Amended in Senate August 17, 2016

Amended in Senate June 15, 2016

Amended in Assembly May 27, 2016

Amended in Assembly April 27, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1952


Introduced by Assembly Member Gordon

(Principal coauthors: Assembly Members Levine and Patterson)

February 12, 2016


An act to amend Sections 16180, 16182, 16183, 16184, 16186.5, 16200, 16202, and 27282 of the Government Code, and to amend Sections 2514, 2515, 2781, 20503, 20505, 20583, 20585, 20586, 20621, 20627, 20640.3, 20641, 20645.5, and 20645.6 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 wouldbegin delete instead require the Controller to transfer any moneys in the fund in excess of $15,000,000 not otherwise needed to cover the costs of administering the property tax postponement program and to pay claims approved by the Controller for the postponement of property taxesend deletebegin insert eliminate the requirement that the Controller transfer any moneys in the fund in excess of $15,000,000end insert to the General Fund. The bill wouldbegin delete alsoend delete authorize the Director of Finance, upon determination by the Controller that there are insufficient moneys in the fund to cover thebegin delete costsend deletebegin insert costend insert ofbegin delete administering the program and to payend delete all approved claims for the postponement of property taxes, to authorizebegin delete expendituresend deletebegin insert a transferend insert from the General Fundbegin insert to the Senior Citizens and Disabled Citizens Property Tax Postponement Fundend insert in an amount necessary to pay those claims, as specified. By authorizing the expenditure of additional general fund moneys 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 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.

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.

(4) 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.

(5) 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.

(6) 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 payment by the Controller. The bill would require the tax collector to maintain a record of the fact that taxes on the property have been postponed 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.

(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.

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.

(8) 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.

(9) 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.

(10) Existing law requires that a claim for postponement of property taxes be for the residential dwelling, defined generally as the principal place of residence of the claimant and so much of the land surrounding it as is reasonably necessary for the use of the dwelling as a home that is owned by the claimant alone or by the claimant and other specified individuals.

Existing law authorizes an applicant, defined as including a public agency, an entity acting on behalf of and with the written consent of a public agency, or a financial institution for specified purposes, to assist property owners in financing the installation of distributed generation renewable energy sources, electric vehicle charging infrastructure, or energy or water efficiency improvements through the issuance of Property Assessed Clean Energy (PACE) bonds that are secured by a voluntary contractual assessment on property or a special tax on property.

This bill would exclude from a residential dwelling eligible for the property tax postponement program any residential dwelling that is subject to a PACE bond.

(11) 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 insert

(12) This bill would incorporate additional changes to Section 20583 of the Revenue and Taxation Code proposed by SB 909 that would become operative if this bill and SB 909 are enacted and this bill is enacted last.

end insert
begin delete

(12)

end delete

begin insert(13)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: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

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

P5    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.begin delete Subject to
7subdivision (b) and notwithstandingend delete
begin insert Notwithstandingend insert Section
813340, the fund is continuously appropriated to the Controller,
9commencing January 1, 2015, for purposes of administering this
P6    1chapter, including, but not limited to, necessary administrative
2costs and disbursements relating to the postponement of property
3taxes pursuant to the Property Tax Postponement Law (Chapter 2
4(commencing with Section 20581), Chapter 3 (commencing with
5Section 20625), and Chapter 3.5 (commencing with Section 20640)
6of Part 10.5 of Division 2 of the Revenue and Taxation Code).

begin delete

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

end delete
begin delete

8(1) On June 30, 2017, transfer any moneys in the fund in excess
9of twenty million dollars ($20,000,000) to the General Fund.

end delete
begin delete

10(2) On June 30, 2018, and on June 30 each year thereafter,
11transfer any moneys in the fund in excess of fifteen million dollars
12($15,000,000) not otherwise needed to cover the costs of
13administering this chapter and to pay claims approved by the
14Controller for the postponement of property taxes pursuant to the
15Property Tax Postponement Law (Chapter 2 (commencing with
16Section 20581), Chapter 3 (commencing with Section 20625), and
17Chapter 3.5 (commencing with Section 20640) of Part 10.5 of
18Division 2 of the Revenue and Taxation Code) to the General
19Fund.

end delete
begin delete

20(c)

end delete

21begin insert(b)end insert On or after January 1, 2015, any loan repayments relating
22to the Senior Citizens and Disabled Citizens Property Tax
23Postponement Law shall be deposited into the Senior Citizens and
24Disabled Citizens Property Tax Postponement Fund.

begin delete

25(d)

end delete

26begin insert(c)end insert Any funds remaining upon the effective date of this section
27in an impound account formerly provided for pursuant to this
28chapter, shall be transferred to the Senior Citizens and Disabled
29Citizens Property Tax Postponement Fund.

begin delete

30(e) If the Controller determines that there are insufficient moneys
31in the fund to cover the costs of administering this chapter and to
32pay all approved claims for the postponement of property taxes,
33the Director of Finance, upon receiving notification from the
34Controller, may authorize expenditures from the General Fund in
35an amount necessary to cover the costs of administering this chapter
36and to pay those claims not sooner than 30 days after providing
37written notification of the necessity of authorizing those
38expenditures to the chairpersons of the fiscal committees of each
39house of the Legislature and the Chairperson of the Joint
40Legislative Budget Committee.

end delete
begin insert

P7    1
(d) If the Controller determines that there are insufficient
2moneys in the fund to cover the cost of all claims that will be
3approved for the postponement of property taxes in that fiscal
4year, the Controller shall notify the Director of Finance on or
5before April 1 of each year of the deficiency. The Director of
6Finance may authorize a transfer from the General Fund to the
7Senior Citizens and Disabled Citizens Property Tax Postponement
8Fund in an amount necessary to cover the costs of paying those
9claims within 60 days of receiving notice of deficiency and not
10sooner than 30 days after providing written notification of the
11authorization of that expenditure to the chairperson of the fiscal
12committees of each house of the Legislature and the Chairperson
13of the Joint Legislative Budget Committee.

end insert
14

SEC. 2.  

Section 16182 of the Government Code, as amended
15by Section 2 of Chapter 391 of the Statutes of 2015, is amended
16to read:

17

16182.  

(a) All sums paid by the Controller under the provisions
18of this chapter, together with interest thereon, shall be secured by
19a lien in favor of the State of California when funds are transferred
20to the county by the Controller upon the real property for which
21property taxes have been postponed. In the case of a residential
22dwelling which is part of a larger parcel taxed as a unit, such as a
23duplex, farm, or multipurpose or multidwelling building, the lien
24shall be against the entire tax parcel.

25(b) In the case of real property:

26(1) The lien shall be evidenced by a notice of lien for postponed
27property taxes executed by the Controller, or the authorized
28delegate of the Controller, and shall secure all sums paid or owing
29pursuant to this chapter, including amounts paid subsequent to the
30initial payment of postponed taxes on the real property described
31in the notice of lien.

32(2) The notice of lien may bear the facsimile signature of the
33Controller. Each signature shall be that of the person who shall be
34in the office at the time of execution of the notice of lien; provided,
35however, that such notice of lien shall be valid and binding
36notwithstanding any such person having ceased to hold the office
37of Controller before the date of recordation.

38(3) The form and contents of the notice of lien for postponed
39property taxes shall be prescribed by the Controller and shall
40include, but not be limited to, the following:

P8    1(A) The names of all record owners of the real property for
2which the Controller has advanced funds for the payment of real
3property taxes.

4(B) A description of the real property for which real property
5taxes have been paid.

6(C) The identification number of the notice of lien which has
7been assigned the lien by the Controller.

8(4) Within 14 business days of the transfer of funds and the
9notice of lien to the county by the Controller, the notice of lien
10shall be recorded in the office of the county recorder for the county
11in which the real property subject to the lien is located.

12(5) The recorded notice of lien shall be indexed in the Grantor
13Index to the names of all record owners of the real property and
14in the Grantee Index to the Controller of the State of California.

15(6) After the notice of lien has been duly recorded and indexed,
16it shall be returned by the county recorder to the office of the
17Controller. The Controller shall provide the county tax collector
18and the county assessor with a copy of the notice of lien which
19has been executed.

20(7) From the time of recordation of a notice of lien for postponed
21property taxes, a lien shall attach to the real property described
22therein and shall have the priority of a judgment lien for all
23amounts secured thereby, except that the lien shall remain in effect
24until either of the following occurs:

25(A) It is released by the Controller in the manner prescribed by
26Section 16186.

27(B) The foreclosure or sale of an obligation secured by a lien
28which is senior in recording priority to the lien of the State of
29California.

30(c) In the case of mobilehome loans established prior to February
3120, 2009, all of the following shall apply:

32(1) The lien shall be evidenced by a notice of lien for postponed
33property taxes executed by the Controller, or the authorized
34delegate of the Controller, and shall secure all sums paid owing
35pursuant to this chapter.

36(2) From the time that the Department of Housing and
37Community Development receives the notice of lien from the
38Controller, the department shall impose a moratorium on any other
39amendments to the permanent title record of the mobilehome unit
40until released by the Controller in the manner prescribed by Section
P9    116186, or an authorization for the amendments is given by the
2Controller in writing.

3(3) From the time of filing a notice of lien, a lien shall attach to
4the mobilehome for which eligibility for the postponement of
5property taxes has been granted.

6

SEC. 3.  

Section 16183 of the Government Code, as amended
7by Section 3 of Chapter 391 of the Statutes of 2015, is amended
8to read:

9

16183.  

(a) From the time a payment is made pursuant to
10Section 16180, the amount of that payment shall bear interest at a
11rate (not compounded), determined as follows:

12(1) Beginning July 1, 2016, the rate of interest shall be 7 percent
13per annum.

14(2) The Controller shall establish an adjusted rate of interest for
15the purpose of this subdivision not later than July 15th of any year
16if the effective annual yield of the Pooled Money Investment
17Account for the prior fiscal year is at least a full percentage point
18more or less than the interest rate which is then in effect. The
19adjusted rate of interest shall be equal per annum to the effective
20annual yield earned in the prior fiscal year by the Pooled Money
21 Investment Account rounded to the nearest full percent, and shall
22become effective for new deferrals, beginning on July 1, 1984,
23and on July 1 of each immediately succeeding year, until June 30,
242016.

25(3) For loans made prior to June 30, 2016, the rate of interest
26provided pursuant to this subdivision for the first fiscal year
27commencing after payment is made pursuant to Section 16180
28shall apply for that fiscal year and each fiscal year thereafter until
29these postponed property taxes are repaid.

30(b) The interest provided for in subdivision (a) shall be applied
31beginning the first day of the month following the month in which
32that payment is made and continuing on the first day of each month
33thereafter until that amount is paid. In the event that any payments
34are applied, in any month, to reduce the amount paid pursuant to
35Section 16180, the interest provided for herein shall be applied to
36the balance of that amount beginning on the first day of the
37following month.

38(c) In computing interest in accordance with this section,
39fractions of a cent shall be disregarded.

P10   1(d) For the purpose of this section, the time a payment is made
2shall be deemed to be the time a payment is made by the Controller
3to the tax collector or the delinquency date of the respective tax
4installment, whichever is later.

5(e) The Controller shall include on forms supplied to claimants
6pursuant to Sections 20621, 20630.5, 20640.9, and 20641 of the
7Revenue and Taxation Code, a statement of the interest rate which
8shall apply to amounts postponed for the fiscal year to which the
9form applies.

10

SEC. 4.  

Section 16184 of the Government Code is amended
11to read:

12

16184.  

(a) The Controller shall reduce the amount of the
13obligation secured by the lien against the real property by the
14amount of any payments received for that purpose and by
15notification of any amounts paid by the Franchise Tax Board
16pursuant to Section 20564 of the Revenue and Taxation Code or
17by any amounts authorized pursuant to subdivision (f) of Section
1820621 of the Revenue and Taxation Code. Any payment received
19for that purpose shall be applied in the following order:

20(1) To any interest due on the loan.

21(2) To the principal property tax amount.

22(3) The remaining balance, if any, to administrative fees.

23(b) The Controller shall also increase the amount of the
24obligation secured by the lien by the amount of any subsequent
25payments made pursuant to Section 16180 with respect to the real
26property and to reflect the accumulation of interest. All such
27increases and decreases shall be entered in the record described in
28Section 16181.

29

SEC. 5.  

Section 16186.5 of the Government Code is amended
30to read:

31

16186.5.  

In the event that a payment which is made to satisfy
32an obligation secured by a lien for postponed property taxes
33exceeds the amount owing to the state, the Controller may refund
34the overpayment to the party entitled thereto. The Controller shall
35pay those refunds out of the amount appropriated by Section 16180,
36or any appropriation in lieu thereof.

37

SEC. 6.  

Section 16200 of the Government Code is amended
38to read:

39

16200.  

In the event that the Controller receives the notice
40described in Section 16187 of this code or Section 3375 of the
P11   1Revenue and Taxation Code, the Controller may take any of the
2following actions which will best serve the interests of the state:

3(a) Notify, by United States mail, the tax collector or other party
4that such notice has been received and that the Controller must be
5given at least 20 days prior notice of the date that the property will
6be sold at auction. If the Controller elects to proceed under this
7subdivision, the Controller may use funds appropriated by Section
816180 to bid on the property at the auction up to the amount
9secured by the state’s lien on the property and any lien on such
10property having priority over the state’s lien. All additional
11amounts paid pursuant to this subdivision shall be added to the
12amount secured by the lien on such property provided for in Article
131 (commencing with Section 16180) of this chapter.

14(b) Acknowledge by United States mail that the notice required
15by Section 16187 of this code or Section 3375 of the Revenue and
16Taxation Code has been received.

17

SEC. 7.  

Section 16202 of the Government Code is amended
18to read:

19

16202.  

Notwithstanding any other provision of law, in the
20event that the state acquires an interest in real property pursuant
21to subdivision (b) of Section 16200, the Controller may, in addition
22to the options provided in Section 16201, take any other action
23with respect to that real property interest as will best serve the
24interest of the state. These actions may include, but shall not be
25limited to, the sale, lease, or retention of any interest so acquired.
26The Controller may contract with licensed real estate brokers,
27maintenance and repair contractors, security contractors, appraisers,
28property managers, insurance brokers, and any other experts or
29specialists as may be necessary to protect or preserve the state’s
30interest in that property. The Controller may pay the costs incurred
31pursuant to those contracts out of the amount appropriated by
32Section 16180, or from any appropriation in lieu thereof.

33The sale of those interests may be made on the basis of
34conventional financing arrangements including the securing of
35payment through the use of promissory notes, deeds of trust, and
36other accepted methods of deferred payment.

37

SEC. 8.  

Section 27282 of the Government Code is amended
38to read:

39

27282.  

(a) The following documents may be recorded without
40acknowledgment, certificate of acknowledgment, or further proof:

P12   1(1) A judgment affecting the title to or possession of real
2property, authenticated by the certificate of the clerk of the court
3in which the judgment was rendered.

4(2) A notice of support judgment, an interstate lien, a release
5of lien, or any other document completed and recorded by a local
6child support agency or a state agency acting pursuant to Title
7IV-D of the Social Security Act (42 U.S.C. Sec. 651 et seq.).

8(3) A notice of location of mining claim.

9(4) Certificates of amounts of taxes, interest and penalties due,
10notices of state tax liens and extensions thereof executed by the
11state, county, or city taxing agencies or officials pursuant to
12Chapter 14 (commencing with Section 7150) of Division 7 of Title
131 of the Government Code, and Sections 2191.3, 2191.4, and 11495
14of the Revenue and Taxation Code, and releases, partial releases,
15and subordinations executed pursuant to Chapter 14 (commencing
16with Section 7150) of Division 7 of Title 1 of the Government
17Code, and Sections 2191.4, 11496, 14307, and 14308 of the
18Revenue and Taxation Code.

19(5) Notices of lien for postponed property taxes executed
20pursuant to Section 16182.

21(6) A release or discharge of a lien for postponed property taxes
22as authorized by Chapter 6 (commencing with Section 16180) of
23Part 1 of Division 4 of Title 2.

24(7) A fixture filing as defined by paragraph (40) of subdivision
25(a) of Section 9102 of the Commercial Code.

26(8) An order affecting title to or possession of real property
27issued by a court in an action subject to Section 12527,
28authenticated by the certificate of the clerk of the court in which
29the order was issued or a copy of that order authenticated by a
30declaration under penalty of perjury by the Attorney General or
31by an assistant or deputy of the Attorney General attesting that the
32contents of the copy are the same as the original order issued by
33the court.

34(9) A court certified copy of a satisfaction of judgment.

35(10) A certificate of correction filed pursuant to Sections 66470
36and 66472.1.

37(b) Any document described in this section, from the time it is
38filed with the recorder for record, is constructive notice of the
39contents thereof to subsequent purchasers and mortgagees.

P13   1

SEC. 9.  

Section 2514 of the Revenue and Taxation Code is
2amended to read:

3

2514.  

(a) Upon receipt of the payment by the Controller
4described in Section 20602, 20630, or 20640.6, the following shall
5occur:

6(1) The tax collector shall maintain a record of the fact that taxes
7on the property have been postponed. In the case of the secured
8roll, this information may be entered in that portion of the roll
9which has been designated for tax default information as required
10by Section 3439.

11(2) With respect to a claimant whose property taxes are paid by
12a lender from an impound, trust, or other type of account described
13in Section 2954 of the Civil Code, the tax collector shall notify
14the auditor of the claimant’s name and address, and the duplicate
15amount of money the Controller paid to the tax collector.

16The county auditor, treasurer, or disbursing officer shall refund
17the amount of money, based on the payment by the Controller, to
18the claimant within 60 days of the replicated payment.

19(b) The procedures established by this chapter shall not be
20construed to require a lender to alter the manner in which a lender
21makes payment of the property taxes of such a claimant.

22

SEC. 10.  

Section 2515 of the Revenue and Taxation Code is
23amended to read:

24

2515.  

(a) Upon receiving a copy of the “notice of lien for
25postponed property taxes” from the Controller, the assessor shall
26maintain a record of the fact that the taxes on the property have
27been postponed and the Controller’s identification number and
28shall, if such record reveals a change in the ownership status of
29the property subsequent to the date of entry of the postponement
30information thereon, notify the Controller within 60 days of
31processing the change in the ownership status in the manner
32prescribed by the Controller.

33(b) From the time of recordation of the notice of lien pursuant
34to Section 16182 of the Government Code, the lien for postponed
35property taxes shall be deemed to impart constructive notice of
36the contents thereof to subsequent purchasers, mortgagees, lessees,
37and other lienors.

38

SEC. 11.  

Section 2781 of the Revenue and Taxation Code is
39amended to read:

P14   1

2781.  

If a taxpayer or agent for the taxpayer submits a payment
2indicated for application to a specific tax or tax installment and
3that tax or tax installment already has been paid, the county shall
4return the replicated payment to the tendering party within 60 days
5of the date the payment becomes final. For purposes of this section,
6“final” means the original payment that is not subject to
7chargeback, dishonor, or reversal. However, when a replicated
8payment is made of any tax or tax installment paid by the
9Controller to the county pursuant to Section 2514, the amount of
10the replicated payment shall be paid to the claimant on whose
11behalf the payment was made.

12

SEC. 12.  

Section 20503 of the Revenue and Taxation Code is
13amended to read:

14

20503.  

(a) “Income” means adjusted gross income as defined
15in Section 17072 plus all of the following cash items:

16(1) Public assistance and relief.

17(2) Nontaxable amount of pensions and annuities.

18(3) Social security benefits (except Medicare).

19(4) Railroad retirement benefits.

20(5) Unemployment insurance payments.

21(6) Veterans’ benefits.

22(7) Exempt interest received from any source.

23(8) Gifts and inheritances in excess of three hundred dollars
24($300), other than transfers between members of the household.
25Gifts and inheritances include noncash items.

26(9) Amounts contributed on behalf of the contributor to a
27tax-sheltered retirement plan or deferred compensation plan.

28(10) Temporary workers’ compensation payments.

29(11) Sick leave payments.

30(12) Nontaxable military compensation as defined in Section
31112 of the Internal Revenue Code.

32(13) Nontaxable scholarship and fellowship grants as defined
33in Section 117 of the Internal Revenue Code.

34(14) Nontaxable gain from the sale of a residence as defined in
35Section 121 of the Internal Revenue Code.

36(15) Life insurance proceeds to the extent that the proceeds
37exceed the expenses incurred for the last illness and funeral of the
38deceased spouse of the claimant. “Expenses incurred for the last
39illness” includes unreimbursed expenses paid or incurred during
40the income calendar year and any expenses paid or incurred
P15   1thereafter up until the date the claim is filed. For purposes of this
2paragraph, funeral expenses shall not exceed five thousand dollars
3($5,000).

4(16) If an alternative minimum tax is required to be paid
5pursuant to Chapter 2.1 (commencing with Section 17062) of Part
610, the amount of alternative minimum taxable income (whether
7or not cash) in excess of the regular taxable income.

8(17) Annual winnings from the California Lottery in excess of
9six hundred dollars ($600) for the current year.

10(b) For purposes of this chapter, total income shall be determined
11for the calendar year (or approved fiscal year ending within that
12calendar year) which ends within the fiscal year for which
13assistance is claimed.

14(c) For purposes of Chapter 2 (commencing with Section 20581),
15Chapter 3 (commencing with Section 20625), and Chapter 3.5
16(commencing with Section 20640), all losses and nonexpenses
17shall be converted to zero for the purpose of determining whether
18the homeowner meets the Property Tax Postponement requirement.

19(d) For purposes of Chapter 2 (commencing with Section
2020581), Chapter 3 (commencing with Section 20625), and Chapter
213.5 (commencing with Section 20640), total income shall be
22determined for the calendar year ending immediately prior to the
23commencement of the fiscal year for which postponement is
24claimed.

25

SEC. 13.  

Section 20505 of the Revenue and Taxation Code,
26as amended by Section 8 of Chapter 391 of the Statutes of 2015,
27is amended to read:

28

20505.  

“Claimant” means an individual who:

29(a) For purposes of this chapter was either (1) 62 years of age
30or older on the last day of the calendar year or approved fiscal year
31designated in subdivision (b) or (c) of Section 20503, whichever
32is applicable, or (2) blind or disabled, as defined in Section 12050
33of the Welfare and Institutions Code on the last day of the calendar
34year or approved fiscal year designated in subdivision (b) of
35Section 20503, who was a member of the household, and who was
36either: (1) the owner and occupier of a residential dwelling on the
37last day of the year designated in subdivision (b) or (c) of Section
3820503, or (2) the renter of a rented residence on or before the last
39day of the year designated in subdivision (b) of Section 20503. An
P16   1individual who qualifies as an owner-claimant may not qualify as
2a renter-claimant for the same year.

3(b)  For purposes of Chapter 2 (commencing with Section
420581), Chapter 3 (commencing with Section 20625), Chapter 3.3
5(commencing with Section 20639), and Chapter 3.5 (commencing
6with Section 20640) was a member of the household and either an
7owner-occupant, or a tenant stockholder occupant, or a possessory
8interestholder occupant, or a mobilehome owner-occupant, as the
9case may be, of the residential dwelling as to which postponement
10is claimed on the last day of the year designated in subdivision (b)
11or (c) of Section 20503, and who was (1) 62 years of age or older
12by December 31 of the fiscal year for which postponement is
13claimed, or (2) blind or disabled, as defined in Section 12050 of
14the Welfare and Institutions Code, at the time of application or on
15 February 10 of the fiscal year for which postponement is claimed.

16

SEC. 14.  

Section 20583 of the Revenue and Taxation Code is
17amended to read:

18

20583.  

(a) “Residential dwelling” means a dwelling occupied
19as the principal place of residence of the claimant, and so much
20of the land surrounding it as is reasonably necessary for use of the
21dwelling as a home, owned by the claimant, the claimant and
22spouse, or by the claimant and either another individual eligible
23for postponement under this chapter or an individual described in
24subdivision (a), (b), or (c) of Section 20511 and located in this
25state. It shall include condominiums that are assessed as realty for
26local property tax purposes. It also includes part of a multidwelling
27or multipurpose building and a part of the land upon which it is
28built.

29(b) As used in this chapter in reference to ownership interests
30in residential dwellings, “owned” includes (1) the interest of a
31vendee in possession under a land sale contract provided that the
32contract or memorandum thereof is recorded and only from the
33date of recordation of the contract or memorandum thereof in the
34office of the county recorder where the residential dwelling is
35located, (2) the interest of the holder of a life estate provided that
36the instrument creating the life estate is recorded and only from
37the date of recordation of the instrument creating the life estate in
38the office of the county recorder where the residential dwelling is
39located, but “owned” does not include the interest of the holder of
40any remainder interest or the holder of a reversionary interest in
P17   1the residential dwelling, (3) the interest of a joint tenant or a tenant
2in common in the residential dwelling or the interest of a tenant
3where title is held in tenancy by the entirety or a community
4property interest where title is held as community property, and
5(4) the interest in the residential dwelling in which the title is held
6in trust, as described in subdivision (d) of Section 62, provided
7that the Controller determines that the state’s interest is adequately
8protected.

9(c) Except as provided in subdivision (c), and Chapter 3
10(commencing with Section 20625), ownership must be evidenced
11by an instrument duly recorded in the office of the county where
12the residential dwelling is located.

13(d) “Residential dwelling” does not include any of the following:

14(1) Any residential dwelling in which the owners do not have
15an equity of at least 40 percent of the full value of the property as
16determined for purposes of property taxation or at least 40 percent
17of the fair market value as determined by the Controller and where
18the Controller determines that the state’s interest is adequately
19protected. The 40-percent equity requirement shall be met each
20 time the claimant or authorized agent files a postponement claim.

21(2) Any residential dwelling in which the claimant’s interest is
22held pursuant to a contract of sale or under a life estate, unless the
23claimant obtains the written consent of the vendor under the
24contract of sale, or the holder of the reversionary interest upon
25termination of the life estate, for the postponement of taxes and
26the creation of a lien on the real property in favor of the state for
27amounts postponed pursuant to this act.

28(3) Any residential dwelling on which the claimant does not
29receive a secured tax bill.

30(4) Any residential dwelling in which the claimant’s interest is
31held as a possessory interest, except as provided in Chapter 3.5
32(commencing with Section 20640).

33(5) Any residential dwelling that is subject to a Property
34Assessed Clean Energy bond, or PACE bond, as defined in Section
3526054 of the Public Resources Code.

36begin insert

begin insertSEC. 14.5.end insert  

end insert

begin insertSection 20583 of the end insertbegin insertRevenue and Taxation Codeend insert
37
begin insert is amended to read:end insert

38

20583.  

(a) “Residential dwelling” means a dwelling occupied
39as the principal place of residence of thebegin delete claimant,end deletebegin insert claimantend insert and
40so much of the land surrounding it as is reasonably necessary for
P18   1use of the dwelling as a home, owned by the claimant, the claimant
2and spouse, or by the claimant and either another individual eligible
3for postponement under this chapter or an individual described in
4subdivision (a), (b), or (c) of Section 20511 and located in this
5state. It shall include condominiums that are assessed as realty for
6local property tax purposes. It also includes part of a multidwelling
7or multipurpose building and a part of the land upon which it is
8built.

9(b) As used in this chapter in reference to ownership interests
10in residential dwellings, “owned” includes (1) the interest of a
11vendee in possession under a land sale contract provided that the
12contract or memorandum thereof is recorded and only from the
13date of recordation of the contract or memorandum thereof in the
14office of the county recorder where the residential dwelling is
15located, (2) the interest of the holder of a life estate provided that
16the instrument creating the life estate is recorded and only from
17the date of recordation of the instrument creating the life estate in
18the office of the county recorder where the residential dwelling is
19located, but “owned” does not include the interest of the holder of
20any remainder interest or the holder of a reversionary interest in
21the residential dwelling, (3) the interest of a joint tenant or a tenant
22in common in the residential dwelling or the interest of a tenant
23where title is held in tenancy by the entirety or a community
24property interest where title is held as community property, and
25(4) thebegin delete interestend deletebegin insert interest, including the interest of a beneficiary of
26a special needs trust,end insert
in the residential dwelling in which the title
27is held in trust, as described in subdivision (d) of Section 62,
28provided that the Controller determines that the state’s interest is
29adequately protected.

30(c) Except as provided in subdivision (c), and Chapter 3
31(commencing with Section 20625), ownership must be evidenced
32by an instrument duly recorded in the office of the county where
33the residential dwelling is located.

34(d) “Residential dwelling” does not include any of the following:

35(1) Any residential dwelling in which the owners do not have
36an equity of at least 40 percent of the full value of the property as
37determined for purposes of property taxation or at least 40 percent
38of the fair market value as determined by the Controller and where
39the Controller determines that the state’s interest is adequately
P19   1protected. The 40-percent equity requirement shall be met each
2time the claimant or authorized agent files a postponement claim.

3(2) Any residential dwelling in which the claimant’s interest is
4held pursuant to a contract of sale or under a life estate, unless the
5claimant obtains the written consent of the vendor under the
6contract of sale, or the holder of the reversionary interest upon
7termination of the life estate, for the postponement of taxes and
8the creation of a lien on the real property in favor of the state for
9amounts postponed pursuant to this act.

10(3) Any residential dwelling on which the claimant does not
11receive a secured tax bill.

12(4) Any residential dwelling in which the claimant’s interest is
13held as a possessory interest, except as provided in Chapter 3.5
14(commencing with Section 20640).

begin insert

15
(5) Any residential dwelling that is subject to a Property
16Assessed Clean Energy bond, or PACE bond, as defined in Section
1726054 of the Public Resources Code.

end insert
18

SEC. 15.  

Section 20585 of the Revenue and Taxation Code is
19amended to read:

20

20585.  

Postponement shall not be allowed under this chapter,
21Chapter 3 (commencing with Section 20625), or Chapter 3.5
22(commencing with Section 20640) if household income exceeds
23thirty five thousand five hundred dollars ($35,500).

24

SEC. 16.  

Section 20586 of the Revenue and Taxation Code is
25amended to read:

26

20586.  

For the purposes of Chapter 2 (commencing with
27Section 20581), Chapter 3 (commencing with Section 20625), and
28Chapter 3.5 (commencing with Section 20640), only one claimant
29per household each year shall be entitled to postponement. When
30two or more individuals in a household are qualified as claimants,
31they may determine who the claimant shall be. Such decision is
32irrevocable. If the individuals are unable to agree, the matter shall
33be determined by the Controller and his or her decision shall be
34final.

35

SEC. 17.  

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
P20   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.

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

SEC. 18.  

Section 20627 of the Revenue and Taxation Code,
32as amended by Section 15 of Chapter 391 of the Statutes of 2015,
33is amended to read:

34

20627.  

A tenant-stockholder claimant (hereinafter referred to
35as “claimant”) is an individual who, on the last day of the calendar
36year ending immediately prior to the commencement of the fiscal
37year for which postponement is claimed is: (a) a tenant-stockholder
38in a cooperative housing corporation (as defined in Section 216(b)
39of the Internal Revenue Code) and (b) occupies, as a principal
40place of residence, a residential unit in the cooperative housing
P21   1corporation (notwithstanding Section 216(b) of the Internal
2Revenue Code). For the purposes of this chapter, a claimant must
3be (1) 62 years of age or older on or before December 31 of the
4fiscal year for which postponement is claimed or (2) blind or
5disabled, as defined in Section 12050 of the Welfare and
6 Institutions Code, at the time of application or on February 10 of
7the fiscal year for which the postponement is claimed.

8

SEC. 19.  

Section 20640.3 of the Revenue and Taxation Code,
9as amended by Section 29 of Chapter 391 of the Statutes of 2015,
10is amended to read:

11

20640.3.  

A claimant is an individual who:

12(a) Holds a right to a possessory interest pursuant to a validly
13recorded instrument conveying such possessory interest for a term
14of years no less than 45 years beyond the last day of the calendar
15year ending immediately prior to the fiscal year for which taxes
16are initiallybegin delete postponed;end deletebegin insert postponed.end insert

17(b) Occupies as a principal place of residence the residential
18dwelling affixed to such possessory interest real property on the
19last day of the year designated inbegin delete Section 20503(c) of this code;end delete
20
begin insert subdivision (d) of Section 20503.end insert

21(c) begin delete(1)end deletebegin deleteend deleteIsbegin insert either (1)end insert 62 years of age or older on or before
22December 31 of the fiscal year for which postponement is claimed
23or (2) blind or disabled, as defined in Section 12050 of the Welfare
24and Institutions Code, at the time of application or on February 10
25of the fiscal year for which the postponement is claimed.

26

SEC. 20.  

Section 20641 of the Revenue and Taxation Code is
27amended to read:

28

20641.  

Forms filed pursuant to this part shall not be under oath
29but shall contain, or be verified by, a written declaration that they
30are made under the penalty of perjury. All forms filed pursuant to
31Chapter 1 (commencing with Section 20501) shall require such
32information as the Franchise Tax Board may from time to time
33prescribe, and shall be filed with the Franchise Tax Board. The
34Franchise Tax Board shall prepare blank forms for the claimant
35and shall distribute them throughout the state and furnish them
36upon application. All forms filed pursuant to Chapter 2
37(commencing with Section 20581), Chapter 3 (commencing with
38Section 20625), or Chapter 3.5 (commencing with Section 20640),
39shall require such information as the Controller may from time to
40time prescribe, shall be filed with the Controller, and the Controller
P22   1shall prepare such blank forms for the claimant and shall distribute
2them throughout the state and furnish them upon application.

3

SEC. 21.  

Section 20645.5 of the Revenue and Taxation Code
4 is amended to read:

5

20645.5.  

(a) If a postponement claim under Chapter 2
6(commencing with Section 20581), Chapter 3.3 (commencing with
7Section 20639), or Chapter 3.5 (commencing with Section 20640)
8is received by the Controller by February 10 for the fiscal year in
9which postponement is being claimed or by another date set by
10the Controller pursuant to Section 20622, then any delinquent
11penalties, costs, fees, and interest accrued for that fiscal year shall
12be canceled unless the failure to perfect the claim was due to willful
13neglect on the part of the claimant or representative.

14(b) In the event of willful neglect, a payment from the Controller
15for that current fiscal year can be used to pay delinquent taxes only
16if accompanied by sufficient amounts to pay all of the delinquent
17penalties, costs, fees, and interest. If an amount sufficient to pay
18all of the delinquent penalties, costs, fees, and interest is not
19received by the tax collector within 30 days from the date of the
20payment from the Controller, the tax collector may return the
21payment to the Controller to deny the postponement claim.

22(c) (1) The Controller shall notify the claimant in writing when
23the payment has been submitted to the tax collector.

24(2) In the event of willful neglect, in addition to the information
25required pursuant to paragraph (1), the Controller shall also notify
26the claimant in writing and provide a copy of the notification to
27the tax collector that a payment amount sufficient to pay all of the
28delinquent penalties, costs, fees, and interest must be received by
29the tax collector within 30 days from the date of the payment from
30the Controller to the county and that if this payment is not received
31by the tax collector, the tax collector may return the payment to
32the Controller to deny the postponement claim.

33

SEC. 22.  

Section 20645.6 of the Revenue and Taxation Code
34 is amended to read:

35

20645.6.  

(a) If the Controller denies a postponement claim
36under Chapter 2 (commencing with Section 20581), Chapter 3
37(commencing with Section 20625), Chapter 3.3 (commencing with
38Section 20639), or Chapter 3.5 (commencing with Section 20640),
39and the denial is reversed after appeal pursuant to Section 20645.1,
40the Controller shall transfer funds to the county for the amount of
P23   1the taxes. If the taxes for the fiscal year were previously paid, the
2county shall refund the overpayment to the taxpayer. If the taxes
3for the fiscal year are delinquent, any resulting penalties or interest
4shall be canceled.

5(b) The Controller shall notify the claimant in writing when a
6payment has been made pursuant to subdivision (a).

7begin insert

begin insertSEC. 23.end insert  

end insert
begin insert

Section 14.5 of this bill incorporates amendments to
8 Section 20583 of the Revenue and Taxation Code proposed by
9both this bill and Senate Bill 909. It shall only become operative
10if (1) both bills are enacted and become effective on or before
11January 1, 2017, (2) each bill amends Section 20583 of the
12Revenue and Taxation Code, and (3) this bill is enacted after
13Senate Bill 909, in which case Section 14 of this bill shall not
14become operative.

end insert
15

begin deleteSEC. 23.end delete
16
begin insertSEC. 24.end insert  

If the Commission on State Mandates determines that
17this act contains costs mandated by the state, reimbursement to
18local agencies and school districts for those costs shall be made
19pursuant to Part 7 (commencing with Section 17500) of Division
204 of Title 2 of the Government Code.



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