Amended in Assembly April 27, 2016

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 amendbegin delete Section 16180,end deletebegin insert Sectionsend insert 16182, 16183, 16184, 16186.5, 16200, 16202, and 27282begin delete ofend deletebegin insert of, and to amend, repeal, and add Section 16180 of,end insert 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 amended, 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 thebegin delete Controllerend deletebegin insert Controller, until January 1, 2019,end insert to transfer any moneys in the fund in excess ofbegin delete $15,000,000,end deletebegin insert $20,000,000end insert as specified above, not otherwise needed to pay claims approved by the Controller for the postponement of property taxes to the General Fund.begin insert The bill would revert this threshold back to $15,000,000 as of January 1, 2019.end insert The bill wouldbegin delete also authorizeend deletebegin insert also, until January 1, 2019, requireend insert 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 ofbegin delete fifteen million dollars
21($15,000,000)end delete
begin insert twenty million dollars ($20,000,000)end insert not otherwise
22needed to pay claims approved by the Controller for the
23postponement of property taxes pursuant to the Property Tax
P5    1Postponement Law (Chapter 2 (commencing with Section 20581),
2Chapter 3 (commencing with Section 20625), and Chapter 3.5
3(commencing with Section 20640) of Part 10.5 of Division 2 of
4the Revenue and Taxation Code) to the General Fund.

5(c) On or after January 1, 2015, any loan repayments relating
6to the Senior Citizens and Disabled Citizens Property Tax
7Postponement Law shall be deposited into the Senior Citizens and
8Disabled Citizens Property Tax Postponement Fund.

9(d) Any funds remaining upon the effective date of this section
10in an impound account formerly provided for pursuant to this
11chapter, shall be transferred to the Senior Citizens and Disabled
12Citizens Property Tax Postponement Fund.

13(e) If the Controller determines that there are insufficient moneys
14in the fund to pay all approved claims for the postponement of
15property taxes, the Director of Finance, upon receiving notification
16from the Controller,begin delete mayend deletebegin insert shallend insert authorize expenditures from the
17General Fund in an amount necessary to pay those claims not
18sooner than 30 days after providing written notification of the
19necessity of authorizing those expenditures to the chairpersons of
20the fiscal committees of each house of the Legislature and the
21begin delete chairpersonend deletebegin insert Chairpersonend insert of the Joint Legislative Budget
22Committee.

begin insert

23
(f) This section shall remain operative only until January 1,
242019, and as of that date is repealed.

end insert
25begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 16180 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
26read:end insert

begin insert
27

begin insert16180.end insert  

(a) There is hereby created in the State Treasury a
28Senior Citizens and Disabled Citizens Property Tax Postponement
29Fund. The fund shall be an interest-bearing fund. Subject to
30subdivision (b) and notwithstanding Section 13340, the fund is
31continuously appropriated to the Controller for purposes of
32administering this chapter, including, but not limited to, necessary
33administrative costs and disbursements relating to the
34postponement of property taxes pursuant to the Property Tax
35Postponement Law (Chapter 2 (commencing with Section 20581),
36Chapter 3 (commencing with Section 20625), and Chapter 3.5
37(commencing with Section 20640) of Part 10.5 of Division 2 of the
38Revenue and Taxation Code).

39
(b) The Controller shall, on June 30 of each year, transfer any
40moneys in the fund in excess of fifteen million dollars ($15,000,000)
P6    1not otherwise needed to pay claims approved by the Controller
2for the postponement of property taxes pursuant to the Property
3Tax Postponement Law (Chapter 2 (commencing with Section
420581), Chapter 3 (commencing with Section 20625), and Chapter
53.5 (commencing with Section 20640) of Part 10.5 of Division 2
6of the Revenue and Taxation Code) to the General Fund.

7
(c) Any loan repayments relating to the Senior Citizens and
8Disabled Citizens Property Tax Postponement Law shall be
9deposited into the Senior Citizens and Disabled Citizens Property
10Tax Postponement Fund.

11
(d) Any funds remaining upon the effective date of this section
12in an impound account formerly provided for pursuant to this
13chapter, shall be transferred to the Senior Citizens and Disabled
14Citizens Property Tax Postponement Fund.

15
(e) This section shall become operative on January 1, 2019.

end insert
16

begin deleteSEC. 2.end delete
17
begin insertSEC. 3.end insert  

Section 16182 of the Government Code, as amended
18by Section 2 of Chapter 391 of the Statutes of 2015, is amended
19to read:

20

16182.  

(a) All sums paid by the Controller under the provisions
21of this chapter, together with interest thereon, shall be secured by
22a lien in favor of the State of California when funds are transferred
23to the county by the Controller upon the real property for which
24property taxes have been postponed. In the case of a residential
25dwelling which is part of a larger parcel taxed as a unit, such as a
26duplex, farm, or multipurpose or multidwelling building, the lien
27shall be against the entire tax parcel.

28(b) In the case of real property:

29(1) The lien shall be evidenced by a notice of lien for postponed
30property taxes executed by the Controller, or the authorized
31delegate of the Controller, and shall secure all sums paid or owing
32pursuant to this chapter, including amounts paid subsequent to the
33initial payment of postponed taxes on the real property described
34in the notice of lien.

35(2) The notice of lien may bear the facsimile signature of the
36Controller. Each signature shall be that of the person who shall be
37in the office at the time of execution of the notice of lien; provided,
38however, that such notice of lien shall be valid and binding
39notwithstanding any such person having ceased to hold the office
40of Controller before the date of recordation.

P7    1(3) The form and contents of the notice of lien for postponed
2property taxes shall be prescribed by the Controller and shall
3include, but not be limited to, the following:

4(A) The names of all record owners of the real property for
5which the Controller has advanced funds for the payment of real
6property taxes.

7(B) A description of the real property for which real property
8taxes have been paid.

9(C) The identification number of the notice of lien which has
10been assigned the lien by the Controller.

11(4) Within 14 business days of the transfer of funds and the
12notice of lien to the county by the Controller, the notice of lien
13shall be recorded in the office of the county recorder for the county
14in which the real property subject to the lien is located.

15(5) The recorded notice of lien shall be indexed in the Grantor
16Index to the names of all record owners of the real property and
17in the Grantee Index to the Controller of the State of California.

18(6) After the notice of lien has been duly recorded and indexed,
19it shall be returned by the county recorder to the office of the
20Controller. The recorder shall provide the county tax collector and
21the county assessor with a copy of the notice of lien which has
22been executed.

23(7) From the time of recordation of a notice of lien for postponed
24property taxes, a lien shall attach to the real property described
25therein and shall have the priority of a judgment lien for all
26amounts secured thereby, except that the lien shall remain in effect
27until either of the following occurs:

28(A) It is released by the Controller in the manner prescribed by
29Section 16186.

30(B) The foreclosure or sale of an obligation secured by a lien
31which is senior in recording priority to the lien of the State of
32California.

33(c) In the case of mobilehome loans established prior to February
3420, 2009, all of the following shall apply:

35(1) The lien shall be evidenced by a notice of lien for postponed
36property taxes executed by the Controller, or the authorized
37delegate of the Controller, and shall secure all sums paid owing
38pursuant to this chapter.

39(2) From the time that the Department of Housing and
40Community Development receives the notice of lien from the
P8    1Controller, the department shall impose a moratorium on any other
2amendments to the permanent title record of the mobilehome unit
3until released by the Controller in the manner prescribed by Section
416186, or an authorization for the amendments is given by the
5Controller in writing.

6(3) From the time of filing a notice of lien, a lien shall attach to
7the mobilehome for which eligibility for the postponement of
8property taxes has been granted.

9

begin deleteSEC. 3.end delete
10
begin insertSEC. 4.end insert  

Section 16183 of the Government Code, as amended
11by Section 3 of Chapter 391 of the Statutes of 2015, is amended
12to read:

13

16183.  

(a) From the time a payment is made pursuant to
14Section 16180, the amount of that payment shall bear interest at a
15rate (not compounded), determined as follows:

16(1) Beginning July 1, 2016, the rate of interest shall be 7 percent
17per annum.

18(2) The Controller shall establish an adjusted rate of interest for
19the purpose of this subdivision not later than July 15th of any year
20if the effective annual yield of the Pooled Money Investment
21Account for the prior fiscal year is at least a full percentage point
22more or less than the interest rate which is then in effect. The
23adjusted rate of interest shall be equal per annum to the effective
24annual yield earned in the prior fiscal year by the Pooled Money
25 Investment Account rounded to the nearest full percent, and shall
26become effective for new deferrals, beginning on July 1, 1984,
27and on July 1 of each immediately succeeding year, until June 30,
282016.

29(3) For loans made prior to June 30, 2016, the rate of interest
30provided pursuant to this subdivision for the first fiscal year
31commencing after payment is made pursuant to Section 16180
32shall apply for that fiscal year and each fiscal year thereafter until
33these postponed property taxes are repaid.

34(b) The interest provided for in subdivision (a) shall be applied
35beginning the first day of the month following the month in which
36that payment is made and continuing on the first day of each month
37thereafter until that amount is paid. In the event that any payments
38are applied, in any month, to reduce the amount paid pursuant to
39Section 16180, the interest provided for herein shall be applied to
P9    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, 20640.9, and 20641 of the
11Revenue and Taxation Code, a statement of the interest rate which
12shall apply to amounts postponed for the fiscal year to which the
13form applies.

14

begin deleteSEC. 4.end delete
15
begin insertSEC. 5.end insert  

Section 16184 of the Government Code is amended
16to read:

17

16184.  

(a) The Controller shall reduce the amount of the
18obligation secured by the lien against the real property by the
19amount of any payments received for that purpose and by
20notification of any amounts paid by the Franchise Tax Board
21pursuant to Section 20564 of the Revenue and Taxation Code or
22by any amounts authorized pursuant to subdivision (f) of Section
2320621 of the Revenue and Taxation Code. Any payment received
24for that purpose shall be applied in the following order:

25(1) To any interest due on the loan.

26(2) To the principal property tax amount.

27(3) The remaining balance, if any, to administrative fees.

28(b) The Controller shall also increase the amount of the
29obligation secured by the lien by the amount of any subsequent
30payments made pursuant to Section 16180 with respect to the real
31property and to reflect the accumulation of interest. All such
32increases and decreases shall be entered in the record described in
33Section 16181.

34

begin deleteSEC. 5.end delete
35
begin insertSEC. 6.end insert  

Section 16186.5 of the Government Code is amended
36to read:

37

16186.5.  

In the event that a payment which is made to satisfy
38an obligation secured by a lien for postponed property taxes
39exceeds the amount owing to the state, the Controller may refund
40the overpayment to the party entitled thereto. The Controller shall
P10   1pay those refunds out of the amount appropriated by Section 16180,
2or any appropriation in lieu thereof.

3

begin deleteSEC. 6.end delete
4
begin insertSEC. 7.end insert  

Section 16200 of the Government Code is amended
5to read:

6

16200.  

In the event that the Controller receives the notice
7described in Section 16187 of this code or Section 3375 of the
8Revenue and Taxation Code, the Controller may take any of the
9following actions which will best serve the interests of the state:

10(a) begin deleteNotify end deletebegin insertNotify, end insertby United Statesbegin delete mailend deletebegin insert mail,end insert the tax collector
11or other party that such notice has been received and that the
12 Controller must be given at least 20 days prior notice of the date
13that the property will be sold at auction. If the Controller elects to
14proceed under this subdivision, the Controller may use funds
15appropriated by Section 16180 to bid on the property at the auction
16up to the amount secured by the state’s lien on the property and
17any lien on such property having priority over the state’s lien. All
18additional amounts paid pursuant to this subdivision shall be added
19to the amount secured by the lien on such property provided for
20in Article 1 (commencing with Section 16180) of this chapter.

21(b) Acknowledge by United States mail that the notice required
22by Section 16187 of this code or Section 3375 of the Revenue and
23Taxation Code has been received.

24

begin deleteSEC. 7.end delete
25
begin insertSEC. 8.end insert  

Section 16202 of the Government Code is amended
26to read:

27

16202.  

Notwithstanding any other provision of law, in the
28event that the state acquires an interest in real property pursuant
29to subdivision (b) of Section 16200, the Controller may, in addition
30to the options provided in Section 16201, take any other action
31with respect to that real property interest as will best serve the
32interest of the state. These actions may include, but shall not be
33limited to, the sale, lease, or retention of any interest so acquired.
34The Controller may contract with licensed real estate brokers,
35maintenance and repair contractors, security contractors, appraisers,
36property managers, insurance brokers, and any other experts or
37specialists as may be necessary to protect or preserve the state’s
38interest in that property. The Controller may pay the costs incurred
39pursuant to those contracts out of the amount appropriated by
40Section 16180, or from any appropriation in lieu thereof.

P11   1The sale of those interests may be made on the basis of
2conventional financing arrangements including the securing of
3payment through the use of promissory notes, deeds of trust, and
4other accepted methods of deferred payment.

5

begin deleteSEC. 8.end delete
6
begin insertSEC. 9.end insert  

Section 27282 of the Government Code is amended
7to read:

8

27282.  

(a) The following documents may be recorded without
9acknowledgment, certificate of acknowledgment, or further proof:

10(1) A judgment affecting the title to or possession of real
11property, authenticated by the certificate of the clerk of the court
12in which the judgment was rendered.

13(2) A notice of support judgment, an interstate lien, a release
14of lien, or any other document completed and recorded by a local
15child support agency or a state agency acting pursuant to Title
16IV-D of the Social Security Act (42 U.S.C. Sec. 651 et seq.).

17(3) A notice of location of mining claim.

18(4) Certificates of amounts of taxes, interest and penalties due,
19notices of state tax liens and extensions thereof executed by the
20state, county, or city taxing agencies or officials pursuant to
21Chapter 14 (commencing with Section 7150) of Division 7 of Title
221 of the Government Code, and Sections 2191.3, 2191.4, and 11495
23of the Revenue and Taxation Code, and releases, partial releases,
24and subordinations executed pursuant to Chapter 14 (commencing
25with Section 7150) of Division 7 of Title 1 of the Government
26Code, and Sections 2191.4, 11496, 14307, and 14308 of the
27Revenue and Taxation Code.

28(5) Notices of lien for postponed property taxes executed
29pursuant to Section 16182.

30(6) A release or discharge of a lien for postponed property taxes
31as authorized by Chapter 6 (commencing with Section 16180) of
32Part 1 of Division 4 of Title 2.

33(7) A fixture filing as defined by paragraph (40) of subdivision
34(a) of Section 9102 of the Commercial Code.

35(8) An order affecting title to or possession of real property
36issued by a court in an action subject to Section 12527,
37authenticated by the certificate of the clerk of the court in which
38the order was issued or a copy of that order authenticated by a
39declaration under penalty of perjury by the Attorney General or
40by an assistant or deputy of the Attorney General attesting that the
P12   1contents of the copy are the same as the original order issued by
2the court.

3(9) A court certified copy of a satisfaction of judgment.

4(10) A certificate of correction filed pursuant to Sections 66470
5and 66472.1.

6(b) Any document described in this section, from the time it is
7filed with the recorder for record, is constructive notice of the
8contents thereof to subsequent purchasers and mortgagees.

9

begin deleteSEC. 9.end delete
10
begin insertSEC. 10.end insert  

Section 2514 of the Revenue and Taxation Code is
11amended to read:

12

2514.  

(a) Upon receipt of the electronic fund transfer by the
13Controller described in Section 20602, 20630, or 20640.6, the
14following shall occur:

15(1) The tax collector shall enter the fact that taxes on the
16property have been postponed in appropriate columns on the roll.
17In the case of the secured roll, this information may be entered in
18that portion of the roll which has been designated for tax default
19information as required by Section 3439.

20(2) With respect to a claimant whose property taxes are paid by
21a lender from an impound, trust, or other type of account described
22in Section 2954 of the Civil Code, the tax collector shall notify
23the auditor of the claimant’s name and address, and the duplicate
24amount of money the Controller transferred to the tax collector
25via an electronic fund transfer.

26The county auditor, treasurer, or disbursing officer shall refund
27the amount of money, based on the electronic fund transfer by the
28Controller, to the claimant within 60 days of the replicated
29payment.

30(b) The procedures established by this chapter shall not be
31construed to require a lender to alter the manner in which a lender
32makes payment of the property taxes of such a claimant.

33

begin deleteSEC. 10.end delete
34
begin insertSEC. 11.end insert  

Section 2781 of the Revenue and Taxation Code is
35amended to read:

36

2781.  

If a taxpayer or agent for the taxpayer submits a payment
37indicated for application to a specific tax or tax installment and
38that tax or tax installment already has been paid, the county shall
39return the replicated payment to the tendering party within 60 days
40of the date the payment becomes final. For purposes of this section,
P13   1“final” means the original payment that is not subject to
2chargeback, dishonor, or reversal. However, when a replicated
3payment is made of any tax or tax installment paid by an electronic
4fund transfer pursuant to Section 2514, the amount of the replicated
5payment shall be paid to the claimant on whose behalf the
6electronic fund transfer was made.

7

begin deleteSEC. 11.end delete
8
begin insertSEC. 12.end insert  

Section 20503 of the Revenue and Taxation Code is
9amended to read:

10

20503.  

(a) “Income” means adjusted gross income as defined
11in Section 17072 plus all of the following cash items:

12(1) Public assistance and relief.

13(2) Nontaxable amount of pensions and annuities.

14(3) Social security benefits (except Medicare).

15(4) Railroad retirement benefits.

16(5) Unemployment insurance payments.

17(6) Veterans’ benefits.

18(7) Exempt interest received from any source.

19(8) Gifts and inheritances in excess of three hundred dollars
20($300), other than transfers between members of the household.
21Gifts and inheritances include noncash items.

22(9) Amounts contributed on behalf of the contributor to a
23tax-sheltered retirement plan or deferred compensation plan.

24(10) Temporary workers’ compensation payments.

25(11) Sick leave payments.

26(12) Nontaxable military compensation as defined in Section
27112 of the Internal Revenue Code.

28(13) Nontaxable scholarship and fellowship grants as defined
29in Section 117 of the Internal Revenue Code.

30(14) Nontaxable gain from the sale of a residence as defined in
31Section 121 of the Internal Revenue Code.

32(15) Life insurance proceeds to the extent that the proceeds
33exceed the expenses incurred for the last illness and funeral of the
34deceased spouse of the claimant. “Expenses incurred for the last
35illness” includes unreimbursed expenses paid or incurred during
36the income calendar year and any expenses paid or incurred
37thereafter up until the date the claim is filed. For purposes of this
38paragraph, funeral expenses shall not exceed five thousand dollars
39($5,000).

P14   1(16) If an alternative minimum tax is required to be paid
2pursuant to Chapter 2.1 (commencing with Section 17062) of Part
310, the amount of alternative minimum taxable income (whether
4or not cash) in excess of the regular taxable income.

5(17) Annual winnings from the California Lottery in excess of
6six hundred dollars ($600) for the current year.

7(b) For purposes of this chapter, total income shall be determined
8for the calendar year (or approved fiscal year ending within that
9calendar year) which ends within the fiscal year for which
10assistance is claimed.

11(c) For purposes of Chapter 2 (commencing with Section 20581),
12Chapter 3 (commencing with Section 20625), and Chapter 3.5
13(commencing with Section 20640), all losses and nonexpenses
14shall be converted to zero for the purpose of determining whether
15the homeowner meets the Property Tax Postponement requirement.

16(d) For purposes of Chapter 2 (commencing with Section
1720581), Chapter 3 (commencing with Section 20625), and Chapter
183.5 (commencing with Section 20640), total income shall be
19determined for the calendar year ending immediately prior to the
20commencement of the fiscal year for which postponement is
21claimed.

22

begin deleteSEC. 12.end delete
23
begin insertSEC. 13.end insert  

Section 20505 of the Revenue and Taxation Code,
24as amended by Section 8 of Chapter 391 of the Statutes of 2015,
25is amended to read:

26

20505.  

“Claimant” means an individualbegin delete who--end deletebegin insert who:end insert

27(a) For purposes of this chapter was either (1) 62 years of age
28or older on the last day of the calendar year or approved fiscal year
29designated in subdivision (b) or (c) of Section 20503, whichever
30is applicable, or (2) blind or disabled, as defined in Section 12050
31of the Welfare and Institutions Code on the last day of the calendar
32year or approved fiscal year designated in subdivision (b) of
33Section 20503, who was a member of the household, and who was
34either: (1) the owner and occupier of a residential dwelling on the
35last day of the year designated in subdivision (b) or (c) of Section
3620503, or (2) the renter of a rented residence on or before the last
37day of the year designated in subdivision (b) of Section 20503. An
38individual who qualifies as an owner-claimant may not qualify as
39a renter-claimant for the same year.

P15   1(b)  For purposes of Chapter 2 (commencing with Section
220581), Chapter 3 (commencing with Section 20625), Chapter 3.3
3(commencing with Section 20639), and Chapter 3.5 (commencing
4with Section 20640) was a member of the household and either an
5owner-occupant, or a tenant stockholder occupant, or a possessory
6interestholder occupant, or a mobilehome owner-occupant, as the
7case may be, of the residential dwelling as to which postponement
8is claimed on the last day of the year designated in subdivision (b)
9or (c) of Section 20503, and who was (1) 62 years of age or older
10by December 31 of the fiscal year for which postponement is
11claimed, or (2) blind or disabled, as defined in Section 12050 of
12the Welfare and Institutions Code, at the time of application or on
13 February 10 of the fiscal year for which postponement is claimed,
14whichever is earlier.

15

begin deleteSEC. 13.end delete
16
begin insertSEC. 14.end insert  

Section 20585 of the Revenue and Taxation Code is
17amended to read:

18

20585.  

Postponement shall not be allowed under this chapter,
19Chapter 3 (commencing with Section 20625), or Chapter 3.5
20(commencing with Section 20640) if household income exceeds
21thirty five thousand five hundred dollars ($35,500).

22

begin deleteSEC. 14.end delete
23
begin insertSEC. 15.end insert  

Section 20586 of the Revenue and Taxation Code is
24amended to read:

25

20586.  

For the purposes of Chapter 2 (commencing with
26Section 20581), Chapter 3 (commencing with Section 20625), and
27Chapter 3.5 (commencing with Section 20640), only one claimant
28per household each year shall be entitled to postponement. When
29two or more individuals in a household are qualified as claimants,
30they may determine who the claimant shall be. Such decision is
31irrevocable. If the individuals are unable to agree, the matter shall
32be determined by the Controller and his or her decision shall be
33final.

34

begin deleteSEC. 15.end delete
35
begin insertSEC. 16.end insert  

Section 20621 of the Revenue and Taxation Code,
36as amended by Section 13 of Chapter 391 of the Statues of 2015,
37is amended to read:

38

20621.  

Each claimant applying for postponement under Article
392 (commencing with Section 20601) shall file a claim under penalty
P16   1of perjury with the Controller on a form supplied by the Controller.
2The claim shall contain all of the following:

3(a) Evidence acceptable to the Controller that the person (1) is
462 years of age or older on or before December 31 of the fiscal
5year for which the postponement is claimed or (2) blind or disabled,
6as defined in Section 12050 of the Welfare and Institutions Code,
7at the time of application or on February 10 of the fiscal year for
8which the postponement is claimed, whichever is earlier.

9(b) A statement showing the household income for the period
10set forth in Section 20503.

11(c) A statement describing the residential dwelling in a manner
12that the Controller may prescribe.

13(d) The name of the county in which the residential dwelling is
14located and the address of the residential dwelling.

15(e) The county assessor’s parcel number applicable to the
16property for which the claimant is applying for the postponement
17of property taxes.

18(f) (1) Documentation evidencing the current existence of any
19abstract of judgment, federal tax lien, or state tax lien filed or
20recorded against the applicant, and any recorded mortgage or deed
21of trust that affects the subject residential dwelling, for the purpose
22of determining that the claimant possesses a 40-percent equity in
23the subject residential dwelling as required by paragraph (1) of
24subdivision (b) of Section 20583.

25(2) Actual costs, not in excess of fifty dollars ($50), paid by the
26claimant to obtain the documentation shall reduce the amount of
27the lien for the year, but not the face amount of the payment
28prescribed in Section 16180 of the Government Code.

29(g) Other information required by the Controller to establish
30eligibility.

31

begin deleteSEC. 16.end delete
32
begin insertSEC. 17.end insert  

Section 20627 of the Revenue and Taxation Code,
33as amended by Section 15 of Chapter 391 of the Statutes of 2015,
34is amended to read:

35

20627.  

A tenant-stockholder claimant (hereinafter referred to
36as “claimant”) is an individual who, on the last day of the calendar
37year ending immediately prior to the commencement of the fiscal
38year for which postponement is claimed is: (a) a tenant-stockholder
39in a cooperative housing corporation (as defined in Section 216(b)
40of the Internal Revenue Code) and (b)begin delete occupiesend deletebegin insert occupies,end insert as a
P17   1principal place ofbegin delete residenceend deletebegin insert residence,end insert a residential unit in the
2cooperative housing corporation (notwithstanding Section 216(b)
3of the Internal Revenue Code). For the purposes of this chapter, a
4claimant must be (1) 62 years of age or older on or before
5December 31 of the fiscal year for which postponement is claimed
6or (2) blind or disabled, as defined in Section 12050 of the Welfare
7and Institutions Code, at the time of application or on February 10
8of the fiscal year for which the postponement is claimed, whichever
9is earlier.

10

begin deleteSEC. 17.end delete
11
begin insertSEC. 18.end insert  

Section 20640.3 of the Revenue and Taxation Code,
12as amended by Section 29 of Chapter 391 of the Statutes of 2015,
13is amended to read:

14

20640.3.  

A claimant is an individual who:

15(a) Holds a right to a possessory interest pursuant to a validly
16recorded instrument conveying such possessory interest for a term
17of years no less than 45 years beyond the last day of the calendar
18year ending immediately prior to the fiscal year for which taxes
19are initially postponed;

20(b) Occupies as a principal place of residence the residential
21dwelling affixed to such possessory interest real property on the
22last day of the year designated in Section 20503(c) of this code;

23(c) (1) Is 62 years of age or older on or before December 31 of
24the fiscal year for which postponement is claimed or (2) blind or
25disabled, as defined in Section 12050 of the Welfare and
26Institutions Code, at the time of application or on February 10 of
27the fiscal year for which the postponement is claimed, whichever
28is earlier.

29

begin deleteSEC. 18.end delete
30
begin insertSEC. 19.end insert  

Section 20641 of the Revenue and Taxation Code is
31amended to read:

32

20641.  

Forms filed pursuant to this part shall not be under oath
33but shall contain, or be verified by, a written declaration that they
34are made under the penalty of perjury. All forms filed pursuant to
35Chapter 1 (commencing with Section 20501) shall require such
36information as the Franchise Tax Board may from time to time
37prescribe, and shall be filed with the Franchise Tax Board. The
38Franchise Tax Board shall prepare blank forms for the claimant
39and shall distribute them throughout the state and furnish them
40upon application. All forms filed pursuant to Chapter 2
P18   1(commencing with Section 20581), Chapter 3 (commencing with
2Section 20625), or Chapter 3.5 (commencing with Section 20640),
3shall require such information as the Controller may from time to
4time prescribe, shall be filed with the Controller, and the Controller
5shall prepare such blank forms for the claimant and shall distribute
6them throughout the state and furnish them upon application.

7

begin deleteSEC. 19.end delete
8
begin insertSEC. 20.end insert  

If the Commission on State Mandates determines that
9this act contains costs mandated by the state, reimbursement to
10local agencies and school districts for those costs shall be made
11pursuant to Part 7 (commencing with Section 17500) of Division
124 of Title 2 of the Government Code.



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