BILL NUMBER: AB 2719 CHAPTERED 09/29/06 CHAPTER 616 FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2006 APPROVED BY GOVERNOR SEPTEMBER 29, 2006 PASSED THE SENATE AUGUST 24, 2006 PASSED THE ASSEMBLY MAY 30, 2006 AMENDED IN ASSEMBLY APRIL 6, 2006 INTRODUCED BY Assembly Member Houston FEBRUARY 24, 2006 An act to amend Section 20585 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGEST AB 2719, Houston Property tax postponement. The Senior Citizens and Disabled Citizens Property Tax Postponement Law allows senior citizens and disabled persons to postpone their payment of ad valorem property taxes, special assessments, and fees and other charges due on a residential dwelling, where household income, as defined, does not exceed either $34,000 or $24,000, as applicable. This bill would, for the 2007 calendar year and each subsequent calendar year, and for approved fiscal years commencing within any of those calendar years, allow senior citizens and disabled persons to postpone the payment of ad valorem property taxes, special assessments, and fees and other charges, where household income, as defined, does not exceed specified amounts. This bill would provide for the annual adjustment of that household income amount for inflation, commencing with the 2010 calendar year and fiscal years commencing within that calendar year. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 20585 of the Revenue and Taxation Code is amended to read: 20585. Postponement shall not be allowed under this chapter or Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) if household income exceeds either of the following amounts: (a) For the 1976 calendar year or for any approved fiscal year commencing within that calendar year, household income shall not exceed twenty thousand dollars ($20,000). (b) For all subsequent calendar years and approved fiscal years, postponement shall not be allowed under this chapter, Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) if household income exceeds an amount determined as follows: (1) On or before March 1 of each year, the California Department of Industrial Relations shall transmit to the Controller the percentages of increase in the California Consumer Price Index for all Urban Consumers and in the California Consumer Price Index for Urban Wage Earners and Clerical Workers of December of the prior calendar year over December of the preceding calendar year. (2) The Controller shall compute an inflation adjustment factor by adding 100 percent to the larger of the California Consumer Price Index percentage increases furnished pursuant to paragraph (1). (3) In 1978, the Franchise Tax Board shall multiply twenty thousand dollars ($20,000) by the inflation adjustment factor to determine the maximum allowable gross household income for the 1977 calendar year and for approved fiscal years commencing within that calendar year. In 1979 and subsequent calendar years through and including 1983, the Controller shall multiply the maximum allowable household income determined for the preceding calendar year by the inflation adjustment factor to determine the maximum allowable household income for the applicable calendar year and approved fiscal years commencing within that calendar year. In determining the maximum allowable household income pursuant to this section, the Controller shall round that amount to the nearest hundred dollar amount. (c) For calendar year 1984 and subsequent calendar years and for approved fiscal years commencing within those years, postponement shall not be allowed under this chapter, Chapter 3 (commencing with Section 20626), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640), if household income exceeds an amount determined as follows: (1) For claimants who filed and qualified in the calendar year 1983 and for whom postponement has been allowed for each subsequent calendar year up to and including the calendar year 2007, thirty-four thousand dollars ($34,000). For these same claimants, for the calendar year 2008 or for any approved fiscal year commencing within that calendar year, household income shall not exceed thirty-five thousand five hundred dollars ($35,500). (2) For all other claimants, for calendar years up to and including 2006, household income shall not exceed twenty-four thousand dollars ($24,000). For these same claimants, for the 2007 calendar year or for any approved fiscal year commencing within that calendar year, household income shall not exceed thirty-one thousand five hundred dollars ($31,500). For these same claimants, for the 2008 calendar year or for any approved fiscal year commencing within that calendar year, household income shall not exceed thirty-five thousand five hundred dollars ($35,500). (3) (A) For all claimants for the calendar year 2009 or for any approved fiscal year commencing within that calendar year, postponement shall not be allowed under this chapter, Chapter 3 (commencing with Section 20626), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640), if household income exceeds thirty-nine thousand dollars ($39,000). (B) For the 2010 calendar year and each subsequent calendar year, and for any approved fiscal year commencing within that calendar year, the household income amount specified in subparagraph (A) shall be adjusted for inflation, in accordance with an inflation factor determined pursuant to paragraphs (1) and (2) of subdivision (b).