BILL NUMBER: AB 2231 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Members Gordon, Levine, and Patterson
FEBRUARY 20, 2014
An act to amend Sections 16182, 16186, 16190, 16200, 16210, 16211,
16211.5, and 16213 of, to repeal Sections 16185, 16212, and 16214
of, and to repeal and add Section 16180 of, the Government Code, and
to amend Sections 2514, 3375, 20503, 20583, 20584, 20602, 20621,
20622, 20645.5, and 20645.6 of, to amend and repeal Section 20623 of,
to repeal Section 20583.1 of, and to repeal Chapter 3.3 (commencing
with Section 20639) of Part 10.5 of Division 2 of, the Revenue and
Taxation Code, relating to state government, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2231, as introduced, Gordon. State Controller: property tax
postponement.
The Senior Citizens and Disabled Citizens Property Tax
Postponement Law, until February 20, 2009, authorized a claimant, as
defined, to file a claim with the Controller to postpone the payment
of ad valorem property taxes, where household income, as defined, did
not exceed specified amounts. That law authorized the Controller,
upon approval of the claim, to either make a payment directly to
specified entities, or to issue the claimant a certificate of
eligibility that constituted a written promise of the state to pay
the amount specified on the certificate, as provided. That law
required these payments to be made out of specified funds
appropriated to the Controller, and also required certain repaid
property tax postponement payments to be paid into an impound account
and transferred, as specified, to the General Fund. That law also
required all sums paid by the Controller for postponed property taxes
to be secured by a lien in favor of the State of California.
Existing law, on and after February 20, 2009, prohibits a person
from filing a claim for postponement, and prohibits the Controller
from accepting applications for postponement, under the Senior
Citizens and Disabled Citizens Property Tax Postponement Law.
This bill would make inoperative the prohibition against a person
filing a claim for postponement and the Controller from accepting
applications for postponement under the program as of July 1, 2015,
and would repeal these provisions on January 1, 2016. This bill would
exclude losses and nonexpenses from "income" for purposes of these
provisions. This bill would also exclude mobilehomes and houseboats
from the scope of these provisions, would repeal the related Senior
Citizens Mobilehome Property Tax Postponement Law, and make
conforming changes to related provisions.
This bill would create in the State Treasury a Senior Citizens and
Disabled Citizens Property Tax Postponement Fund. This bill would
delete the requirement that funds be placed in an impound account and
would, instead, require that repaid property tax postponement
payments be directly deposited into the newly created fund. The bill
would continuously appropriate these funds to the Controller for
purposes of administering the property tax postponement program, as
specified.
Existing law authorizes the Controller to subordinate the lien for
postponed property taxes where the Controller determines
subordination is appropriate.
This bill would eliminate that authorization.
Existing law requires that the owners equity interest in the
residential dwelling be at least 20% of the full value of the
property in order to be eligible to participate in the postponement
program.
This bill would increase the equity requirement to at least 40%.
Existing law requires the repayment of postponed taxes in
specified circumstances.
This bill would, in addition, require repayment if the claimant
refinances the dwelling or has elected to participate in a revenue
mortgage program for the dwelling. The bill would require that the
county tax collector notify the Controller within 60 days of all
property subject to a "Notice of Lien for Postponed Property Taxes"
becoming tax defaulted or subject to collection procedures, as
specified.
Existing law requires a claim for postponement to 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 that
fiscal year.
This bill would instead require a claim for postponement to be
filed after September 1 of the calendar year in which the fiscal year
for which postponement is claimed begins, and on or before April 10
of that fiscal year.
Existing law makes optional certain duties of local agencies
related to recordation of the tax lien.
This bill would delete that provision, thereby imposing a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16180 of the Government Code is repealed.
16180. Out of the amount appropriated to the Controller by
Section 16100, the sum of twelve million seven hundred thousand
dollars ($12,700,000) for the 1977-78 fiscal year and each fiscal
year thereafter is hereby made available to the Controller to pay the
face amount of all certificates of eligibility for the postponement
of property taxes submitted to the Controller which are signed and
countersigned in the manner specified in Sections 20602, 20603,
20639.6, 20640.6, and 20640.7 of the Revenue and Taxation Code.
SEC. 2. Section 16180 is added to the Government Code, to read:
16180. (a) There is hereby created in the State Treasury a Senior
Citizens and Disabled Citizens Property Tax Postponement 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) of Part
10.5 of Division 2 of the Revenue and Taxation Code).
(b) The Controller shall transfer any moneys in the fund in excess
of ten million dollars ($10,000,000) to the General Fund.
(c) 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.
SEC. 3. 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 or a mobilehome for which property taxes
have been postponed , or both . 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) 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 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: it is
released by the Controller in the manner prescribed by Section 16186.
(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 priority to the lien of the State of California.
(c) In the case of mobilehomes:
(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.
(2) The notice of lien may bear the facsimile signature of the
Controller. The signature shall be that of the person who is in the
office at the time of execution of the notice of lien. However, the
notice of lien is valid and binding notwithstanding the person having
ceased to hold the office of Controller before the date of filing.
(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, all of the following:
(A) The name or names of the registered owner or owners, legal
owner or owners, if different than the registered owner or owners and
the names, if any, of all junior lienholders.
(B) The identification number of the notice of lien which has been
assigned the lien by the Controller.
(4) The notice of lien shall be transmitted to the Department of
Housing and Community Development at its office in Sacramento,
California.
(5) Upon receipt of the notice of lien for postponed property
taxes from the Controller, the Department of Housing and Community
Development shall amend the permanent title record of the mobilehome
to reflect that the property taxes on the mobilehome are subject to
postponement.
(6) The Department of Housing and Community Development shall
provide the Controller with an acknowledgement of receipt and
amendment of the permanent title record.
(7) From the time 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 for purposes of transferring
any ownership interest or transferring or creating any security
interest in the mobilehome, 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.
(d) 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.
(e) Notwithstanding any other provision in this section, any
action required of a local agency by this section in order to give
effect to the Senior Citizens Mobilehome Property Tax Postponement
Law (Chapter 3.3 (commencing with Section 20639)) of Part 10.5 of
Division 2 of the Revenue and Taxation Code, and that has been
determined by the Commission on State Mandates to be a reimbursable
mandate, shall be optional.
SEC. 4. Section 16185 of the Government Code is repealed.
16185. Notwithstanding the provisions of Section 16182, provided
the interests of the state are adequately protected, the Controller
may subordinate the lien for postponed real property taxes where the
Controller determines subordination is appropriate.
A recital in a certificate of subordination, executed by the
Controller, recorded in the county wherein the notice of lien for
postponed property taxes has been recorded, subordinating such lien
to specifically identified liens or encumbrances shall be conclusive
in favor of all persons or entities thereafter dealing with the real
property.
SEC. 5. Section 16186 of the Government Code is amended to read:
16186. If at any time the amount of the obligation secured by the
lien for postponed property taxes is paid in full or otherwise
discharged, the Controller, or the authorized delegate of the
Controller, shall in the case of real property :
(a) In the case of real property:
(1)
(a) Execute and cause to be recorded in the office of
the county recorder of the county wherein the real property described
in the lien is located, a release of the lien conclusively
evidencing the satisfaction of all amounts secured by the lien. The
cost of recording the release of the lien shall be added to and
become part of the obligation secured by the lien being released.
(2)
( b) Direct the tax collector to remove from
the secured roll, the information required to be entered thereon by
paragraph (1) of subdivision (a) of Section 2514 of the Revenue and
Taxation Code with respect to the property described in the lien.
(3)
( c) Direct the assessor to remove from the
assessment records applicable to the property described in the lien,
the information required to be entered on such records by Section
2515 of the Revenue and Taxation Code.
(b) In the case of a mobilehome:
(1) Direct the tax collector to remove from the secured roll the
information required to be entered thereon by paragraph (1) of
subdivision (a) of Section 2514 of the Revenue and Taxation Code.
(2) Transmit a Release of Lien to the owner of the mobilehome or
the owner's heirs or assigns. The owner, or the owner's heirs or
assigns, shall transmit the Release of Lien, and a fee of six dollars
($6), to the Department of Housing and Community Development. Upon
receipt of the Release of Lien and the fee, the department shall
terminate the restriction on the permanent title record as provided
by Section 16182.
SEC. 6. 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
interest holder of the residential dwelling, as defined in Section
20583 or Section 20640 of the Revenue and Taxation Code, or a coowner
or copossessory interest holder with a person other than a spouse or
other individual eligible to postpone property taxes pursuant to
Chapter 2 (commencing with Section 20581), Chapter 3.3 (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 interest holder 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 interest holder
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 3.3 (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. 7. Section 16200 of the Government Code is amended to read:
16200. In the event that the Controller receives the notice
described in Section 16187 of this code or Section 3375 of the
Revenue and Taxation Code, the Controller may take any of the
following actions which will best serve the interests of the state:
(a) Out of the amount appropriated by Section 16100, the
Controller may pay the amount of any delinquent taxes, interest, or
penalties on the property or the amount of any other obligation
secured by a lien or encumbrance on the property and add such amount
to the amount secured by the lien on such property provided for in
Article 1 (commencing with Section 16180) of this chapter.
(b)
(a) Notify by United States mail the tax collector or
other party that such notice has been received and that the
Controller must be given at least 20 days prior notice of the date
that the property will be sold at auction. If the Controller elects
to proceed under this subdivision, the Controller may use funds
appropriated by Section 16100 to bid on the property at the auction
up to the amount secured by the state's lien on the property and any
lien on such property having priority over the state's lien. All
additional amounts paid pursuant to this subdivision shall be added
to the amount secured by the lien on such property provided for in
Article 1 (commencing with Section 16180) of this chapter.
(c)
(b) Acknowledge by United States mail that the notice
required by Section 16187 of this code or Section 3375 of the Revenue
and Taxation Code has been received.
SEC. 8. Section 16210 of the Government Code is amended to read:
16210. In the event that the amount secured by the state's lien
provided for in Article 1 (commencing with Section 16180) is paid by
reason of the sale or condemnation of the property on which the lien
attaches, the funds so received shall be placed in an
impound account for a period of six months. In connection with the
establishment of such an account, the Controller shall release the
state's lien in the manner prescribed by Section 16186
the Senior Citizens and Disabled Citizens Property Tax Postponement
Fund .
SEC. 9. Section 16211 of the Government Code is amended to read:
16211. The claimant 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) of Part 10.5 of Division 2 of the
Revenue and Taxation Code whose residential dwelling was sold or
condemned may draw upon the amount in the account to purchase a new
residential dwelling, and the amount so drawn shall be secured by a
new lien against the new residential dwelling from the time the
Controller records the new lien against the new residential dwelling
as provided for under Section 16182.
In the case of real property, the Controller shall subordinate the
new lien to the lien of the note and deed of trust of the purchase
money obligations used in the acquisition of the new residential
dwelling, provided the claimant has an equity of at least 20 percent
of the full value of the property, as required by paragraph (1) of
subdivision (b) of Section 20583 of the Revenue and Taxation Code,
prior to recordation of that subordination. The lien shall have
priority over all subsequent liens, except as provided in Section
2192.1 of the Revenue and Taxation Code.
SEC. 10. Section 16211.5 of the Government Code is amended to
read:
16211.5. (a) In the event that the real property securing the
state's lien provided for in Article 1 (commencing with Section
16180) is the residential dwelling of a claimant under Chapter 2
(commencing with Section 20581) of Part 10.5 of Division 2 of the
Revenue and Taxation Code and is voluntarily sold, the funds derived
from the voluntary sale of the residential dwelling shall be placed
in an impound account for a period of six months. In
connection with the establishment of such account, the
Senior Citizens and Disabled Citizens Property Tax Postponement
Fund. At that time, the Controller shall release the state's
lien in the manner prescribed by Section 16186.
(b) The claimant under Chapter 2 (commencing with Section 20581)
of Part 10.5 of Division 2 of the Revenue and Taxation Code whose
residential dwelling was voluntarily sold may
shall not draw upon the amount in the account to
purchase a new residential dwelling, and the amount so drawn shall be
secured by a new lien against the new residential dwelling from the
time the Controller records the new lien against the new residential
dwelling as provided for under Section 16182 Senior
Citizens and Disabled Citizens Property Tax Postponement
Fund .
The Controller shall subordinate such new lien to the note and
deed of trust of the purchase money obligations used in the
acquisition of the new residential dwelling, provided the claimant
has an equity of at least 20 percent of the full value of the
property, as required by paragraph (1) of subdivision (b) of Section
20583 of the Revenue and Taxation Code, prior to recordation of such
subordination. Such lien shall have priority over all subsequent
liens, except as provided in Section 2192.1 of the Revenue and
Taxation Code.
SEC. 11. Section 16212 of the Government Code is repealed.
16212. An amount drawn pursuant to Section 16211 or 16211.5 shall
be treated as an amount paid pursuant to Section 16180 for all
purposes of this chapter.
SEC. 12. Section 16213 of the Government Code is amended to read:
16213. At the end of the six-month period specified in Section
16210 or the six-month period specified in Section 16211.5, all funds
remaining in an impound account shall be transferred to the
General Fund Senior Citizens and Disabled Citizens
Property Tax Postponement Fund, established pursuant to Section 16180
.
SEC. 13. Section 16214 of the Government Code is repealed.
16214. All moneys in an impound account created pursuant to this
article are continually appropriated to the Controller for the
purposes of this article.
SEC. 14. Section 2514 of the Revenue and Taxation Code is amended
to read:
2514. (a) Upon receipt of a certificate of eligibility described
in Section 20602, Section 20639.6, or Section 20640.6 signed by the
claimant, the claimant's spouse, or authorized agent appointed under
regulations adopted by the Controller pursuant to Section 20603 or
Section 20640.7, the tax collector shall ascertain whether the amount
of money entered on the certificate by such claimant or agent, when
added to other amounts available for such purpose, are sufficient to
pay the amount due and owing.
If such is the case, the tax collector or his or her designee
shall countersign the certificate and mark the tax paid. Once signed
and countersigned, a certificate of eligibility shall be deemed a
negotiable instrument for purposes of all laws of this state, as
specified in subdivision (d) of Section 20602. Upon acceptance of
such a certificate:
(1) The tax collector shall enter the fact that taxes on the
property have been postponed in appropriate columns on the roll. In
the case of the secured roll, this information may be entered in that
portion of the roll which has been designated for tax default
information required by Section 3439.
(2) In the case of a certificate of eligibility issued pursuant to
Section 20602, the tax collector shall determine if the property
described in the certificate of eligibility is subject to a lien
recorded pursuant to Section 16182 of the Government Code. If the
property is not subject to such a lien, the tax collector shall enter
the amount paid by use of the certificate, the date of such payment,
the Controller's identification number shown on the certificate of
eligibility, the address of the property covered by the certificate,
and the name of the claimant as shown on the certificate on a "notice
of lien for postponed property taxes" form which shall be provided
by the Controller. The tax collector shall thereafter forward such
notice of lien form to the assessor.
(3)
2514. (a) With respect to a
claimant whose property taxes are paid by a lender from an impound,
trust, or other type of account described in Section 2954 of the
Civil Code, the tax collector shall notify the auditor of the
claimant's name and address, and the duplicate amount of
money entered on the certificate the
Controller transferred to the tax collector via an electronic fund
transfer .
The county auditor, treasurer, or disbursing officer
shall send a check in the amount of money within 30 days
following the date on which the installment is paid by the lender or
the certificate of eligibility is received from the claimant,
whichever is later based on the electronic transfer by
the Controller, to the Controller within 60 days of the replicated
payment .
(b) The procedures established by this chapter shall not be
construed to require a lender to alter the manner in which a lender
makes payment of the property taxes of such a claimant.
(c) Notwithstanding any other provision in this section, any
action required of a local agency by this section in order to give
effect to the Senior Citizens Mobilehome Property Tax Postponement
Law (Chapter 3.3 (commencing with Section 20639)) of Part 10.5 of
Division 2, and that has been determined by the Commission on State
Mandates to be a reimbursable mandate, shall be optional.
SEC. 15. Section 3375 of the Revenue and Taxation Code is amended
to read:
3375. The county tax collector shall notify the
Controller within 60 days , in such manner as the
Controller shall direct, of all property subject to a "Notice of Lien
for Postponed Property Taxes" recorded pursuant to Section 16182 of
the Government Code, which:
(a) Becomes tax defaulted subsequent to the date of entry on the
secured roll of the information required by paragraph (1) of
subdivision (a) of Section 2514; or
(b) Becomes subject to those collection procedures that are
available for collection of delinquent taxes or assessments on the
unsecured roll.
SEC. 16. Section 20503 of the Revenue and Taxation Code is amended
to read:
20503. (a) "Income" means adjusted gross income as defined in
Section 17072 plus all of the following cash items:
(1) Public assistance and relief.
(2) Nontaxable amount of pensions and annuities.
(3) Social security benefits (except Medicare).
(4) Railroad retirement benefits.
(5) Unemployment insurance payments.
(6) Veterans' benefits.
(7) Exempt interest received from any source.
(8) Gifts and inheritances in excess of three hundred dollars
($300), other than transfers between members of the household. Gifts
and inheritances include noncash items.
(9) Amounts contributed on behalf of the contributor to a
tax-sheltered retirement plan or deferred compensation plan.
(10) Temporary workers' compensation payments.
(11) Sick leave payments.
(12) Nontaxable military compensation as defined in Section 112 of
the Internal Revenue Code.
(13) Nontaxable scholarship and fellowship grants as defined in
Section 117 of the Internal Revenue Code.
(14) Nontaxable gain from the sale of a residence as defined in
Section 121 of the Internal Revenue Code.
(15) Life insurance proceeds to the extent that the proceeds
exceed the expenses incurred for the last illness and funeral of the
deceased spouse of the claimant. "Expenses incurred for the last
illness" includes unreimbursed expenses paid or incurred during the
income calendar year and any expenses paid or incurred thereafter up
until the date the claim is filed. For purposes of this paragraph,
funeral expenses shall not exceed five thousand dollars ($5,000).
(16) If an alternative minimum tax is required to be paid pursuant
to Chapter 2.1 (commencing with Section 17062) of Part 10, the
amount of alternative minimum taxable income (whether or not cash) in
excess of the regular taxable income.
(17) Annual winnings from the California Lottery in excess of six
hundred dollars ($600) for the current year.
(b) For purposes of this chapter, total income shall be determined
for the calendar year (or approved fiscal year ending within that
calendar year) which ends within the
fiscal year for which assistance is claimed.
(c) For purposes of this chapter, all losses and nonexpenses shall
be converted to zero for the purpose of determining whether the
homeowner meets the Property Tax Postponement requirement.
(c)
(d) For purposes of Chapter 2 (commencing with Section
20581), Chapter 3 (commencing with Section 20625), and Chapter 3.5
(commencing with Section 20640), total income shall be determined for
the calendar year ending immediately prior to the commencement of
the fiscal year for which postponement is claimed.
SEC. 17. Section 20583 of the Revenue and Taxation Code is amended
to read:
20583. (a) "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, owned by the claimant, the claimant and spouse,
or by the claimant and either another individual eligible for
postponement under this chapter or an individual described in
subdivision (a), (b), or (c) of Section 20511 and located in this
state. It shall include condominiums and mobilehomes
that are assessed as realty for local property tax
purposes. It also includes part of a multidwelling or multipurpose
building and a part of the land upon which it is built. In
the case of a mobilehome not assessed as real property that is
located on land owned by the claimant, "residential dwelling"
includes the land on which the mobilehome is situated and so much of
the land surrounding it as reasonably necessary for use of the
mobilehome as a home.
(b) As used in this chapter in reference to ownership interests in
residential dwellings, "owned" includes (1) the interest of a vendee
in possession under a land sale contract provided that the contract
or memorandum thereof is recorded and only from the date of
recordation of the contract or memorandum thereof in the office of
the county recorder where the residential dwelling is located, (2)
the interest of the holder of a life estate provided that the
instrument creating the life estate is recorded and only from the
date of recordation of the instrument creating the life estate in the
office of the county recorder where the residential dwelling is
located, but "owned" does not include the interest of the holder of
any remainder interest or the holder of a reversionary interest in
the residential dwelling, (3) the interest of a joint tenant or a
tenant in common in the residential dwelling or the interest of a
tenant where title is held in tenancy by the entirety or a community
property interest where title is held as community property, and (4)
the interest in the residential dwelling in which the title is held
in trust, as described in subdivision (d) of Section 62, provided
that the Controller determines that the state's interest is
adequately protected.
(c) For purposes of this chapter, the registered owner of a
mobilehome shall be deemed to be the owner of the mobilehome.
(d)
(c) Except as provided in subdivision (c), and Chapter
3 (commencing with Section 20625), ownership must be evidenced by an
instrument duly recorded in the office of the county where the
residential dwelling is located.
(e)
(d) "Residential dwelling" does not include any of the
following:
(1) Any residential dwelling in which the owners do not have an
equity of at least 20 40 percent of the
full value of the property as determined for purposes of property
taxation or at least 20 40 percent of
the fair market value as determined by the Controller and where the
Controller determines that the state's interest is adequately
protected. The 20-percent 40-percent
equity requirement shall be met at the time the claimant or
authorized agent files an initial postponement claim and tenders to
the tax collector the initial certificate of eligibility described in
Sections 20602, 20639.6, and 20640.6.
(2) Any residential dwelling in which the claimant's interest is
held pursuant to a contract of sale or under a life estate, unless
the claimant obtains the written consent of the vendor under the
contract of sale, or the holder of the reversionary interest upon
termination of the life estate, for the postponement of taxes and the
creation of a lien on the real property in favor of the state for
amounts postponed pursuant to this act.
(3) Any residential dwelling on which the claimant does not
receive a secured tax bill.
(4) Any residential dwelling in which the claimant's interest is
held as a possessory interest, except as provided in Chapter 3.5
(commencing with Section 20640).
(f) Notwithstanding subdivision (c) of Section 20584, houseboats
and floating homes, as defined by Section 20583.1, on which property
taxes are delinquent at the time the application for postponement
under this chapter is made, shall not be eligible for postponement.
SEC. 18. Section 20583.1 of the Revenue and Taxation Code is
repealed.
20583.1. For purposes of Section 20583, "residential dwelling"
includes houseboats and floating homes.
SEC. 19. Section 20584 of the Revenue and Taxation Code is amended
to read:
20584. (a) "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.
(b) Whenever a residential dwelling is an integral part of a
larger tax unit, such as a duplex, farm or a multipurpose building,
"property taxes" shall be the percentage of the total property taxes
as the value of the residential dwelling is of the value of the total
tax unit.
(c) "Property taxes" includes any property taxes
means property taxes for current fiscal years for
which the claim is made and excludes delinquent taxes for prior
fiscal years that become delinquent after the claimant was 62
years of age or after the claimant became blind or disabled as
defined in Section 12050 of the Welfare and Institutions Code.
SEC. 20. Section 20602 of the Revenue and Taxation Code is amended
to read:
20602. (a) Upon approval of
a claim described in Section 20601, the Controller may do
either of the following:
(1) Make
shall make payments directly to a lender,
mortgage company, escrow company, or 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 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.
(2) Issue to the claimant a certificate of eligibility, which
shall consist of two parts, both of which shall contain the name of
the claimant, the address of the residential dwelling on which the
claimant has applied for property tax postponement, and that other
information and in that form as the Controller shall prescribe. In
the event that that 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 the property taxes appearing on that city's tax bill. Each part of
a certificate of eligibility shall be payable in an unspecified
amount and shall contain statements to identify the property tax
installment to which it may be applied.
(b) The Controller shall prescribe the form of the 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 their respective certificates
and mail both certificates to the tax collector at the same time,
and (2) those taxpayers will receive a refund check from the county
or city in the amount they entered on each 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, and (3) the intent of this procedure
is to make sure the taxes on the claimant's dwelling are not paid
twice.
(c) 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, such certificate shall constitute a written promise
on the part of the State of California to pay the sum of money
specified therein and such 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.
(d) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.
(e) The Controller shall issue certificates of eligibility claims
approved on or before September 30 between October 15 and November 1
of the fiscal year for which postponement is claimed. Certificates
for claims approved after September 30 shall be issued at such times
as the Controller determines will best implement the purpose of this
chapter.
(f) 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 pursuant to subdivision (b) may obtain a duplicate copy
of said certificate as a replacement. (Under such 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 such duplicate copy.)
SEC. 21. 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."
(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 assessor's 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 20-percent
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 , in the
event the Controller issues a certificate of eligibility,
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. 22. Section 20622 of the Revenue and Taxation Code is amended
to read:
20622. The claim for postponement shall be filed after
May 15 September 1 of the calendar year in which
the fiscal year for which postponement is claimed begins, and on or
before December April 10 of that fiscal
year; if December April 10th falls on
Saturday, Sunday, or a legal holiday, the date is extended to the
next business day.
SEC. 23. Section 20623 of the Revenue and Taxation Code is amended
to read:
20623. (a) No person shall file a claim for
postponement under this chapter on or after the effective date of
the act adding this section, and the Controller shall not accept
applications for postponement under this chapter on or after that
date.
(b) This section shall become inoperative on July 1, 2015, and as
of January 1, 2016, is repealed, unless a later enacted statute that
is enacted before January 1, 2016, deletes or extends the dates on
which it becomes inoperative and is repealed.
SEC. 24. Chapter 3.3 (commencing with Section 20639) of Part 10.5
of Division 2 of the Revenue and Taxation Code is repealed.
SEC. 25. Section 20645.5 of the Revenue and Taxation Code is
amended to read:
20645.5. 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 but
before delinquency date of the first or second installment of
property taxes, then any delinquent penalties and interest for such
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. In the event of such willful neglect, the
certificates of eligibility an electronic fund
transfer for such that current
fiscal year can be used to pay delinquent taxes only if accompanied
by sufficient amounts to pay the delinquent interest and penalties.
SEC. 26. Section 20645.6 of the Revenue and Taxation Code is
amended to read:
20645.6. 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 such denial is
reversed after appeal pursuant to Section 20645.1, the Controller
shall issue a warrant to the claimant,
electronically transfer funds to the county, if the taxes for
the fiscal year have been paid, for the amount of such taxes. If the
taxes for the fiscal year are delinquent, any resulting penalties or
interest shall be canceled.
SEC. 27. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.