Amended in Assembly May 27, 2016

Amended in Assembly April 27, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1952

Introduced by Assembly Member Gordon

(Principal coauthor: Assembly Member Patterson)

February 12, 2016

An act to amend Sections begin insert 16180, end insert 16182, 16183, 16184, 16186.5, 16200, 16202, and 27282 begin delete of, and to amend, repeal, and add Section 16180 of, end delete begin insert of end insert the Government Code, and to amend Sections 2514, begin insert 2515, end insert 2781, 20503, 20505, 20585, 20586, 20621, 20627, 20640.3, begin delete and 20641 end delete begin insert 20641, 20645.5, and 20645.6 end insert 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 the begin delete Controller, until January 1, 2019, end delete begin insert Controller end insert to transfer any moneys in the fund in excess of begin delete $20,000,000 as specified above, end delete begin insert $15,000,000 end insert not otherwise needed to begin insert cover the costs of administering the property tax postponement program and to end insert pay claims approved by the Controller for the postponement of property taxes to the General Fund. begin delete The bill would revert this threshold back to $15,000,000 as of January 1, 2019. end delete The bill would begin delete also, until January 1, 2019, require end delete begin insert also authorize end insert the Director of begin delete Finance to, end delete begin insert Finance, end insert upon determination by the Controller that there are insufficient moneys in the fund to begin insert cover the costs of administering the program and to end insert pay all approved claims for the postponement of property begin delete taxes and receipt of written notification from the Controller, end delete begin insert taxes, to end insert authorize expenditures from the General Fund in an amount necessary to pay those begin delete 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. end delete begin insert claims, as specified. end insert By authorizing the expenditure of additional general fund begin delete monies end delete begin insert moneys end insert 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.

begin insert

(3) Existing law establishes a formula for calculating the interest on a payment made by the Controller for postponed property taxes from the time a payment is made. Under existing law, for purposes of this provision, a payment is deemed to be made at the time an electronic funds transfer is made by the Controller to the tax collector or the delinquency date of the respective tax installment, whichever is later. Existing law, in the event of willful neglect, authorizes an electronic funds transfer for that current fiscal year to be used to pay delinquent taxes only if accompanied by sufficient amounts to pay all of the delinquent penalties, costs, fees, and interest. Existing law, if a denial of a claim for postponement is reversed on appeal, requires the Controller to electronically transfer funds to the county.

end insert begin insert

This bill would instead deem a payment to be made at the time a payment is made by the Controller to the tax collector or the delinquency date of the respective tax installment, whichever is later. The bill would instead authorize a payment from the Controller to be used to pay delinquent taxes under the circumstances described above. The bill would eliminate the requirement that funds be transferred electronically if a denial of a claim for postponement is reversed on appeal. The bill would also make various conforming changes.

end insert begin delete

(3)

end delete

begin insert (4) end insert  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.

begin delete

(4)

end delete

begin insert (5) end insert  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.

begin delete

(5)

end delete

begin insert (6) end insert  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 begin delete electronic fund transfer end delete begin insert payment end insert 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.

begin insert

(7) Existing law, upon receipt of a “notice of lien for postponed property taxes” from the Controller, requires the tax collector or the assessor, whichever is applicable, to immediately enter on the assessment records applicable to the property the fact that the taxes on the property have been postponed and the Controller’s identification number and to notify the Controller of a subsequent change in ownership status, as provided.

end insert begin insert

This bill would instead require the assessor to maintain a record of the fact that the taxes on the property have been postponed and the Controller’s identification number and to notify the Controller as described above.

end insert begin delete

(6)

end delete

begin insert (8) end insert  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.

begin delete

(7)

end delete

begin insert (9) end insert  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 begin delete claimed, whichever is earlier. end delete begin insert claimed. end insert

begin delete

(8)

end delete

begin insert (10) end insert  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.

begin delete

(9)

end delete

begin insert (11) end insert  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: 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, as
amended by Section 1 of Chapter 391 of the Statutes of 2015, is
amended to read:

16180.  

(a) There is hereby created in the State Treasury a
Senior Citizens and Disabled Citizens Property Tax Postponement
Fund. The fund shall be an interest-bearing 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
Property Tax Postponement Law (Chapter 2 (commencing with
Section 20581), Chapter 3 (commencing with Section 20625), and
Chapter 3.5 (commencing with Section 20640) of Part 10.5 of
Division 2 of the Revenue and Taxation Code).

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

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

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

(c) On or after January 1, 2015, 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.

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

(e) If the Controller determines that there are insufficient moneys
in the fund to begin insert cover the costs of administering this chapter and to end insert
pay all approved claims for the postponement of property taxes,
the Director of Finance, upon receiving notification from the
Controller, begin delete shall end delete begin insert may end insert authorize expenditures from the General
Fund in an amount necessary to begin insert cover the costs of administering
this chapter and to end insert pay those claims not sooner than 30 days after
providing written notification of the necessity of authorizing those
expenditures to the chairpersons of the fiscal committees of each
house of the Legislature and the Chairperson of the Joint
Legislative Budget Committee.

begin delete

(f) This section shall remain operative only until January 1,
2019, and as of that date is repealed.

end delete

begin delete

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. The fund shall be an interest-bearing fund. Subject to
subdivision (b) and notwithstanding Section 13340, the fund is
continuously appropriated to the Controller 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 Property Tax
Postponement Law (Chapter 2 (commencing with Section 20581),
Chapter 3 (commencing with Section 20625), and Chapter 3.5
(commencing with Section 20640) of Part 10.5 of Division 2 of
the Revenue and Taxation Code).

(b) The Controller shall, on June 30 of each year, transfer any
moneys in the fund in excess of fifteen million dollars
($15,000,000) not otherwise needed to pay claims approved by
the Controller for the postponement of property taxes pursuant to
the Property Tax Postponement Law (Chapter 2 (commencing
with Section 20581), Chapter 3 (commencing with Section 20625),
and Chapter 3.5 (commencing with Section 20640) of Part 10.5
of Division 2 of the Revenue and Taxation Code) 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.

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

(e)

 
This section shall become operative on January 1, 2019.

end delete

begin delete SEC. 3. end delete

begin insert SEC. 2. end insert   

Section 16182 of the Government Code, as amended
by Section 2 of Chapter 391 of the Statutes of 2015, 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 for which
property taxes have been postponed. 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) Within 14 business days of the transfer of funds and the
notice of lien to the county by the Controller, 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 begin delete recorder end delete begin insert Controller end insert shall provide the county tax
collector and the county assessor with a copy of the notice of lien
which has been executed.

(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:

(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 recording priority to the lien of the State of
California.

(c) In the case of mobilehome loans established prior to February
20, 2009, all of the following shall apply:

(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 owing
pursuant to this chapter.

(2) From the time that 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 unit
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.

(3) 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.

begin delete SEC. 4. end delete

begin insert SEC. 3. end insert   

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

16183.  

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

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

(2) The Controller shall establish an adjusted rate of interest for
the purpose of this subdivision not later than July 15th of any year
if the effective annual yield of the Pooled Money Investment
Account for the prior fiscal year is at least a full percentage point
more or less than the interest rate which is then in effect. The
adjusted rate of interest shall be equal per annum to the effective
annual yield earned in the prior fiscal year by the Pooled Money
Investment Account rounded to the nearest full percent, and shall
become effective for new deferrals, beginning on July 1, 1984,
and on July 1 of each immediately succeeding year, until June 30,
2016.

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

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

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

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

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

begin delete SEC. 5. end delete

begin insert SEC. 4. end insert   

Section 16184 of the Government Code is amended
to read:

16184.  

(a) The Controller shall 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
notification of any amounts paid by the Franchise Tax Board
pursuant to Section 20564 of the Revenue and Taxation Code or
by any amounts authorized pursuant to subdivision (f) of Section
20621 of the Revenue and Taxation Code. Any payment received
for that purpose shall be applied in the following order:

(1) To any interest due on the loan.

(2) To the principal property tax amount.

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

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

begin delete SEC. 6. end delete

begin insert SEC. 5. end insert   

Section 16186.5 of the Government Code is amended
to read:

16186.5.  

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

begin delete SEC. 7. end delete

begin insert SEC. 6. end insert   

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) 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
16180 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.

(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.

begin delete SEC. 8. end delete

begin insert SEC. 7. end insert   

Section 16202 of the Government Code is amended
to read:

16202.  

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

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

begin delete SEC. 9. end delete

begin insert SEC. 8. end insert   

Section 27282 of the Government Code is amended
to read:

27282.  

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

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

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

(3) A notice of location of mining claim.

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

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

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

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

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

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

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

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

begin delete SEC. 10. end delete

begin insert SEC. 9. end insert   

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

2514.  

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

(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 as required by Section 3439.

(2) 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 the Controller begin delete transferred end delete begin insert paid end insert to the tax begin delete collector
via an electronic fund transfer. end delete begin insert collector. end insert

The county auditor, treasurer, or disbursing officer shall refund
the amount of money, based on the begin delete electronic fund transfer end delete begin insert payment end insert
by the Controller, to the claimant 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.

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 2515 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

2515.  

(a) Upon receiving a begin insert copy of the end insert “notice of lien for
postponed property taxes” from the Controller, the begin delete tax collector
or the assessor, whichever is applicable, end delete begin insert assessor end insert shall begin delete immediately
enter on the assessment records applicable to the property, end delete begin insert maintain
a record of end insert the fact that the taxes on the property have been
postponed and the Controller’s identification begin delete number, end delete begin insert number end insert and
shall, if such record reveals a change in the ownership status of
the property subsequent to the date of entry of the postponement
information thereon, notify the Controller within 60 days of
processing the change in the ownership status in the manner
prescribed by the Controller.

(b) From the time of recordation of the notice of lien pursuant
to Section 16182 of the Government Code, the lien for postponed
property taxes shall be deemed to impart constructive notice of
the contents thereof to subsequent purchasers, mortgagees, lessees,
and other lienors.

SEC. 11.  

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

2781.  

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

SEC. 12.  

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

(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. 13.  

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

20505.  

“Claimant” means an individual who:

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

(b)  For purposes of Chapter 2 (commencing with Section
20581), Chapter 3 (commencing with Section 20625), Chapter 3.3
(commencing with Section 20639), and Chapter 3.5 (commencing
with Section 20640) was a member of the household and either an
owner-occupant, or a tenant stockholder occupant, or a possessory
interestholder occupant, or a mobilehome owner-occupant, as the
case may be, of the residential dwelling as to which postponement
is claimed on the last day of the year designated in subdivision (b)
or (c) of Section 20503, and who was (1) 62 years of age or older
by December 31 of the fiscal year for which postponement is
claimed, or (2) blind or disabled, as defined in Section 12050 of
the Welfare and Institutions Code, at the time of application or on
February 10 of the fiscal year for which postponement is begin delete claimed,
whichever is earlier. end delete begin insert claimed. end insert

SEC. 14.  

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

20585.  

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

SEC. 15.  

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

20586.  

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

SEC. 16.  

Section 20621 of the Revenue and Taxation Code,
as amended by Section 13 of Chapter 391 of the Statues of 2015,
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 (1) is
62 years of age or older on or before December 31 of the fiscal
year for which the postponement is claimed or (2) blind or disabled,
as defined in Section 12050 of the Welfare and Institutions Code,
at the time of application or on February 10 of the fiscal year for
which the postponement is begin delete claimed, whichever is earlier. end delete begin insert claimed. end insert

(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 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 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. 17.  

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

20627.  

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

SEC. 18.  

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

20640.3.  

A claimant is an individual who:

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

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

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

SEC. 19.  

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

20641.  

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

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 20645.5 of the end insert begin insert Revenue and Taxation Code end insert

begin insert is amended to read: end insert

20645.5.  

(a) 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 received by the Controller by February 10 for the fiscal year in
which postponement is being claimed or by another date set by
the Controller pursuant to Section 20622, then any delinquent
penalties, costs, fees, and interest accrued for that 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.

(b) In the event of willful neglect, begin delete an electronic funds transfer end delete
begin insert a payment from the Controller end insert for that current fiscal year can be
used to pay delinquent taxes only if accompanied by sufficient
amounts to pay all of the delinquent penalties, costs, fees, and
interest. If an amount sufficient to pay all of the delinquent
penalties, costs, fees, and interest is not received by the tax
collector within 30 days from the date of the begin delete electronic funds
transfer, end delete begin insert payment from the Controller, end insert the tax collector may return
the begin delete electronic funds transfer end delete begin insert payment end insert to the Controller to deny the
postponement claim.

(c) (1) The Controller shall notify the claimant in writing when
the begin delete electronic funds transfer end delete begin insert payment end insert has been submitted to the
tax collector.

(2) In the event of willful neglect, in addition to the information
required pursuant to paragraph (1), the Controller shall also notify
the claimant in writing and provide a copy of the notification to
the tax begin delete collector, end delete begin insert collector end insert that a payment amount sufficient to pay
all of the delinquent penalties, costs, fees, and interest must be
received by the tax collector within 30 days from the date of the
begin delete electronic funds transfer, end delete begin insert payment from the Controller to the county end insert
and that if this payment is not received by the tax collector, the
tax collector may return the begin delete electronic funds transfer end delete begin insert payment end insert to
the Controller to deny the postponement claim.

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 20645.6 of the end insert begin insert Revenue and Taxation Code end insert

begin insert is amended to read: end insert

20645.6.  

(a) 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 the denial is reversed after appeal pursuant to Section 20645.1,
the Controller shall begin delete electronically end delete transfer funds to the county for
the amount of the taxes. If the taxes for the fiscal year were
previously paid, the county shall refund the overpayment to the
taxpayer. If the taxes for the fiscal year are delinquent, any resulting
penalties or interest shall be canceled.

(b) The Controller shall notify the claimant in writing when begin delete an
electronic funds transfer end delete begin insert a payment end insert has been made pursuant to
subdivision (a).

begin delete SEC. 20. end delete

begin insert SEC. 22. end insert   

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.