for postponement under the program and repeals this prohibition on January 1, 2017.
This bill, among other things, would eliminate outdated references to certificates of eligibility that were previously used under the postponement law. The bill would permit the Controller to release a lien if there is a foreclosure on an obligation secured by a lien that is senior in recording priority. The bill would standardize the definition of a claimant so that all references include blind and disabled persons, as defined. The bill would eliminate references to certain duties on the part of local tax officials, with respect to lien notices, to conform to the superseding duties of the Controller in preparing and filing the notice of lien for postponed taxes with the county recorder at the time payment is made, and would specify payments by the Controller to the county and the refund by the county of taxes paid when a taxpayer successfully appeals his or her denial of postponement under the law. The bill would clarify that the interest rate on existing loans made prior to the postponement laws suspension will continue to accrue at the rate specified prior to the suspension of the program. The bill would remove references regarding the eligibility of mobilehome properties to participate in the program and would add references specifying that co-op properties are eligible for the program. The bill would also delete and update outdated references and make other technical and conforming changes.
Existing law, on and after February 20, 2009, prohibited a person from filing a claim for postponement, and prohibited the Controller from accepting applications for postponement of ad valorem tax, under the Senior Citizens and Disabled Citizens Property Tax Postponement Law. Existing law, as of July 1, 2016, makes inoperative the prohibition against a qualifying person, as specified, filing a claim for postponement and the Controller from accepting applications for postponement under the program and repeals this prohibition on January 1, 2017.
This bill bill, among other things, would eliminate outdated references to certificates of eligibility that were previously used under the postponement law. The bill would permit the Controller to release a lien if there is a foreclosure on an obligation secured by a lien that is senior in recording priority. The bill would standardize the definition of a claimant so that all references include blind and disabled persons, as defined. The bill would eliminate references to certain duties on the part of local tax officials, with respect to lien notices, to conform to the superseding duties of the Controller in preparing and filing the notice of lien for postponed taxes with the county recorder at the time payment is made, and would specify payments by the Controller to the county and the refund by the county of taxes paid when a taxpayer successfully appeals his or her denial of postponement under the law. The bill would also clarify that the interest rate on existing loans made prior to the postponement laws suspension will continue to accrue at the rate specified prior to the suspension of the program. The bill would remove references regarding the eligibility of mobilehome properties to participate in the program and would add references specifying that co-op properties are eligible for the program. The bill would also delete and update outdated references and make other technical and conforming changes.
Existing law, on and after February 20, 2009, prohibited a person from filing a claim for postponement, and prohibited the Controller from accepting applications for postponement of ad valorem tax, under the Senior Citizens and Disabled Citizens Property Tax Postponement Law. Existing law, as of July 1, 2016, makes inoperative the prohibition against a qualifying person, as specified, filing a claim for postponement and the Controller from accepting applications for postponement under the program and repeals this prohibition on January 1, 2017.
This bill would eliminate outdated references to certificates of eligibility that were previously used under the postponement law. The bill would eliminate references to certain duties on the part of local tax officials, with respect to lien notices, to conform to the superseding duties of the Controller in preparing and filing the notice of lien for postponed taxes with the county recorder at the time payment is made, and would specify payments by the Controller to the county and the refund by the county of taxes paid when a taxpayer successfully appeals his or her denial of postponement under the law. The bill would also clarify that the interest rate on existing loans made prior to the postponement laws suspension will continue to accrue at the rate specified prior to the suspension of the program.
(a)There is hereby created in the State Treasury a Senior Citizens and Disabled Citizens Property Tax Postponement Fund. The fund shall be an interest-bearing fund. Subject to subdivision (b) and notwithstanding Section 13340, the fund is continuously appropriated to the Controller, commencing January 1, 2015, for purposes of administering this chapter, including, but not limited to, necessary administrative costs and disbursements relating to the postponement of property taxes pursuant to the Property Tax Postponement Law (Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), and Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code).
(b)The Controller shall do both of the following:
(1)On June 30, 2017, transfer any moneys in the fund in excess of twenty million dollars ($20,000,000) to the General Fund.
(2)On June 30, 2018, and on June 30 each year thereafter, transfer any moneys in the fund in excess of fifteen million dollars ($15,000,000) to the General Fund.
(c)On or after January 1, 2015, any loan repayments relating to the Senior Citizens and Disabled Citizens Property Tax Postponement Law shall be deposited into the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.
(d)Any funds remaining upon the effective date of this section in an impound account formerly provided for pursuant to this chapter, shall be transferred to the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.
SEC. 2.Section 16182 of the Government Code is amended to read:16182.(a)All sums paid by the Controller under the provisions of this chapter, together with interest thereon, shall be secured by a lien in favor of the State of California when funds are transferred to the county by the Controller upon the real property for which property taxes have been postponed. In the case of a residential dwelling which is part of a larger parcel taxed as a unit, such as a duplex, farm, or multipurpose or multidwelling building, the lien shall be against the entire tax parcel.
(b)In the case of real property:
(1)The lien shall be evidenced by a notice of lien for postponed property taxes executed by the Controller, or the authorized delegate of the Controller, and shall secure all sums paid or owing pursuant to this chapter, including amounts paid subsequent to the initial payment of postponed taxes on the real property described in the notice of lien.
(2)The notice of lien may bear the facsimile signature of the Controller. Each signature shall be that of the person who shall be in the office at the time of execution of the notice of lien; provided, however, that such notice of lien shall be valid and binding notwithstanding any such person having ceased to hold the office of Controller before the date of recordation.
(3)The form and contents of the notice of lien for postponed property taxes shall be prescribed by the Controller and shall include, but not be limited to, the following:
(A)The names of all record owners of the real property for which the Controller has advanced funds for the payment of real property taxes.
(B)A description of the real property for which real property taxes have been paid.
(C)The identification number of the notice of lien which has been assigned the lien by the Controller.
(4)Within 14 business days of the transfer of funds and the notice of lien to the county by the Controller, the notice of lien shall be recorded in the office of the county recorder for the county in which the real property subject to the lien is located.
(5)The recorded notice of lien shall be indexed in the Grantor Index to the names of all record owners of the real property and in the Grantee Index to the Controller of the State of California.
(6)After the notice of lien has been duly recorded and indexed, it shall be returned by the county recorder to the office of the Controller. The recorder shall provide the county tax collector with a copy of the notice of lien which has been executed by the Controller.
(7)From the time of recordation of a notice of lien for postponed property taxes, a lien shall attach to the real property described therein and shall have the priority of a judgment lien for all amounts secured thereby, except that the lien shall remain in effect until either of the following occurs:
(A)It is released by the Controller in the manner prescribed by Section 16186.
(B)The foreclosure or sale of an obligation secured by a lien which is senior in recording priority to the lien of the State of California.
(c)In the case of mobilehome loans established prior to February 20, 2009, all of the following shall apply:
(1)The lien shall be evidenced by a notice of lien for postponed property taxes executed by the Controller, or the authorized delegate of the Controller, and shall secure all sums paid owing pursuant to this chapter.
(2)From the time that the Department of Housing and Community Development receives the notice of lien from the Controller, the department shall impose a moratorium on any other amendments to the permanent title record of the mobilehome unit until released by the Controller in the manner prescribed by Section 16186, or an authorization for the amendments is given by the Controller in writing.
(3)From the time of filing a notice of lien, a lien shall attach to the mobilehome for which eligibility for the postponement of property taxes has been granted.
SEC. 3.Section 16183 of the Government Code is amended to read:16183.(a)From the time a payment is made pursuant to Section 16180, the amount of that payment shall bear interest at a rate (not compounded), determined as follows:
(1)Beginning July 1, 2016, the rate of interest shall be 7 percent per annum.
(2)The Controller shall establish an adjusted rate of interest for the purpose of this subdivision not later than July 15th of any year if the effective annual yield of the Pooled Money Investment Account for the prior fiscal year is at least a full percentage point more or less than the interest rate which is then in effect. The adjusted rate of interest shall be equal per annum to the effective annual yield earned in the prior fiscal year by the Pooled Money Investment Account rounded to the nearest full percent, and shall become effective for new deferrals, beginning on July 1, 1984, and on July 1 of each immediately succeeding year, until June 30, 2016.
(3)For loans made prior to June 30, 2016, the rate of interest provided pursuant to this subdivision for the first fiscal year commencing after payment is made pursuant to Section 16180 shall apply for that fiscal year and each fiscal year thereafter until these postponed property taxes are repaid.
(b)The interest provided for in subdivision (a) shall be applied beginning the first day of the month following the month in which that payment is made and continuing on the first day of each month thereafter until that amount is paid. In the event that any payments are applied, in any month, to reduce the amount paid pursuant to Section 16180, the interest provided for herein shall be applied to the balance of that amount beginning on the first day of the following month.
(c)In computing interest in accordance with this section, fractions of a cent shall be disregarded.
(d)For the purpose of this section, the time a payment is made shall be deemed to be the time an electronic funds transfer is made by the Controller to the tax collector or the delinquency date of the respective tax installment, whichever is later.
(e)The Controller shall include on forms supplied to claimants pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641 of the Revenue and Taxation Code, a statement of the interest rate which shall apply to amounts postponed for the fiscal year to which the form applies.
SEC. 4.Section 16190 of the Government Code is amended to read:16190.All amounts owing pursuant to Article 1 (commencing with Section 16180) of this chapter shall become due if any of the following occurs:
(a)The claimant, who is either the sole owner or sole possessory interestholder of the residential dwelling, as defined in Section 20583 or Section 20640 of the Revenue and Taxation Code, or a coowner or copossessory interestholder with a person other than a spouse or other individual eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of that code, ceases to occupy the premises as his residential dwelling, dies, or sells, conveys, or disposes of the property, or allows any tax or special assessment on the premises described in Section 20583 of such code to become delinquent. If the sole owner or possessory interestholder claimant dies and his or her surviving spouse inherits the premises and continues to own and occupy it as his or her principal place of residence, then the lien amount does not become due and payable unless taxes or special assessments described in the preceding sentence become delinquent, or such surviving spouse dies, or sells, conveys, or disposes of the interest in the property.
(b)The claimant, who is a coowner or copossessory interestholder of the residential dwelling, as defined in Section 20583 or Section 20640.2 of the Revenue and Taxation Code, with a spouse or another individual eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of that code, dies, and the surviving spouse or other surviving eligible individual allows any tax or special assessment on the premises described in Section 20583 of such code to become delinquent or such surviving spouse or other individual ceases to occupy the premises as a residential dwelling, dies, or conveys, or disposes of the interest in the property.
(c)The failure of the claimant to perform those acts the claimant is required to perform where such performance is secured, or will be secured in the event of nonperformance, by a lien which is senior to that of the lien provided by Section 16182.
(d)Postponement was erroneously allowed because eligibility requirements were not met.
(e)The claimant is refinancing the residential dwelling.
(f)The claimant has elected to participate in a reverse mortgage program for the residential dwelling.
SEC. 5.Section 16191 of the Government Code is amended to read:16191.The amounts paid pursuant to Section 16180 shall continue to draw interest but amounts owing pursuant to Article 1 (commencing with Section 16180) of this chapter shall not become due and payable if any of the following occurs:
(a)The claimant continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but ceases to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.
(b)The surviving spouse of a claimant continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but is ineligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, or elects not to postpone such taxes, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.
(c)The surviving individual otherwise eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but elects not to postpone the property taxes pursuant to such chapter, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.
SEC. 6.Section 16192 of the Government Code is amended to read:16192.If, at any time, a person meeting the requirements of subdivision (a) or (c) of Section 16191 elects, or any surviving spouse described in subdivision (b) of such section becomes eligible, or otherwise elects, to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, payments made pursuant to Section 16180 shall be added to the amount of the lien existing against the residential dwelling.
SEC. 7.Section 2515 of the Revenue and Taxation Code is amended to read:2515.(a)Upon receiving a notice of lien for postponed property taxes from the Controller, the tax collector or the assessor, whichever is applicable, shall immediately enter on the assessment records applicable to the property, the fact that the taxes on the property have been postponed and the Controllers identification number, and shall, if such record reveals a change in the ownership status of the property subsequent to the date of entry of the postponement information thereon, notify the Controller within 60 days of processing the change in the ownership status in the manner prescribed by the Controller.
(b)From the time of recordation of the notice of lien pursuant to Section 16182 of the Government Code, the lien for postponed property taxes shall be deemed to impart constructive notice of the contents thereof to subsequent purchasers, mortgagees, lessees, and other lienors.
SEC. 8.Section 20505 of the Revenue and Taxation Code is amended to read:20505.Claimant means an individual who
(a)For purposes of this chapter was either (1) 62 years of age or older on the last day of the calendar year or approved fiscal year designated in subdivision (b) or (c) of Section 20503, whichever is applicable, or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code on the last day of the calendar year or approved fiscal year designated in subdivision (b) of Section 20503, who was a member of the household, and who was either: (1) the owner and occupier of a residential dwelling on the last day of the year designated in subdivision (b) or (c) of Section 20503, or (2) the renter of a rented residence on or before the last day of the year designated in subdivision (b) of Section 20503. An individual who qualifies as an owner-claimant may not qualify as a renter-claimant for the same year.
(b)For purposes of Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), and Chapter 3.5 (commencing with Section 20640) was a member of the household and either an owner-occupant, or a tenant stockholder occupant, or a possessory interestholder occupant, or a mobilehome owner-occupant, as the case may be, of the residential dwelling as to which postponement is claimed on the last day of the year designated in subdivision (b) or (c) of Section 20503, and who was (1) 62 years of age or older by December 31 of the fiscal year for which postponement is claimed, or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which postponement is claimed, whichever is earlier.
SEC. 9.Section 20586 of the Revenue and Taxation Code is amended to read:20586.For the purposes of Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), and Chapter 3.5 (commencing with Section 20640), only one claimant per household each year shall be entitled to postponement. When two or more individuals in a household are qualified as claimants, they may determine who the claimant shall be. Such decision is irrevocable. If the individuals are unable to agree, the matter shall be determined by the Controller and his or her decision shall be final.
SEC. 10.Section 20601 of the Revenue and Taxation Code is amended to read:20601.Subject to the limitations provided in this chapter, a claimant may file with the Controller, pursuant to Article 3 (commencing with Section 20621) of this chapter, a claim for postponement from the State of California of a sum equal to, but not exceeding, the amount of property taxes, as defined in Section 20584, due on the residential dwelling for the fiscal year for which the claim is made.
SEC. 11.Section 20602 of the Revenue and Taxation Code is amended to read:20602.Upon approval of a claim described in Section 20601, the Controller shall make payments directly to a county tax collector for the property taxes owed on behalf of a qualified claimant. Payments may, upon appropriation by the Legislature, be made out of the amounts appropriated pursuant to Section 16180 of the Government Code that are secured by a secured tax lien and obligation as specified by Article 1 (commencing with Section 16180) of Chapter 5 of Division 4 of the Government Code.
SEC. 12.Section 20603 of the Revenue and Taxation Code is amended to read:20603.The Controller shall prescribe the manner in which a claimant eligible under this chapter, who for any reason is incapacitated, may appoint his or her spouse or an authorized agent, or have any such person appointed for such claimant, for all purposes of claiming and receiving postponement of property taxes.
SEC. 13.Section 20621 of the Revenue and Taxation Code is amended to read:20621.Each claimant applying for postponement under Article 2 (commencing with Section 20601) shall file a claim under penalty of perjury with the Controller on a form supplied by the Controller. The claim shall contain all of the following:
(a)Evidence acceptable to the Controller that the person (1) is 62 years of age or older on or before December 31 of the fiscal year for which the postponement is claimed or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which the postponement is claimed, whichever is earlier.
(b)A statement showing the household income for the period set forth in Section 20503.
(c)A statement describing the residential dwelling in a manner that the Controller may prescribe.
(d)The name of the county in which the residential dwelling is located and the address of the residential dwelling.
(e)The county assessors parcel number applicable to the property for which the claimant is applying for the postponement of property taxes.
(f)(1)Documentation evidencing the current existence of any abstract of judgment, federal tax lien, or state tax lien filed or recorded against the applicant, and any recorded mortgage or deed of trust that affects the subject residential dwelling, for the purpose of determining that the claimant possesses a 40-percent equity in the subject residential dwelling as required by paragraph (1) of subdivision (b) of Section 20583.
(2)Actual costs, not in excess of fifty dollars ($50), paid by the claimant to obtain the documentation shall reduce the amount of the lien for the year, but not the face amount of the payment prescribed in Section 16180 of the Government Code.
(g)Other information required by the Controller to establish eligibility.
SEC. 14.Section 20622 of the Revenue and Taxation Code is amended to read:20622.The claim for postponement shall be filed after October 1 of the fiscal year in which the postponement is claimed and on or before February 10 of that fiscal year; if February 10th falls on Saturday, Sunday, or a legal holiday, the date is extended to the next business day.
SEC. 15.Section 20627 of the Revenue and Taxation Code is amended to read:20627.A tenant-stockholder claimant (hereinafter referred to as claimant) is an individual who, on the last day of the calendar year ending immediately prior to the commencement of the fiscal year for which postponement is claimed is: (a) a tenant-stockholder in a cooperative housing corporation (as defined in Section 216(b) of the Internal Revenue Code) and (b) occupies as a principal place of residence a residential unit in the cooperative housing corporation (notwithstanding Section 216(b) of the Internal Revenue Code). For the purposes of this chapter, a claimant must be (1) 62 years of age or older on or before December 31 of the fiscal year for which postponement is claimed or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which the postponement is claimed, whichever is earlier.
SEC. 16.Section 20630 of the Revenue and Taxation Code is amended to read:20630.(a)A claimant may file with the Controller, a claim for postponement from the State of California of a sum equal to, but not exceeding the amount of property taxes, as defined in Section 20629, for the fiscal year for which the claim is made.
(b)Upon verification of the eligibility requirements set forth in Section 20630.5, the Controller shall mail the claimant a Notice of Election to Postpone which shall be in the form and contain such information as the Controller may prescribe. Accompanying the notice shall be a statement explaining that in order for the claimant to postpone all or part of the property taxes, the Notice of Election to Postpone must be mailed to the Controller with the following:
(1)A statement signed by an authorized officer of the cooperative housing corporation indicating the amount of the claimants proportionate share of property taxes and the method used to compute such amount.
(2)A recognition agreement signed by the claimant and executed by an officer of the corporation which acknowledges the assignment of the proprietary lease and the pledging of the claimants shares in the corporation as security for postponement, and sets forth the rights and duties of the state, the corporation and the claimant with respect to such stock and the proprietary lease. The recognition agreement shall be in such form and contain such provisions as the Controller shall prescribe.
(3)Any other additional security interest, created and perfected with respect to the rights of third persons in the manner provided by law for such type of security interest, which the Controller deems necessary to protect the interest of the state with regard to the repayment of postponed amounts by the claimant or a deceased claimants estate.
(c)When the Controller approves the Notice of Election to Postpone, the Controller shall make payments directly to a county tax collector for the property taxes owed on behalf of the claimant. Payments may, upon appropriation by the Legislature, be made out of the amounts appropriated pursuant to Section 16180 of the Government Code that are secured by a secured tax lien and obligation as specified by Article 1 (commencing with Section 16180) of Chapter 5 of Division 4 of the Government Code.
SEC. 17.Section 20630.5 of the Revenue and Taxation Code is amended to read:20630.5.Claims made under this chapter shall be filed with the Controller after October 1 of the fiscal year in which postponement is claimed and on or before February 10 of such fiscal year. If February 10th falls on Saturday, Sunday or a legal holiday, the date is extended to the next business day. The claim shall be on a form supplied by the Controller and shall contain:
(a)Evidence acceptable to the Controller that the individual was an eligible claimant.
(b)A statement showing the household income for the period set forth in Section 20503.
(c)A statement describing the residential dwelling.
(d)Any other information necessary for the Controller to determine eligibility under this chapter.
SEC. 18.Section 20633 of the Revenue and Taxation Code is repealed.SEC. 19.Section 20638 of the Revenue and Taxation Code is amended to read:20638.Upon written request of a person who has postponed pursuant to this chapter, or an agent of such person, or an agent of the affected cooperative housing corporation, the Controller shall issue such person a written statement showing the total amount postponed, together with accrued interest. The Controller may establish a reasonable fee, not to exceed thirty dollars ($30) for the provision of the statement of postponement status provided by this section.
SEC. 20.Section 20639.2 of the Revenue and Taxation Code is amended to read:20639.2.(a)As used in this part, mobilehome means a mobilehome, as defined in Sections 18008 and 18211 of the Health and Safety Code, to which one of the following applies:
(1)It was first sold new on or after July 1, 1980.
(2)It was first sold new on or before June 30, 1980, and with respect to which the license fee required to be paid pursuant to Part 5 (commencing with Section 10701) of Division 2 has been delinquent for 120 days or more.
(3)It was first sold new on or before June 30, 1980, and a request for voluntary transfer to local property taxation was made pursuant to Section 18119 of the Health and Safety Code.
(b)As used in this chapter, postponement refers to mobilehome loans established prior to February 20, 2009.
SEC. 21.Section 20639.3 of the Revenue and Taxation Code is repealed.SEC. 22.Section 20639.4 of the Revenue and Taxation Code is repealed.SEC. 23.Section 20639.5 of the Revenue and Taxation Code is repealed.SEC. 24.Section 20639.6 of the Revenue and Taxation Code is repealed.SEC. 25.Section 20639.7 of the Revenue and Taxation Code is repealed.SEC. 26.Section 20639.8 of the Revenue and Taxation Code is repealed.SEC. 27.Section 20639.9 of the Revenue and Taxation Code is repealed.SEC. 28.Section 20640.2 of the Revenue and Taxation Code is amended to read:20640.2.For the purposes of this chapter:
(a)Possessory interest means (1) possession of, or right to the possession of land located in this state whether or not coupled with ownership of the residential dwelling on the same, or (2) a possessory interest or right of occupancy on tax exempt land;
(b)Residential dwelling means a dwelling occupied as the principal place of residence of the claimant, and so much of the land surrounding it as is reasonably necessary for use of the dwelling as a home, located on possessory interest property. It shall include condominiums upon which property taxes, as defined in subdivision (c), are assessed. It also includes part of a multidwelling or multipurpose building and a part of the land upon which it is built.
(c)Property taxes means the amount of property tax for which the claimant is personally liable as assessee or is obligated to pay directly to the tax collector pursuant to the terms of the agreement establishing the possessory interest, including all ad valorem property taxes, special assessments, capitalization of leasehold interest, and other charges or user fees which are attributable to the residential dwelling on the county tax bill and the ad valorem property taxes, special assessments, capitalization of leasehold interest, or other charges or user fees appearing on the tax bill of any chartered city which levies and collects its own property taxes.
SEC. 29.Section 20640.3 of the Revenue and Taxation Code is amended to read:20640.3.A claimant is an individual who:
(a)Holds a right to a possessory interest pursuant to a validly recorded instrument conveying such possessory interest for a term of years no less than 45 years beyond the last day of the calendar year ending immediately prior to the fiscal year for which taxes are initially postponed;
(b)Occupies as a principal place of residence the residential dwelling affixed to such possessory interest real property on the last day of the year designated in Section 20503(c) of this code;
(c)(1)Is 62 years of age or older on or before December 31 of the fiscal year for which postponement is claimed or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which the postponement is claimed, whichever is earlier.
SEC. 30.Section 20640.4 of the Revenue and Taxation Code is amended to read:20640.4.(a)Subject to the limitations provided in Chapter 1 (commencing with Section 20501), Chapter 2 (commencing with Section 20581), or this chapter, a claimant may file with the Controller, a claim for postponement of a sum equal to, but not exceeding the amount of property taxes, for the fiscal year for which the claim is made.
(b)Upon verification of the eligibility requirements set forth in Section 20640.9 the Controller shall mail the claimant a Notice of Election to Postpone which shall be in the form and contain such information as the Controller may prescribe. Accompanying the notice shall be a statement explaining that in order for the claimant to postpone all or part of the property taxes, the Notice of Election to Postpone must be mailed to the Controller with a copy of the instrument creating the possessory interest, said copy to be certified by the county recorder of the county in which such real property is located. Where a memorandum of lease has been recorded in lieu of such instrument, a certified copy of said memorandum shall accompany the copy of the instrument creating the possessory interest.
(c)Any possessory interest or improvement on which property taxes are delinquent at the time the application for postponement under this chapter is made or on which any other property tax or special assessment imposed by a special district or other tax code area are delinquent at the time the application for postponement under this chapter is made shall not be eligible for postponement.
SEC. 31.Section 20640.6 of the Revenue and Taxation Code is amended to read:20640.6.(a) Upon receipt of the information described in Section 20640.4 and Section 20640.5, the Controller shall determine whether the states interest would be adequately protected if postponement is granted, and if so, the Controller shall make payments directly to a county tax collector, or chartered city that levies and collects its own taxes, for the property taxes owed on behalf of the claimant. Payments may, upon appropriation by the Legislature, be made out of the amounts appropriated pursuant to Section 16180 of the Government Code that are secured by a secured tax lien and obligation as specified by Article 1 (commencing with Section 16180) of Chapter 5 of Division 4 of the Government Code.
(b)The Controller shall cause to be recorded with the county recorder of the county in which the real property is located, a copy of any instrument creating a security interest, which shall include applicable consent forms, in favor of the state. The instrument shall contain a legal description of the real property subject to the possessory interest; and, if the legal description of the possessory interest describes an area less than the entire property ownership, the notice or document shall also contain a reference to the record of the acquisition instrument to the entire parcel from which the possessory interest was created. The priority of the security interest shall be as of the date of recordation.
SEC. 32.Section 20640.7 of the Revenue and Taxation Code is amended to read:20640.7.The Controller shall prescribe the manner in which a claimant eligible under this chapter, who for any reason is incapacitated, may appoint his or her spouse or an authorized agent, or have any such person appointed for such claimant, for all purposes of claiming and receiving postponement of property taxes.
SEC. 33.Section 20640.8 of the Revenue and Taxation Code is amended to read:20640.8.The claim for postponement shall be filed after October 1 of the fiscal year in which postponement is claimed and on or before February 10 of such fiscal year. If February 10th falls on Saturday, Sunday or a legal holiday, the date is extended to the next business day.
SEC. 34.Section 20640.9 of the Revenue and Taxation Code is amended to read:20640.9.Each claimant applying for postponement under this chapter shall file a claim under penalty of perjury with the Controller on a form supplied by the Controller. The claim shall contain:
(a)Evidence acceptable to the Controller that the person was 62 years of age or older, or blind or disabled as described in Section 20640.3.
(b)A statement showing the household income for the period set forth in Section 20503.
(c)A statement describing the residential dwelling in such manner as the Controller may prescribe.
(d)The name of the county in which the residential dwelling is located and the address of the residential dwelling.
(e)The county assessors parcel number applicable to the property for which the claimant is applying for the postponement of property taxes.
(f)Other information required by the Controller to establish eligibility.
SEC. 35.Section 20645.5 of the Revenue and Taxation Code is amended to read:20645.5.(a)If a postponement claim under Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) is received by the Controller by February 10 for the fiscal year in which postponement is being claimed or by another date set by the Controller pursuant to Section 20622, then any delinquent penalties, costs, fees, and interest accrued for that fiscal year shall be canceled unless the failure to perfect the claim was due to willful neglect on the part of the claimant or representative.
(b)In the event of willful neglect, an electronic funds transfer for that current fiscal year can be used to pay delinquent taxes only if accompanied by sufficient amounts to pay all of the delinquent penalties, costs, fees, and interest. If an amount sufficient to pay all of the delinquent penalties, costs, fees, and interest is not received by the tax collector within 30 days from the date of the electronic funds transfer, the tax collector may return the electronic funds transfer to the Controller to deny the postponement claim.
(c)(1)The Controller shall notify the claimant in writing when the electronic funds transfer has been submitted to the tax collector.
(2)In the event of willful neglect, in addition to the information required pursuant to paragraph (1), the Controller shall also notify the claimant in writing and provide a copy of the notification to the tax collector, that a payment amount sufficient to pay all of the delinquent penalties, costs, fees, and interest must be received by the tax collector within 30 days from the date of the electronic funds transfer, and that if this payment is not received by the tax collector, the tax collector may return the electronic funds transfer to the Controller to deny the postponement claim.
SEC. 36.Section 20645.6 of the Revenue and Taxation Code is amended to read:20645.6.(a)If the Controller denies a postponement claim under Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640), and the denial is reversed after appeal pursuant to Section 20645.1, the Controller shall electronically transfer funds to the county for the amount of the taxes. If the taxes for the fiscal year were previously paid, the county shall refund the overpayment to the taxpayer. If the taxes for the fiscal year are delinquent, any resulting penalties or interest shall be canceled.
(b)The Controller shall notify the claimant in writing when an electronic funds transfer has been made pursuant to subdivision (a).
(a)There is hereby created in the State Treasury a Senior Citizens and Disabled Citizens Property Tax Postponement Fund. The fund shall be an interest-bearing fund. Subject to subdivision (b) and notwithstanding Section 13340, the fund is continuously appropriated to the Controller, commencing January 1, 2015, for purposes of administering this chapter, including, but not limited to, necessary administrative costs and disbursements relating to the postponement of property taxes pursuant to the Property Tax Postponement Law (Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), and Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code).
(b)The Controller shall do both of the following:
(1)On June 30, 2017, transfer any moneys in the fund in excess of twenty million dollars ($20,000,000) to the General Fund.
(2)On June 30, 2018, and on June 30 each year thereafter, transfer any moneys in the fund in excess of fifteen million dollars ($15,000,000) to the General Fund.
(c)On or after January 1, 2015, any loan repayments relating to the Senior Citizens and Disabled Citizens Property Tax Postponement Law shall be deposited into the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.
(d)Any funds remaining upon the effective date of this section in an impound account formerly provided for pursuant to this chapter, shall be transferred to the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.
SEC. 2.Section 16182 of the Government Code is amended to read:16182.(a)All sums paid by the Controller under the provisions of this chapter, together with interest thereon, shall be secured by a lien in favor of the State of California when funds are transferred to the county by the Controller upon the real property for which property taxes have been postponed. In the case of a residential dwelling which is part of a larger parcel taxed as a unit, such as a duplex, farm, or multipurpose or multidwelling building, the lien shall be against the entire tax parcel.
(b)In the case of real property:
(1)The lien shall be evidenced by a notice of lien for postponed property taxes executed by the Controller, or the authorized delegate of the Controller, and shall secure all sums paid or owing pursuant to this chapter, including amounts paid subsequent to the initial payment of postponed taxes on the real property described in the notice of lien.
(2)The notice of lien may bear the facsimile signature of the Controller. Each signature shall be that of the person who shall be in the office at the time of execution of the notice of lien; provided, however, that such notice of lien shall be valid and binding notwithstanding any such person having ceased to hold the office of Controller before the date of recordation.
(3)The form and contents of the notice of lien for postponed property taxes shall be prescribed by the Controller and shall include, but not be limited to, the following:
(A)The names of all record owners of the real property for which the Controller has advanced funds for the payment of real property taxes.
(B)A description of the real property for which real property taxes have been paid.
(C)The identification number of the notice of lien which has been assigned the lien by the Controller.
(4)Within 14 business days of the transfer of funds and the notice of lien to the county by the Controller, the notice of lien shall be recorded in the office of the county recorder for the county in which the real property subject to the lien is located.
(5)The recorded notice of lien shall be indexed in the Grantor Index to the names of all record owners of the real property and in the Grantee Index to the Controller of the State of California.
(6)After the notice of lien has been duly recorded and indexed, it shall be returned by the county recorder to the office of the Controller. The recorder shall provide the county tax collector with a copy of the notice of lien which has been executed by the Controller.
(7)From the time of recordation of a notice of lien for postponed property taxes, a lien shall attach to the real property described therein and shall have the priority of a judgment lien for all amounts secured thereby, except that the lien shall remain in effect until either of the following occurs:
(A)It is released by the Controller in the manner prescribed by Section 16186.
(B)The foreclosure or sale of an obligation secured by a lien which is senior in recording priority to the lien of the State of California.
(c)In the case of mobilehome loans established prior to February 20, 2009, all of the following shall apply:
(1)The lien shall be evidenced by a notice of lien for postponed property taxes executed by the Controller, or the authorized delegate of the Controller, and shall secure all sums paid owing pursuant to this chapter.
(2)From the time that the Department of Housing and Community Development receives the notice of lien from the Controller, the department shall impose a moratorium on any other amendments to the permanent title record of the mobilehome unit until released by the Controller in the manner prescribed by Section 16186, or an authorization for the amendments is given by the Controller in writing.
(3)From the time of filing a notice of lien, a lien shall attach to the mobilehome for which eligibility for the postponement of property taxes has been granted.
SEC. 3.Section 16183 of the Government Code is amended to read:16183.(a)From the time a payment is made pursuant to Section 16180, the amount of that payment shall bear interest at a rate (not compounded), determined as follows:
(1)Beginning July 1, 2016, the rate of interest shall be 7 percent per annum.
(2)The Controller shall establish an adjusted rate of interest for the purpose of this subdivision not later than July 15th of any year if the effective annual yield of the Pooled Money Investment Account for the prior fiscal year is at least a full percentage point more or less than the interest rate which is then in effect. The adjusted rate of interest shall be equal per annum to the effective annual yield earned in the prior fiscal year by the Pooled Money Investment Account rounded to the nearest full percent, and shall become effective for new deferrals, beginning on July 1, 1984, and on July 1 of each immediately succeeding year, until June 30, 2016.
(3)For loans made prior to June 30, 2016, the rate of interest provided pursuant to this subdivision for the first fiscal year commencing after payment is made pursuant to Section 16180 shall apply for that fiscal year and each fiscal year thereafter until these postponed property taxes are repaid.
(b)The interest provided for in subdivision (a) shall be applied beginning the first day of the month following the month in which that payment is made and continuing on the first day of each month thereafter until that amount is paid. In the event that any payments are applied, in any month, to reduce the amount paid pursuant to Section 16180, the interest provided for herein shall be applied to the balance of that amount beginning on the first day of the following month.
(c)In computing interest in accordance with this section, fractions of a cent shall be disregarded.
(d)For the purpose of this section, the time a payment is made shall be deemed to be the time an electronic funds transfer is made by the Controller to the tax collector or the delinquency date of the respective tax installment, whichever is later.
(e)The Controller shall include on forms supplied to claimants pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641 of the Revenue and Taxation Code, a statement of the interest rate which shall apply to amounts postponed for the fiscal year to which the form applies.
SEC. 4.Section 16190 of the Government Code is amended to read:16190.All amounts owing pursuant to Article 1 (commencing with Section 16180) of this chapter shall become due if any of the following occurs:
(a)The claimant, who is either the sole owner or sole possessory interestholder of the residential dwelling, as defined in Section 20583 or Section 20640 of the Revenue and Taxation Code, or a coowner or copossessory interestholder with a person other than a spouse or other individual eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of that code, ceases to occupy the premises as his residential dwelling, dies, or sells, conveys, or disposes of the property, or allows any tax or special assessment on the premises described in Section 20583 of such code to become delinquent. If the sole owner or possessory interestholder claimant dies and his or her surviving spouse inherits the premises and continues to own and occupy it as his or her principal place of residence, then the lien amount does not become due and payable unless taxes or special assessments described in the preceding sentence become delinquent, or such surviving spouse dies, or sells, conveys, or disposes of the interest in the property.
(b)The claimant, who is a coowner or copossessory interestholder of the residential dwelling, as defined in Section 20583 or Section 20640.2 of the Revenue and Taxation Code, with a spouse or another individual eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of that code, dies, and the surviving spouse or other surviving eligible individual allows any tax or special assessment on the premises described in Section 20583 of such code to become delinquent or such surviving spouse or other individual ceases to occupy the premises as a residential dwelling, dies, or conveys, or disposes of the interest in the property.
(c)The failure of the claimant to perform those acts the claimant is required to perform where such performance is secured, or will be secured in the event of nonperformance, by a lien which is senior to that of the lien provided by Section 16182.
(d)Postponement was erroneously allowed because eligibility requirements were not met.
(e)The claimant is refinancing the residential dwelling.
(f)The claimant has elected to participate in a reverse mortgage program for the residential dwelling.
SEC. 5.Section 16191 of the Government Code is amended to read:16191.The amounts paid pursuant to Section 16180 shall continue to draw interest but amounts owing pursuant to Article 1 (commencing with Section 16180) of this chapter shall not become due and payable if any of the following occurs:
(a)The claimant continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but ceases to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.
(b)The surviving spouse of a claimant continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but is ineligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, or elects not to postpone such taxes, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.
(c)The surviving individual otherwise eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but elects not to postpone the property taxes pursuant to such chapter, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.
SEC. 6.Section 16192 of the Government Code is amended to read:16192.If, at any time, a person meeting the requirements of subdivision (a) or (c) of Section 16191 elects, or any surviving spouse described in subdivision (b) of such section becomes eligible, or otherwise elects, to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, payments made pursuant to Section 16180 shall be added to the amount of the lien existing against the residential dwelling.
SEC. 7.Section 2515 of the Revenue and Taxation Code is amended to read:2515.(a)Upon receiving a notice of lien for postponed property taxes from the Controller, the tax collector or the assessor, whichever is applicable, shall immediately enter on the assessment records applicable to the property, the fact that the taxes on the property have been postponed and the Controllers identification number, and shall, if such record reveals a change in the ownership status of the property subsequent to the date of entry of the postponement information thereon, notify the Controller within 60 days of processing the change in the ownership status in the manner prescribed by the Controller.
(b)From the time of recordation of the notice of lien pursuant to Section 16182 of the Government Code, the lien for postponed property taxes shall be deemed to impart constructive notice of the contents thereof to subsequent purchasers, mortgagees, lessees, and other lienors.
SEC. 8.Section 20505 of the Revenue and Taxation Code is amended to read:20505.Claimant means an individual who
(a)For purposes of this chapter was either (1) 62 years of age or older on the last day of the calendar year or approved fiscal year designated in subdivision (b) or (c) of Section 20503, whichever is applicable, or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code on the last day of the calendar year or approved fiscal year designated in subdivision (b) of Section 20503, who was a member of the household, and who was either: (1) the owner and occupier of a residential dwelling on the last day of the year designated in subdivision (b) or (c) of Section 20503, or (2) the renter of a rented residence on or before the last day of the year designated in subdivision (b) of Section 20503. An individual who qualifies as an owner-claimant may not qualify as a renter-claimant for the same year.
(b)For purposes of Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), and Chapter 3.5 (commencing with Section 20640) was a member of the household and either an owner-occupant, or a tenant stockholder occupant, or a possessory interestholder occupant, or a mobilehome owner-occupant, as the case may be, of the residential dwelling as to which postponement is claimed on the last day of the year designated in subdivision (b) or (c) of Section 20503, and who was (1) 62 years of age or older by December 31 of the fiscal year for which postponement is claimed, or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which postponement is claimed, whichever is earlier.
SEC. 9.Section 20586 of the Revenue and Taxation Code is amended to read:20586.For the purposes of Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), and Chapter 3.5 (commencing with Section 20640), only one claimant per household each year shall be entitled to postponement. When two or more individuals in a household are qualified as claimants, they may determine who the claimant shall be. Such decision is irrevocable. If the individuals are unable to agree, the matter shall be determined by the Controller and his or her decision shall be final.
SEC. 10.Section 20601 of the Revenue and Taxation Code is amended to read:20601.Subject to the limitations provided in this chapter, a claimant may file with the Controller, pursuant to Article 3 (commencing with Section 20621) of this chapter, a claim for postponement from the State of California of a sum equal to, but not exceeding, the amount of property taxes, as defined in Section 20584, due on the residential dwelling for the fiscal year for which the claim is made.
SEC. 11.Section 20602 of the Revenue and Taxation Code is amended to read:20602.Upon approval of a claim described in Section 20601, the Controller shall make payments directly to a county tax collector for the property taxes owed on behalf of a qualified claimant. Payments may, upon appropriation by the Legislature, be made out of the amounts appropriated pursuant to Section 16180 of the Government Code that are secured by a secured tax lien and obligation as specified by Article 1 (commencing with Section 16180) of Chapter 5 of Division 4 of the Government Code.
SEC. 12.Section 20603 of the Revenue and Taxation Code is amended to read:20603.The Controller shall prescribe the manner in which a claimant eligible under this chapter, who for any reason is incapacitated, may appoint his or her spouse or an authorized agent, or have any such person appointed for such claimant, for all purposes of claiming and receiving postponement of property taxes.
SEC. 13.Section 20621 of the Revenue and Taxation Code is amended to read:20621.Each claimant applying for postponement under Article 2 (commencing with Section 20601) shall file a claim under penalty of perjury with the Controller on a form supplied by the Controller. The claim shall contain all of the following:
(a)Evidence acceptable to the Controller that the person (1) is 62 years of age or older on or before December 31 of the fiscal year for which the postponement is claimed or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which the postponement is claimed, whichever is earlier.
(b)A statement showing the household income for the period set forth in Section 20503.
(c)A statement describing the residential dwelling in a manner that the Controller may prescribe.
(d)The name of the county in which the residential dwelling is located and the address of the residential dwelling.
(e)The county assessors parcel number applicable to the property for which the claimant is applying for the postponement of property taxes.
(f)(1)Documentation evidencing the current existence of any abstract of judgment, federal tax lien, or state tax lien filed or recorded against the applicant, and any recorded mortgage or deed of trust that affects the subject residential dwelling, for the purpose of determining that the claimant possesses a 40-percent equity in the subject residential dwelling as required by paragraph (1) of subdivision (b) of Section 20583.
(2)Actual costs, not in excess of fifty dollars ($50), paid by the claimant to obtain the documentation shall reduce the amount of the lien for the year, but not the face amount of the payment prescribed in Section 16180 of the Government Code.
(g)Other information required by the Controller to establish eligibility.
SEC. 14.Section 20622 of the Revenue and Taxation Code is amended to read:20622.The claim for postponement shall be filed after October 1 of the fiscal year in which the postponement is claimed and on or before February 10 of that fiscal year; if February 10th falls on Saturday, Sunday, or a legal holiday, the date is extended to the next business day.
SEC. 15.Section 20627 of the Revenue and Taxation Code is amended to read:20627.A tenant-stockholder claimant (hereinafter referred to as claimant) is an individual who, on the last day of the calendar year ending immediately prior to the commencement of the fiscal year for which postponement is claimed is: (a) a tenant-stockholder in a cooperative housing corporation (as defined in Section 216(b) of the Internal Revenue Code) and (b) occupies as a principal place of residence a residential unit in the cooperative housing corporation (notwithstanding Section 216(b) of the Internal Revenue Code). For the purposes of this chapter, a claimant must be (1) 62 years of age or older on or before December 31 of the fiscal year for which postponement is claimed or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which the postponement is claimed, whichever is earlier.
SEC. 16.Section 20630 of the Revenue and Taxation Code is amended to read:20630.(a)A claimant may file with the Controller, a claim for postponement from the State of California of a sum equal to, but not exceeding the amount of property taxes, as defined in Section 20629, for the fiscal year for which the claim is made.
(b)Upon verification of the eligibility requirements set forth in Section 20630.5, the Controller shall mail the claimant a Notice of Election to Postpone which shall be in the form and contain such information as the Controller may prescribe. Accompanying the notice shall be a statement explaining that in order for the claimant to postpone all or part of the property taxes, the Notice of Election to Postpone must be mailed to the Controller with the following:
(1)A statement signed by an authorized officer of the cooperative housing corporation indicating the amount of the claimants proportionate share of property taxes and the method used to compute such amount.
(2)A recognition agreement signed by the claimant and executed by an officer of the corporation which acknowledges the assignment of the proprietary lease and the pledging of the claimants shares in the corporation as security for postponement, and sets forth the rights and duties of the state, the corporation and the claimant with respect to such stock and the proprietary lease. The recognition agreement shall be in such form and contain such provisions as the Controller shall prescribe.
(3)Any other additional security interest, created and perfected with respect to the rights of third persons in the manner provided by law for such type of security interest, which the Controller deems necessary to protect the interest of the state with regard to the repayment of postponed amounts by the claimant or a deceased claimants estate.
(c)When the Controller approves the Notice of Election to Postpone, the Controller shall make payments directly to a county tax collector for the property taxes owed on behalf of the claimant. Payments may, upon appropriation by the Legislature, be made out of the amounts appropriated pursuant to Section 16180 of the Government Code that are secured by a secured tax lien and obligation as specified by Article 1 (commencing with Section 16180) of Chapter 5 of Division 4 of the Government Code.
SEC. 17.Section 20630.5 of the Revenue and Taxation Code is amended to read:20630.5.Claims made under this chapter shall be filed with the Controller after October 1 of the fiscal year in which postponement is claimed and on or before February 10 of such fiscal year. If February 10th falls on Saturday, Sunday or a legal holiday, the date is extended to the next business day. The claim shall be on a form supplied by the Controller and shall contain:
(a)Evidence acceptable to the Controller that the individual was an eligible claimant.
(b)A statement showing the household income for the period set forth in Section 20503.
(c)A statement describing the residential dwelling.
(d)Any other information necessary for the Controller to determine eligibility under this chapter.
SEC. 18.Section 20633 of the Revenue and Taxation Code is repealed.SEC. 19.Section 20638 of the Revenue and Taxation Code is amended to read:20638.Upon written request of a person who has postponed pursuant to this chapter, or an agent of such person, or an agent of the affected cooperative housing corporation, the Controller shall issue such person a written statement showing the total amount postponed, together with accrued interest. The Controller may establish a reasonable fee, not to exceed thirty dollars ($30) for the provision of the statement of postponement status provided by this section.
SEC. 20.Section 20639.2 of the Revenue and Taxation Code is amended to read:20639.2.(a)As used in this part, mobilehome means a mobilehome, as defined in Sections 18008 and 18211 of the Health and Safety Code, to which one of the following applies:
(1)It was first sold new on or after July 1, 1980.
(2)It was first sold new on or before June 30, 1980, and with respect to which the license fee required to be paid pursuant to Part 5 (commencing with Section 10701) of Division 2 has been delinquent for 120 days or more.
(3)It was first sold new on or before June 30, 1980, and a request for voluntary transfer to local property taxation was made pursuant to Section 18119 of the Health and Safety Code.
(b)As used in this chapter, postponement refers to mobilehome loans established prior to February 20, 2009.
SEC. 21.Section 20639.3 of the Revenue and Taxation Code is repealed.SEC. 22.Section 20639.4 of the Revenue and Taxation Code is repealed.SEC. 23.Section 20639.5 of the Revenue and Taxation Code is repealed.SEC. 24.Section 20639.6 of the Revenue and Taxation Code is repealed.SEC. 25.Section 20639.7 of the Revenue and Taxation Code is repealed.SEC. 26.Section 20639.8 of the Revenue and Taxation Code is repealed.SEC. 27.Section 20639.9 of the Revenue and Taxation Code is repealed.SEC. 28.Section 20640.2 of the Revenue and Taxation Code is amended to read:20640.2.For the purposes of this chapter:
(a)Possessory interest means (1) possession of, or right to the possession of land located in this state whether or not coupled with ownership of the residential dwelling on the same, or (2) a possessory interest or right of occupancy on tax exempt land;
(b)Residential dwelling means a dwelling occupied as the principal place of residence of the claimant, and so much of the land surrounding it as is reasonably necessary for use of the dwelling as a home, located on possessory interest property. It shall include condominiums upon which property taxes, as defined in subdivision (c), are assessed. It also includes part of a multidwelling or multipurpose building and a part of the land upon which it is built.
(c)Property taxes means the amount of property tax for which the claimant is personally liable as assessee or is obligated to pay directly to the tax collector pursuant to the terms of the agreement establishing the possessory interest, including all ad valorem property taxes, special assessments, capitalization of leasehold interest, and other charges or user fees which are attributable to the residential dwelling on the county tax bill and the ad valorem property taxes, special assessments, capitalization of leasehold interest, or other charges or user fees appearing on the tax bill of any chartered city which levies and collects its own property taxes.
SEC. 29.Section 20640.3 of the Revenue and Taxation Code is amended to read:20640.3.A claimant is an individual who:
(a)Holds a right to a possessory interest pursuant to a validly recorded instrument conveying such possessory interest for a term of years no less than 45 years beyond the last day of the calendar year ending immediately prior to the fiscal year for which taxes are initially postponed;
(b)Occupies as a principal place of residence the residential dwelling affixed to such possessory interest real property on the last day of the year designated in Section 20503(c) of this code;
(c)(1)Is 62 years of age or older on or before December 31 of the fiscal year for which postponement is claimed or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which the postponement is claimed, whichever is earlier.
SEC. 30.Section 20640.4 of the Revenue and Taxation Code is amended to read:20640.4.(a)Subject to the limitations provided in Chapter 1 (commencing with Section 20501), Chapter 2 (commencing with Section 20581), or this chapter, a claimant may file with the Controller, a claim for postponement of a sum equal to, but not exceeding the amount of property taxes, for the fiscal year for which the claim is made.
(b)Upon verification of the eligibility requirements set forth in Section 20640.9 the Controller shall mail the claimant a Notice of Election to Postpone which shall be in the form and contain such information as the Controller may prescribe. Accompanying the notice shall be a statement explaining that in order for the claimant to postpone all or part of the property taxes, the Notice of Election to Postpone must be mailed to the Controller with a copy of the instrument creating the possessory interest, said copy to be certified by the county recorder of the county in which such real property is located. Where a memorandum of lease has been recorded in lieu of such instrument, a certified copy of said memorandum shall accompany the copy of the instrument creating the possessory interest.
(c)Any possessory interest or improvement on which property taxes are delinquent at the time the application for postponement under this chapter is made or on which any other property tax or special assessment imposed by a special district or other tax code area are delinquent at the time the application for postponement under this chapter is made shall not be eligible for postponement.
SEC. 31.Section 20640.6 of the Revenue and Taxation Code is amended to read:20640.6.(a) Upon receipt of the information described in Section 20640.4 and Section 20640.5, the Controller shall determine whether the states interest would be adequately protected if postponement is granted, and if so, the Controller shall make payments directly to a county tax collector, or chartered city that levies and collects its own taxes, for the property taxes owed on behalf of the claimant. Payments may, upon appropriation by the Legislature, be made out of the amounts appropriated pursuant to Section 16180 of the Government Code that are secured by a secured tax lien and obligation as specified by Article 1 (commencing with Section 16180) of Chapter 5 of Division 4 of the Government Code.
(b)The Controller shall cause to be recorded with the county recorder of the county in which the real property is located, a copy of any instrument creating a security interest, which shall include applicable consent forms, in favor of the state. The instrument shall contain a legal description of the real property subject to the possessory interest; and, if the legal description of the possessory interest describes an area less than the entire property ownership, the notice or document shall also contain a reference to the record of the acquisition instrument to the entire parcel from which the possessory interest was created. The priority of the security interest shall be as of the date of recordation.
SEC. 32.Section 20640.7 of the Revenue and Taxation Code is amended to read:20640.7.The Controller shall prescribe the manner in which a claimant eligible under this chapter, who for any reason is incapacitated, may appoint his or her spouse or an authorized agent, or have any such person appointed for such claimant, for all purposes of claiming and receiving postponement of property taxes.
SEC. 33.Section 20640.8 of the Revenue and Taxation Code is amended to read:20640.8.The claim for postponement shall be filed after October 1 of the fiscal year in which postponement is claimed and on or before February 10 of such fiscal year. If February 10th falls on Saturday, Sunday or a legal holiday, the date is extended to the next business day.
SEC. 34.Section 20640.9 of the Revenue and Taxation Code is amended to read:20640.9.Each claimant applying for postponement under this chapter shall file a claim under penalty of perjury with the Controller on a form supplied by the Controller. The claim shall contain:
(a)Evidence acceptable to the Controller that the person was 62 years of age or older, or blind or disabled as described in Section 20640.3.
(b)A statement showing the household income for the period set forth in Section 20503.
(c)A statement describing the residential dwelling in such manner as the Controller may prescribe.
(d)The name of the county in which the residential dwelling is located and the address of the residential dwelling.
(e)The county assessors parcel number applicable to the property for which the claimant is applying for the postponement of property taxes.
(f)Other information required by the Controller to establish eligibility.
SEC. 35.Section 20645.5 of the Revenue and Taxation Code is amended to read:20645.5.(a)If a postponement claim under Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) is received by the Controller by February 10 for the fiscal year in which postponement is being claimed or by another date set by the Controller pursuant to Section 20622, then any delinquent penalties, costs, fees, and interest accrued for that fiscal year shall be canceled unless the failure to perfect the claim was due to willful neglect on the part of the claimant or representative.
(b)In the event of willful neglect, an electronic funds transfer for that current fiscal year can be used to pay delinquent taxes only if accompanied by sufficient amounts to pay all of the delinquent penalties, costs, fees, and interest. If an amount sufficient to pay all of the delinquent penalties, costs, fees, and interest is not received by the tax collector within 30 days from the date of the electronic funds transfer, the tax collector may return the electronic funds transfer to the Controller to deny the postponement claim.
(c)(1)The Controller shall notify the claimant in writing when the electronic funds transfer has been submitted to the tax collector.
(2)In the event of willful neglect, in addition to the information required pursuant to paragraph (1), the Controller shall also notify the claimant in writing and provide a copy of the notification to the tax collector, that a payment amount sufficient to pay all of the delinquent penalties, costs, fees, and interest must be received by the tax collector within 30 days from the date of the electronic funds transfer, and that if this payment is not received by the tax collector, the tax collector may return the electronic funds transfer to the Controller to deny the postponement claim.
SEC. 36.Section 20645.6 of the Revenue and Taxation Code is amended to read:20645.6.(a)If the Controller denies a postponement claim under Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640), and the denial is reversed after appeal pursuant to Section 20645.1, the Controller shall electronically transfer funds to the county for the amount of the taxes. If the taxes for the fiscal year were previously paid, the county shall refund the overpayment to the taxpayer. If the taxes for the fiscal year are delinquent, any resulting penalties or interest shall be canceled.
(b)The Controller shall notify the claimant in writing when an electronic funds transfer has been made pursuant to subdivision (a).
(a)There is hereby created in the State Treasury a Senior Citizens and Disabled Citizens Property Tax Postponement Fund. The fund shall be an interest-bearing fund. Subject to subdivision (b) and notwithstanding Section 13340, the fund is continuously appropriated to the Controller, commencing January 1, 2015, for purposes of administering this chapter, including, but not limited to, necessary administrative costs and disbursements relating to the postponement of property taxes pursuant to the Property Tax Postponement Law (Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), and Chapter 3.5 (commencing with Section 20640)) 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code).
(b)The Controller shall do both of the following:
(1)On June 30, 2017, transfer any moneys in the fund in excess of twenty million dollars ($20,000,000) to the General Fund.
(2)On June 30, 2018, and on June 30 each year thereafter, transfer any moneys in the fund in excess of fifteen million dollars ($15,000,000) to the General Fund.
(c)On or after January 1, 2015, any loan repayments relating to the Senior Citizens and Disabled Citizens Property Tax Postponement Law shall be deposited into the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.
(d)Any funds remaining upon the effective date of this section in an impound account formerly provided for pursuant to this chapter, shall be transferred to the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.
SEC. 2.Section 16182 of the Government Code is amended to read:16182.(a)All sums paid by the Controller under the provisions of this chapter, together with interest thereon, shall be secured by a lien in favor of the State of California when funds are transferred to the county by the Controller upon the real property for which property taxes have been postponed. In the case of a residential dwelling which is part of a larger parcel taxed as a unit, such as a duplex, farm, or multipurpose or multidwelling building, the lien shall be against the entire tax parcel.
(b)In the case of real property:
(1)The lien shall be evidenced by a notice of lien for postponed property taxes executed by the Controller, or the authorized delegate of the Controller, and shall secure all sums paid or owing pursuant to this chapter, including amounts paid subsequent to the initial payment of postponed taxes on the real property described in the notice of lien.
(2)The notice of lien may bear the facsimile signature of the Controller. Each signature shall be that of the person who shall be in the office at the time of execution of the notice of lien; provided, however, that such notice of lien shall be valid and binding notwithstanding any such person having ceased to hold the office of Controller before the date of recordation.
(3)The form and contents of the notice of lien for postponed property taxes shall be prescribed by the Controller and shall include, but not be limited to, the following:
(A)The names of all record owners of the real property for which the Controller has advanced funds for the payment of real property taxes.
(B)A description of the real property for which real property taxes have been paid.
(C)The identification number of the notice of lien which has been assigned the lien by the Controller.
(4)Within 14 business days of the transfer of funds and the notice of lien to the county by the Controller, the notice of lien shall be recorded in the office of the county recorder for the county in which the real property subject to the lien is located.
(5)The recorded notice of lien shall be indexed in the Grantor Index to the names of all record owners of the real property and in the Grantee Index to the Controller of the State of California.
(6)After the notice of lien has been duly recorded and indexed, it shall be returned by the county recorder to the office of the Controller. The recorder shall provide the county tax collector with a copy of the notice of lien which has been executed by the Controller.
(7)From the time of recordation of a notice of lien for postponed property taxes, a lien shall attach to the real property described therein and shall have the priority of a judgment lien for all amounts secured thereby, except that the lien shall remain in effect until either of the following occurs:
(A)It is released by the Controller in the manner prescribed by Section 16186.
(B)The foreclosure or sale of an obligation secured by a lien which is senior in recording priority to the lien of the State of California.
(c)In the case of mobilehome loans established prior to February 20, 2009, all of the following shall apply:
(1)The lien shall be evidenced by a notice of lien for postponed property taxes executed by the Controller, or the authorized delegate of the Controller, and shall secure all sums paid owing pursuant to this chapter.
(2)From the time that the Department of Housing and Community Development receives the notice of lien from the Controller, the department shall impose a moratorium on any other amendments to the permanent title record of the mobilehome unit until released by the Controller in the manner prescribed by Section 16186, or an authorization for the amendments is given by the Controller in writing.
(3)From the time of filing a notice of lien, a lien shall attach to the mobilehome for which eligibility for the postponement of property taxes has been granted.
SEC. 3.Section 16183 of the Government Code is amended to read:16183.(a)From the time a payment is made pursuant to Section 16180, the amount of that payment shall bear interest at a rate (not compounded), determined as follows:
(1)Beginning July 1, 2016, the rate of interest shall be 7 percent per annum.
(2)The Controller shall establish an adjusted rate of interest for the purpose of this subdivision not later than July 15th of any year if the effective annual yield of the Pooled Money Investment Account for the prior fiscal year is at least a full percentage point more or less than the interest rate which is then in effect. The adjusted rate of interest shall be equal per annum to the effective annual yield earned in the prior fiscal year by the Pooled Money Investment Account rounded to the nearest full percent, and shall become effective for new deferrals, beginning on July 1, 1984, and on July 1 of each immediately succeeding year, until June 30, 2016.
(3)For loans made prior to June 30, 2016, the rate of interest provided pursuant to this subdivision for the first fiscal year commencing after payment is made pursuant to Section 16180 shall apply for that fiscal year and each fiscal year thereafter until these postponed property taxes are repaid.
(b)The interest provided for in subdivision (a) shall be applied beginning the first day of the month following the month in which that payment is made and continuing on the first day of each month thereafter until that amount is paid. In the event that any payments are applied, in any month, to reduce the amount paid pursuant to Section 16180, the interest provided for herein shall be applied to the balance of that amount beginning on the first day of the following month.
(c)In computing interest in accordance with this section, fractions of a cent shall be disregarded.
(d)For the purpose of this section, the time a payment is made shall be deemed to be the time an electronic funds transfer is made by the Controller to the tax collector or the delinquency date of the respective tax installment, whichever is later.
(e)The Controller shall include on forms supplied to claimants pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641 of the Revenue and Taxation Code, a statement of the interest rate which shall apply to amounts postponed for the fiscal year to which the form applies.
SEC. 4.Section 16190 of the Government Code is amended to read:16190.All amounts owing pursuant to Article 1 (commencing with Section 16180) of this chapter shall become due if any of the following occurs:
(a)The claimant, who is either the sole owner or sole possessory interestholder of the residential dwelling, as defined in Section 20583 or Section 20640 of the Revenue and Taxation Code, or a coowner or copossessory interestholder with a person other than a spouse or other individual eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of such that code, ceases to occupy the premises as his residential dwelling, dies, or sells, conveys, or disposes of the property, or allows any tax or special assessment on the premises described in Section 20583 of such code to become delinquent. If the sole owner or possessory interestholder claimant dies and his or her surviving spouse inherits the premises and continues to own and occupy it as his or her principal place of residence, then the lien amount does not become due and payable unless taxes or special assessments described in the preceding sentence become delinquent, or such surviving spouse dies, or sells, conveys, or disposes of the interest in the property.
(b)The claimant, who is a coowner or copossessory interestholder of the residential dwelling, as defined in Section 20583 or Section 20640.2 of the Revenue and Taxation Code, with a spouse or another individual eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of such that code, dies, and the surviving spouse or other surviving eligible individual allows any tax or special assessment on the premises described in Section 20583 of such code to become delinquent or such surviving spouse or other individual ceases to occupy the premises as a residential dwelling, dies, or conveys, or disposes of the interest in the property.
(c)The failure of the claimant to perform those acts the claimant is required to perform where such performance is secured, or will be secured in the event of nonperformance, by a lien which is senior to that of the lien provided by Section 16182.
(d)Postponement was erroneously allowed because eligibility requirements were not met.
(e)The claimant is refinancing the residential dwelling.
(f)The claimant has elected to participate in a reverse mortgage program for the residential dwelling.
SEC. 5.Section 16191 of the Government Code is amended to read:16191.The amounts paid pursuant to Section 16180 shall continue to draw interest but amounts owing pursuant to Article 1 (commencing with Section 16180) of this chapter shall not become due and payable if any of the following occurs:
(a)The claimant continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but ceases to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.
(b)The surviving spouse of a claimant continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but is ineligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, or elects not to postpone such taxes, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.
(c)The surviving individual otherwise eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but elects not to postpone the property taxes pursuant to such chapter, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.
SEC. 6.Section 16192 of the Government Code is amended to read:16192.If, at any time, a person meeting the requirements of subdivision (a) or (c) of Section 16191 elects, or any surviving spouse described in subdivision (b) of such section becomes eligible, or otherwise elects, to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, payments made pursuant to Section 16180 shall be added to the amount of the lien existing against the residential dwelling.
SEC. 7.Section 2515 of the Revenue and Taxation Code is amended to read:2515.(a)Upon receiving a notice of lien for postponed property taxes from the Controller, the tax collector or the assessor, whichever is applicable, shall immediately enter on the assessment records applicable to the property, the fact that the taxes on the property have been postponed and the Controllers identification number, and shall, if such record reveals a change in the ownership status of the property subsequent to the date of entry of the postponement information thereon, notify the Controller within 60 days of processing the change in the ownership status in the manner prescribed by the Controller.
(b)From the time of recordation of the notice of lien pursuant to Section 16182 of the Government Code, the lien for postponed property taxes shall be deemed to impart constructive notice of the contents thereof to subsequent purchasers, mortgagees, lessees, and other lienors.
SEC. 8.Section 20505 of the Revenue and Taxation Code is amended to read:20505.Claimant means an individual who
(a)For purposes of this chapter was either (1) 62 years of age or older on the last day of the calendar year or approved fiscal year designated in subdivision (b) or (c) of Section 20503, whichever is applicable, or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code on the last day of the calendar year or approved fiscal year designated in subdivision (b) of Section 20503, who was a member of the household, and who was either: (1) the owner and occupier of a residential dwelling on the last day of the year designated in subdivision (b) or (c) of Section 20503, or (2) the renter of a rented residence on or before the last day of the year designated in subdivision (b) of Section 20503. An individual who qualifies as an owner-claimant may not qualify as a renter-claimant for the same year.
(b)For purposes of Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), and Chapter 3.5 (commencing with Section 20640) was a member of the household and either an owner-occupant, or a tenant stockholder occupant, or a possessory interestholder occupant, or a mobilehome owner-occupant, as the case may be, of the residential dwelling as to which postponement is claimed on the last day of the year designated in subdivision (b) or (c) of Section 20503, and who was (1) 62 years of age or older by December 31 of the fiscal year for which postponement is claimed, or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which postponement is claimed, whichever is earlier.
SEC. 9.Section 20586 of the Revenue and Taxation Code is amended to read:20586.For the purposes of Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), and Chapter 3.5 (commencing with Section 20640), only one claimant per household each year shall be entitled to postponement. When two or more individuals in a household are qualified as claimants, they may determine who the claimant shall be. Such decision is irrevocable. If the individuals are unable to agree, the matter shall be determined by the Controller and his or her decision shall be final.
SEC. 10.Section 20601 of the Revenue and Taxation Code is amended to read:20601.Subject to the limitations provided in this chapter, a claimant may file with the Controller, pursuant to Article 3 (commencing with Section 20621) of this chapter, a claim for postponement from the State of California of a sum equal to, but not exceeding, the amount of property taxes, as defined in Section 20584, due on the residential dwelling for the fiscal year for which the claim is made.
SEC. 11.Section 20602 of the Revenue and Taxation Code is amended to read:20602.Upon approval of a claim described in Section 20601, the Controller shall make payments directly to a county tax collector for the property taxes owed on behalf of a qualified claimant. Payments may, upon appropriation by the Legislature, be made out of the amounts otherwise appropriated pursuant to Section 16100 16180 of the Government Code that are secured by a secured tax lien and obligation as specified by Article 1 (commencing with Section 16180) of Chapter 5 of Division 4 of the Government Code.
SEC. 11.SEC. 12.Section 20603 of the Revenue and Taxation Code is amended to read:20603.The Controller shall prescribe the manner in which a claimant eligible under this chapter, who for any reason is incapacitated, may appoint his or her spouse or an authorized agent, or have any such person appointed for such claimant, for all purposes of claiming and receiving postponement of property taxes.
SEC. 12.SEC. 13.Section 20621 of the Revenue and Taxation Code is amended to read:20621.Each claimant applying for postponement under Article 2 (commencing with Section 20601) shall file a claim under penalty of perjury with the Controller on a form supplied by the Controller. The claim shall contain all of the following:
(a)Evidence acceptable to the Controller that the person (1) is 62 years of age or older on or before December 31 of the fiscal year for which the postponement is claimed or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which the postponement is claimed, whichever is earlier.
(b)A statement showing the household income for the period set forth in Section 20503.
(c)A statement describing the residential dwelling in a manner that the Controller may prescribe.
(d)The name of the county in which the residential dwelling is located and the address of the residential dwelling.
(e)The county assessors parcel number applicable to the property for which the claimant is applying for the postponement of property taxes.
(f)(1)Documentation evidencing the current existence of any abstract of judgment, federal tax lien, or state tax lien filed or recorded against the applicant, and any recorded mortgage or deed of trust that affects the subject residential dwelling, for the purpose of determining that the claimant possesses a 40-percent equity in the subject residential dwelling as required by paragraph (1) of subdivision (b) of Section 20583.
(2)Actual costs, not in excess of fifty dollars ($50), paid by the claimant to obtain the documentation shall reduce the amount of the lien for the year, but not the face amount of the payment prescribed in Section 16180 of the Government Code.
(g)Other information required by the Controller to establish eligibility.
SEC. 13.SEC. 14.Section 20622 of the Revenue and Taxation Code is amended to read:20622.The claim for postponement shall be filed after October 1 of the fiscal year in which the postponement is claimed and on or before February 10 of that fiscal year; if February 10th falls on Saturday, Sunday, or a legal holiday, the date is extended to the next business day.
SEC. 14.SEC. 15.Section 20627 of the Revenue and Taxation Code is amended to read:20627.A tenant-stockholder claimant (hereinafter referred to as claimant) is an individual who, on the last day of the calendar year ending immediately prior to the commencement of the fiscal year for which postponement is claimed is: (a) a tenant-stockholder in a cooperative housing corporation (as defined in Section 216(b) of the Internal Revenue Code) and (b) occupies as a principal place of residence a residential unit in the cooperative housing corporation (notwithstanding Section 216(b) of the Internal Revenue Code). For the purposes of this chapter, a claimant must be (1) 62 years of age or older on or before December 31 of the fiscal year for which postponement is claimed or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which the postponement is claimed, whichever is earlier.
SEC. 15.SEC. 16.Section 20630 of the Revenue and Taxation Code is amended to read:20630.(a)A claimant may file with the Controller, a claim for postponement from the State of California of a sum equal to, but not exceeding the amount of property taxes (as taxes, as defined in Section 20629) 20629, for the fiscal year for which the claim is made.
(b)Upon verification of the eligibility requirements set forth in Section 20630.5, the Controller shall mail the claimant a Notice of Election to Postpone which shall be in the form and contain such information as the Controller may prescribe. Accompanying the notice shall be a statement explaining that in order for the claimant to postpone all or part of the property taxes, the Notice of Election to Postpone must be mailed to the Controller with the following:
(1)A statement signed by an authorized officer of the cooperative housing corporation indicating the amount of the claimants proportionate share of property taxes and the method used to compute such amount.
(2)A recognition agreement signed by the claimant and executed by an officer of the corporation which acknowledges the assignment of the proprietary lease and the pledging of the claimants shares in the corporation as security for postponement, and sets forth the rights and duties of the state, the corporation and the claimant with respect to such stock and the proprietary lease. The recognition agreement shall be in such form and contain such provisions as the Controller shall prescribe.
(3)Any other additional security interest, created and perfected with respect to the rights of third persons in the manner provided by law for such type of security interest, which the Controller deems necessary to protect the interest of the state with regard to the repayment of postponed amounts by the claimant or a deceased claimants estate.
(c)When the Controller approves the Notice of Election to Postpone, the Controller shall make payments directly to a county tax collector for the property taxes owed on behalf of the claimant. Payments may, upon appropriation by the Legislature, be made out of the amounts otherwise appropriated pursuant to Section 16100 16180 of the Government Code that are secured by a secured tax lien and obligation as specified by Article 1 (commencing with Section 16180) of Chapter 5 of Division 4 of the Government Code.
SEC. 16.SEC. 17.Section 20630.5 of the Revenue and Taxation Code is amended to read:20630.5.Claims made under this chapter shall be filed with the Controller after October 1 of the fiscal year in which postponement is claimed and on or before February 10 of such fiscal year. If February 10th falls on Saturday, Sunday or a legal holiday, the date is extended to the next business day. The claim shall be on a form supplied by the Controller and shall contain:
(a)Evidence acceptable to the Controller that the individual was an eligible claimant.
(b)A statement showing the household income for the period set forth in Section 20503.
(c)A statement describing the residential dwelling.
(d)Any other information necessary for the Controller to determine eligibility under this chapter.
SEC. 17.SEC. 18.Section 20633 of the Revenue and Taxation Code is repealed.SEC. 18.SEC. 19.Section 20638 of the Revenue and Taxation Code is amended to read:20638.Upon written request of a person who has postponed pursuant to this chapter, or an agent of such person, or an agent of the affected cooperative housing corporation, the Controller shall issue such person a written statement showing the total amount postponed, together with accrued interest. The Controller may establish a reasonable fee, not to exceed thirty dollars ($30) for the provision of the statement of postponement status provided by this section.
SEC. 19.SEC. 20.Section 20639.2 of the Revenue and Taxation Code is amended to read:20639.2.(a)As used in this part, mobilehome means a mobilehome, as defined in Sections 18008 and 18211 of the Health and Safety Code, to which one of the following applies:
(1)It was first sold new on or after July 1, 1980.
(2)It was first sold new on or before June 30, 1980, and with respect to which the license fee required to be paid pursuant to Part 5 (commencing with Section 10701) of Division 2 has been delinquent for 120 days or more.
(3)It was first sold new on or before June 30, 1980, and a request for voluntary transfer to local property taxation was made pursuant to Section 18119 of the Health and Safety Code.
(b)As used in this chapter, postponement refers to mobilehome loans established prior to February 20, 2009.
SEC. 20.SEC. 21.Section 20639.3 of the Revenue and Taxation Code is repealed.SEC. 21.SEC. 22.Section 20639.4 of the Revenue and Taxation Code is repealed.SEC. 22.SEC. 23.Section 20639.5 of the Revenue and Taxation Code is repealed.SEC. 23.SEC. 24.Section 20639.6 of the Revenue and Taxation Code is repealed.SEC. 24.SEC. 25.Section 20639.7 of the Revenue and Taxation Code is repealed.SEC. 25.SEC. 26.Section 20639.8 of the Revenue and Taxation Code is repealed.SEC. 26.SEC. 27.Section 20639.9 of the Revenue and Taxation Code is repealed.SEC. 27.SEC. 28.Section 20640.2 of the Revenue and Taxation Code is amended to read:20640.2.For the purposes of this chapter:
(a)Possessory interest means (1) possession of, or right to the possession of land located in this state whether or not coupled with ownership of the residential dwelling on the same, or (2) a possessory interest or right of occupancy on tax exempt land;
(b)Residential dwelling means a dwelling occupied as the principal place of residence of the claimant, and so much of the land surrounding it as is reasonably necessary for use of the dwelling as a home, located on possessory interest property. It shall include condominiums upon which property taxes, as defined in subdivision (c), are assessed. It also includes part of a multidwelling or multipurpose building and a part of the land upon which it is built.
(c)Property taxes means the amount of property tax for which the claimant is personally liable as assessee or is obligated to pay directly to the tax collector pursuant to the terms of the agreement establishing the possessory interest, including all ad valorem property taxes, special assessments, capitalization of leasehold interest, and other charges or user fees which are attributable to the residential dwelling on the county tax bill and the ad valorem property taxes, special assessments, capitalization of leasehold interest, or other charges or user fees appearing on the tax bill of any chartered city which levies and collects its own property taxes.
SEC. 28.SEC. 29.Section 20640.3 of the Revenue and Taxation Code is amended to read:20640.3.A claimant is an individual who:
(a)Holds a right to a possessory interest pursuant to a validly recorded instrument conveying such possessory interest for a term of years no less than 45 years beyond the last day of the calendar year ending immediately prior to the fiscal year for which taxes are initially postponed;
(b)Occupies as a principal place of residence the residential dwelling affixed to such possessory interest real property on the last day of the year designated in Section 20503(c) of this code;
(c)(1)Is 62 years of age or older on or before December 31 of the fiscal year for which postponement is claimed or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which the postponement is claimed, whichever is earlier.
SEC. 29.SEC. 30.Section 20640.4 of the Revenue and Taxation Code is amended to read:20640.4.(a)Subject to the limitations provided in Chapter 1 (commencing with Section 20501), Chapter 2 (commencing with Section 20581), or this chapter, a claimant may file with the Controller, a claim for postponement of a sum equal to, but not exceeding the amount of property taxes, for the fiscal year for which the claim is made.
(b)Upon verification of the eligibility requirements set forth in Section 20640.9 the Controller shall mail the claimant a Notice of Election to Postpone which shall be in the form and contain such information as the Controller may prescribe. Accompanying the notice shall be a statement explaining that in order for the claimant to postpone all or part of the property taxes, the Notice of Election to Postpone must be mailed to the Controller with a copy of the instrument creating the possessory interest, said copy to be certified by the county recorder of the county in which such real property is located. Where a memorandum of lease has been recorded in lieu of such instrument, a certified copy of said memorandum shall accompany the copy of the instrument creating the possessory interest.
(c)Except as provided in this section, any Any possessory interest or improvement on which property taxes are delinquent at the time the application for postponement under this chapter is made or on which any other property tax or special assessment imposed by a special district or other tax code area are delinquent at the time the application for postponement under this chapter is made shall not be eligible for postponement.
SEC. 30.SEC. 31.Section 20640.6 of the Revenue and Taxation Code is amended to read:20640.6.(a) Upon receipt of the information described in Section 20640.4 and Section 20640.5, the State Controller shall determine whether the states interest would be adequately protected if postponement is granted, and if so, the Controller shall make payments directly to a county tax collector collector, or chartered city that levies and collects its own taxes, for the property taxes owed on behalf of the claimant. Payments may, upon appropriation by the Legislature, be made out of the amounts otherwise appropriated pursuant to Section 16100 16180 of the Government Code that are secured by a secured tax lien and obligation as specified by Article 1 (commencing with Section 16180) of Chapter 5 of Division 4 of the Government Code.
(b)The Controller shall cause to be recorded with the county recorder of the county in which the real property is located, a copy of any instrument creating a security interest, which shall include applicable consent forms, in favor of the state. The instrument shall contain a legal description of the real property subject to the possessory interest; and, if the legal description of the possessory interest describes an area less than the entire property ownership, the notice or document shall also contain a reference to the record of the acquisition instrument to the entire parcel from which the possessory interest was created. The priority of the security interest shall be as of the date of recordation.
SEC. 31.SEC. 32.Section 20640.7 of the Revenue and Taxation Code is amended to read:20640.7.The Controller shall prescribe the manner in which a claimant eligible under this chapter, who for any reason is incapacitated, may appoint his or her spouse or an authorized agent, or have any such person appointed for such claimant, for all purposes of claiming and receiving postponement of property taxes.
SEC. 32.SEC. 33.Section 20640.8 of the Revenue and Taxation Code is amended to read:20640.8.The claim for postponement shall be filed after October 1 of the fiscal year in which postponement is claimed and on or before February 10 of such fiscal year. If February 10th falls on Saturday, Sunday or a legal holiday, the date is extended to the next business day.
SEC. 33.SEC. 34.Section 20640.9 of the Revenue and Taxation Code is amended to read:20640.9.Each claimant applying for postponement under this chapter shall file a claim under penalty of perjury with the Controller on a form supplied by the Controller. The claim shall contain:
(a)Evidence acceptable to the Controller that the person was 62 years of age or older, or blind or disabled as described in Section 20640.3.
(b)A statement showing the household income for the period set forth in Section 20503.
(c)A statement describing the residential dwelling in such manner as the Controller may prescribe.
(d)The name of the county in which the residential dwelling is located and the address of the residential dwelling.
(e)The county assessors parcel number applicable to the property for which the claimant is applying for the postponement of property taxes.
(f)Other information required by the State Controller to establish eligibility.
SEC. 34.SEC. 35.Section 20645.5 of the Revenue and Taxation Code is amended to read:20645.5.(a)If a postponement claim under Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) is received by the Controller by February 10 for the fiscal year in which postponement is being claimed or by another date set by the Controller pursuant to Section 20622, then any delinquent penalties, costs, fees, and interest accrued for that fiscal year shall be canceled unless the failure to perfect the claim was due to willful neglect on the part of the claimant or representative.
(b)In the event of willful neglect, an electronic funds transfer for that current fiscal year can be used to pay delinquent taxes only if accompanied by sufficient amounts to pay all of the delinquent penalties, costs, fees, and interest. If an amount sufficient to pay all of the delinquent penalties, costs, fees, and interest is not received by the tax collector within 30 days from the date of the electronic funds transfer, the tax collector may return the electronic funds transfer to the Controller to deny the postponement claim.
(c)(1)The Controller shall notify the claimant in writing when the electronic funds transfer has been submitted to the tax collector.
(2)In the event of willful neglect, in addition to the information required pursuant to paragraph (1), the Controller shall also notify the claimant in writing and provide a copy of the notification to the tax collector, that a payment amount sufficient to pay all of the delinquent penalties, costs, fees, and interest must be received by the tax collector within 30 days from the date of the electronic funds transfer, and that if this payment is not received by the tax collector, the tax collector may return the electronic funds transfer to the Controller to deny the postponement claim.
SEC. 35.SEC. 36.Section 20645.6 of the Revenue and Taxation Code is amended to read:20645.6.(a)If the Controller denies a postponement claim under Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640), and the denial is reversed after appeal pursuant to Section 20645.1, the Controller shall electronically transfer funds to the county for the amount of the taxes. If the taxes for the fiscal year were previously paid, the county shall refund the overpayment to the taxpayer. If the taxes for the fiscal year are delinquent, any resulting penalties or interest shall be canceled.
(b)The Controller shall notify the claimant in writing when an electronic funds transfer has been made pursuant to subdivision (a).
(a)There is hereby created in the State Treasury a Senior Citizens and Disabled Citizens Property Tax Postponement Fund. The fund shall be an interest-bearing fund. Subject to subdivision (b) and notwithstanding Section 13340, the fund is continuously appropriated to the Controller, commencing January 1, 2015, for purposes of administering this chapter, including, but not limited to, necessary administrative costs and disbursements relating to the postponement of property taxes pursuant to the Senior Citizens and Disabled Citizens Property Tax Postponement Law (Chapter 2 (commencing with Section 20581) 20581), Chapter 3 (commencing with Section 20625), and Chapter 3.5 (commencing with Section 20640)) of Part 10.5 of Division 2 of the Revenue and Taxation Code).
(b)The Controller shall do both of the following:
(1)On June 30, 2017, transfer any moneys in the fund in excess of twenty million dollars ($20,000,000) to the General Fund.
(2)On June 30, 2018, and on June 30 each year thereafter, transfer any moneys in the fund in excess of fifteen million dollars ($15,000,000) to the General Fund.
(c)On or after January 1, 2015, any loan repayments relating to the Senior Citizens and Disabled Citizens Property Tax Postponement Law shall be deposited into the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.
(d)Any funds remaining upon the effective date of this section in an impound account formerly provided for pursuant to this chapter, shall be transferred to the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.
SECTION 1. SEC. 2.Section 16182 of the Government Code is amended to read:16182.(a)All sums paid by the Controller under the provisions of this chapter, together with interest thereon, shall be secured by a lien in favor of the State of California when funds are transferred to the county by the Controller upon the real property for which property taxes have been postponed. In the case of a residential dwelling which is part of a larger parcel taxed as a unit, such as a duplex, farm, or multipurpose or multidwelling building, the lien shall be against the entire tax parcel.
(b)In the case of real property:
(1)The lien shall be evidenced by a notice of lien for postponed property taxes executed by the Controller, or the authorized delegate of the Controller, and shall secure all sums paid or owing pursuant to this chapter, including amounts paid subsequent to the initial payment of postponed taxes on the real property described in the notice of lien.
(2)The notice of lien may bear the facsimile signature of the Controller. Each signature shall be that of the person who shall be in the office at the time of execution of the notice of lien; provided, however, that such notice of lien shall be valid and binding notwithstanding any such person having ceased to hold the office of Controller before the date of recordation.
(3)The form and contents of the notice of lien for postponed property taxes shall be prescribed by the Controller and shall include, but not be limited to, the following:
(A)The names of all record owners of the real property for which the Controller has advanced funds for the payment of real property taxes.
(B)A description of the real property for which real property taxes have been paid.
(C)The identification number of the notice of lien which has been assigned the lien by the Controller.
(4)Within 14 business days of the transfer of funds and the notice of lien to the county by the Controller, the notice of lien shall be recorded in the office of the county recorder for the county in which the real property subject to the lien is located.
(5)The recorded notice of lien shall be indexed in the Grantor Index to the names of all record owners of the real property and in the Grantee Index to the Controller of the State of California.
(6)After the notice of lien has been duly recorded and indexed, it shall be returned by the county recorder to the office of the Controller. The recorder shall provide the county tax collector with a copy of the notice of lien which has been executed by the Controller.
(7)From the time of recordation of a notice of lien for postponed property taxes, a lien shall attach to the real property described therein and shall have the priority of a judgment lien for all amounts secured thereby, except that the lien shall remain in effect until it is released by the Controller in the manner prescribed by Section 16186. either of the following occurs:
(A)It is released by the Controller in the manner prescribed by Section 16186.
(B)The foreclosure or sale of an obligation secured by a lien which is senior in recording priority to the lien of the State of California.
(c)In the case of mobilehome loans established prior to February 20, 2009, all of the following shall apply:
(1)The lien shall be evidenced by a notice of lien for postponed property taxes executed by the Controller, or the authorized delegate of the Controller, and shall secure all sums paid owing pursuant to this chapter.
(2)From the time that the Department of Housing and Community Development receives the notice of lien from the Controller, the department shall impose a moratorium on any other amendments to the permanent title record of the mobilehome unit until released by the Controller in the manner prescribed by Section 16186, or an authorization for the amendments is given by the Controller in writing.
(3)From the time of filing a notice of lien, a lien shall attach to the mobilehome for which eligibility for the postponement of property taxes has been granted.
SEC. 2. SEC. 3.Section 16183 of the Government Code is amended to read:16183.(a)From the time a payment is made pursuant to Section 16180, the amount of that payment shall bear interest at a rate (not compounded), determined as follows:
(1)Beginning July 1, 2016, the rate of interest shall be 7 percent per annum.
(2)The Controller shall establish an adjusted rate of interest for the purpose of this subdivision not later than July 15th of any year if the effective annual yield of the Pooled Money Investment Account for the prior fiscal year is at least a full percentage point more or less than the interest rate which is then in effect. The adjusted rate of interest shall be equal per annum to the effective annual yield earned in the prior fiscal year by the Pooled Money Investment Account rounded to the nearest full percent, and shall become effective for new deferrals, beginning on July 1, 1984, and on July 1 of each immediately succeeding year, until June 30, 2016.
(3)For loans made prior to June 30, 2016, the rate of interest provided pursuant to this subdivision for the first fiscal year commencing after payment is made pursuant to Section 16180 shall apply for that fiscal year and each fiscal year thereafter until these postponed property taxes are repaid.
(b)The interest provided for in subdivision (a) shall be applied beginning the first day of the month following the month in which that payment is made and continuing on the first day of each month thereafter until that amount is paid. In the event that any payments are applied, in any month, to reduce the amount paid pursuant to Section 16180, the interest provided for herein shall be applied to the balance of that amount beginning on the first day of the following month.
(c)In computing interest in accordance with this section, fractions of a cent shall be disregarded.
(d)For the purpose of this section, the time a payment is made shall be deemed to be the time an electronic funds transfer is made by the Controller to the tax collector or the delinquency date of the respective tax installment, whichever is later.
(e)The Controller shall include on forms supplied to claimants pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641 of the Revenue and Taxation Code, a statement of the interest rate which shall apply to amounts postponed for the fiscal year to which the form applies.
SEC. 4.Section 16190 of the Government Code is amended to read:16190.All amounts owing pursuant to Article 1 (commencing with Section 16180) of this chapter shall become due if any of the following occurs:
(a)The claimant, who is either the sole owner or sole possessory interestholder of the residential dwelling, as defined in Section 20583 or Section 20640 of the Revenue and Taxation Code, or a coowner or copossessory interestholder with a person other than a spouse or other individual eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of such code, ceases to occupy the premises as his residential dwelling, dies, or sells, conveys, or disposes of the property, or allows any tax or special assessment on the premises described in Section 20583 of such code to become delinquent. If the sole owner or possessory interestholder claimant dies and his or her surviving spouse inherits the premises and continues to own and occupy it as his or her principal place of residence, then the lien amount does not become due and payable unless taxes or special assessments described in the preceding sentence become delinquent, or such surviving spouse dies, or sells, conveys, or disposes of the interest in the property.
(b)The claimant, who is a coowner or copossessory interestholder of the residential dwelling, as defined in Section 20583 or Section 20640.2 of the Revenue and Taxation Code, with a spouse or another individual eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of such code, dies, and the surviving spouse or other surviving eligible individual allows any tax or special assessment on the premises described in Section 20583 of such code to become delinquent or such surviving spouse or other individual ceases to occupy the premises as a residential dwelling, dies, or conveys, or disposes of the interest in the property.
(c)The failure of the claimant to perform those acts the claimant is required to perform where such performance is secured, or will be secured in the event of nonperformance, by a lien which is senior to that of the lien provided by Section 16182.
(d)Postponement was erroneously allowed because eligibility requirements were not met.
(e)The claimant is refinancing the residential dwelling.
(f)The claimant has elected to participate in a reverse mortgage program for the residential dwelling.
SEC. 5.Section 16191 of the Government Code is amended to read:16191.The amounts paid pursuant to Section 16180 shall continue to draw interest but amounts owing pursuant to Article 1 (commencing with Section 16180) of this chapter shall not become due and payable if any of the following occurs:
(a)The claimant continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but ceases to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.
(b)The surviving spouse of a claimant continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but is ineligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, or elects not to postpone such taxes, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.
(c)The surviving individual otherwise eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but elects not to postpone the property taxes pursuant to such chapter, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.
SEC. 6.Section 16192 of the Government Code is amended to read:16192.If, at any time, a person meeting the requirements of subdivision (a) or (c) of Section 16191 elects, or any surviving spouse described in subdivision (b) of such section becomes eligible, or otherwise elects, to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing with Section 20639), Chapter 3 (commencing with Section 20625), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, payments made pursuant to Section 16180 shall be added to the amount of the lien existing against the residential dwelling.
SEC. 3. SEC. 7.Section 2515 of the Revenue and Taxation Code is amended to read:2515.(a)Upon receiving a notice of lien for postponed property taxes from the Controller, the tax collector or the assessor, whichever is applicable, shall immediately enter on the assessment records applicable to the property, the fact that the taxes on the property have been postponed and the Controllers identification number, and shall, if such record reveals a change in the ownership status of the property subsequent to the date of entry of the postponement information thereon, notify the Controller within 60 days of processing the change in the ownership status in the manner prescribed by the Controller.
(b)From the time of recordation of the notice of lien pursuant to Section 16182 of the Government Code, the lien for postponed property taxes shall be deemed to impart constructive notice of the contents thereof to subsequent purchasers, mortgagees, lessees, and other lienors.
SEC. 8.Section 20505 of the Revenue and Taxation Code is amended to read:20505.Claimant means an individual who
(a)For purposes of this chapter was either (1) 62 years of age or older on the last day of the calendar year or approved fiscal year designated in subdivision (b) or (c) of Section 20503, whichever is applicable, or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code on the last day of the calendar year or approved fiscal year designated in subdivision (b) of Section 20503, who was a member of the household, and who was either: (1) the owner and occupier of a residential dwelling on the last day of the year designated in subdivision (b) or (c) of Section 20503, or (2) the renter of a rented residence on or before the last day of the year designated in subdivision (b) of Section 20503. An individual who qualifies as an owner-claimant may not qualify as a renter-claimant for the same year.
(b)(1)For purposes of Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), and Chapter 3.5 (commencing with Section 20640) was a member of the household and either an owner-occupant, or a tenant stockholder occupant, or a possessory interestholder occupant, or a mobilehome owner-occupant, as the case may be, of the residential dwelling as to which postponement is claimed on the last day of the year designated in subdivision (b) or (c) of Section 20503, and who was (1) 62 years of age or older by December 31 of the fiscal year for which postponement is claimed.
(2)For purposes of Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), and Chapter 3.5 (commencing with Section 20640) was a member of the household and an owner-occupant of the residential dwelling as to which postponement is claimed on the last day of the year designated in subdivision (c) of Section 20503, and who was claimed, or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which postponement is claimed, whichever is earlier.(c)Where amounts have been postponed for any given fiscal year and the claimant continues to own and occupy the residential dwelling on December 31 of the calendar year in which the fiscal year begins, and the claimant sells the dwelling and buys a new residential dwelling in this state on or before December 31 of the following fiscal year and the new dwelling is the claimants principal place of residence, then in that event, the claimant shall be deemed to be a qualified claimant for the purpose of this section. These regulations shall become effective immediately upon filing with the Secretary of State.
SEC. 9.Section 20586 of the Revenue and Taxation Code is amended to read:20586.For the purposes of Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), and Chapter 3.5 (commencing with Section 20640), only one claimant per household each year shall be entitled to postponement. When two or more individuals in a household are qualified as claimants, they may determine who the claimant shall be. Such decision is irrevocable. If the individuals are unable to agree, the matter shall be determined by the Controller and his or her decision shall be final.
SEC. 10.Section 20601 of the Revenue and Taxation Code is amended to read:20601.Subject to the limitations provided in this chapter, a claimant may file with the Controller, pursuant to Article 3 (commencing with Section 20621) of this chapter, a claim for postponement from the State of California of a sum equal to, but not exceeding, the amount of property taxes, as defined in Section 20584, due on the residential dwelling for the fiscal year for which the claim is made. Claims for the 197778 fiscal year only shall also constitute a claim for any amounts described in subparagraph (B) of paragraph (4) of subdivision (b) of Section 20583.
SEC. 11.Section 20603 of the Revenue and Taxation Code is amended to read:20603.The Controller shall prescribe the manner in which a claimant eligible under this chapter, who for any reason is incapacitated, may appoint his or her spouse or an authorized agent, or have any such person appointed for such claimant, for all purposes of claiming and using certificates of eligibility for the receiving postponement of property taxes.
SEC. 12.Section 20621 of the Revenue and Taxation Code is amended to read:20621.Each claimant applying for postponement under Article 2 (commencing with Section 20601) shall file a claim under penalty of perjury with the Controller on a form supplied by the Controller. The claim shall contain all of the following:
(a)Evidence acceptable to the Controller that the person was a senior citizen claimant or a blind or disabled claimant. (1) is 62 years of age or older on or before December 31 of the fiscal year for which the postponement is claimed or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which the postponement is claimed, whichever is earlier.
(b)A statement showing the household income for the period set forth in Section 20503.
(c)A statement describing the residential dwelling in a manner that the Controller may prescribe.
(d)The name of the county in which the residential dwelling is located and the address of the residential dwelling.
(e)The county assessors parcel number applicable to the property for which the claimant is applying for the postponement of property taxes.
(f)(1)Documentation evidencing the current existence of any abstract of judgment, federal tax lien, or state tax lien filed or recorded against the applicant, and any recorded mortgage or deed of trust that affects the subject residential dwelling, for the purpose of determining that the claimant possesses a 40-percent equity in the subject residential dwelling as required by paragraph (1) of subdivision (b) of Section 20583.
(2)Actual costs, not in excess of fifty dollars ($50), paid by the claimant to obtain the documentation shall reduce the amount of the lien for the year, but not the face amount of the payment prescribed in Section 16180 of the Government Code.
(g)Other information required by the Controller to establish eligibility.
SEC. 13.Section 20622 of the Revenue and Taxation Code is amended to read:20622.The claim for postponement shall be filed after September 1 October 1 of the fiscal year in which the postponement is claimed and on or before April 10 February 10 of that fiscal year; if April 10th February 10th falls on Saturday, Sunday, or a legal holiday, the date is extended to the next business day.
SEC. 14.Section 20627 of the Revenue and Taxation Code is amended to read:20627.A tenant-stockholder claimant (hereinafter referred to as claimant) is an individual who, on the last day of the calendar year ending immediately prior to the commencement of the fiscal year for which postponement is claimed is: (a) a tenant-stockholder in a cooperative housing corporation (as defined in Section 216(b) of the Internal Revenue Code) and (b) occupies as a principal place of residence a residential unit in the cooperative housing corporation (notwithstanding Section 216(b) of the Internal Revenue Code). For the purposes of this chapter, a claimant must be (1) 62 years of age or older on or before December 31 of the fiscal year for which postponement is claimed. claimed or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which the postponement is claimed, whichever is earlier.
SEC. 15.Section 20630 of the Revenue and Taxation Code is amended to read:20630.(a)A claimant may file with the Controller, a claim for postponement from the State of California of a sum equal to, but not exceeding the amount of property taxes (as defined in Section 20629) for the fiscal year for which the claim is made.
(b)Upon verification of the eligibility requirements set forth in Section 20630.5, the Controller shall mail the claimant a Notice of Election to Postpone which shall be in the form and contain such information as the Controller may prescribe. Accompanying the notice shall be a statement explaining that in order for the claimant to postpone all or part of the property taxes, the Notice of Election to Postpone must be mailed to the Controller with the following:
(1)A statement signed by an authorized officer of the cooperative housing corporation indicating the amount of the claimants proportionate share of property taxes and the method used to compute such amount.
(2)A recognition agreement signed by the claimant and executed by an officer of the corporation which acknowledges the assignment of the proprietary lease and the pledging of the claimants shares in the corporation as security for postponement, and sets forth the rights and duties of the state, the corporation and the claimant with respect to such stock and the proprietary lease. The recognition agreement shall be in such form and contain such provisions as the Controller shall prescribe.
(3)Any other additional security interest, created and perfected with respect to the rights of third persons in the manner provided by law for such type of security interest, which the Controller deems necessary to protect the interest of the state with regard to the repayment of postponed amounts by the claimant or a deceased claimants estate.
(c)When the Controller approves the Notice of Election to Postpone, a warrant in the amount of taxes the claimant wishes to postpone shall be mailed to the claimant. All Notices of Election to Postpone shall be mailed to the Controller no later than June 30 of the fiscal year for which postponement is claimed. the Controller shall make payments directly to a county tax collector for the property taxes owed on behalf of the claimant. Payments may, upon appropriation by the Legislature, be made out of the amounts otherwise appropriated pursuant to Section 16100 of the Government Code that are secured by a secured tax lien and obligation as specified by Article 1 (commencing with Section 16180) of Chapter 5 of Division 4 of the Government Code.
SEC. 16.Section 20630.5 of the Revenue and Taxation Code is amended to read:20630.5.Claims made under this chapter shall be filed with the Controller after May 15 October 1 of the calendar fiscal year in which the fiscal year for which postponement is claimed begins, and on or before December February 10 of such fiscal year. If December February 10th falls on Saturday, Sunday or a legal holiday, the date is extended to the next business day. The claim shall be on a form supplied by the Controller and shall contain:
(a)Evidence acceptable to the Controller that the individual was an eligible claimant.
(b)A statement showing the household income for the period set forth in subdivision (b) of Section 20503.
(c)A statement describing the residential dwelling.
(d)Any other information necessary for the Controller to determine eligibility under this chapter.
SEC. 17.Section 20633 of the Revenue and Taxation Code is repealed.20633.If the interests of the state are adequately protected, the Controller may subordinate the states security for amounts postponed under this chapter.
SEC. 18.Section 20638 of the Revenue and Taxation Code is amended to read:20638.Upon written request of a person who has postponed pursuant to this chapter, or an agent of such person, or an agent of the affected cooperative housing corporation, the Controller shall issue such person a written statement showing the total amount postponed, together with accrued interest. The Controller may establish a reasonable fee, not to exceed ten thirty dollars ($10) ($30) for the provision of the statement of postponement status provided by this section.
SEC. 19.Section 20639.2 of the Revenue and Taxation Code is amended to read:20639.2.(a)As used in this part, mobilehome means a mobilehome, as defined in Sections 18008 and 18211 of the Health and Safety Code, to which one of the following applies:
(1)It was first sold new on or after July 1, 1980.
(2)It was first sold new on or before June 30, 1980, and with respect to which the license fee required to be paid pursuant to Part 5 (commencing with Section 10701) of Division 2 has been delinquent for 120 days or more.
(3)It was first sold new on or before June 30, 1980, and a request for voluntary transfer to local property taxation was made pursuant to Section 18119 of the Health and Safety Code.
(b)Mobilehome, as used in this part, does not include a mobilehome which has become real property by being affixed to land on a permanent foundation system or otherwise and is taxed as all other real property is taxed.
(b)As used in this chapter, postponement refers to mobilehome loans established prior to February 20, 2009.
SEC. 20.Section 20639.3 of the Revenue and Taxation Code is repealed.20639.3.Property taxes means all ad valorem property taxes, special assessments, and other charges or user fees which are attributable to the residential dwelling on the county tax bill and the ad valorem property taxes, special assessments, or other charges or user fees appearing on the tax bill of any chartered city which levies and collects its own property taxes.
SEC. 21.Section 20639.4 of the Revenue and Taxation Code is repealed.20639.4.(a)Subject to the limitations provided in Chapter 1 (commencing with Section 20501) or Chapter 2 (commencing with Section 20581), a claimant may file with the Controller a claim for postponement of a sum equal to but not exceeding the amount of property taxes for the fiscal year for which the claim is made.
(b)Any mobilehome on which property taxes are delinquent at the time the application for postponement under this chapter is made or on which any other property tax or special assessment imposed by a special district or other tax code are delinquent at the time the application for postponement under this chapter is made shall not be eligible for postponement.
(c)The Controller shall mail to the claimant for due execution, the appropriate security instruments required by the Controller.
SEC. 22.Section 20639.5 of the Revenue and Taxation Code is repealed.20639.5.The Controller may require security for the postponement of property taxes pursuant to this chapter, of the following:
(a)A security interest in the mobilehome in the form and manner prescribed by the Controller.
(b)Any other additional security interest created and perfected with respect to the rights of third persons in the manner provided by law for such type of security interest which the Controller deems necessary to protect the interest of the state with regard to the repayment of postponed amounts by the claimant or a deceased claimants estate.
On the form supplied by the Controller, the claimant shall obtain the written consent of any legal owner if other than the claimant and the written consent of any junior lienholder. The consent shall be in such form and contain such provisions as the Controller shall prescribe, and shall provide for written notice by the legal owner and or junior lienholder to the Controller of the occurrence of a default by the claimant under the terms of an existing security agreement.
(c)The consent of all co-owners, if any, to the pledging of the mobilehome as security for the repayment of postponed property taxes.
SEC. 23.Section 20639.6 of the Revenue and Taxation Code is repealed.20639.6.(a)Upon receipt of the information described in Section 20639.9, the Controller shall determine whether the states interest would be adequately protected if postponement is granted, and, if so, the Controller shall issue to the claimant a certificate of eligibility containing the name of the claimant, address of the residential dwelling on which the claimant has applied for property tax postponement, and such other information and in such form as the Controller shall prescribe. In the event that the residential dwelling is located in a chartered city which levies and collects its own taxes, the Controller shall issue a duplicate certificate of eligibility to pay all or any part of property taxes appearing on the citys tax bill.
(b)The Controller shall forward to the Department of Housing and Community Development a notice of lien notifying the department that the mobilehome described in the statement has been approved for property tax postponement. The notice shall be in the form and contain the information prescribed by the Controller.
(c)The department, upon receipt of the notice, shall amend the permanent title record of the mobilehome to record the fact that postponement has been approved.
(d)The Controller shall prescribe the form of certificates of eligibility to pay all taxes and assessments authorized by this chapter.
Upon or accompanying the certificates shall be a brief statement explaining that, those taxpayers whose property taxes are paid by a lender via an impound, trust, or other similar account shall enter the total amount of each installment on the certificates and mail the certificates to the tax collector and that they will receive a refund check from the county or city in the amount they entered on the certificate, within 30 days following the date on which the installment is paid by the lender or the certificate of eligibility is received by the tax collector, whichever is later.
(e)When a certificate of eligibility has been signed by the claimant, the claimants spouse, or authorized agent and countersigned by the person authorized to collect property taxes or assessments or the local agency, the certificate shall constitute a written promise on the part of the State of California to pay the sum of money specified therein and the signed and countersigned certificate shall be deemed a negotiable instrument for the sole purpose of the payment of property taxes owing in the name of the claimant or the claimants spouse for purposes of all laws of this state.
(f)A certificate of eligibility shall be valid for the duration prescribed thereon by the Controller.
(g)The Controller shall issue certificates of eligibility at the times the Controller determines shall best implement the purpose of this chapter.
(h)The Controller shall prescribe the manner in which a claimant eligible under this chapter, who has been issued a certificate of eligibility which is lost or destroyed prior to being filed with the local agency may obtain a duplicate copy of the certificate as a replacement. Under the conditions which may be prescribed by the Controller, a duplicate copy shall be deemed as having been filed with the local agency as of the date a claimant requests issuance of the duplicate copy.
SEC. 24.Section 20639.7 of the Revenue and Taxation Code is repealed.20639.7.The Controller shall prescribe the manner in which a claimant eligible under this chapter, who for any reason is incapacitated, may appoint his or her spouse or an authorized agent, or have any such person appointed for the claimant, for all purposes of claiming and using certificates of eligibility for the postponement of property taxes.
SEC. 25.Section 20639.8 of the Revenue and Taxation Code is repealed.20639.8.The claim for postponement shall be filed after May 15 of the calendar year in which the fiscal year for which postponement is claimed begins, and on or before December 10 of such fiscal year.
SEC. 26.Section 20639.9 of the Revenue and Taxation Code is repealed.20639.9.Each claimant applying for postponement under this chapter shall file a claim under penalty of perjury with the Controller on a form supplied by the Controller. The claim shall contain all of the following information:
(a)Evidence acceptable to the Controller that the person is a senior citizen claimant.
(b)A statement showing the household income for the period set forth in Section 20503.
(c)A statement describing the residential dwelling in the manner the Controller may prescribe.
(d)The name of the county in which the residential dwelling is located and the address of the residential dwelling.
(e)The county assessors parcel number applicable to the property for which the claimant is applying for the postponement of property taxes.
(f)A copy of the Certificate of Title issued by the Department of Housing and Community Development or the certificate of ownership issued by the Department of Motor Vehicles.
(g)A copy of the registration card issued by the Department of Housing and Community Development or the Department of Motor Vehicles.
(h)Other information required by the Controller to establish eligibility.
SEC. 27.Section 20640.2 of the Revenue and Taxation Code is amended to read:20640.2.For the purposes of this chapter:
(a)Possessory interest means (1) possession of, or right to the possession of land located in this state whether or not coupled with ownership of the residential dwelling on the same, or (2) a possessory interest or right of occupancy on tax exempt land;
(b)Residential dwelling means a dwelling occupied as the principal place of residence of the claimant, and so much of the land surrounding it as is reasonably necessary for use of the dwelling as a home, located on possessory interest property. It shall include condominiums and mobilehomes upon which property taxes, as defined in subdivision (c), are assessed. It also includes part of a multidwelling or multipurpose building and a part of the land upon which it is built.
(c)Property taxes means the amount of property tax for which the claimant is personally liable as assessee or is obligated to pay directly to the tax collector pursuant to the terms of the agreement establishing the possessory interest, including all ad valorem property taxes, special assessments, capitalization of leasehold interest, and other charges or user fees which are attributable to the residential dwelling on the county tax bill and the ad valorem property taxes, special assessments, capitalization of leasehold interest, or other charges or user fees appearing on the tax bill of any chartered city which levies and collects its own property taxes.
SEC. 28.Section 20640.3 of the Revenue and Taxation Code is amended to read:20640.3.A claimant is an individual who:
(a)Holds a right to a possessory interest pursuant to a validly recorded instrument conveying such possessory interest for a term of years no less than 45 years beyond the last day of the calendar year ending immediately prior to the fiscal year for which taxes are initially postponed;
(b)Occupies as a principal place of residence the residential dwelling affixed to such possessory interest real property on the last day of the year designated in Section 20503(c) of this code;
(c)Is (1)Is 62 years of age or older on or before December 31 of the fiscal year for which postponement is claimed. claimed or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on December 10 of the fiscal year for which the postponement is claimed, whichever is earlier.
SEC. 29.Section 20640.4 of the Revenue and Taxation Code is amended to read:20640.4.(a)Subject to the limitations provided in Chapter 1 (commencing with Section 20501), Chapter 2 (commencing with Section 20581), or this chapter, a claimant may file with the Controller, a claim for postponement of a sum equal to, but not exceeding the amount of property taxes, for the fiscal year for which the claim is made.
(b)Upon verification of the eligibility requirements set forth in Section 20640.9 the Controller shall mail the claimant a Notice of Election to Postpone which shall be in the form and contain such information as the Controller may prescribe. Accompanying the notice shall be a statement explaining that in order for the claimant to postpone all or part of the property taxes, the Notice of Election to Postpone must be mailed to the Controller with a copy of the instrument creating the possessory interest, said copy to be certified by the county recorder of the county in which such real property is located. Where a memorandum of lease has been recorded in lieu of such instrument, a certified copy of said memorandum shall accompany the copy of the instrument creating the possessory interest.
(c)(1)Except as provided in this section, any possessory interest or improvement on which property taxes are delinquent at the time the application for postponement under this chapter is made or on which any other property tax or special assessment imposed by a special district or other tax code area are delinquent at the time the application for postponement under this chapter is made shall not be eligible for postponement.
(2)For 197879 and thereafter, any taxes or assessments which became delinquent after the claimant was 62 and before a lien is established pursuant to Section 16182 of the Government Code shall not disqualify an otherwise eligible claimant for postponement under this chapter. An application to postpone taxes for 197879 or thereafter also constitutes an application for postponement of all such delinquent taxes and assessments, together with any penalties, interest, fees, or other charges resulting from such delinquency and such amounts shall, unless otherwise paid by the claimant, be paid out of the amount appropriated by Section 16100 of the Government Code and shall be added to and become part of the obligation secured by the lien provided by Section 16182 of the Government Code.
(d)The Controller shall mail to claimant for due execution the appropriate security instrument for claimants form of lease, including the consent to assignment required by Section 20640.5(b).
SEC. 30.Section 20640.6 of the Revenue and Taxation Code is amended to read:20640.6.(a) Upon receipt of the information described in Section 20640.4 and Section 20640.5, the State Controller shall determine whether the states interest would be adequately protected if postponement is granted, and if so, shall issue to the claimant a certificate of eligibility containing the name of claimant, address of the residential dwelling on which the claimant has applied for property tax postponement, and any other information and in the form as the State Controller shall prescribe. In the event that the residential dwelling is located in a chartered city which levies and collects its own taxes, the Controller shall issue a duplicate certificate of eligibility to pay all or any part of property taxes appearing on the citys tax bill. the Controller shall make payments directly to a county tax collector for the property taxes owed on behalf of the claimant. Payments may, upon appropriation by the Legislature, be made out of the amounts otherwise appropriated pursuant to Section 16100 of the Government Code that are secured by a secured tax lien and obligation as specified by Article 1 (commencing with Section 16180) of Chapter 5 of Division 4 of the Government Code.
(b)The Controller shall cause to be recorded with the county recorder of the county in which the real property is located, a copy of any instrument creating a security interest, which shall include applicable consent forms, in favor of the state. The instrument shall contain a legal description of the real property subject to the possessory interest; and, if the legal description of the possessory interest describes an area less than the entire property ownership, the notice or document shall also contain a reference to the record of the acquisition instrument to the entire parcel from which the possessory interest was created. The priority of the security interest shall be as of the date of recordation.
(c)The Controller shall prescribe the form of certificates of eligibility to pay all delinquent taxes and assessments authorized by this chapter.
Upon or accompanying each certificate shall be a brief statement explaining that (1) those taxpayers whose property taxes are paid by a lender via an impound, trust or other similar account should enter the total amount of each installment on the certificates and mail the certificates to the tax collector and (2) those taxpayers will receive a refund check from the county or city in the amount they entered on the certificate, within 30 days following the date on which the installment is paid by the lender or the certificate of eligibility is received by the tax collector, whichever is later.
(d)When a certificate of eligibility has been signed by the claimant, his or her spouse, or authorized agent and countersigned by the person authorized to collect property taxes or assessments for the local agency, the certificate shall constitute a written promise on the part of the State of California to pay the sum of money specified therein and the signed and countersigned certificate shall be deemed a negotiable instrument for the sole purpose of the payment of property taxes owing in the name of the claimant or his or her spouse for purposes of all laws of this state.
(e)A certificate of eligibility shall be valid for the duration prescribed thereon by the Controller.
(f)The Controller shall issue certificates of eligibility at such times as the Controller determines will best implement the purpose of this chapter.
(g)The Controller shall prescribe the manner in which a claimant eligible under this chapter, who has been issued a certificate of eligibility which is lost or destroyed prior to being filed with the local agency may obtain a duplicate copy of the certificate as a replacement. (Under conditions as may be prescribed by the Controller, a duplicate copy shall be deemed as having been filed with the local agency as of the date a claimant requests issuance of a duplicate copy.)
SEC. 31.Section 20640.7 of the Revenue and Taxation Code is amended to read:20640.7.The Controller shall prescribe the manner in which a claimant eligible under this chapter, who for any reason is incapacitated, may appoint his or her spouse or an authorized agent, or have any such person appointed for such claimant, for all purposes of claiming and using certificates of eligibility for the receiving postponement of property taxes.
SEC. 32.Section 20640.8 of the Revenue and Taxation Code is amended to read:20640.8.The claim for postponement shall be filed after May 15 October 1 of the calendar fiscal year in which the fiscal year for which postponement is claimed begins, and on or before December 10 February 10 of such fiscal year. If December 10th February 10th falls on Saturday, Sunday or a legal holiday, the date is extended to the next business day.
SEC. 33.Section 20640.9 of the Revenue and Taxation Code is amended to read:20640.9.Each claimant applying for postponement under this chapter shall file a claim under penalty of perjury with the Controller on a form supplied by the Controller. The claim shall contain:
(a)Evidence acceptable to the Controller that the person was a senior citizen claimant. 62 years of age or older, or blind or disabled as described in Section 20640.3.
(b)A statement showing the household income for the period set forth in Section 20503.
(c)A statement describing the residential dwelling in such manner as the Controller may prescribe.
(d)The name of the county in which the residential dwelling is located and the address of the residential dwelling.
(e)The county assessors parcel number applicable to the property for which the claimant is applying for the postponement of property taxes.
(f)Other information required by the State Controller to establish eligibility.
SEC. 34.Section 20645.5 of the Revenue and Taxation Code is amended to read:20645.5.(a)If a postponement claim under Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) is filed timely before the delinquency date of the second installment of property taxes on the secured roll, received by the Controller by February 10 for the fiscal year in which postponement is being claimed or by another date set by the Controller pursuant to Section 20622, then any delinquent penalties, costs, fees, and interest accrued for that fiscal year shall be canceled unless the failure to perfect the claim was due to willful neglect on the part of the claimant or representative.
(b)In the event of willful neglect, an electronic funds transfer for that current fiscal year can be used to pay delinquent taxes only if accompanied by sufficient amounts to pay all of the delinquent penalties, costs, fees, and interest. If an amount sufficient to pay all of the delinquent penalties, costs, fees, and interest is not received by the tax collector within 30 days from the date of the electronic funds transfer, the tax collector may return the electronic funds transfer to the Controller to deny the postponement claim.
(c)(1)The Controller shall notify the claimant in writing when the electronic funds transfer has been submitted to the tax collector.
(2)In the event of willful neglect, in addition to the information required pursuant to paragraph (1), the Controller shall also notify the claimant in writing and provide a copy of the notification to the tax collector, that a payment amount sufficient to pay all of the delinquent penalties, costs, fees, and interest must be received by the tax collector within 30 days from the date of the electronic funds transfer, and that if this payment is not received by the tax collector, the tax collector may return the electronic funds transfer to the Controller to deny the postponement claim.
SEC. 4. SEC. 35.Section 20645.6 of the Revenue and Taxation Code is amended to read:20645.6.(a)If the Controller denies a postponement claim under Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640), and the denial is reversed after appeal pursuant to Section 20645.1, the Controller shall electronically transfer funds to the county for the amount of the taxes. If the taxes for the fiscal year were previously paid, the county shall refund the overpayment to the taxpayer. If the taxes for the fiscal year are delinquent, any resulting penalties or interest shall be canceled.
(b)The Controller shall notify the claimant in writing when an electronic funds transfer has been made pursuant to subdivision (a).
(a)All sums paid by the Controller under the provisions of this chapter, together with interest thereon, shall be secured by a lien in favor of the State of California when funds are transferred to the county by the Controller upon the real property for which property taxes have been postponed. In the case of a residential dwelling which is part of a larger parcel taxed as a unit, such as a duplex, farm, or multipurpose or multidwelling building, the lien shall be against the entire tax parcel.
(b)In the case of real property:
(1)The lien shall be evidenced by a notice of lien for postponed property taxes executed by the Controller, or the authorized delegate of the Controller, and shall secure all sums paid or owing pursuant to this chapter, including amounts paid subsequent to the initial payment of postponed taxes on the real property described in the notice of lien.
(2)The notice of lien may bear the facsimile signature of the Controller. Each signature shall be that of the person who shall be in the office at the time of execution of the notice of lien; provided, however, that such notice of lien shall be valid and binding notwithstanding any such person having ceased to hold the office of Controller before the date of recordation.
(3)The form and contents of the notice of lien for postponed property taxes shall be prescribed by the Controller and shall include, but not be limited to, the following:
(A)The names of all record owners of the real property for which the Controller has advanced funds for the payment of real property taxes.
(B)A description of the real property for which real property taxes have been paid.
(C)The identification number of the notice of lien which has been assigned the lien by the Controller.
(4)Within 14 business days of the transfer of funds and the notice of lien to the county by the Controller, the notice of lien shall be recorded in the office of the county recorder for the county in which the real property subject to the lien is located.
(5)The recorded notice of lien shall be indexed in the Grantor Index to the names of all record owners of the real property and in the Grantee Index to the Controller of the State of California.
(6)After the notice of lien has been duly recorded and indexed, it shall be returned by the county recorder to the office of the Controller. The recorder shall provide the county tax collector with a copy of the notice of lien which has been recorded executed by the Controller.
(7)From the time of recordation of a notice of lien for postponed property taxes, a lien shall attach to the real property described therein and shall have the priority of a judgment lien for all amounts secured thereby, except that the lien shall remain in effect until it is released by the Controller in the manner prescribed by Section 16186.
(c)In the case of mobilehome loans established prior to February 20, 2009, all of the following shall apply:
(1)The lien shall be evidenced by a notice of lien for postponed property taxes excused executed by the Controller, or the authorized delegate of the Controller, and shall secure all sums paid owing pursuant to this chapter.
(2)From the time that the Department of Housing and Community Development receives the notice of lien from the Controller, the department shall impose a moratorium on any other amendments to the permanent title record of the mobilehome unit until released by the Controller in the manner prescribed by Section 16186, or an authorization for the amendments is given by the Controller in writing.
(3)From the time of filing a notice of lien, a lien shall attach to the mobilehome for which eligibility for the postponement of property taxes has been granted.
SEC. 2.Section 16183 of the Government Code is amended to read:16183.(a)(1)From the time a payment is made pursuant to Section 16180, the amount of that payment shall bear interest at a rate (not compounded), determined as follows:
(1)Beginning July 1, 2016, the rate of interest shall be 7 percent per annum.
(2)The Controller shall establish an adjusted rate of interest for the purpose of this subdivision not later than July 15th of any year if the effective annual yield of the Pooled Money Investment Account for the prior fiscal year is at least a full percentage point more or less than the interest rate which is then in effect. The adjusted rate of interest shall be equal per annum to the effective annual yield earned in the prior fiscal year by the Pooled Money Investment Account rounded to the nearest full percent, and shall become effective for new deferrals, beginning on July 1, 1984, and on July 1 of each immediately succeeding year, until June 30, 2016.
(3)The For loans made prior to June 30, 2016, the rate of interest provided pursuant to this subdivision for the first fiscal year commencing after payment is made pursuant to Section 16180 shall apply for that fiscal year and each fiscal year thereafter until these postponed property taxes are repaid.
(b)The interest provided for in subdivision (a) shall be applied beginning the first day of the month following the month in which that payment is made and continuing on the first day of each month thereafter until that amount is paid. In the event that any payments are applied, in any month, to reduce the amount paid pursuant to Section 16180, the interest provided for herein shall be applied to the balance of that amount beginning on the first day of the following month.
(c)In computing interest in accordance with this section, fractions of a cent shall be disregarded.
(d)For the purpose of this section, the time a payment is made shall be deemed to be the time a certificate of eligibility is countersigned by an electronic funds transfer is made by the Controller to the tax collector or the delinquency date of the respective tax installment, whichever is later.
(e)The Controller shall include on forms supplied to claimants pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641 of the Revenue and Taxation Code, a statement of the interest rate which shall apply to amounts postponed for the fiscal year to which the form applies.
SEC. 3.Section 2515 of the Revenue and Taxation Code is amended to read:2515.(a)Upon expeditiously processing receiving a notice of lien for postponed property taxes from the tax collector, Controller, the tax collector or the assessor, whichever is applicable, shall immediately:
(1)Enter, on the notice of lien, a description of the real property for which the taxes have been paid by use of a certificate of eligibility pursuant to Section 2514. Such description shall be a metes and bounds, lot-block-tract, or such other description as is determined by the Controller to sufficiently describe the real property for the purpose of securing the states lien.
(2)Enter on the notice of lien, the names of all record owners of the property described under subdivision (a) of this section, as disclosed by the assessors records.
(3)Upon entry of the information required by subdivisions (a) and (b) of this section on the notice of lien, the assessor shall immediately forward the notice of lien to the county recorder.
(4)Enter immediately enter on the assessment records applicable to the property, the fact that the taxes on the property have been postponed and the Controllers identification number, and shall, if such record reveals a change in the ownership status of the property subsequent to the date of entry of the postponement information thereon, notify the Controller within 60 days of processing the change in the ownership status in the manner prescribed by the Controller.
(b)From the time of recordation of the notice of lien pursuant to Section 16182 of the Government Code, the lien for postponed property taxes shall be deemed to impart constructive notice of the contents thereof to subsequent purchasers, mortgagees, lessees, and other lienors.
SEC. 4.Section 20645.6 of the Revenue and Taxation Code is amended to read:20645.6.(a)If the Controller denies a postponement claim under Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640), and the denial is reversed after appeal pursuant to Section 20645.1, the Controller shall electronically transfer funds to the county, if the taxes for the fiscal year have been paid, county for the amount of the taxes. If the taxes for the fiscal year were previously paid, the county shall refund the overpayment to the taxpayer. If the taxes for the fiscal year are delinquent, any resulting penalties or interest shall be canceled.
(b)The Controller shall notify the claimant in writing when an electronic funds transfer has been made pursuant to subdivision (a).
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Date
|
Status
|
|---|---|
| Jun 24, 2015 | June 29 set for first hearing canceled at the request of author. |
| Sep 30, 2015 | Chaptered by Secretary of State. Chapter 391, Statutes of 2015. |
| Sep 30, 2015 | Approved by the Governor. |
| Sep 8, 2015 | Enrolled and presented to the Governor at 4:30 p.m. |
| Sep 2, 2015 | Assembly amendments concurred in. (Ayes 40. Noes 0.) Ordered to engrossing and enrolling. |
| Sep 2, 2015 | Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2425.) Ordered to engrossing and enrolling. |
| Sep 1, 2015 | Read third time. Passed. (Ayes 80. Noes 0. Page 2716.) Ordered to the Senate. |
| Sep 1, 2015 | Read third time. Passed. Ordered to the Senate. |
| Sep 1, 2015 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 19, 2015 | Read second time. Ordered to third reading. |
| Aug 18, 2015 | Read second time and amended. Ordered to second reading. |
| Aug 17, 2015 | From committee: Do pass as amended. (Ayes 8. Noes 0.) (July 13). |
| Aug 17, 2015 | (Received at desk July 17 pursuant to JR 61(a)(10)) |
| Jun 29, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX. |
| Mar 24, 2015 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
| Jun 18, 2015 | Referred to Com. on REV. & TAX. |
| May 18, 2015 | Read third time. Passed. (Ayes 36. Noes 0.) Ordered to the Assembly. |
| May 18, 2015 | Read third time. Passed. (Ayes 36. Noes 0. Page 1030.) Ordered to the Assembly. |
| May 18, 2015 | In Assembly. Read first time. Held at Desk. |
| May 13, 2015 | Ordered to special consent calendar. |
| May 4, 2015 | Read second time. Ordered to third reading. |
| Apr 30, 2015 | Withdrawn from committee. |
| Apr 30, 2015 | Ordered to second reading. |
| Apr 29, 2015 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 6. Noes 0.) (April 29). Re-referred to Com. on APPR. |
| Apr 29, 2015 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 6. Noes 0. Page 816.) (April 29). Re-referred to Com. on APPR. |
| Apr 21, 2015 | Set for hearing April 29. |
| Apr 7, 2015 | Referred to Com. on GOV. & F. |
| Mar 25, 2015 | From printer. May be acted upon on or after April 24. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 2, 2015 | Unfinished Business SB801 Committee On GOV. & F. (Hertzberg) Concurrence | Senate Floor |
Passed |
|
| Sep 1, 2015 | SB 801 GOV.& F. Senate Third Reading By TING | Assembly Floor |
Passed |
|
| Jul 13, 2015 | Do pass as amended. | Assembly Standing Committee on Revenue and Taxation |
Passed |
|
| May 18, 2015 | Special Consent #1 SB801 Committee On GOV. & F. (Hertzberg) | Senate Floor |
Passed |
|
| Apr 29, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Governance and Finance |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Betty T. Yee, California State Controller | ** Support | Sep 1, 2015 |
| State Controller Betty Yee | ** Support | Sep 1, 2015 |
SB 801
Page 5
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
UNFINISHED BUSINESS
Bill No: SB 801
Author: Committee on Governance and Finance
Amended: 8/18/15
SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 4/29/15
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Pavley
NO VOTE RECORDED: Moorlach
SENATE FLOOR: 36-0, 5/18/15
AYES: Allen, Anderson, Bates, Beall, Block, Cannella, De León, Fuller, Gaines, Galgiani, Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen, Nielsen, Pan, Roth, Runner, Stone, Vidak, Wieckowski, Wolk
NO VOTE RECORDED: Berryhill, Hall, Pavley
ASSEMBLY FLOOR: 80-0, 9/1/15 - See last page for vote
SUBJECT: Property tax postponement
SOURCE: State Controller Betty Yee
DIGEST: This bill makes minor, technical changes to the Property Tax Postponement (PTP) Program.
Assembly Amendments change the definition of “claimant” in the four PTP laws to ensure consistency, change the application period, set consistent fee amounts for claimants to request PTP accounting statements, delete references in PTP law to mobilehomes, and make further technical changes.
Existing law:
Establishes the Senior Citizens and Disabled Citizens PTP Law, which allows the State Controller to pay property taxes to county tax collectors, on behalf of individuals over the age of 62 or disabled persons making less than $39,000 in income per year.
Allows postponement for homes, mobilehomes, tenant stockholder/cooperatives and possessory interests by establishing a separate law for each.
Directs the Controller to secure repayment of the loan by recording a lien against the claimant’s property, which is satisfied when the home is sold or refinanced. As liens are repaid out of sales proceeds, revenue flows back to the Controller, who in turn uses these funds to pay property taxes for new applicants.
Provides that until recently, prohibited persons from filing new claims for PTP and the Controller from accepting applications (SBX3 8, Ducheny, Chapter 4, Statutes of 2009-10, Third Extraordinary Session). However, the Legislature resuscitated the program last year by removing SBX3 8’s prohibition, albeit with tightened eligibility criteria and a requirement for the Controller to transfer to the General Fund repayments received above a $20 million total (AB 2231, Gordon, Chapter 703, Statutes of 2014).
Sets the application period from September 1st to April 10th.
States that under the prior PTP program, the Controller provided “certificates of eligibility” to applicants to pay their property taxes. The Controller submitted these “checks” to the county.
Requires county treasurers under the prior program, to add the property description to the lien for properties, owned by individuals enrolled in the program, and then forward the lien to the county recorder for filing.
Sets a $30 fee for claimants requesting an accounting of PTP amounts postponed and interest charged, which was updated by AB 2231 from $10, but not in the tenant-cooperative law.
Contains references throughout PTP law to mobile homes.
Allows the Controller to pay delinquent taxes under the Possessory Interest Holder law, but not under the other three laws.
Provides generally that county tax collectors should refund property tax overpayments directly to taxpayers; however, when the Controller pays on behalf of a taxpayer who successfully appeals the Controller’s determination of eligibility and that taxpayer has already paid, the law doesn’t explicitly require the refund.
This bill:
Removes the reference to certificates in several sections.
Clarifies that interest rates for past loans are calculated at the Pooled Money Investment Account rate, as was the case under the former program, while future loans pay the 7% rate provided for in AB 2231.
Replaces references from county tax collectors to the Controller in sections for preparing liens.
Deletes the information required as part of the lien.
Revises the application period currently set as September 1st to April 10th to October 1st to February 10th, to ensure successful claimants can be notified before the first property tax installment is due.
Changes the verb from “recorded” to “executed” to appropriately reflect the Controller’s role in the revised program.
Increases the fee to $30 fee for claimants requesting an accounting of PTP amounts postponed and interest charged in the tenant-cooperative law, making this fee amount consistent with all other PTP laws.
Removes references to mobilehomes throughout PTP laws.
Deletes authority for the Controller to pay delinquent taxes under the Possessory Interest Holder law.
States explicitly that in the event an appeal reverses the initial denial of eligibility and the Controller sends a payment for taxes due in the same fiscal year, for which the taxpayer has paid the taxes, the county must refund that amount.
Corrects erroneous cross-references and section numbering, and removes other obsolete provisions.
Comments
When AB 2231 resurrected the PTP program, it didn’t change all the statutes necessary for the Controller to ensure that the law would be administered effectively. SB 801 consolidates several minor, technical changes to PTP program statutes to assist the Controller implement the program as she prepares to again begin accepting applications in September. Senate Rule 23 requires all members of the Committee to sign Committee Bills prior to introduction, so SB 801 can only contain items with universal agreement; should anyone object to a provision in the measure, it will be removed.
Related Legislation
SB 477 (Leyva, 2015) adds mobilehomes back into the PTP program by amending the general PTP law. The Assembly Appropriations Committee held the bill on its suspense file.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
State Controller Betty Yee (source)
None received
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
Prepared by: Colin Grinnell / GOV. & F. / (916) 651-4119
9/1/15 21:12:30
**** END ****
SB 801
Page 4
SENATE THIRD READING
SB 801
(Committee on Governance and Finance)
As Amended August 18, 2015
Majority vote
SENATE VOTE: 36-0
Committee |
Votes |
Ayes |
Noes |
Revenue & Taxation |
8-0 |
Ting, Brough, Dababneh, Gipson, Mullin, Patterson, Quirk, Wagner |
|
SUMMARY: Makes technical changes to the Senior Citizens and Disabled Citizens Property Tax Postponement (PTP) Law. Specifically, this bill:
Eliminates the outdated references to "a certificate of eligibility" and to certain duties of local tax officials, with respect to lien notices, to conform to the superseding duties of the State Controller (Controller) in preparing and filing the notice of lien for postponed taxes.
Specifies timing of payments by the Controller to the county and the refund by the county of taxes paid when a taxpayer successfully appeals his/her denial of postponement under the law.
Clarifies that the interest on existing loans made prior to June 30, 2016, will continue to accrue at the Pooled Money Investment Account rate, which was the rate in effect prior to the suspension of the PTP program.
Authorizes the Controller to release a lien if there is a foreclosure on an obligation secured by a lien that is senior in recording priority.
Revises the definition of a "claimant" for purposes of the cooperative housing and possessory interest property tax postponement provisions to clarify that blind and disabled persons are included in that definition, in addition to individuals who are 62 years or older.
Requires a person who has postponed his/her proportionate share of property tax in the cooperative housing to make a written request when requesting that the Controller issue a statement showing the total amount postponed and increases the fee amount that may be charged by the Controller for the provision of this statement from $10 to $30.
Deletes provisions relating to the eligibility of mobilehome properties for the PTP program and specifies that cooperative housing is eligible for the program.
Removes the exception to a prohibition on the ability of a claimant who is a holder of possessory interest in a residential dwelling to participate in the PTP program if any taxes or assessments on the possessory interest or improvement are delinquent.
Specifies that a claim for property tax postponement must be filed after October 1 of the fiscal year in which the postponement is claimed, instead of September 1, and before February 10 of that year, instead of April 10.
Corrects grammatical errors, deletes duplicate numbering and erroneous references, and makes other technical and conforming changes.
EXISTING LAW:
Reinstates a modified PTP program that provides property tax deferment to seniors and disabled persons and eliminates, effective July 1, 2016, the current prohibition on any person filing a claim and the Controller from accepting applications for the PTP program.
Allows the Controller to pay property taxes to county tax collectors, on behalf of individuals over the age of 62 or disabled persons with an annual household income of $39,000 or less.
Authorizes the Controller to secure repayment by recording a lien against the claimant's property, which is satisfied when the home is sold or refinanced.
Requires the Controller to transfer to the General Fund (GF) repayments in excess of a $20 million total.
FISCAL EFFECT: None
COMMENTS:
Purpose of this bill. In 2014, the Legislature reinstated a modified PTP program to provide property tax deferment to seniors and disabled persons and to allow income-eligible senior citizens and disabled persons to apply to the Controller to defer payment of property taxes, beginning on July 1, 2016. Although the funding for the previous program was eliminated in 2009, the statute remained. However, not all of the statutory provisions related to the PTP program were amended in 2014, which made it difficult for the Controller to administer the program effectively. This bill would make several technical changes to the program to ensure that it is implemented correctly.
PTP Program: Background. California has several property tax programs benefiting the elderly and disabled individuals, including property tax assistance program and property tax postponement. The assistance program, which is administered by the FTB, was established in 1967 to provide direct property tax relief to seniors living on a fixed income. The assistance program provides a direct grant to qualifying seniors and disabled individuals who own or rent a residence. The program was later expanded to include renters who meet the income requirement, and to homeowners who are blind and/or disabled, regardless of their age.
Unlike the property tax assistance program that refunds a percentage of property taxes paid, the PTP program allows eligible homeowners to defer payment of all or a portion of the property taxes on their residences. The program was enacted in 1977, after the passage of a constitutional amendment authorizing the postponement of property taxes (California Constitution Article XIII, Section 8) and is administered by the Controller's Office. The constitutional amendment was in response to concerns that senior homeowners on fixed incomes could lose their homes because of the inability to pay rising property tax bills. Originally designed for persons over 62 years of age, the program is now also available to eligible blind and disabled persons, regardless of age.
Suspension and Subsequent Reinstatement of the PTP Program. On February 20, 2009, the PTP Program was indefinitely suspended as part of the budget reductions to the state's GF programs [SB 8 X3 (Ducheny), Chapter 4, Statutes of 2009-10 Third Extraordinary Session]. The funding for the program was eliminated and the Controller was prohibited from accepting any new applications after February 20, 2009. However, in 2014, the Governor signed into law AB 2231 (Gordon), Chapter 703, Statutes of 2014, which resurrected the PTP program, but with tightened eligibility criteria and a requirement for the Controller to transfer to the General Fund repayments in excess of a total of $20 million. AB 2231 also increased the amount of equity required in the home from 20% to 40%, and eliminated mobilehomes, houseboats, and floating homes from the definition of "residential dwelling." Increasing the necessary equity in the home was thought to help ensure that California is made whole in case of foreclosure or a forced sale. Additionally, AB 2231 modernized and streamlined payment methods by establishing the Senior Citizens and Disabled Citizens PTP Fund within the State Treasury, utilizing electronic fund transfer in place of certificates and eliminating the impound account. Finally, before 2009, the PTP Program included mobile and manufactured homes in the program. However, AB 2231 excluded mobilehomes from the new program.
The Definition of "Claimant". For purposes of the PTP program, an individual is defined as a "claimant" if he/she is at least 62 years of age, blind or disabled, among other requirements, and owns or rents a residential dwelling. However, in the case of individuals who own a proportionate share in a cooperative housing corporation or a possessory interest in a dwelling, the definition of a "claimant" does not include individuals who are either blind or disabled and thus they are not able to participate in the PTP program. This bill proposes to standardize the definition of "claimant" for purposes of the PTP program to include blind and disabled individuals, regardless of whether they own a share in a cooperative housing, hold a possessory interest, or own and occupy a residential dwelling. This bill is intended to make sure that the PTP program is consistent across the board and that blind and disabled individuals are included in all categories of the program.
Changing the Filing Deadlines. Under existing program, a claim for postponement of property tax must be filed between September 1of the fiscal year in which the postponement is claimed and on, or before, April 10 of that fiscal year. This bill would revise this period for filing by requiring individuals to submit their claims between October 1 and February 10. Currently, April 1 is the due date for the property tax payments. According to the Controller's Office, the application period must be completed well before April 1 in order to ensure that the Controller will have adequate time to notify the claimants of the decision and to allow the unsuccessful claimants to make an alternative arrangement for the property tax payments.
Certificates of Eligibility. The PTP program formerly used a process where the Controller provided "certificates of eligibility" to applicants to pay their property taxes. The Controller submitted these "checks" to the county. The renewed program, instead, uses electronic funds transfers. This bill deletes the outdated reference to "a certificate of eligibility" and eliminates duplicate numbering in Government Code Section 16183.
Lien Notice. Under the previous PTP program, a county tax collector or assessor was required to enter, on a notice of lien, a description of the real property owned by individuals enrolled in the program and to forward the notice of lien to the county recorder. The new modified PTP program instead directs the Controller to prepare a notice of lien for postponed property taxes and file it with the county recorder. This bill makes technical changes to the relevant provisions of the PTP program to reflect the new requirements of the Controller.
Lien Release. Currently, a lien attached to the property has the priority of a judgment lien and remains in effect until it is released by the Controller, as prescribed. The Controller's Office argues that it needs the ability to release a lien in the case of foreclosure. Hence, this bill would provide that a lien may be released by the Controller in the case of the foreclosure or sale of an obligation secured by a lien which is senior in recording priority to the lien of the state.
Replication Payments. Existing law provides that when the Controller denies a taxpayer's application for the postponement of property taxes, the taxpayer has a right to appeal the Controller's decision. If the denial is reversed on appeal, the Controller is required to transfer funds to the county electronically for the amount of the property taxes. The law, however, is silent with respect to the taxpayer's right to receive a refund from the county for the property taxes already paid. This bill would expressly require the county to refund the overpayment of tax directly to the taxpayer if the Controller sends a payment for taxes due in the same fiscal year for which the taxpayer has paid the tax.
Analysis Prepared by: Oksana Jaffe / REV. & TAX. / (916) 319-2098 FN: 0001411
SB 801
Page 5
Date of Hearing: July 13, 2015
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Philip Ting, Chair
SB 801
(Committee on Governance and Finance) – As Amended June 29, 2015
Majority vote. Non-fiscal
SENATE VOTE: 36-0
SUBJECT: Property tax postponement.
SUMMARY: Makes technical changes to the Senior Citizens and Disabled Citizens Property Tax Postponement (PTP) Law. Specifically, this bill:
Eliminates the outdated references to "a certificate of eligibility" and to certain duties of local tax officials, with respect to lien notices, to conform to the superseding duties of the State Controller (Controller) in preparing and filing the notice of lien for postponed taxes.
Specifies timing of payments by the Controller to the county and the refund by the county of taxes paid when a taxpayer successfully appeals his/her denial of postponement under the law.
Clarifies that the interest on existing loans made prior to June 30, 2016 will continue to accrue at the Pooled Money Investment Account rate, which was the rate in effect prior to the suspension of the PTP program.
Authorizes the Controller to release a lien if there is a foreclosure on an obligation secured by a lien that is senior in recording priority.
Revises the definition of a "claimant" for purposes of the cooperative housing and possessory interest property tax postponement provisions to clarify that blind and disabled persons are included in that definition, in addition to individuals who are 62 years or older.
Requires a person who has postponed his/her proportionate share of property tax in the cooperative housing to make a written request when requesting that the Controller issue a statement showing the total amount postponed and increases the fee amount that may be charged by the Controller for the provision of this statement from $10 to $30.
Deletes provisions relating to the eligibility of mobilehome properties for the PTP program and specifies that cooperative housing is eligible for the program.
Removes the exception to a prohibition on the ability of a claimant who is a holder of possessory interest in a residential dwelling to participate in the PTP program if any taxes or assessments on the possessory interest or improvement are delinquent.
Specifies that a claim for property tax postponement must be filed after October 1 of the fiscal year in which the postponement is claimed, instead of September 1, and before February 10 of that year, instead of April 10th.
Corrects grammatical errors, deletes duplicate numbering and erroneous references, and makes other technical and conforming changes.
EXISTING LAW:
Reinstates a modified PTP program that provides property tax deferment to seniors and disabled persons and eliminates, effective July 1, 2016, the current prohibition on any person filing a claim and the Controller from accepting applications for the PTP program.
Allows the Controller to pay property taxes to county tax collectors, on behalf of individuals over the age of 62 or disabled persons with an annual household income of $39,000 or less.
Authorizes the Controller to secure repayment by recording a lien against the claimant's property, which is satisfied when the home is sold or refinanced.
Requires the Controller to transfer to the General Fund (GF) repayments in excess of a $20 million total.
FISCAL EFFECT: None
COMMENTS:
Purpose of this bill. In 2014, the Legislature reinstated a modified PTP program to provide property tax deferment to seniors and disabled persons and to allow income-eligible senior citizens and disabled persons to apply to the Controller to defer payment of property taxes, beginning on July 1, 2016. Although the funding for the previous program was eliminated in 2009, the statute remained. However, not all of the statutory provisions related to the PTP program were amended in 2014, which made it difficult for the Controller to administer the program effectively. This bill would make several technical changes to the program to ensure that it is implemented correctly.
PTP Program: Background. California has several property tax programs benefiting the elderly and disabled individuals, including property tax assistance program and property tax postponement. The assistance program, which is administered by the FTB, was established in 1967 to provide direct property tax relief to seniors living on a fixed income. The assistance program provides a direct grant to qualifying seniors and disabled individuals who own or rent a residence. The program was later expanded to include renters who meet the income requirement, and to homeowners who are blind and/or disabled, regardless of their age.
Unlike the property tax assistance program that refunds a percentage of property taxes paid, the PTP program allows eligible homeowners to defer payment of all or a portion of the property taxes on their residences. The program was enacted in 1977, after the passage of a constitutional amendment authorizing the postponement of property taxes (California Constitution Article XIII, Section 8) and is administered by the Controller's Office. The constitutional amendment was in response to concerns that senior homeowners on fixed incomes could lose their homes because of the inability to pay rising property tax bills. Originally designed for persons over 62 years of age, the program is now also available to eligible blind and disabled persons, regardless of age.
Suspension and Subsequent Reinstatement of the PTP program. On February 20, 2009, the PTP Program was indefinitely suspended as part of the budget reductions to the state's GF programs [SBx3 8 (Ducheny), Chapter 4, Statutes of 2009]. The funding for the program was eliminated and the Controller was prohibited from accepting any new applications after February 20, 2009. However, in 2014, the Governor signed into law AB 2231 (Gordon), Chapter 703, Statutes of 2014, which resurrected the PTP program, but with tightened eligibility criteria and a requirement for the Controller to transfer to the General Fund repayments in excess of a total of $20 million. AB 2231 also increased the amount of equity required in the home from 20% to 40%, and eliminated mobilehomes, houseboats, and floating homes from the definition of "residential dwelling." Increasing the necessary equity in the home was thought to help ensure that California is made whole in case of foreclosure or a forced sale. Additionally, AB 2231 modernized and streamlined payment methods by establishing the Senior Citizens and Disabled Citizens PTP Fund within the State Treasury, utilizing electronic fund transfer in place of certificates and eliminating the impound account. Finally, before 2009, the PTP Program included mobile and manufactured homes in the program. However, AB 2231 excluded mobilehomes from the new program.
The Definition of "Claimant." For purposes of the PTP program, an individual is defined as a "claimant" if he/she is at least 62 years of age, blind or disabled, among other requirements, and owns or rents a residential dwelling. However, in the case of individuals who own a proportionate share in a cooperative housing corporation or a possessory interest in a dwelling, the definition of a "claimant" does not include individuals who are either blind or disabled and thus they are not able to participate in the PTP program. This bill proposes to standardize the definition of "claimant" for purposes of the PTP program to include blind and disabled individuals, regardless of whether they own a share in a cooperative housing, hold a possessory interest, or own and occupy a residential dwelling. This bill is intended to make sure that the PTP program is consistent across the board and that blind and disabled individuals are included in all categories of the program.
Changing the Filing Deadlines. Under existing program, a claim for postponement of property tax must be filed between September 1of the fiscal year in which the postponement is claimed and on, or before, April 10 of that fiscal year. This bill would revise this period for filing by requiring individuals to submit their claims between October 1 and February 10. Currently, April 1 is the due date for the property tax payments. According to the Controller's Office, the application period must be completed well before April 1 in order to ensure that the Controller will have adequate time to notify the claimants of the decision and to allow the unsuccessful claimants to make an alternative arrangement for the property tax payments.
Certificates of Eligibility. The PTP program formerly used a process where the Controller provided "certificates of eligibility" to applicants to pay their property taxes. The Controller submitted these "checks" to the county. The renewed program, instead, uses electronic funds transfers. This bill deletes the outdated reference to "a certificate of eligibility" and eliminates duplicate numbering in Government Code Section 16183.
Lien Notice. Under the previous PTP program, a county tax collector or assessor was required to enter, on a notice of lien, a description of the real property owned by individuals enrolled in the program and to forward the notice of lien to the county recorder. The new modified PTP program instead directs the Controller to prepare a notice of lien for postponed property taxes and file it with the county recorder. This bill makes technical changes to the relevant provisions of the PTP program to reflect the new requirements of the Controller.
Lien Release. Currently, a lien attached to the property has the priority of a judgment lien and remains in effect until it is released by the Controller, as prescribed. The Controller's Office argues that it needs the ability to release a lien in the case of foreclosure. Hence, this bill would provide that a lien may be released by the Controller in the case of the foreclosure or sale of an obligation secured by a lien which is senior in recording priority to the lien of the State.
Replication Payments. Existing law provides that when the Controller denies a taxpayer's application for the postponement of property taxes, the taxpayer has a right to appeal the Controller's decision. If the denial is reversed on appeal, the Controller is required to transfer funds to the county electronically for the amount of the property taxes. The law, however, is silent with respect to the taxpayer's right to receive a refund from the county for the property taxes already paid. This bill would expressly require the county to refund the overpayment of tax directly to the taxpayer if the Controller sends a payment for taxes due in the same fiscal year for which the taxpayer has paid the tax.
Conflicting Legislation. Provisions of this bill conflict with SB 477 (Levya) and may need amendments to resolve the conflict should both bills continue through the legislative process.
Proposed Technical Amendments. The Committee staff proposes the following technical amendments to SB 801:
AMENDMENT 1
Amend Section 20602 to update the obsolete references to the Government Code.
AMENDMENT 2
On page 13, line 25, strike out "otherwise"
AMENDMENT 3
On page 13, in line 25, strike out "16100" and insert
"16180"
AMENDMENT 3
On page 20, line 9, strike out "Except as provided in this section, any" and insert "Any"
AMENDMENT 4
On page 21, line 7, after "collector" insert:
or
chartered city which levies and collects its own taxes,
AMENDMENT
5
On page 21, line 9, strike out "otherwise"
AMENDMENT 6
On page 21, line 10, strike out "16100" and insert "16180"
REGISTERED SUPPORT / OPPOSITION:
Support
Betty T. Yee, California State Controller
Opposition
None on file
Analysis Prepared by: Oksana Jaffe / REV. & TAX. / (916) 319-2098
SB 801
Page 3
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 801
Author: Committee on Governance and Finance
Introduced: 3/24/15
SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 4/29/15
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Pavley
NO VOTE RECORDED: Moorlach
SUBJECT: Property tax postponement
SOURCE: State Controller Betty Yee
DIGEST: This bill makes minor, technical changes to the Property Tax Postponement Program.
Existing law:
Establishes the Senior Citizens and Disabled Citizens Property Tax Postponement Law (PTP), which allows the State Controller to pay property taxes to county tax collectors, on behalf of individuals over the age of 62 or disabled persons making less than $39,000 in income per year.
Directs the Controller to secure repayment of the loan by recording a lien against the claimant’s property, which is satisfied when the home is sold or refinanced. As liens are repaid out of sales proceeds, revenue flows back to the Controller, who in turn uses these funds to pay property taxes for new applicants.
Until recently, prohibited persons from filing new claims for property tax postponement, and the Controller from accepting applications (SBX3-8, Ducheny, Chapter 4, Statutes of 2009-10, Third Extraordinary Session). However, the Legislature resuscitated the program last year by removing SBX3-8’s prohibition, albeit with tightened eligibility criteria, and a requirement for the Controller to transfer to the General Fund repayments received above a $20 million total (AB 2231, Gordon, Chapter 703, Statutes of 2014).
States that under the prior PTP program, the Controller provided “certificates of eligibility” to applicants to pay their property taxes. The Controller submitted these “checks” to the county. The renewed program uses electronic funds transfers instead, and while AB 2231 removed almost all references to certificates of eligibility, it didn’t make the change in Government Code (G.C.) §16183, which also contains two paragraphs labelled as (1).
Requires county treasurers under the prior program to add the property description to the lien for properties owned by individuals enrolled in the program, and then forward the lien to the county recorder for filing. However, for the new program, AB 2231 instead directs the Controller to prepare the lien and file it with the recorder.
Provides, generally, that county tax collectors should refund property tax overpayments directly to taxpayers; however, when the Controller pays on behalf of a taxpayer who successfully appeals the Controller’s determination of eligibility, and that taxpayer has already paid, the law doesn’t explicitly require the refund.
This bill:
Removes the reference to certificates in G.C. §16183
Corrects duplicate numbering in that same section.
Clarifies that interest rates for past loans are calculated at the Pooled Money Investment Account rate as was the case under the former program, while future loans pay the 7% rate provided for in AB 2231.
Replaces references from county tax collectors to the Controller in sections for preparing liens.
Deletes the information required as part of the lien.
Changes the verb from “recorded” to “executed” to appropriately reflect the Controller’s role in the revised program.
States explicitly that in the event an appeal reverses the initial denial of eligibility, and the Controller sends a payment for taxes due in the same fiscal year for which the taxpayer has paid the taxes, the county must refund that amount.
Comments
When AB 2231 resurrected the PTP program, it didn’t change all the statutes necessary for the Controller to ensure that the law would be administered effectively. SB 801 consolidates several minor, technical changes to PTP program statutes to assist the Controller implement the program as she prepares to again begin accepting applications in September. Senate Rule 23 requires all members of a Committee to sign Committee Bills prior to introduction, so SB 801 can only contain items with universal agreement; should anyone object to a provision in the measure, it will be removed.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
State Controller Betty Yee (source)
None received
Prepared by: Colin Grinnell / GOV. & F. / (916) 651-4119
5/6/15 16:16:33
**** END ****
SB 801 (Committee on Governance and Finance) 3/24/15 Page 3 of 3
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M. Hertzberg, Chair
2015 - 2016 Regular
Bill No: |
SB 801 |
Hearing Date: |
4/29/15 |
Author: |
Committee on Governance and Finance |
Tax Levy: |
No |
Version: |
3/24/15 |
Fiscal: |
No |
Consultant: |
Grinnell |
||
PROPERTY TAX POSTPONEMENT
Makes minor, technical changes to the Property Tax Postponement Program.
Background, Existing Law, and Proposed Law
The Senior Citizens and Disabled Citizens Property Tax Postponement Law (PTP), allows the State Controller to pay property taxes to county tax collectors, on behalf of individuals over the age of 62 or disabled persons making less than $39,000 in income per year. The Controller secures repayment by recording a lien against the claimant’s property, which is satisfied when the home is sold or refinanced. As liens are repaid out of sales proceeds, revenue flows back to the Controller, who in turn uses these funds to pay property taxes for new applicants.
Loans do not become due and payable if the claimant or the claimant’s spouse continues to occupy the home. However, the Controller’s lien is only paid off when proceeds remain after previously filed liens have been satisfied; liens filed by county tax collectors have “super priority” status, and therefore must be satisfied before all others regardless of when they’re filed.
In 2009, due to budgetary constraints, and fewer funds flowing back to the Controller as a result of diminishing sales prices, the Legislature prohibited persons from filing new claims for property tax postponement, and the Controller from accepting applications (SBx3 8, Ducheny, 2009). However, the Legislature resuscitated the program last year by removing SBx3 8’s prohibition, albeit with tightened eligibility criteria, and a requirement for the Controller to transfer to the General Fund repayments received above a $20 million total (AB 2231, Gordon, 2014). The Controller wants to clean up some parts of existing law that need to be changed after AB 2231’s enactment.
I. Certificates of Eligibility. The PTP program formerly used a process where the Controller provided “certificates of eligibility” to applicants to pay their property taxes. The Controller submitted these “checks” to the county. The renewed program uses electronic funds transfers instead, and while AB 2231 removed almost all references to certificates of eligibility, it didn’t make the change in Government §16183, which also contains two paragraphs labelled as (1). Senate Bill 801 removes the reference to certificates, and strikes the first paragraph (1) label. Additionally, the bill clarifies in the same section that interest rates for past loans are calculated at the Pooled Money Investment Account rate as was the case under the former program, while future loans pay the 7% percent rate provided for in AB 2231.
II. Contents of Lien. The former PTP program required county treasurers to add the property description to the lien for properties owned by individuals enrolled in the program, and then forward the lien to the county recorder for filing. However, for the new program, AB 2231 instead directs the Controller to prepare the lien and file it with the recorder. SB 801 replaces references in the relevant section from county tax collectors to the Controller, deletes the information required as part of the lien because the Controller isn’t likely to be able to describe properties across the state, and changes the appropriate verbs from “recorded” to “executed,” because the Controller doesn’t actually record the document.
III. Replicated Payments. If the Controller denies a taxpayer for the program, but the taxpayer successfully appeals, the taxpayer may already have paid the county the taxes while the appeal is pending. In this case, the Controller sends a payment to the county, but if the individual has already paid the taxes, there may be an overpayment. The county should refund the overpayment payment directly to the taxpayer, but the law doesn’t explicitly require it. SB 801 explicitly states that in the event an appeal reverses the initial denial, and the Controller sends a payment for taxes due in the same fiscal year for which the taxpayer has paid the taxes, the county must refund that amount.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. When AB 2231 resurrected the PTP program, it didn’t change all the statutes necessary for the Controller to ensure that the law would be administered effectively. SB 801 consolidates several minor, technical changes to PTP program statutes to assist the Controller implement the program as she prepares to again begin accepting applications in September. Senate Rule 23 requires all members of the Committee to sign Committee Bills prior to introduction, so SB 801 can only contain items with universal agreement; should anyone object to a provision in the measure, it will be removed.
2. Related Legislation. On April 22nd, the Committee approved SB 477 (Leyva), which expands the renewed PTP program to mobile homes. The Senate Committee on Appropriations will hear the measure soon.
Support and Opposition
4/23/15
Support: State Controller Betty Yee.
Opposition:
-- END --
Bill Author
Bill Co-Author(s):