BILL NUMBER: SB 801 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Governance and Finance (Senators
Hertzberg (Chair), Bates, Beall, Hernandez, Lara, Nguyen, and Pavley)
MARCH 24, 2015
An act to amend Sections 16182 and 16183 of the Government Code,
and to amend Sections 2515 and 20645.6 of the Revenue and Taxation
Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 801, as introduced, Committee on Governance and Finance.
Property tax postponement.
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.
This bill would eliminate outdated references to "certificates of
eligibility" that were previously used under the postponement law.
The bill would eliminate references to certain duties on the part of
local tax officials, with respect to lien notices, to conform to the
superseding duties of the Controller in preparing and filing the
notice of lien for postponed taxes with the county recorder at the
time payment is made, and would specify payments by the Controller to
the county and the refund by the county of taxes paid when a
taxpayer successfully appeals his or her denial of postponement under
the law. The bill would also clarify that the interest rate on
existing loans made prior to the postponement law's suspension will
continue to accrue at the rate specified prior to the suspension of
the program.
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 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 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
executed 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.
(c) In the case of mobilehome loans established prior to February
20, 2009, all of the following shall apply:
(1) The lien shall be evidenced by a notice of lien for postponed
property taxes excused executed by the
Controller, or the authorized delegate of the Controller, and shall
secure all sums paid owing pursuant to this chapter.
(2) From the time that the Department of Housing and Community
Development receives the notice of lien from the Controller, the
department shall impose a moratorium on any other amendments to the
permanent title record of the mobilehome unit until released by the
Controller in the manner prescribed by Section 16186, or an
authorization for the amendments is given by the Controller in
writing.
(3) From the time of filing a notice of lien, a lien shall attach
to the mobilehome for which eligibility for the postponement of
property taxes has been granted.
SEC. 2. Section 16183 of the Government Code is amended to read:
16183. (a) (1) From the
time a payment is made pursuant to Section 16180, the amount of that
payment shall bear interest at a rate (not compounded), determined as
follows:
(1) Beginning July 1, 2016, the rate of interest shall be 7
percent per annum.
(2) The Controller shall establish an adjusted rate of interest
for the purpose of this subdivision not later than July 15th of any
year if the effective annual yield of the Pooled Money Investment
Account for the prior fiscal year is at least a full percentage point
more or less than the interest rate which is then in effect. The
adjusted rate of interest shall be equal per annum to the effective
annual yield earned in the prior fiscal year by the Pooled Money
Investment Account rounded to the nearest full percent, and shall
become effective for new deferrals, beginning on July 1, 1984, and on
July 1 of each immediately succeeding year, until June 30, 2016.
(3) The For loans made prior to June 30,
2016, the rate of interest provided pursuant to this
subdivision for the first fiscal year commencing after payment is
made pursuant to Section 16180 shall apply for that fiscal year and
each fiscal year thereafter until these postponed property taxes are
repaid.
(b) The interest provided for in subdivision (a) shall be applied
beginning the first day of the month following the month in which
that payment is made and continuing on the first day of each month
thereafter until that amount is paid. In the event that any payments
are applied, in any month, to reduce the amount paid pursuant to
Section 16180, the interest provided for herein shall be applied to
the balance of that amount beginning on the first day of the
following month.
(c) In computing interest in accordance with this section,
fractions of a cent shall be disregarded.
(d) For the purpose of this section, the time a payment is made
shall be deemed to be the time a certificate of eligibility
is countersigned by 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.
(e) The Controller shall include on forms supplied to claimants
pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641 of
the Revenue and Taxation Code, a statement of the interest rate which
shall apply to amounts postponed for the fiscal year to which the
form applies.
SEC. 3. Section 2515 of the Revenue and Taxation Code is amended
to read:
2515. (a) Upon expeditiously processing
receiving a "notice of lien for postponed property taxes" from
the tax collector, Controller, the tax
collector or the assessor, whichever is applicable, shall
immediately:
(1) Enter, on the notice of lien, a description of the real
property for which the taxes have been paid by use of a certificate
of eligibility pursuant to Section 2514. Such description shall be a
"metes and bounds," "lot-block-tract," or such other description as
is determined by the Controller to sufficiently describe the real
property for the purpose of securing the state's lien.
(2) Enter on the notice of lien, the names of all record owners of
the property described under subdivision (a) of this section, as
disclosed by the assessor's records.
(3) Upon entry of the information required by subdivisions (a) and
(b) of this section on the notice of lien, the assessor shall
immediately forward the notice of lien to the county recorder.
(4) Enter
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 shall, if
such record reveals a change in the ownership status of the property
subsequent to the date of entry of the postponement information
thereon, notify the Controller within 60 days of processing the
change in the ownership status in the manner prescribed by the
Controller.
(b) From the time of recordation of the notice of lien pursuant to
Section 16182 of the Government Code, the lien for postponed
property taxes shall be deemed to impart constructive notice of the
contents thereof to subsequent purchasers, mortgagees, lessees, and
other lienors.
SEC. 4. Section 20645.6 of the Revenue and Taxation Code is
amended to read:
20645.6. (a) If the Controller denies a postponement claim under
Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with
Section 20625), Chapter 3.3 (commencing with Section 20639), or
Chapter 3.5 (commencing with Section 20640), and the denial is
reversed after appeal pursuant to Section 20645.1, the Controller
shall electronically transfer funds to the county, if the
taxes for the fiscal year have been paid, county
for the amount of the taxes. If the taxes for the fiscal year
were previously paid, the county shall refund the overpayment to the
taxpayer. If the taxes for the fiscal year are
delinquent, any resulting penalties or interest shall be canceled.
(b) The Controller shall notify the claimant in writing when an
electronic funds transfer has been made pursuant to subdivision (a).