Amended in Senate April 29, 2015

Senate BillNo. 477


Introduced by Senator Leyva

February 26, 2015


An act to amend Sectionsbegin insert 16181,end insert 16182, 16184, and 16186 of the Government Code, and to amendbegin delete Sections 2514 andend deletebegin insert Sectionend insert 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 amended, 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 valorembegin delete tax,end deletebegin insert taxes,end insert 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: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 16181 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

16181.  

(a) The Controller shall maintain a record of all
4properties against which a notice of lien for postponed property
5taxes has been recorded. The record shall include, but not be
6limited to, the names of each claimant, a description of the real
7property against which the lien is recorded, the identification
8number of the notice of lien assigned by the Controller, and the
9amount of the lien.

begin insert

10(b) The Controller shall maintain a record of all properties
11against which the Department of Housing and Community
12Development has been notified to withhold the transfer of title.
13The record shall include, but not be limited to, the names of each
14claimant, a description of the mobilehome against which a lien is
15charged, and the amount of the lien.

end insert
begin delete

16(b)

end delete

17begin insert(c)end insert Upon written request of any person or entity, or the agent
18of either, having a legal or equitable interest in real propertybegin insert or a
19mobilehomeend insert
that is subject to a lien for postponed taxes, the
20Controller shall within 10 working days following receipt of the
21request issue a written statement showing the amount of the
22obligation secured by the lien as of the date of the statement and
23any other information as will reasonably enable the person or
P3    1entity, or the agent of either, to determine the amount to be paid
2the Controller in order to obtain a certificate of release or discharge
3of the lien for postponed taxes.

begin delete

4(c)

end delete

5begin insert(d)end insert The Controller shall adopt regulations necessary to
6implement the provisions of this chapter and may establish a
7reasonable fee, not to exceed thirty dollars ($30), for the provision
8of the statement of lien status provided for herein.

9

begin deleteSECTION 1.end delete
10begin insertSEC. 2.end insert  

Section 16182 of the Government Code is amended
11to read:

12

16182.  

(a) All sums paid by the Controller under the provisions
13of this chapter, together with interest thereon, shall be secured by
14a lien in favor of the State of California when funds are transferred
15to the county by the Controller upon the real property or a
16mobilehome for which property taxes have been postponed. In the
17case of a residential dwelling which is part of a larger parcel taxed
18as a unit, such as a duplex, farm, or multipurpose or multidwelling
19building, the lien shall be against the entire tax parcel.

20(b) In the case of real property:

21(1) The lien shall be evidenced by a notice of lien for postponed
22property taxes executed by the Controller, or the authorized
23delegate of the Controller, and shall secure all sums paid or owing
24pursuant to this chapter, including amounts paid subsequent to the
25initial payment of postponed taxes on the real property described
26in the notice of lien.

27(2) The notice of lien may bear the facsimile signature of the
28Controller. Each signature shall be that of the person who shall be
29in the office at the time of execution of the notice of lien; provided,
30however, that such notice of lien shall be valid and binding
31notwithstanding any such person having ceased to hold the office
32of Controller before the date of recordation.

33(3) The form and contents of the notice of lien for postponed
34property taxes shall be prescribed by the Controller and shall
35include, but not be limited to, the following:

36(A) The names of all record owners of the real property for
37which the Controller has advanced funds for the payment of real
38property taxes.

39(B) A description of the real property for which real property
40taxes have been paid.

P4    1(C) The identification number of the notice of lien which has
2been assigned the lien by the Controller.

3(4) Within 14 business days of the transfer of funds and the
4notice of lien to the county by the Controller, the notice of lien
5shall be recorded in the office of the county recorder for the county
6in which the real property subject to the lien is located.

7(5) The recorded notice of lien shall be indexed in the Grantor
8Index to the names of all record owners of the real property and
9in the Grantee Index to the Controller of the State of California.

10(6) After the notice of lien has been duly recorded and indexed,
11it shall be returned by the county recorder to the office of the
12Controller. The recorder shall provide the county tax collector with
13a copy of the notice of lien which has been recorded by the
14Controller.

15(7) From the time of recordation of a notice of lien for postponed
16property taxes, a lien shall attach to the real property described
17therein and shall have the priority of a judgment lien for all
18amounts secured thereby, except that the lien shall remain in effect
19until it is released by the Controller in the manner prescribed by
20Section 16186.

21(c) In the case of a mobilehome:

22(1) The lien shall be evidenced by a notice of lien for postponed
23property taxes executed by the Controller, or the authorized
24delegate of the Controller, and shall secure all sums paid or owing
25pursuant to this chapter.

26(2) The notice of lien may bear the facsimile signature of the
27Controller. The signature shall be that of the person who is in the
28office at the time of execution of the notice of lien. However, the
29notice of lien is valid and binding notwithstanding the person
30having ceased to hold the office of Controller before the date of
31filing.

32(3) The form and contents of the notice of lien for postponed
33property taxes shall be prescribed by the Controller and shall
34include, but not be limited to, all of the following:

35(A) The name or names of the registered owner or owners, legal
36owner or owners, if different than the registered owner or owners
37and the names, if any, of all junior lienholders.

38(B) The identification number of the notice of lien which has
39been assigned the lien by the Controller.

P5    1(4) The notice of lien shall be transmitted to the Department of
2Housing and Community Development at its office in Sacramento,
3California.

4(5) Upon receipt of the notice of lien for postponed property
5taxes from the Controller, the Department of Housing and
6Community Development shall amend the permanent title record
7of the mobilehome to reflect that the property taxes on the
8mobilehome are subject to postponement.

9(6) The Department of Housing and Community Development
10shall provide the Controller with an acknowledgment of receipt
11begin insert of the notice of lienend insert and amendment of the permanent title record.

12(7) From the time the Department of Housing and Community
13Development receives the notice of lien from the Controller, the
14department shall impose a moratorium on any other amendments
15to the permanent title record of the mobilehome for purposes of
16transferring any ownership interest or transferring or creating any
17 security interest in the mobilehome, until released by the Controller
18in the manner prescribed by Section 16186 or an authorization for
19the amendments is given by the Controller in writing.

20(d) From the time of filing a notice of lien, a lien shall attach to
21the mobilehome for whichbegin delete eligibility for the postponement of
22property taxes has been granted.end delete
begin insert property taxes have been
23postponed.end insert

begin delete

24(e) Notwithstanding any other provision in this section, any
25action required of a local agency by this section in order to give
26effect to the Senior Citizens Mobilehome Property Tax
27Postponement Law (Chapter 3.3 (commencing with Section 20639)
28of Part 10.5 of Division 2 of the Revenue and Taxation Code), and
29that has been determined by the Commission on State Mandates
30to be a reimbursable mandate, shall be optional.

end delete
begin delete

31(f)

end delete

32begin insert(e)end insert In the case of mobilehome loans established prior to February
3320, 2009, all of the following shall apply:

34(1) The lien shall be evidenced by a notice of lien for postponed
35property taxes excused by the Controller, or the authorized delegate
36of the Controller, and shall secure all sums paid owing pursuant
37to this chapter.

38(2) From the time that the Department of Housing and
39Community Development receives the notice of lien from the
40Controller, the department shall impose a moratorium on any other
P6    1amendments to the permanent title record of the mobilehome unit
2until released by the Controller in the manner prescribed by Section
316186, or an authorization for the amendments is given by the
4Controller in writing.

5(3) From the time of filing a notice of lien, a lien shall attach to
6the mobilehome for which eligibility for the postponement of
7property taxes has been granted.

8

begin deleteSEC. 2.end delete
9begin insertSEC. 3.end insert  

Section 16184 of the Government Code is amended
10to read:

11

16184.  

The Controller shall reduce the amount of the obligation
12secured by the lien against the real property or mobilehome by the
13amount of any payments received for that purpose and by
14notification of any amounts paid by the Franchise Tax Board
15pursuant to Section 20564 or by any amounts authorized pursuant
16to subdivision (f) of Section 20621 of the Revenue and Taxation
17Code. The Controller shall also increase the amount of the
18obligation secured by the lien by the amount of any subsequent
19payments made pursuant to Section 16180 with respect to the real
20property and to reflect the accumulation of interest. All such
21increases and decreases shall be entered in the record described in
22Section 16181.

23

begin deleteSEC. 3.end delete
24begin insertSEC. 4.end insert  

Section 16186 of the Government Code is amended
25to read:

26

16186.  

(a) If at any time the amount of the obligation secured
27by the lien for postponed property taxes is paid in full or otherwise
28discharged, the Controller, or the authorized delegate of the
29Controller,begin delete shallend deletebegin insert shall,end insert in the case of real property:

30(1) Execute and cause to be recorded in the office of the county
31recorder of the county wherein the real property described in the
32lien is located, a release of the lien conclusively evidencing the
33satisfaction of all amounts secured by the lien. The cost of
34recording the release of the lien shall be added to and become part
35of the obligation secured by the lien being released.

36(2) Direct the tax collector to remove from the secured roll, the
37information required to be entered thereon by paragraph (1) of
38subdivision (a) of Section 2514 of the Revenue and Taxation Code
39with respect to the property described in the lien.

P7    1(3) Direct the assessor to remove from the assessment records
2applicable to the property described in the lien, the information
3required to be entered on such records by Section 2515 of the
4Revenue and Taxation Code.

5(b) If at any time the amount of the obligation secured by the
6lien for postponed property taxes is paid in full or otherwise
7discharged, the Controller, or the authorized delegate of the
8Controller, shall, in the case of mobilehome loans established prior
9to February 20, 2009:

10(1) Direct the tax collector to remove from the secured roll the
11information required to be entered thereon by paragraph (1) of
12subdivision (a) of Section 2514 of the Revenue and Taxation Code.

13(2) Transmit a Release of Lien to the owner of the mobilehome,
14or the owner’s heirs or assigns. The owner, or the owner’s heirs
15or assigns, shall transmit the Release of Lien, and a fee of six
16dollars ($6), to the Department of Housing and Community
17Development. Upon receipt of the Release of Lien and the fee, the
18department shall terminate the restriction on the permanent title
19record as provided in Section 16182.

20(c) If at any time the amount of the obligation secured by the
21lien for postponed property taxes is paid in full or otherwise
22discharged, the Controller, or the authorized delegate of the
23Controller, shall, in the case of a mobilehome:

24(1) Direct the tax collector to remove from the secured roll the
25 information required to be entered thereon by paragraph (1) of
26subdivision (a) of Sectionbegin delete 2514end deletebegin insert 2515end insert of the Revenue and Taxation
27Code.

28(2) Transmit a Release of Lien to the owner of the mobilehome
29or the owner’s heirs or assigns. The owner, or the owner’s heirs
30or assigns, shall transmit the Release of Lien, and a fee of six
31dollars ($6), to the Department of Housing and Community
32Development. Upon receipt of the Release of Lien and the fee, the
33department shall terminate the restriction on the permanent title
34record as provided by Section 16182.

begin delete
35

SEC. 4.  

Section 2514 of the Revenue and Taxation Code is
36amended to read:

37

2514.  

(a) With respect to a claimant whose property taxes are
38paid by a lender from an impound, trust, or other type of account
39described in Section 2954 of the Civil Code, the tax collector shall
40notify the auditor of the claimant’s name and address, and the
P8    1duplicate amount of money the Controller transferred to the tax
2collector via an electronic fund transfer.

3The county auditor, treasurer, or disbursing officer shall send a
4check in the amount of money based on the electronic transfer by
5the Controller, to the Controller within 60 days of the replicated
6payment.

7(b) The procedures established by this chapter shall not be
8construed to require a lender to alter the manner in which a lender
9makes payment of the property taxes of such a claimant.

10(c) Notwithstanding any other provision in this section, any
11action required of a local agency by this section in order to give
12effect to the Senior Citizens Mobilehome Property Tax
13Postponement Law (Chapter 3.3 (commencing with Section 20639)
14of Part 10.5 of Division 2), and that has been determined by the
15Commission on State Mandates to be a reimbursable mandate,
16shall be optional.

end delete
17

SEC. 5.  

Section 20583 of the Revenue and Taxation Code is
18amended to read:

19

20583.  

(a) “Residential dwelling” means a dwelling occupied
20as the principal place of residence of the claimant, and so much
21of the land surrounding it as is reasonably necessary for use of the
22dwelling as a home, owned by the claimant, the claimant and
23spouse, or by the claimant and either another individual eligible
24for postponement under this chapter or an individual described in
25subdivision (a), (b), or (c) of Section 20511 and located in this
26state. It shall include condominiums and mobilehomes that are
27assessed as realty for local property tax purposes. It also includes
28part of a multidwelling or multipurpose building and a part of the
29land upon which it is built. In the case of a mobilehome not
30assessed as real property that is located on land owned by the
31claimant, “residential dwelling” includes the land on which the
32mobilehome is situated and so much of the land surrounding it as
33reasonably necessary for use of the mobilehome as a home.

34(b) As used in this chapter in reference to ownership interests
35in residential dwellings, “owned” includes (1) the interest of a
36vendee in possession under a land sale contract provided that the
37contract or memorandum thereof is recorded and only from the
38date of recordation of the contract or memorandum thereof in the
39office of the county recorder where the residential dwelling is
40located, (2) the interest of the holder of a life estate provided that
P9    1the instrument creating the life estate is recorded and only from
2the date of recordation of the instrument creating the life estate in
3the office of the county recorder where the residential dwelling is
4located, but “owned” does not include the interest of the holder of
5any remainder interest or the holder of a reversionary interest in
6the residential dwelling, (3) the interest of a joint tenant or a tenant
7in common in the residential dwelling or the interest of a tenant
8where title is held in tenancy by the entirety or a community
9property interest where title is held as community property, and
10(4) the interest in the residential dwelling in which the title is held
11in trust, as described in subdivision (d) of Section 62, provided
12that the Controller determines that the state’s interest is adequately
13protected.

14(c) For purposes of this chapter, the registered owner of a
15mobilehome shall be deemed to be the owner of the mobilehome.

16(d) Except as provided in subdivision (c), and Chapter 3
17(commencing with Section 20625), ownership must be evidenced
18by an instrument duly recorded in the office of the county where
19the residential dwelling is located.

20(e) “Residential dwelling” does not include any of the following:

21(1) Any residential dwelling in which the owners do not have
22an equity of at least 40 percent of the full value of the property as
23determined for purposes of property taxation or at least 40 percent
24of the fair market value as determined by the Controller and where
25the Controller determines that the state’s interest is adequately
26protected. The 40-percent equity requirement shall be met each
27time the claimant or authorized agent files a postponement claim.

28(2) Any residential dwelling in which the claimant’s interest is
29held pursuant to a contract of sale or under a life estate, unless the
30claimant obtains the written consent of the vendor under the
31contract of sale, or the holder of the reversionary interest upon
32termination of the life estate, for the postponement of taxes and
33the creation of a lien on the real property in favor of the state for
34amounts postponed pursuant to this act.

35(3) Any residential dwelling on which the claimant does not
36receive a secured tax bill.

37(4) Any residential dwelling in which the claimant’s interest is
38held as a possessory interest, except as provided in Chapter 3.5
39(commencing with Section 20640).

P10   1(f) Notwithstanding subdivision (c) of Section 20584, houseboats
2and floating homes, as defined by Section 20583.1, on which
3property taxes are delinquent at the time the application for
4postponement under this chapter is made, shall not be eligible for
5postponement.

6

SEC. 6.  

Section 20583.1 is added to the Revenue and Taxation
7Code
, to read:

8

20583.1.  

For purposes of Section 20583, “residential dwelling”
9includes houseboats and floating homes.

10

SEC. 7.  

If the Commission on State Mandates determines that
11this act contains costs mandated by the state, reimbursement to
12local agencies and school districts for those costs shall be made
13pursuant to Part 7 (commencing with Section 17500) of Division
144 of Title 2 of the Government Code.



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