Senate Bill No. 477

Introduced by Senator Leyva

February 26, 2015

An act to amend Sections 16182, 16184, and 16186 of the Government Code, and to amend Sections 2514 and 20583 of, and to add Section 20583.1 to, the Revenue and Taxation Code, relating to state government, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 477, as introduced, Leyva. Property tax postponement: mobilehomes and floating homes.

Existing law, on and after February 20, 2009, prohibited a person from filing a claim for postponement, and prohibited the Controller from accepting applications for postponement of ad valorem tax, under the Senior Citizens and Disabled Citizens Property Tax Postponement Law. Existing law, as of July 1, 2016, makes inoperative the prohibition against a qualifying person, as specified, filing a claim for postponement and the Controller from accepting applications for postponement under the program and repeals this prohibition on January 1, 2017. Existing law does not allow owners of mobilehomes, houseboats, and floating homes to seek postponement of ad valorem taxes when the prohibition is lifted.

This bill would authorize an owner of a mobilehome or floating home, who is a qualified person, to seek postponement of ad valorem taxes under provisions similar to other owners of real property.

Because this bill would provide for additional categories of expenditures from the Senior Citizens and Disabled Citizens Property Tax Postponement Fund, a continuously appropriated fund, it would make an appropriation.

Because this bill would require local entities to process property liens under the expansion of the property tax postponement program, it 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 16182 of the Government Code 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 begin insert or a
mobilehome end insert 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 recorder shall provide the county tax collector with
a copy of the notice of lien which has been recorded by the
Controller.

(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 it is released by the Controller in the manner prescribed by
Section 16186.

begin insert

(c) In the case of a mobilehome:

end insert begin insert

(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.

end insert begin insert

(2) The notice of lien may bear the facsimile signature of the
Controller. The signature shall be that of the person who is in the
office at the time of execution of the notice of lien. However, the
notice of lien is valid and binding notwithstanding the person
having ceased to hold the office of Controller before the date of
filing.

end insert begin insert

(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, all of the following:

end insert begin insert

(A) The name or names of the registered owner or owners, legal
owner or owners, if different than the registered owner or owners
and the names, if any, of all junior lienholders.

end insert begin insert

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

end insert begin insert

(4) The notice of lien shall be transmitted to the Department of
Housing and Community Development at its office in Sacramento,
California.

end insert begin insert

(5) Upon receipt of the notice of lien for postponed property
taxes from the Controller, the Department of Housing and
Community Development shall amend the permanent title record
of the mobilehome to reflect that the property taxes on the
mobilehome are subject to postponement.

end insert begin insert

(6) The Department of Housing and Community Development
shall provide the Controller with an acknowledgment of receipt
and amendment of the permanent title record.

end insert begin insert

(7) From the time 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 for purposes of
transferring any ownership interest or transferring or creating
any security interest in the mobilehome, 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.

end insert begin insert

(d) 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.

end insert

begin insert (e) end insert begin insert   end insert begin insert Notwithstanding any other provision in this section, any
action required of a local agency by this section in order to give
effect to the Senior Citizens Mobilehome Property Tax
Postponement Law (Chapter 3.3 (commencing with Section 20639)
of Part 10.5 of Division 2 of the Revenue and Taxation Code), and
that has been determined by the Commission on State Mandates
to be a reimbursable mandate, shall be optional. end insert

begin delete

(c)

end delete

begin insert (f) end insert  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 excused 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.

SEC. 2.  

Section 16184 of the Government Code is amended
to read:

16184.  

The Controller shall reduce the amount of the obligation
secured by the lien against the real property begin insert or mobilehome end insert 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 or by any amounts authorized pursuant
to subdivision (f) of Section 20621 of the Revenue and Taxation
Code. 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.

SEC. 3.  

Section 16186 of the Government Code is amended
to read:

16186.  

(a) If at any time the amount of the obligation secured
by the lien for postponed property taxes is paid in full or otherwise
discharged, the Controller, or the authorized delegate of the
Controller, shall in the case of real property:

(1) Execute and cause to be recorded in the office of the county
recorder of the county wherein the real property described in the
lien is located, a release of the lien conclusively evidencing the
satisfaction of all amounts secured by the lien. The cost of
recording the release of the lien shall be added to and become part
of the obligation secured by the lien being released.

(2) Direct the tax collector to remove from the secured roll, the
information required to be entered thereon by paragraph (1) of
subdivision (a) of Section 2514 of the Revenue and Taxation Code
with respect to the property described in the lien.

(3) Direct the assessor to remove from the assessment records
applicable to the property described in the lien, the information
required to be entered on such records by Section 2515 of the
Revenue and Taxation Code.

(b) If at any time the amount of the obligation secured by the
lien for postponed property taxes is paid in full or otherwise
discharged, the Controller, or the authorized delegate of the
Controller, shall, in the case of mobilehome loans established prior
to February 20, 2009:

(1) Direct the tax collector to remove from the secured roll the
information required to be entered thereon by paragraph (1) of
subdivision (a) of Section 2514 of the Revenue and Taxation Code.

(2) Transmit a Release of Lien to the owner of the mobilehome,
or the owner’s heirs or assigns. The owner, or the owner’s heirs
or assigns, shall transmit the Release of Lien, and a fee of six
dollars ($6), to the Department of Housing and Community
Development. Upon receipt of the Release of Lien and the fee, the
department shall terminate the restriction on the permanent title
record as provided in Section 16182.

begin insert

(c) If at any time the amount of the obligation secured by the
lien for postponed property taxes is paid in full or otherwise
discharged, the Controller, or the authorized delegate of the
Controller, shall, in the case of a mobilehome:

end insert begin insert

(1) Direct the tax collector to remove from the secured roll the
information required to be entered thereon by paragraph (1) of
subdivision (a) of Section 2514 of the Revenue and Taxation Code.

end insert begin insert

(2) Transmit a Release of Lien to the owner of the mobilehome
or the owner’s heirs or assigns. The owner, or the owner’s heirs
or assigns, shall transmit the Release of Lien, and a fee of six
dollars ($6), to the Department of Housing and Community
Development. Upon receipt of the Release of Lien and the fee, the
department shall terminate the restriction on the permanent title
record as provided by Section 16182.

end insert

SEC. 4.  

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

2514.  

(a) 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 transferred to the tax
collector via an electronic fund transfer.

The county auditor, treasurer, or disbursing officer shall 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.

(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

(c) Notwithstanding any other provision in this section, any
action required of a local agency by this section in order to give
effect to the Senior Citizens Mobilehome Property Tax
Postponement Law (Chapter 3.3 (commencing with Section 20639)
of Part 10.5 of Division 2), and that has been determined by the
Commission on State Mandates to be a reimbursable mandate,
shall be optional.

end insert

SEC. 5.  

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

20583.  

(a) “Residential dwelling” means a dwelling occupied
as the principal place of residence of the claimant, and so much
of the land surrounding it as is reasonably necessary for use of the
dwelling as a home, owned by the claimant, the claimant and
spouse, or by the claimant and either another individual eligible
for postponement under this chapter or an individual described in
subdivision (a), (b), or (c) of Section 20511 and located in this
state. It shall include condominiums begin insert and mobilehomes end insert that are
assessed as realty for local property tax purposes. It also includes
part of a multidwelling or multipurpose building and a part of the
land upon which it is built. begin insert In the case of a mobilehome not
assessed as real property that is located on land owned by the
claimant, “residential dwelling” includes the land on which the
mobilehome is situated and so much of the land surrounding it as
reasonably necessary for use of the mobilehome as a home. end insert

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

begin insert

(c) For purposes of this chapter, the registered owner of a
mobilehome shall be deemed to be the owner of the mobilehome.

end insert begin delete

(c)

end delete

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

begin delete

(d)

end delete

begin insert (e) end insert  “Residential dwelling” does not include any of the following:

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

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

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

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

begin insert

(f) Notwithstanding subdivision (c) of Section 20584, houseboats
and floating homes, as defined by Section 20583.1, on which
property taxes are delinquent at the time the application for
postponement under this chapter is made, shall not be eligible for
postponement.

end insert

SEC. 6.  

Section 20583.1 is added to the Revenue and Taxation
Code, to read:

20583.1.  

For purposes of Section 20583, “residential dwelling”
includes houseboats and floating homes.

SEC. 7.  

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.