Amended in Senate August 1, 2016

Amended in Senate June 21, 2016

Amended in Senate June 15, 2016

Amended in Assembly April 19, 2016

Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2691

Introduced by Assembly Member Holden

February 19, 2016

An act to add Section 2607.5 to the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2691, as amended, Holden. Property taxation: Monthly Property Tax Payment Program.

Existing property tax law specifies that all taxes on personal property and half of the taxes on real property are due and payable each November 1 and provides that these taxes are delinquent if not paid by each December 10. Existing property tax law specifies that the second half of taxes on real property is due each February 1 and provides that these taxes are delinquent if not paid by each April 10.

This bill would authorize a county board of supervisors to implement a Monthly Property Tax Payment Program to authorize qualified taxpayers, as defined, to pay the property tax owed on the qualified taxpayer’s principal place of residence in monthly installments. The bill would authorize the ordinance or resolution implementing the program to set forth specific procedures for purposes of determining delinquency and default, as specified. The bill would require the monthly property tax payment to be allocated among the county, cities, special districts, and school entities in proportion to the amounts of ad valorem property tax revenue otherwise allocated among these entities. begin insert The bill would exclude from its provisions property for which an escrow account is established, as provided. end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

SECTION 1.  

Section 2607.5 is added to the Revenue and
Taxation Code, to read:

2607.5.  

(a) Notwithstanding any other law, a county board of
supervisors may adopt a resolution or ordinance to implement a
Monthly Property Tax Payment Program, to authorize qualified
taxpayers to pay the property tax owed on the qualified taxpayer’s
principal place of residence in monthly installments.

(b) The ordinance or resolution implementing the program may
set forth specific procedures for the tax collector to deem as timely
monthly installments paid late but within a specified grace period
due to reasonable cause for purposes of determining delinquency
and default.

(c) The monthly property tax payment shall be allocated among
the county, cities, special districts, and school entities in proportion
to the amounts of ad valorem property tax revenue otherwise
allocated among these entities.

(d) For purposes of this section, both of the following shall
apply:

(1)  begin delete “qualified taxpayers” end delete begin insert “Qualified taxpayer” end insert means a taxpayer
who is begin delete any end delete begin insert either end insert or both of the following:

(A) A person who is 62 years of age or older.

(B) A person receiving supplemental security income for a
disability, regardless of age.

(2) “School entities” has the same meaning as that term is
defined in subdivision (f) of Section 95.

begin insert

(e) This section shall not apply to property for which an escrow
account, as defined in Section 1024.17 of Title 12 of the Code of
Federal Regulations, is established.

end insert