California Legislature—2015–16 Regular Session

Assembly BillNo. 1952


Introduced by Assembly Member Gordon

(Principal coauthor: Assembly Member Patterson)

February 12, 2016


An act to amend Section 16180, 16182, 16183, 16184, 16186.5, 16200, 16202, and 27282 of the Government Code, and to amend Sections 2514, 2781, 20503, 20505, 20585, 20586, 20621, 20627, 20640.3, and 20641 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 1952, as introduced, Gordon. Property tax postponement.

(1) Existing law authorizes the Controller, upon approval of a claim for the postponement of ad valorem property taxes, to directly pay a county tax collector for the property taxes owed by the claimant, as provided. Existing law establishes the Senior Citizens and Disabled Citizens Property Tax Postponement Fund and continuously appropriates moneys in the fund to the Controller for specified purposes, including disbursements relating to the postponement of property taxes pursuant to the Property Tax Postponement Law. Existing law requires the Controller to, on June 30, 2018, and on June 30 each year thereafter, transfer any moneys in the fund in excess of $15,000,000 to the General Fund.

This bill would instead require the Controller to transfer any moneys in the fund in excess of $15,000,000, as specified above, not otherwise needed to pay claims approved by the Controller for the postponement of property taxes to the General Fund. The bill would also authorize the Director of Finance to, upon determination by the Controller that there are insufficient moneys in the fund to pay all approved claims for the postponement of property taxes and receipt of written notification from the Controller, authorize expenditures from the General Fund in an amount necessary to pay those claims not sooner than 30 days after notification in writing of the necessity of those expenditures to the chairpersons of the fiscal committees of each house of the Legislature and of the Joint Legislative Budget Committee. By authorizing the expenditure of additional general fund monies for the purpose of the property tax postponement program, this bill would make an appropriation.

(2) Existing law requires that all sums paid for the postponement of property taxes be secured by a lien in favor of the state. In the case of a lien on real property for this purpose, existing law requires, among other things, the recorder for the county in which the real property is subject to the lien to provide a copy of the notice of lien to the county tax collector.

This bill would additionally require the county recorder to provide a copy of the notice of lien to the county assessor.

(3) Existing law requires the Controller to reduce the amount of the obligation secured by the lien against the real property by the amount of any payments received for that purpose and by specified amounts paid by the Franchise Tax Board or by certain other authorized amounts.

This bill would require that payments received for the reduction of the obligation be applied first to any interest due on the loan, 2nd to the principal property tax amount, and finally, if there is any remaining balance, to administrative fees.

(4) Existing law authorizes recordation of certain documents, including a release, discharge, or subordination of a lien for postponed property taxes, without acknowledgment, certificate of acknowledgment, or further proof.

This bill would delete the reference to the subordination of a lien for postponed property taxes from the above-described list of documents that may be recorded without acknowledgment, certificate of acknowledgment, or further proof.

(5) Existing law requires, with respect to a claimant whose property taxes are paid by a lender from an impound, trust, or other specified type of account, the tax collector to notify the auditor of the claimant’s name and address, and the duplicate amount of money the Controller transferred to the tax collector via an electronic fund transfer. Existing law requires the county auditor, treasurer, or disbursing officer to send a check, in the amount of money based on the electronic transfer by the Controller, to the Controller within 60 days of the replicated payment.

This bill would require the county tax collector to notify the auditor, as described above, upon receipt of the electronic fund transfer by the Controller. The bill would require the tax collector to enter the fact that taxes on the property have been postponed in appropriate columns on the roll and, in the case of the secured roll, authorize entry of this information in that portion of the roll which has been designated for tax default information. The bill would require the county auditor, treasurer, or disbursing officer to refund a replicated payment to the claimant, instead of the Controller.

(6) Existing law requires, for purposes of the Gonsalves-Deukmejian-Petris Senior Citizens Property Tax Assistance Law, that all losses and nonexpenses be converted to zero for the purpose of determining whether the homeowner meets the Property Tax Postponement requirement.

This bill would instead require that all losses and nonexpenses be converted to zero, as specified above, for the purposes of the Property Tax Postponement Law.

(7) Existing law requires that a claimant for property tax postponement, generally, be an individual who is a member of the household, is either an owner-occupant, tenant stockholder occupant, or possessory interestholder occupant of the residential dwelling as to which postponement is claimed, and is either 62 years of age or older, blind, or disabled. With respect to blind and disabled claimants, existing law requires that the claimant be blind or disabled, as specified, at the time of application or on December 10 of the fiscal year for which postponement is claimed, whichever is earlier.

This bill would instead require, for blind and disabled claimants, that the claimant be blind or disabled at the time of application or on February 10 of the fiscal year for which postponement is claimed, whichever is earlier.

(8) This bill would make various technical changes related to the property tax postponement program, including updating statutory references to the Senior Citizens and Disabled Citizens Property Tax Postponement Fund and deleting obsolete references to certificates of eligibility and postponement for mobilehomes.

(9) By changing the duties of local officials with respect to the administration of the property tax postponement program, this bill would impose 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: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P4    1

SECTION 1.  

Section 16180 of the Government Code, as
2amended by Section 1 of Chapter 391 of the Statutes of 2015, is
3amended to read:

4

16180.  

(a) There is hereby created in the State Treasury a
5Senior Citizens and Disabled Citizens Property Tax Postponement
6Fund. The fund shall be an interest-bearing fund. Subject to
7subdivision (b) and notwithstanding Section 13340, the fund is
8continuously appropriated to the Controller, commencing January
91, 2015, for purposes of administering this chapter, including, but
10not limited to, necessary administrative costs and disbursements
11relating to the postponement of property taxes pursuant to the
12Property Tax Postponement Law (Chapter 2 (commencing with
13Section 20581), Chapter 3 (commencing with Section 20625), and
14Chapter 3.5 (commencing with Section 20640) of Part 10.5 of
15Division 2 of the Revenue and Taxation Code).

16(b) The Controller shall do both of the following:

17(1) On June 30, 2017, transfer any moneys in the fund in excess
18of twenty million dollars ($20,000,000) to the General Fund.

19(2) On June 30, 2018, and on June 30 each year thereafter,
20transfer any moneys in the fund in excess of fifteen million dollars
21($15,000,000)begin insert not otherwise needed to pay claims approved by
22the Controller for the postponement of property taxes pursuant to
23the Property Tax Postponement Law (Chapter 2 (commencing
24with Section 20581), Chapter 3 (commencing with Section 20625),
25and Chapter 3.5 (commencing with Section 20640) of Part 10.5
26of Division 2 of the Revenue and Taxation Code)end insert
to the General
27Fund.

P5    1(c) On or after January 1, 2015, any loan repayments relating
2to the Senior Citizens and Disabled Citizens Property Tax
3Postponement Law shall be deposited into the Senior Citizens and
4Disabled Citizens Property Tax Postponement Fund.

5(d) Any funds remaining upon the effective date of this section
6in an impound account formerly provided for pursuant to this
7chapter, shall be transferred to the Senior Citizens and Disabled
8Citizens Property Tax Postponement Fund.

begin insert

9(e) If the Controller determines that there are insufficient
10moneys in the fund to pay all approved claims for the postponement
11of property taxes, the Director of Finance, upon receiving
12notification from the Controller, may authorize expenditures from
13the General Fund in an amount necessary to pay those claims not
14sooner than 30 days after providing written notification of the
15necessity of authorizing those expenditures to the chairpersons of
16the fiscal committees of each house of the Legislature and the
17chairperson of the Joint Legislative Budget Committee.

end insert
18

SEC. 2.  

Section 16182 of the Government Code, as amended
19by Section 2 of Chapter 391 of the Statutes of 2015, is amended
20to read:

21

16182.  

(a) All sums paid by the Controller under the provisions
22of this chapter, together with interest thereon, shall be secured by
23a lien in favor of the State of California when funds are transferred
24to the county by the Controller upon the real property for which
25property taxes have been postponed. In the case of a residential
26dwelling which is part of a larger parcel taxed as a unit, such as a
27duplex, farm, or multipurpose or multidwelling building, the lien
28shall be against the entire tax parcel.

29(b) In the case of real property:

30(1) The lien shall be evidenced by a notice of lien for postponed
31property taxes executed by the Controller, or the authorized
32delegate of the Controller, and shall secure all sums paid or owing
33pursuant to this chapter, including amounts paid subsequent to the
34initial payment of postponed taxes on the real property described
35in the notice of lien.

36(2) The notice of lien may bear the facsimile signature of the
37Controller. Each signature shall be that of the person who shall be
38in the office at the time of execution of the notice of lien; provided,
39however, that such notice of lien shall be valid and binding
P6    1notwithstanding any such person having ceased to hold the office
2of Controller before the date of recordation.

3(3) The form and contents of the notice of lien for postponed
4property taxes shall be prescribed by the Controller and shall
5include, but not be limited to, the following:

6(A) The names of all record owners of the real property for
7which the Controller has advanced funds for the payment of real
8property taxes.

9(B) A description of the real property for which real property
10taxes have been paid.

11(C) The identification number of the notice of lien which has
12been assigned the lien by the Controller.

13(4) Within 14 business days of the transfer of funds and the
14notice of lien to the county by the Controller, the notice of lien
15shall be recorded in the office of the county recorder for the county
16in which the real property subject to the lien is located.

17(5) The recorded notice of lien shall be indexed in the Grantor
18Index to the names of all record owners of the real property and
19in the Grantee Index to the Controller of the State of California.

20(6) After the notice of lien has been duly recorded and indexed,
21it shall be returned by the county recorder to the office of the
22Controller. The recorder shall provide the county tax collectorbegin insert and
23the county assessorend insert
with a copy of the notice of lien which has
24beenbegin delete executed by the Controller.end deletebegin insert executed.end insert

25(7) From the time of recordation of a notice of lien for postponed
26property taxes, a lien shall attach to the real property described
27therein and shall have the priority of a judgment lien for all
28amounts secured thereby, except that the lien shall remain in effect
29until either of the following occurs:

30(A) It is released by the Controller in the manner prescribed by
31Section 16186.

32(B) The foreclosure or sale of an obligation secured by a lien
33which is senior in recording priority to the lien of the State of
34California.

35(c) In the case of mobilehome loans established prior to February
3620, 2009, all of the following shall apply:

37(1) The lien shall be evidenced by a notice of lien for postponed
38property taxes executed by the Controller, or the authorized
39delegate of the Controller, and shall secure all sums paid owing
40pursuant to this chapter.

P7    1(2) From the time that the Department of Housing and
2Community Development receives the notice of lien from the
3Controller, the department shall impose a moratorium on any other
4amendments to the permanent title record of the mobilehome unit
5until released by the Controller in the manner prescribed by Section
616186, or an authorization for the amendments is given by the
7Controller in writing.

8(3) From the time of filing a notice of lien, a lien shall attach to
9the mobilehome for which eligibility for the postponement of
10property taxes has been granted.

11

SEC. 3.  

Section 16183 of the Government Code, as amended
12by Section 3 of Chapter 391 of the Statutes of 2015, is amended
13to read:

14

16183.  

(a) From the time a payment is made pursuant to
15Section 16180, the amount of that payment shall bear interest at a
16rate (not compounded), determined as follows:

17(1) Beginning July 1, 2016, the rate of interest shall be 7 percent
18per annum.

19(2) The Controller shall establish an adjusted rate of interest for
20the purpose of this subdivision not later than July 15th of any year
21if the effective annual yield of the Pooled Money Investment
22Account for the prior fiscal year is at least a full percentage point
23more or less than the interest rate which is then in effect. The
24adjusted rate of interest shall be equal per annum to the effective
25annual yield earned in the prior fiscal year by the Pooled Money
26 Investment Account rounded to the nearest full percent, and shall
27become effective for new deferrals, beginning on July 1, 1984,
28and on July 1 of each immediately succeeding year, until June 30,
292016.

30(3) For loans made prior to June 30, 2016, the rate of interest
31provided pursuant to this subdivision for the first fiscal year
32commencing after payment is made pursuant to Section 16180
33shall apply for that fiscal year and each fiscal year thereafter until
34these postponed property taxes are repaid.

35(b) The interest provided for in subdivision (a) shall be applied
36beginning the first day of the month following the month in which
37that payment is made and continuing on the first day of each month
38thereafter until that amount is paid. In the event that any payments
39are applied, in any month, to reduce the amount paid pursuant to
40Section 16180, the interest provided for herein shall be applied to
P8    1the balance of that amount beginning on the first day of the
2following month.

3(c) In computing interest in accordance with this section,
4fractions of a cent shall be disregarded.

5(d) For the purpose of this section, the time a payment is made
6shall be deemed to be the time an electronic funds transfer is made
7by the Controller to the tax collector or the delinquency date of
8the respective tax installment, whichever is later.

9(e) The Controller shall include on forms supplied to claimants
10pursuant to Sections 20621, 20630.5,begin delete 20639.9,end delete 20640.9, and 20641
11of the Revenue and Taxation Code, a statement of the interest rate
12which shall apply to amounts postponed for the fiscal year to which
13the form applies.

14

SEC. 4.  

Section 16184 of the Government Code is amended
15to read:

16

16184.  

begin insert(a)end insertbegin insertend insertThe Controller shall reduce the amount of the
17obligation secured by the lien against the real property by the
18amount of any payments received for that purpose and by
19notification of any amounts paid by the Franchise Tax Board
20pursuant to Section 20564begin insert of the Revenue and Taxation Codeend insert or
21by any amounts authorized pursuant to subdivision (f) of Section
2220621 of the Revenue and Taxation Code.begin delete Theend deletebegin insert Any payment
23received for that purpose shall be applied in the following order:end insert

begin insert

24(1) To any interest due on the loan.

end insert
begin insert

25(2) To the principal property tax amount.

end insert
begin insert

26(3) The remaining balance, if any, to administrative fees.

end insert

27begin insert(b)end insertbegin insertend insertbegin insertTheend insert Controller shall also increase the amount of the
28obligation secured by the lien by the amount of any subsequent
29payments made pursuant to Section 16180 with respect to the real
30property and to reflect the accumulation of interest. All such
31increases and decreases shall be entered in the record described in
32Section 16181.

33

SEC. 5.  

Section 16186.5 of the Government Code is amended
34to read:

35

16186.5.  

In the event that a payment which is made to satisfy
36an obligation secured by a lien for postponed property taxes
37exceeds the amount owing to the state, the Controller may refund
38the overpayment to the party entitled thereto. The Controller shall
39pay those refunds out of the amount appropriated by Sectionbegin delete 16100,end delete
40begin insert 16180,end insert or any appropriation in lieu thereof.

P9    1

SEC. 6.  

Section 16200 of the Government Code is amended
2to read:

3

16200.  

In the event that the Controller receives the notice
4described in Section 16187 of this code or Section 3375 of the
5Revenue and Taxation Code, the Controller may take any of the
6following actions which will best serve the interests of the state:

7(a) Notify by United States mail the tax collector or other party
8that such notice has been received and that the Controller must be
9given at least 20 days prior notice of the date that the property will
10be sold at auction. If the Controller elects to proceed under this
11subdivision, the Controller may use funds appropriated by Section
12begin delete 16100end deletebegin insert 16180end insert to bid on the property at the auction up to the amount
13secured by the state’s lien on the property and any lien on such
14property having priority over the state’s lien. All additional
15amounts paid pursuant to this subdivision shall be added to the
16amount secured by the lien on such property provided for in Article
171 (commencing with Section 16180) of this chapter.

18(b) Acknowledge by United States mail that the notice required
19by Section 16187 of this code or Section 3375 of the Revenue and
20Taxation Code has been received.

21

SEC. 7.  

Section 16202 of the Government Code is amended
22to read:

23

16202.  

Notwithstanding any other provision of law, in the
24event that the state acquires an interest in real property pursuant
25to subdivision (b) of Section 16200, the Controller may, in addition
26to the options provided in Section 16201, take any other action
27with respect to that real property interest as will best serve the
28interest of the state. These actions may include, but shall not be
29limited to, the sale, lease, or retention of any interest so acquired.
30The Controller may contract with licensed real estate brokers,
31maintenance and repair contractors, security contractors, appraisers,
32property managers, insurance brokers, and any other experts or
33specialists as may be necessary to protect or preserve the state’s
34interest in that property. The Controller may pay the costs incurred
35pursuant to those contracts out of the amount appropriated by
36Sectionbegin delete 16100,end deletebegin insert 16180,end insert or from any appropriation in lieu thereof.

37The sale of those interests may be made on the basis of
38conventional financing arrangements including the securing of
39payment through the use of promissory notes, deeds of trust, and
40other accepted methods of deferred payment.

P10   1

SEC. 8.  

Section 27282 of the Government Code is amended
2to read:

3

27282.  

(a) The following documents may be recorded without
4acknowledgment, certificate of acknowledgment, or further proof:

5(1) A judgment affecting the title to or possession of real
6property, authenticated by the certificate of the clerk of the court
7in which the judgment was rendered.

8(2) A notice of support judgment, an interstate lien, a release
9of lien, or any other document completed and recorded by a local
10child support agency or a state agency acting pursuant to Title
11IV-D of the Social Security Act (42 U.S.C. Sec. 651 et seq.).

12(3) A notice of location of mining claim.

13(4) Certificates of amounts of taxes, interest and penalties due,
14notices of state tax liens and extensions thereof executed by the
15state, county, or city taxing agencies or officials pursuant to
16Chapter 14 (commencing with Section 7150) of Division 7 of Title
171 of the Government Code, and Sections 2191.3, 2191.4, and 11495
18of the Revenue and Taxation Code, and releases, partial releases,
19and subordinations executed pursuant to Chapter 14 (commencing
20with Section 7150) of Division 7 of Title 1 of the Government
21Code, and Sections 2191.4, 11496, 14307, and 14308 of the
22Revenue and Taxation Code.

23(5) Notices of lien for postponed property taxes executed
24pursuant to Section 16182.

25(6) Abegin delete release, discharge, or subordinationend deletebegin insert release or dischargeend insert
26 of a lien for postponed property taxes as authorized by Chapter 6
27(commencing with Section 16180) of Part 1 of Division 4 of Title
282.

29(7) A fixture filing as defined by paragraph (40) of subdivision
30(a) of Section 9102 of the Commercial Code.

31(8) An order affecting title to or possession of real property
32issued by a court in an action subject to Section 12527,
33authenticated by the certificate of the clerk of the court in which
34the order was issued or a copy of that order authenticated by a
35declaration under penalty of perjury by the Attorney General or
36by an assistant or deputy of the Attorney General attesting that the
37contents of the copy are the same as the original order issued by
38the court.

39(9) A court certified copy of a satisfaction of judgment.

P11   1(10) A certificate of correction filed pursuant to Sections 66470
2and 66472.1.

3(b) Any document described in this section, from the time it is
4filed with the recorder for record, is constructive notice of the
5contents thereof to subsequent purchasers and mortgagees.

6

SEC. 9.  

Section 2514 of the Revenue and Taxation Code is
7amended to read:

8

2514.  

(a) begin insertUpon receipt of the electronic fund transfer by the
9Controller described in Section 20602, 20630, or 20640.6, the
10following shall occur:end insert

begin insert

11(1) The tax collector shall enter the fact that taxes on the
12property have been postponed in appropriate columns on the roll.
13In the case of the secured roll, this information may be entered in
14that portion of the roll which has been designated for tax default
15information as required by Section 3439.

end insert

16begin insert(2)end insertbegin insertend insertWith respect to a claimant whose property taxes are paid by
17a lender from an impound, trust, or other type of account described
18in Section 2954 of the Civil Code, the tax collector shall notify
19the auditor of the claimant’s name and address, and the duplicate
20amount of money the Controller transferred to the tax collector
21via an electronic fund transfer.

22The county auditor, treasurer, or disbursing officer shallbegin delete send a
23check inend delete
begin insert refundend insert the amount ofbegin delete moneyend deletebegin insert money,end insert based on the
24electronicbegin insert fundend insert transfer by the Controller, to thebegin delete Controllerend deletebegin insert claimantend insert
25 within 60 days of the replicated payment.

26(b) The procedures established by this chapter shall not be
27construed to require a lender to alter the manner in which a lender
28makes payment of the property taxes of such a claimant.

29

SEC. 10.  

Section 2781 of the Revenue and Taxation Code is
30amended to read:

31

2781.  

If a taxpayer or agent for the taxpayer submits a payment
32indicated for application to a specific tax or tax installment and
33that tax or tax installment already has been paid, the county shall
34return the replicated payment to the tendering party within 60 days
35of the date the payment becomes final. For purposes of this section,
36“final” means the original payment that is not subject to
37chargeback, dishonor, or reversal. However, when a replicated
38payment is made of any tax or tax installment paid bybegin delete a certificate
39of eligibilityend delete
begin insert an electronic fund transferend insert pursuant to Section 2514,
40the amount of the replicated payment shall be paid to thebegin delete person
P12   1shown on the certificate.end delete
begin insert claimant on whose behalf the electronic
2fund transfer was made.end insert

3

SEC. 11.  

Section 20503 of the Revenue and Taxation Code is
4amended to read:

5

20503.  

(a) “Income” means adjusted gross income as defined
6in Section 17072 plus all of the following cash items:

7(1) Public assistance and relief.

8(2) Nontaxable amount of pensions and annuities.

9(3) Social security benefits (except Medicare).

10(4) Railroad retirement benefits.

11(5) Unemployment insurance payments.

12(6) Veterans’ benefits.

13(7) Exempt interest received from any source.

14(8) Gifts and inheritances in excess of three hundred dollars
15($300), other than transfers between members of the household.
16Gifts and inheritances include noncash items.

17(9) Amounts contributed on behalf of the contributor to a
18tax-sheltered retirement plan or deferred compensation plan.

19(10) Temporary workers’ compensation payments.

20(11) Sick leave payments.

21(12) Nontaxable military compensation as defined in Section
22112 of the Internal Revenue Code.

23(13) Nontaxable scholarship and fellowship grants as defined
24in Section 117 of the Internal Revenue Code.

25(14) Nontaxable gain from the sale of a residence as defined in
26Section 121 of the Internal Revenue Code.

27(15) Life insurance proceeds to the extent that the proceeds
28exceed the expenses incurred for the last illness and funeral of the
29deceased spouse of the claimant. “Expenses incurred for the last
30illness” includes unreimbursed expenses paid or incurred during
31the income calendar year and any expenses paid or incurred
32thereafter up until the date the claim is filed. For purposes of this
33paragraph, funeral expenses shall not exceed five thousand dollars
34($5,000).

35(16) If an alternative minimum tax is required to be paid
36pursuant to Chapter 2.1 (commencing with Section 17062) of Part
3710, the amount of alternative minimum taxable income (whether
38or not cash) in excess of the regular taxable income.

39(17) Annual winnings from the California Lottery in excess of
40six hundred dollars ($600) for the current year.

P13   1(b) For purposes of this chapter, total income shall be determined
2for the calendar year (or approved fiscal year ending within that
3calendar year) which ends within the fiscal year for which
4assistance is claimed.

5(c) For purposes ofbegin delete this chapter,end deletebegin insert Chapter 2 (commencing with
6Section 20581), Chapter 3 (commencing with Section 20625), and
7Chapter 3.5 (commencing with Section 20640),end insert
all losses and
8nonexpenses shall be converted to zero for the purpose of
9determining whether the homeowner meets the Property Tax
10Postponement requirement.

11(d) For purposes of Chapter 2 (commencing with Section
1220581), Chapter 3 (commencing with Section 20625), and Chapter
133.5 (commencing with Section 20640), total income shall be
14determined for the calendar year ending immediately prior to the
15commencement of the fiscal year for which postponement is
16claimed.

17

SEC. 12.  

Section 20505 of the Revenue and Taxation Code,
18as amended by Section 8 of Chapter 391 of the Statutes of 2015,
19is amended to read:

20

20505.  

“Claimant” means an individual who--

21(a) For purposes of this chapter was either (1) 62 years of age
22or older on the last day of the calendar year or approved fiscal year
23designated in subdivision (b) or (c) of Section 20503, whichever
24is applicable, or (2) blind or disabled, as defined in Section 12050
25of the Welfare and Institutions Code on the last day of the calendar
26year or approved fiscal year designated in subdivision (b) of
27Section 20503, who was a member of the household, and who was
28either: (1) the owner and occupier of a residential dwelling on the
29last day of the year designated in subdivision (b) or (c) of Section
3020503, or (2) the renter of a rented residence on or before the last
31day of the year designated in subdivision (b) of Section 20503. An
32individual who qualifies as an owner-claimant may not qualify as
33a renter-claimant for the same year.

34(b)  For purposes of Chapter 2 (commencing with Section
3520581), Chapter 3 (commencing with Section 20625), Chapter 3.3
36(commencing with Section 20639), and Chapter 3.5 (commencing
37with Section 20640) was a member of the household and either an
38owner-occupant, or a tenant stockholder occupant, or a possessory
39interestholder occupant, or a mobilehome owner-occupant, as the
40case may be, of the residential dwelling as to which postponement
P14   1is claimed on the last day of the year designated in subdivision (b)
2or (c) of Section 20503, and who was (1) 62 years of age or older
3by December 31 of the fiscal year for which postponement is
4claimed, or (2) blind or disabled, as defined in Section 12050 of
5the Welfare and Institutions Code, at the time of application or on
6begin delete Decemberend deletebegin insert Februaryend insert 10 of the fiscal year for which postponement
7is claimed, whichever is earlier.

8

SEC. 13.  

Section 20585 of the Revenue and Taxation Code is
9amended to read:

10

20585.  

Postponement shall not be allowed under thisbegin delete chapter
11orend delete
begin insert chapter,end insert Chapter 3 (commencing with Section 20625),begin delete Chapter
123.3 (commencing with Section 20639),end delete
or Chapter 3.5
13(commencing with Section 20640) if household income exceeds
14thirty five thousand five hundred dollars ($35,500).

15

SEC. 14.  

Section 20586 of the Revenue and Taxation Code is
16amended to read:

17

20586.  

For the purposes of Chapter 2 (commencing with
18Section 20581), Chapter 3 (commencing with Section 20625),
19begin delete Chapter 3.3 (commencing with Section 20639),end delete and Chapter 3.5
20(commencing with Section 20640), only one claimant per
21household each year shall be entitled to postponement. When two
22or more individuals in a household are qualified as claimants, they
23may determine who the claimant shall be. Such decision is
24irrevocable. If the individuals are unable to agree, the matter shall
25be determined by the Controller and his or her decision shall be
26final.

27

SEC. 15.  

Section 20621 of the Revenue and Taxation Code,
28as amended by Section 13 of Chapter 391 of the Statues of 2015,
29is amended to read:

30

20621.  

Each claimant applying for postponement under Article
312 (commencing with Section 20601) shall file a claim under penalty
32of perjury with the Controller on a form supplied by the Controller.
33The claim shall contain all of the following:

34(a) Evidence acceptable to the Controller that the person (1) is
3562 years of age or older on or before December 31 of the fiscal
36year for which the postponement is claimed or (2) blind or disabled,
37as defined in Section 12050 of the Welfare and Institutions Code,
38at the time of application or onbegin delete Decemberend deletebegin insert Februaryend insert 10 of the fiscal
39year for which the postponement is claimed, whichever is earlier.

P15   1(b) A statement showing the household income for the period
2set forth in Section 20503.

3(c) A statement describing the residential dwelling in a manner
4that the Controller may prescribe.

5(d) The name of the county in which the residential dwelling is
6located and the address of the residential dwelling.

7(e) The county assessor’s parcel number applicable to the
8property for which the claimant is applying for the postponement
9of property taxes.

10(f) (1) Documentation evidencing the current existence of any
11abstract of judgment, federal tax lien, or state tax lien filed or
12recorded against the applicant, and any recorded mortgage or deed
13of trust that affects the subject residential dwelling, for the purpose
14of determining that the claimant possesses a 40-percent equity in
15the subject residential dwelling as required by paragraph (1) of
16subdivision (b) of Section 20583.

17(2) Actual costs, not in excess of fifty dollars ($50), paid by the
18claimant to obtain the documentation shall reduce the amount of
19the lien for the year, but not the face amount of the payment
20prescribed in Section 16180 of the Government Code.

21(g) Other information required by the Controller to establish
22eligibility.

23

SEC. 16.  

Section 20627 of the Revenue and Taxation Code,
24as amended by Section 15 of Chapter 391 of the Statutes of 2015,
25is amended to read:

26

20627.  

A tenant-stockholder claimant (hereinafter referred to
27as “claimant”) is an individual who, on the last day of the calendar
28year ending immediately prior to the commencement of the fiscal
29year for which postponement is claimed is: (a) a tenant-stockholder
30in a cooperative housing corporation (as defined in Section 216(b)
31of the Internal Revenue Code) and (b) occupies as a principal place
32of residence a residential unit in the cooperative housing
33corporation (notwithstanding Section 216(b) of the Internal
34Revenue Code). For the purposes of this chapter, a claimant must
35be (1) 62 years of age or older on or before December 31 of the
36fiscal year for which postponement is claimed or (2) blind or
37disabled, as defined in Section 12050 of the Welfare and
38Institutions Code, at the time of application or onbegin delete Decemberend delete
39begin insert Februaryend insert 10 of the fiscal year for which the postponement is
40claimed, whichever is earlier.

P16   1

SEC. 17.  

Section 20640.3 of the Revenue and Taxation Code,
2as amended by Section 29 of Chapter 391 of the Statutes of 2015,
3is amended to read:

4

20640.3.  

A claimant is an individual who:

5(a) Holds a right to a possessory interest pursuant to a validly
6recorded instrument conveying such possessory interest for a term
7of years no less than 45 years beyond the last day of the calendar
8year ending immediately prior to the fiscal year for which taxes
9are initially postponed;

10(b) Occupies as a principal place of residence the residential
11dwelling affixed to such possessory interest real property on the
12last day of the year designated in Section 20503(c) of this code;

13(c) (1) Is 62 years of age or older on or before December 31 of
14the fiscal year for which postponement is claimed or (2) blind or
15disabled, as defined in Section 12050 of the Welfare and
16Institutions Code, at the time of application or onbegin delete Decemberend delete
17begin insert Februaryend insert 10 of the fiscal year for which the postponement is
18claimed, whichever is earlier.

19

SEC. 18.  

Section 20641 of the Revenue and Taxation Code is
20amended to read:

21

20641.  

Forms filed pursuant to this part shall not be under oath
22but shall contain, or be verified by, a written declaration that they
23are made under the penalty of perjury. All forms filed pursuant to
24Chapter 1 (commencing with Section 20501) shall require such
25information as the Franchise Tax Board may from time to time
26prescribe, and shall be filed with the Franchise Tax Board. The
27Franchise Tax Board shall prepare blank forms for the claimant
28and shall distribute them throughout the state and furnish them
29upon application. All forms filed pursuant to Chapter 2
30(commencing with Section 20581), Chapter 3 (commencing with
31Section 20625),begin delete Chapter 3.3 (commencing with Section 20639),end delete
32 or Chapter 3.5 (commencing with Section 20640), shall require
33such information as the Controller may from time to time prescribe,
34shall be filed with the Controller, and the Controller shall prepare
35such blank forms for the claimant and shall distribute them
36throughout the state and furnish them upon application.

37

SEC. 19.  

If the Commission on State Mandates determines
38that this act contains costs mandated by the state, reimbursement
39to local agencies and school districts for those costs shall be made
P17   1pursuant to Part 7 (commencing with Section 17500) of Division
24 of Title 2 of the Government Code.



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