BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 34X1|
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THIRD READING
Bill No: AB 34X1
Author: Blumenfield (D)
Amended: 6/9/11 in Senate
Vote: 21
PRIOR VOTES NOT RELEVANT
SUBJECT : Budget Act of 2011: property tax postponement
program
SOURCE : Author
DIGEST : This bill establishes the Senior Citizens and
Disabled Citizens Property Tax Postponement Fund within the
State Treasury and annually appropriates moneys in the fund
for the purposes of paying costs and disbursements related
to the postponement of property taxes of eligible senior
citizens and disabled citizens.
Senate Floor Amendments of 6/9/11 delete the prior version
of the bill which expressed the intent of the Legislature
to enact statutory changes relating to the Budget Act of
2011 and inserts the current language relative to the
Senior Citizens and Disabled Property Tax Postponement
Fund.
ANALYSIS : The Senior Citizens and Disabled Citizens
Property Tax Postponement Program (program) was created in
1997. Under the program, the state paid the property taxes
owed to the county by property owners enrolled in the
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program. The state placed a lien on the property for which
state funding was used to pay the property taxes. The lien
was released when the property was sold or transferred and
the state was repaid. To be eligible for the program,
participants required to be at least 62 years old, or
disabled or blind. In addition, income restrictions applied
to property owner participants. For the last effective
date of the program prior to its suspension, property
owners with gross household incomes in excess of $35,500
were ineligible for the program. The program was suspended
in 2009. The design of the previous program required some
loan repayments to go to the General Fund and some
repayments to go to the program's impound account. These
later amounts were transferred to the General Fund after
six months. Appropriations were made from the General Fund
to pay the postponed property taxes, as opposed to the
revolving fund concept embodied in this bill.
This bill:
1. Establishes the Senior Citizens and Disabled Citizens
Property Tax Postponement Fund within the State Treasury
and annually appropriates moneys in the fund for the
purposes of paying costs and disbursements related to
the postponement of property taxes of eligible senior
citizens and disabled citizens.
2. Requires the transfer of funds in excess of $10 million
that accumulate in the Senior Citizens and Disabled
Citizens Property Tax Postponement Fund to the General
Fund and deletes any General Fund appropriation for the
program.
3. Requires loan repayments relating to the Senior Citizens
and Disabled Citizens Property Tax Postponement Law that
are not deposited into the program's impound account to
be deposited directly into the Senior Citizens and
Disabled Citizens Property Tax Postponement Fund.
4. Establishes that loan repayments relating to the Senior
Citizens and Disabled Citizens Property Tax Postponement
Law that are deposited in the program's impound account
are transferred to the Senior Citizens and Disabled
Citizens Property Tax Postponement Fund after a
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six-month period.
5. Removes language that eliminates the consideration of
applications for the property tax postponement program
by the Controller and allows applications for the
property tax postponement program to be considered
beginning July 1, 2012.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
Under current law, repayments of loans made pursuant to the
property tax postponement program benefit the General Fund.
By redirecting these funds to a new special fund to resume
the program, the General Fund does not receive the benefit
of the loan repayments. The estimated loss to the General
Fund from repayments in 2011-12 is expected to be in the $5
million to $10 million range.
DLW:kc 6/9/11 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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