Amended in Assembly June 29, 2015

Senate BillNo. 801


Introduced by Committee on Governance and Finance (Senators Hertzberg (Chair), Bates, Beall, Hernandez, Lara, Nguyen, and Pavley)

March 24, 2015


An act to amend Sectionsbegin delete 16182 and 16183end deletebegin insert 16180, 16182, 16183, 16190, 16191, and 16192end insert of the Government Code,begin delete andend delete to amend Sectionsbegin delete 2515 and 20645.6 ofend deletebegin insert 2515, 20505, 20586, 20601, 20603, 20621, 20622, 20627, 20630, 20630.5, 20638, 20639.2, 20640.2, 20640.3, 20640.4, 20640.6, 20640.7, 20640.8, 20640.9, 20645.5, and 20645.6 of, and to repeal Sections 20633, 20639.3, 20639.4, 20639.5, 20639.6, 20639.7, 20639.8, and 20639.9 of,end insert the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 801, as amended, 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.

Thisbegin delete billend deletebegin insert bill, among other things,end insert would eliminate outdated references to “certificates of eligibility” that were previously used under the postponement law.begin insert The bill would permit the Controller to release a lien if there is a foreclosure on an obligation secured by a lien that is senior in recording priority. The bill would standardize the definition of a claimant so that all references include blind and disabled persons, as defined.end insert 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 wouldbegin delete alsoend delete 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.begin insert The bill would remove references regarding the eligibility of mobilehome properties to participate in the program and would add references specifying that co-op properties are eligible for the program. The bill would also delete and update outdated references and make other technical and conforming changes.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:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 16180 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

16180.  

(a) There is hereby created in the State Treasury a
4Senior Citizens and Disabled Citizens Property Tax Postponement
5Fund. The fund shall be an interest-bearing fund. Subject to
6subdivision (b) and notwithstanding Section 13340, the fund is
7continuously appropriated to the Controller, commencing January
81, 2015, for purposes of administering this chapter, including, but
9not limited to, necessary administrative costs and disbursements
10relating to the postponement of property taxes pursuant to the
11begin delete Senior Citizens and Disabled Citizensend delete Property Tax Postponement
12Law (Chapter 2 (commencing with Sectionbegin delete 20581)end deletebegin insert 20581), Chapter
133 (commencing with Section 20625), and Chapter 3.5 (commencing
14with Section 20640))end insert
of Part 10.5 of Division 2 of the Revenue
15and Taxation Code).

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

P3    1(1) On June 30, 2017, transfer any moneys in the fund in excess
2of twenty million dollars ($20,000,000) to the General Fund.

3(2) On June 30, 2018, and on June 30 each year thereafter,
4transfer any moneys in the fund in excess of fifteen million dollars
5($15,000,000) to the General Fund.

6(c) On or after January 1, 2015, any loan repayments relating
7to the Senior Citizens and Disabled Citizens Property Tax
8Postponement Law shall be deposited into the Senior Citizens and
9Disabled Citizens Property Tax Postponement Fund.

10(d) Any funds remaining upon the effective date of this section
11in an impound account formerly provided for pursuant to this
12chapter, shall be transferred to the Senior Citizens and Disabled
13Citizens Property Tax Postponement Fund.

14

begin deleteSECTION 1.end delete
15begin insert SEC. 2.end insert  

Section 16182 of the Government Code 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:

P4    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 recorder shall provide the county tax collector with
18a copy of the notice of lien which has been executed by the
19Controller.

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
24untilbegin delete it is released by the Controller in the manner prescribed by
25Section 16186.end delete
begin insert either of the following occurs:end insert

begin insert

26(A) It is released by the Controller in the manner prescribed by
27Section 16186.

end insert
begin insert

28(B) The foreclosure or sale of an obligation secured by a lien
29which is senior in recording priority to the lien of the State of
30California.

end insert

31(c) In the case of mobilehome loans established prior to February
3220, 2009, all of the following shall apply:

33(1) The lien shall be evidenced by a notice of lien for postponed
34property taxes executed by the Controller, or the authorized
35delegate of the Controller, and shall secure all sums paid owing
36pursuant to this chapter.

37(2) From the time that the Department of Housing and
38Community Development receives the notice of lien from the
39Controller, the department shall impose a moratorium on any other
40amendments to the permanent title record of the mobilehome unit
P5    1until released by the Controller in the manner prescribed by Section
216186, or an authorization for the amendments is given by the
3Controller in writing.

4(3) From the time of filing a notice of lien, a lien shall attach to
5the mobilehome for which eligibility for the postponement of
6property taxes has been granted.

7

begin deleteSEC. 2.end delete
8begin insert SEC. 3.end insert  

Section 16183 of the Government Code is amended
9to read:

10

16183.  

(a) From the time a payment is made pursuant to
11Section 16180, the amount of that payment shall bear interest at a
12rate (not compounded), determined as follows:

13(1) Beginning July 1, 2016, the rate of interest shall be 7 percent
14per annum.

15(2) The Controller shall establish an adjusted rate of interest for
16the purpose of this subdivision not later than July 15th of any year
17if the effective annual yield of the Pooled Money Investment
18Account for the prior fiscal year is at least a full percentage point
19more or less than the interest rate which is then in effect. The
20adjusted rate of interest shall be equal per annum to the effective
21annual yield earned in the prior fiscal year by the Pooled Money
22Investment Account rounded to the nearest full percent, and shall
23become effective for new deferrals, beginning on July 1, 1984,
24and on July 1 of each immediately succeeding year, until June 30,
252016.

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

31(b) The interest provided for in subdivision (a) shall be applied
32beginning the first day of the month following the month in which
33that payment is made and continuing on the first day of each month
34thereafter until that amount is paid. In the event that any payments
35are applied, in any month, to reduce the amount paid pursuant to
36Section 16180, the interest provided for herein shall be applied to
37the balance of that amount beginning on the first day of the
38following month.

39(c) In computing interest in accordance with this section,
40fractions of a cent shall be disregarded.

P6    1(d) For the purpose of this section, the time a payment is made
2shall be deemed to be the time an electronic funds transfer is made
3by the Controller to the tax collector or the delinquency date of
4the respective tax installment, whichever is later.

5(e) The Controller shall include on forms supplied to claimants
6pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641
7of the Revenue and Taxation Code, a statement of the interest rate
8which shall apply to amounts postponed for the fiscal year to which
9the form applies.

10begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 16190 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
11read:end insert

12

16190.  

All amounts owing pursuant to Article 1 (commencing
13with Section 16180) of this chapter shall become due if any of the
14following occurs:

15(a) The claimant, who is either the sole owner or sole possessory
16interestholder of the residential dwelling, as defined in Section
1720583 or Section 20640 of the Revenue and Taxation Code, or a
18coowner or copossessory interestholder with a person other than
19a spouse or other individual eligible to postpone property taxes
20pursuant to Chapter 2 (commencing with Section 20581),begin insert Chapter
213 (commencing with Section 20625),end insert
Chapter 3.3 (commencing
22with Section 20639), or Chapter 3.5 (commencing with Section
2320640) of Part 10.5 of Division 2 of such code, ceases to occupy
24the premises as his residential dwelling, dies, or sells, conveys, or
25disposes of the property, or allows any tax or special assessment
26on the premises described in Section 20583 of such code to become
27delinquent. If the sole owner or possessory interestholder claimant
28dies and his or her surviving spouse inherits the premises and
29continues to own and occupy it as his or her principal place of
30residence, then the lien amount does not become due and payable
31unless taxes or special assessments described in the preceding
32sentence become delinquent, or such surviving spouse dies, or
33sells, conveys, or disposes of the interest in the property.

34(b) The claimant, who is a coowner or copossessory
35interestholder of the residential dwelling, as defined in Section
3620583 or Section 20640.2 of the Revenue and Taxation Code, with
37a spouse or another individual eligible to postpone property taxes
38pursuant to Chapter 2 (commencing with Section 20581),begin insert end insertbegin insert Chapter
393 (commencing with Section 20625),end insert
Chapter 3.3 (commencing
40with Section 20639), or Chapter 3.5 (commencing with Section
P7    120640) of Part 10.5 of Division 2 of such code, dies, and the
2surviving spouse or other surviving eligible individual allows any
3tax or special assessment on the premises described in Section
420583 of such code to become delinquent or such surviving spouse
5or other individual ceases to occupy the premises as a residential
6dwelling, dies, or conveys, or disposes of the interest in the
7property.

8(c) The failure of the claimant to perform those acts the claimant
9is required to perform where such performance is secured, or will
10be secured in the event of nonperformance, by a lien which is
11senior to that of the lien provided by Section 16182.

12(d) Postponement was erroneously allowed because eligibility
13requirements were not met.

14(e) The claimant is refinancing the residential dwelling.

15(f) The claimant has elected to participate in a reverse mortgage
16program for the residential dwelling.

17begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 16191 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
18read:end insert

19

16191.  

The amounts paid pursuant to Section 16180 shall
20continue to draw interest but amounts owing pursuant to Article
211 (commencing with Section 16180) of this chapter shall not
22become due and payable if any of the following occurs:

23(a) The claimant continues to own and occupy or hold the
24possessory interest and occupy the premises as a residential
25dwelling, but ceases to postpone property taxes pursuant to Chapter
262 (commencing with Section 20581),begin insert Chapter 3 (commencing with
27Section 20625),end insert
Chapter 3.3 (commencing with Section 20639),
28or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of
29Division 2 of the Revenue and Taxation Code, and does not allow
30any tax or assessment against the premises, as described in Section
3120583 of such code, to become delinquent.

32(b) The surviving spouse of a claimant continues to own and
33occupy or hold the possessory interest and occupy the premises
34as a residential dwelling, but is ineligible to postpone property
35taxes pursuant to Chapter 2 (commencing with Section 20581),
36begin insert Chapter 3 (commencing with Section 20625),end insert Chapter 3.3
37(commencing with Section 20639), or Chapter 3.5 (commencing
38with Section 20640) of Part 10.5 of Division 2 of the Revenue and
39Taxation Code, or elects not to postpone such taxes, and does not
P8    1allow any tax or assessment against the premises, as described in
2Section 20583 of such code, to become delinquent.

3(c) The surviving individual otherwise eligible to postpone
4property taxes pursuant to Chapter 2 (commencing with Section
520581),begin insert Chapter 3 (commencing with Section 20625),end insert Chapter 3.3
6(commencing with Section 20639), or Chapter 3.5 (commencing
7with Section 20640) of Part 10.5 of Division 2 of the Revenue and
8Taxation Code continues to own and occupy or hold the possessory
9interest and occupy the premises as a residential dwelling, but
10elects not to postpone the property taxes pursuant to such chapter,
11and does not allow any tax or assessment against the premises, as
12described in Section 20583 of such code, to become delinquent.

13begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 16192 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
14read:end insert

15

16192.  

If, at any time, a person meeting the requirements of
16subdivision (a) or (c) of Section 16191 elects, or any surviving
17spouse described in subdivision (b) of such section becomes
18eligible, or otherwise elects, to postpone property taxes pursuant
19to Chapter 2 (commencing with Section 20581),begin delete Chapter 3.3
20(commencing with Section 20639),end delete
begin insert end insertbegin insert Chapter 3 (commencing with
21Section 20625),end insert
or Chapter 3.5 (commencing with Section 20640)
22of Part 10.5 of Division 2 of the Revenue and Taxation Code,
23payments made pursuant to Section 16180 shall be added to the
24amount of the lien existing against the residential dwelling.

25

begin deleteSEC. 3.end delete
26begin insert SEC. 7.end insert  

Section 2515 of the Revenue and Taxation Code is
27amended to read:

28

2515.  

(a) Upon receiving a “notice of lien for postponed
29property taxes” from the Controller, the tax collector or the
30assessor, whichever is applicable, shall immediately enter on the
31assessment records applicable to the property, the fact that the
32taxes on the property have been postponed and the Controller’s
33identification number, and shall, if such record reveals a change
34in the ownership status of the property subsequent to the date of
35entry of the postponement information thereon, notify the
36Controller within 60 days of processing the change in the
37ownership status in the manner prescribed by the Controller.

38(b) From the time of recordation of the notice of lien pursuant
39to Section 16182 of the Government Code, the lien for postponed
40property taxes shall be deemed to impart constructive notice of
P9    1the contents thereof to subsequent purchasers, mortgagees, lessees,
2and other lienors.

3begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 20505 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
4amended to read:end insert

5

20505.  

“Claimant” means an individual who--

6(a) For purposes of this chapter was either (1) 62 years of age
7or older on the last day of the calendar year or approved fiscal year
8designated in subdivision (b) or (c) of Section 20503, whichever
9is applicable, or (2) blind or disabled, as defined in Section 12050
10of the Welfare and Institutions Code on the last day of the calendar
11year or approved fiscal year designated in subdivision (b) of
12Section 20503, who was a member of the household, and who was
13either: (1) the owner and occupier of a residential dwelling on the
14last day of the year designated in subdivision (b) or (c) of Section
1520503, or (2) the renter of a rented residence on or before the last
16day of the year designated in subdivision (b) of Section 20503. An
17individual who qualifies as an owner-claimant may not qualify as
18a renter-claimant for the same year.

19(b) begin delete(1)end delete For purposes of Chapter 2 (commencing with Section
2020581), Chapter 3 (commencing with Section 20625), Chapter 3.3
21(commencing with Section 20639), and Chapter 3.5 (commencing
22with Section 20640) was a member of the household and either an
23owner-occupant, or a tenant stockholder occupant, or a possessory
24interestholder occupant, or a mobilehome owner-occupant, as the
25case may be, of the residential dwelling as to which postponement
26is claimed on the last day of the year designated in subdivision (b)
27or (c) of Section 20503, and who wasbegin insert (1)end insert 62 years of age or older
28by December 31 of the fiscal year for which postponement is
29begin delete claimed.end delete

30begin delete(2)end deletebegin deleteend deletebegin deleteFor purposes of Chapter 2 (commencing with Section
3120581), Chapter 3 (commencing with Section 20625), Chapter 3.3
32(commencing with Section 20639), and Chapter 3.5 (commencing
33with Section 20640) was a member of the household and an
34owner-occupant of the residential dwelling as to which
35postponement is claimed on the last day of the year designated in
36subdivision (c) of Section 20503, and who wasend delete
begin insert claimed, or (2)end insert
37 blind or disabled, as defined in Section 12050 of the Welfare and
38Institutions Code, at the time of application or on December 10 of
39the fiscal year for which postponement is claimed, whichever is
40earlier.

begin delete

P10   1(c) Where amounts have been postponed for any given fiscal
2year and the claimant continues to own and occupy the residential
3dwelling on December 31 of the calendar year in which the fiscal
4year begins, and the claimant sells the dwelling and buys a new
5residential dwelling in this state on or before December 31 of the
6following fiscal year and the new dwelling is the claimant’s
7principal place of residence, then in that event, the claimant shall
8be deemed to be a qualified claimant for the purpose of this section.
9These regulations shall become effective immediately upon filing
10with the Secretary of State.

end delete
11begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 20586 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
12amended to read:end insert

13

20586.  

For the purposes of Chapter 2 (commencing with
14Section 20581), Chapter 3 (commencing with Section 20625),
15Chapter 3.3 (commencing with Section 20639), and Chapter 3.5
16(commencing with Section 20640), only one claimant per
17household each year shall be entitled to postponement. When two
18or more individuals in a household are qualified as claimants, they
19may determine who the claimant shall be. Such decision is
20irrevocable. If the individuals are unable to agree, the matter shall
21be determined by the Controller and hisbegin insert or herend insert decision shall be
22final.

23begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 20601 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
24amended to read:end insert

25

20601.  

Subject to the limitations provided in this chapter, a
26claimant may file with the Controller, pursuant to Article 3
27(commencing with Section 20621) of this chapter, a claim for
28postponement from the State of California of a sum equal to, but
29not exceeding, the amount of property taxes, as defined in Section
3020584, due on the residential dwelling for the fiscal year for which
31the claim is made.begin delete Claims for the 1977-78 fiscal year only shall
32also constitute a claim for any amounts described in subparagraph
33(B) of paragraph (4) of subdivision (b) of Section 20583.end delete

34begin insert

begin insertSEC. 11end insertbegin insert.end insert  

end insert

begin insertSection 20603 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
35amended to read:end insert

36

20603.  

The Controller shall prescribe the manner in which a
37claimant eligible under this chapter, who for any reason is
38incapacitated, may appoint his or her spouse or an authorized agent,
39or have any such person appointed for such claimant, for all
P11   1purposes of claiming andbegin delete using certificates of eligibility for theend delete
2begin insert receivingend insert postponement of property taxes.

3begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 20621 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
4amended to read:end insert

5

20621.  

Each claimant applying for postponement under Article
62 (commencing with Section 20601) shall file a claim under penalty
7of perjury with the Controller on a form supplied by the Controller.
8The claim shall contain all of the following:

9(a) Evidence acceptable to the Controller that the personbegin delete was a
10“senior citizen claimant” or a “blind or disabled claimant.”end delete
begin insert (1) is
1162 years of age or older on or before December 31 of the fiscal
12year for which the postponement is claimed or (2) end insert
begin insertblind or
13disabled, as defined in Section 12050 of the Welfare and
14Institutions Code, at the time of application or on December 10
15of the fiscal year for which the postponement is claimed, whichever
16is earlier.end insert

17(b) A statement showing the household income for the period
18set forth in Section 20503.

19(c) A statement describing the residential dwelling in a manner
20that the Controller may prescribe.

21(d) The name of the county in which the residential dwelling is
22located and the address of the residential dwelling.

23(e) The county assessor’s parcel number applicable to the
24property for which the claimant is applying for the postponement
25of property taxes.

26(f) (1) Documentation evidencing the current existence of any
27abstract of judgment, federal tax lien, or state tax lien filed or
28recorded against the applicant, and any recorded mortgage or deed
29of trust that affects the subject residential dwelling, for the purpose
30of determining that the claimant possesses a 40-percent equity in
31the subject residential dwelling as required by paragraph (1) of
32subdivision (b) of Section 20583.

33(2) Actual costs, not in excess of fifty dollars ($50), paid by the
34claimant to obtain the documentation shall reduce the amount of
35the lien for the year, but not the face amount of the payment
36prescribed in Section 16180 of the Government Code.

37(g) Other information required by the Controller to establish
38eligibility.

39begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 20622 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
40amended to read:end insert

P12   1

20622.  

The claim for postponement shall be filed after
2begin delete September 1end deletebegin insert October 1end insert of the fiscal year in which the
3postponement is claimed and on or beforebegin delete April 10end deletebegin insert February 10end insert
4 of that fiscal year; ifbegin delete April 10thend deletebegin insert February 10thend insert falls on Saturday,
5Sunday, or a legal holiday, the date is extended to the next business
6day.

7begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 20627 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
8amended to read:end insert

9

20627.  

A tenant-stockholder claimant (hereinafter referred to
10as “claimant”) is an individual who, on the last day of the calendar
11year ending immediately prior to the commencement of the fiscal
12year for which postponement is claimed is: (a) a tenant-stockholder
13in a cooperative housing corporation (as defined in Section 216(b)
14of the Internal Revenue Code) and (b) occupies as a principal place
15of residence a residential unit in the cooperative housing
16corporation (notwithstanding Section 216(b) of the Internal
17Revenue Code). For the purposes of this chapter, a claimant must
18bebegin insert (1)end insert 62 years of age or older on or before December 31 of the
19fiscal year for which postponement isbegin delete claimed.end deletebegin insert claimed or (2) end insertbegin insertblind
20or disabled, as defined in Section 12050 of the Welfare and
21Institutions Code, at the time of application or on December 10
22of the fiscal year for which the postponement is claimed, whichever
23is earlier.end insert

24begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 20630 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
25amended to read:end insert

26

20630.  

(a) A claimant may file with the Controller, a claim
27for postponement from the State of California of a sum equal to,
28but not exceeding the amount of property taxes (as defined in
29Section 20629) for the fiscal year for which the claim is made.

30(b) Upon verification of the eligibility requirements set forth in
31Section 20630.5, the Controller shall mail the claimant a Notice
32of Election to Postpone which shall be in the form and contain
33such information as the Controller may prescribe. Accompanying
34the notice shall be a statement explaining that in order for the
35claimant to postpone all or part of the property taxes, the Notice
36of Election to Postpone must be mailed to the Controller with the
37following:

38(1) A statement signed by an authorized officer of the
39cooperative housing corporation indicating the amount of the
P13   1claimant’s proportionate share of property taxes and the method
2used to compute such amount.

3(2) A recognition agreement signed by the claimant and executed
4by an officer of the corporation which acknowledges the
5assignment of the proprietary lease and the pledging of the
6claimant’s shares in the corporation as security for postponement,
7and sets forth the rights and duties of the state, the corporation and
8the claimant with respect to such stock and the proprietary lease.
9The recognition agreement shall be in such form and contain such
10provisions as the Controller shall prescribe.

11(3) Any other additional security interest, created and perfected
12with respect to the rights of third persons in the manner provided
13by law for such type of security interest, which the Controller
14deems necessary to protect the interest of the state with regard to
15the repayment of postponed amounts by the claimant or a deceased
16claimant’s estate.

17(c) When the Controller approves the Notice of Election to
18Postpone,begin delete a warrant in the amount of taxes the claimant wishes to
19postpone shall be mailed to the claimant. All Notices of Election
20to Postpone shall be mailed to the Controller no later than June 30
21of the fiscal year for which postponement is claimed.end delete
begin insert the Controller
22shall make payments directly to a county tax collector for the
23property taxes owed on behalf of the claimant. Payments may,
24upon appropriation by the Legislature, be made out of the amounts
25otherwise appropriated pursuant to Section 16100 of the
26Government Code that are secured by a secured tax lien and
27obligation as specified by Article 1 (commencing with Section
2816180) of Chapter 5 of Division 4 of the Government Code.end insert

29begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 20630.5 of the end insertbegin insertRevenue and Taxation Codeend insert
30begin insert is amended to read:end insert

31

20630.5.  

Claims made under this chapter shall be filed with
32the Controller afterbegin delete May 15end deletebegin insert October 1end insert of thebegin delete calendarend deletebegin insert fiscalend insert year
33in whichbegin delete the fiscal year for whichend delete postponement is claimedbegin delete begins,end delete
34 and on or beforebegin delete Decemberend deletebegin insert Februaryend insert 10 of such fiscal year. If
35begin delete Decemberend deletebegin insert Februaryend insert 10th falls on Saturday, Sunday or a legal
36holiday, the date is extended to the next business day. The claim
37shall be on a form supplied by the Controller and shall contain:

38(a) Evidence acceptable to the Controller that the individual
39was an eligible claimant.

P14   1(b) A statement showing the household income for the period
2set forth inbegin delete subdivision (b) ofend delete Section 20503.

3(c) A statement describing the residential dwelling.

4(d) Any other information necessary for the Controller to
5determine eligibility under this chapter.

6begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 20633 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
7repealed.end insert

begin delete
8

20633.  

If the interests of the state are adequately protected, the
9Controller may subordinate the state’s security for amounts
10postponed under this chapter.

end delete
11begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 20638 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
12amended to read:end insert

13

20638.  

Uponbegin insert writtenend insert request of a person who has postponed
14pursuant to this chapter, or an agent of such person, or an agent of
15the affected cooperative housing corporation, the Controller shall
16issue such person a written statement showing the total amount
17postponed, together with accrued interest. The Controller may
18establish a reasonable fee, not to exceedbegin delete tenend deletebegin insert thirtyend insert dollarsbegin delete ($10)end delete
19begin insert ($30)end insert for the provision of the statement of postponement status
20provided by this section.

21begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 20639.2 of the end insertbegin insertRevenue and Taxation Codeend insert
22begin insert is amended to read:end insert

23

20639.2.  

(a) As used in this part, “mobilehome” means a
24mobilehome, as defined in Sections 18008 and 18211 of the Health
25and Safety Code, to which one of the following applies:

26(1) It was first sold new on or after July 1, 1980.

27(2) It was first sold new on or before June 30, 1980, and with
28respect to which the license fee required to be paid pursuant to
29Part 5 (commencing with Section 10701) of Division 2 has been
30delinquent for 120 days or more.

31(3) It was first sold new on or before June 30, 1980, and a
32request for voluntary transfer to local property taxation was made
33pursuant to Section 18119 of the Health and Safety Code.

begin delete

34(b) “Mobilehome,” as used in this part, does not include a
35mobilehome which has become real property by being affixed to
36land on a permanent foundation system or otherwise and is taxed
37as all other real property is taxed.

end delete
begin insert

38(b) As used in this chapter, “postponement” refers to
39mobilehome loans established prior to February 20, 2009.

end insert
P15   1begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 20639.3 of the end insertbegin insertRevenue and Taxation Codeend insert
2begin insert is repealed.end insert

begin delete
3

20639.3.  

“Property taxes” means all ad valorem property taxes,
4special assessments, and other charges or user fees which are
5attributable to the residential dwelling on the county tax bill and
6the ad valorem property taxes, special assessments, or other charges
7or user fees appearing on the tax bill of any chartered city which
8levies and collects its own property taxes.

end delete
9begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 20639.4 of the end insertbegin insertRevenue and Taxation Codeend insert
10begin insert is repealed.end insert

begin delete
11

20639.4.  

(a) Subject to the limitations provided in Chapter 1
12(commencing with Section 20501) or Chapter 2 (commencing with
13Section 20581), a claimant may file with the Controller a claim
14for postponement of a sum equal to but not exceeding the amount
15of property taxes for the fiscal year for which the claim is made.

16(b) Any mobilehome on which property taxes are delinquent at
17the time the application for postponement under this chapter is
18made or on which any other property tax or special assessment
19imposed by a special district or other tax code are delinquent at
20the time the application for postponement under this chapter is
21made shall not be eligible for postponement.

22(c) The Controller shall mail to the claimant for due execution,
23the appropriate security instruments required by the Controller.

end delete
24begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 20639.5 of the end insertbegin insertRevenue and Taxation Codeend insert
25begin insert is repealed.end insert

begin delete
26

20639.5.  

The Controller may require security for the
27postponement of property taxes pursuant to this chapter, of the
28following:

29(a) A security interest in the mobilehome in the form and manner
30prescribed by the Controller.

31(b) Any other additional security interest created and perfected
32with respect to the rights of third persons in the manner provided
33by law for such type of security interest which the Controller deems
34necessary to protect the interest of the state with regard to the
35repayment of postponed amounts by the claimant or a deceased
36claimant’s estate.

37On the form supplied by the Controller, the claimant shall obtain
38the written consent of any legal owner if other than the claimant
39and the written consent of any junior lienholder. The consent shall
40be in such form and contain such provisions as the Controller shall
P16   1prescribe, and shall provide for written notice by the legal owner
2and or junior lienholder to the Controller of the occurrence of a
3default by the claimant under the terms of an existing security
4agreement.

5(c) The consent of all co-owners, if any, to the pledging of the
6mobilehome as security for the repayment of postponed property
7taxes.

end delete
8begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 20639.6 of the end insertbegin insertRevenue and Taxation Codeend insert
9begin insert is repealed.end insert

begin delete
10

20639.6.  

(a) Upon receipt of the information described in
11Section 20639.9, the Controller shall determine whether the state’s
12interest would be adequately protected if postponement is granted,
13and, if so, the Controller shall issue to the claimant a certificate of
14eligibility containing the name of the claimant, address of the
15residential dwelling on which the claimant has applied for property
16tax postponement, and such other information and in such form
17as the Controller shall prescribe. In the event that the residential
18dwelling is located in a chartered city which levies and collects its
19own taxes, the Controller shall issue a duplicate certificate of
20eligibility to pay all or any part of property taxes appearing on the
21city’s tax bill.

22(b) The Controller shall forward to the Department of Housing
23and Community Development a notice of lien notifying the
24department that the mobilehome described in the statement has
25been approved for property tax postponement. The notice shall be
26in the form and contain the information prescribed by the
27Controller.

28(c) The department, upon receipt of the notice, shall amend the
29permanent title record of the mobilehome to record the fact that
30postponement has been approved.

31(d) The Controller shall prescribe the form of certificates of
32eligibility to pay all taxes and assessments authorized by this
33chapter.

34Upon or accompanying the certificates shall be a brief statement
35explaining that, those taxpayers whose property taxes are paid by
36a lender via an impound, trust, or other similar account shall enter
37the total amount of each installment on the certificates and mail
38the certificates to the tax collector and that they will receive a
39refund check from the county or city in the amount they entered
40on the certificate, within 30 days following the date on which the
P17   1installment is paid by the lender or the certificate of eligibility is
2received by the tax collector, whichever is later.

3(e) When a certificate of eligibility has been signed by the
4claimant, the claimant’s spouse, or authorized agent and
5countersigned by the person authorized to collect property taxes
6or assessments or the local agency, the certificate shall constitute
7a written promise on the part of the State of California to pay the
8sum of money specified therein and the signed and countersigned
9certificate shall be deemed a negotiable instrument for the sole
10purpose of the payment of property taxes owing in the name of
11the claimant or the claimant’s spouse for purposes of all laws of
12this state.

13(f) A certificate of eligibility shall be valid for the duration
14prescribed thereon by the Controller.

15(g) The Controller shall issue certificates of eligibility at the
16times the Controller determines shall best implement the purpose
17of this chapter.

18(h) The Controller shall prescribe the manner in which a
19claimant eligible under this chapter, who has been issued a
20certificate of eligibility which is lost or destroyed prior to being
21filed with the local agency may obtain a duplicate copy of the
22certificate as a replacement. Under the conditions which may be
23prescribed by the Controller, a duplicate copy shall be deemed as
24having been filed with the local agency as of the date a claimant
25requests issuance of the duplicate copy.

end delete
26begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 20639.7 of the end insertbegin insertRevenue and Taxation Codeend insert
27begin insert is repealed.end insert

begin delete
28

20639.7.  

The Controller shall prescribe the manner in which
29a claimant eligible under this chapter, who for any reason is
30incapacitated, may appoint his or her spouse or an authorized agent,
31or have any such person appointed for the claimant, for all purposes
32of claiming and using certificates of eligibility for the
33postponement of property taxes.

end delete
34begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 20639.8 of the end insertbegin insertRevenue and Taxation Codeend insert
35begin insert is repealed.end insert

begin delete
36

20639.8.  

The claim for postponement shall be filed after May
3715 of the calendar year in which the fiscal year for which
38postponement is claimed begins, and on or before December 10
39of such fiscal year.

end delete
P18   1begin insert

begin insertSEC. 26.end insert  

end insert

begin insertSection 20639.9 of the end insertbegin insertRevenue and Taxation Codeend insert
2begin insert is repealed.end insert

begin delete
3

20639.9.  

Each claimant applying for postponement under this
4chapter shall file a claim under penalty of perjury with the
5Controller on a form supplied by the Controller. The claim shall
6contain all of the following information:

7(a) Evidence acceptable to the Controller that the person is a
8senior citizen claimant.

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 the manner
12the 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) A copy of the Certificate of Title issued by the Department
19of Housing and Community Development or the certificate of
20ownership issued by the Department of Motor Vehicles.

21(g) A copy of the registration card issued by the Department of
22Housing and Community Development or the Department of Motor
23Vehicles.

24(h) Other information required by the Controller to establish
25eligibility.

end delete
26begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 20640.2 of the end insertbegin insertRevenue and Taxation Codeend insert
27begin insert is amended to read:end insert

28

20640.2.  

For the purposes of this chapter:

29(a) “Possessory interest” means (1) possession of, or right to
30the possession of land located in this state whether or not coupled
31with ownership of the residential dwelling on the same, or (2) a
32possessory interest or right of occupancy on tax exempt land;

33(b) “Residential dwelling” means a dwelling occupied as the
34principal place of residence of the claimant, and so much of the
35land surrounding it as is reasonably necessary for use of the
36dwelling as a home, located on possessory interest property. It
37shall include condominiumsbegin delete and mobilehomesend delete upon which property
38taxes, as defined in subdivision (c), are assessed. It also includes
39part of a multidwelling or multipurpose building and a part of the
40land upon which it is built.

P19   1(c) “Property taxes” means the amount of property tax for which
2the claimant is personally liable as assessee or is obligated to pay
3directly to the tax collector pursuant to the terms of the agreement
4establishing the possessory interest, including all ad valorem
5property taxes, special assessments, capitalization of leasehold
6interest, and other charges or user fees which are attributable to
7the residential dwelling on the county tax bill and the ad valorem
8property taxes, special assessments, capitalization of leasehold
9interest, or other charges or user fees appearing on the tax bill of
10any chartered city which levies and collects its own property taxes.

11begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 20640.3 of the end insertbegin insertRevenue and Taxation Codeend insert
12begin insert is amended to read:end insert

13

20640.3.  

A claimant is an individual who:

14(a) Holds a right to a possessory interest pursuant to a validly
15recorded instrument conveying such possessory interest for a term
16of years no less than 45 years beyond the last day of the calendar
17year ending immediately prior to the fiscal year for which taxes
18are initially postponed;

19(b) Occupies as a principal place of residence the residential
20dwelling affixed to such possessory interest real property on the
21last day of the year designated in Section 20503(c) of this code;

22(c) begin deleteIs end deletebegin insert(1)end insertbegin insertend insertbegin insertIs end insert62 years of age or older on or before December 31
23of the fiscal year for which postponement isbegin delete claimed.end deletebegin insert claimed or
24(2)end insert
begin insert blind or disabled, as defined in Section 12050 of the Welfare
25and Institutions Code, at the time of application or on December
2610 of the fiscal year for which the postponement is claimed,
27whichever is earlier.end insert

28begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 20640.4 of the end insertbegin insertRevenue and Taxation Codeend insert
29begin insert is amended to read:end insert

30

20640.4.  

(a) Subject to the limitations provided in Chapter 1
31(commencing with Section 20501), Chapter 2 (commencing with
32Section 20581), or this chapter, a claimant may file with the
33Controller, a claim for postponement of a sum equal to, but not
34exceeding the amount of property taxes, for the fiscal year for
35which the claim is made.

36(b) Upon verification of the eligibility requirements set forth in
37Section 20640.9 the Controller shall mail the claimant a Notice of
38Election to Postpone which shall be in the form and contain such
39information as the Controller may prescribe. Accompanying the
40notice shall be a statement explaining that in order for the claimant
P20   1to postpone all or part of the property taxes, the Notice of Election
2 to Postpone must be mailed to the Controller with a copy of the
3instrument creating the possessory interest, said copy to be certified
4by the county recorder of the county in which such real property
5is located. Where a memorandum of lease has been recorded in
6lieu of such instrument, a certified copy of said memorandum shall
7accompany the copy of the instrument creating the possessory
8interest.

9(c) begin delete(1)end delete Except as provided in this section, any possessory
10interest or improvement on which property taxes are delinquent
11at the time the application for postponement under this chapter is
12made or on which any other property tax or special assessment
13imposed by a special district or other tax code area are delinquent
14at the time the application for postponement under this chapter is
15made shall not be eligible for postponement.

begin delete

16(2) For 1978-79 and thereafter, any taxes or assessments which
17became delinquent after the claimant was 62 and before a lien is
18established pursuant to Section 16182 of the Government Code
19shall not disqualify an otherwise eligible claimant for postponement
20under this chapter. An application to postpone taxes for 1978-79
21or thereafter also constitutes an application for postponement of
22all such delinquent taxes and assessments, together with any
23penalties, interest, fees, or other charges resulting from such
24delinquency and such amounts shall, unless otherwise paid by the
25claimant, be paid out of the amount appropriated by Section 16100
26of the Government Code and shall be added to and become part
27of the obligation secured by the lien provided by Section 16182
28of the Government Code.

end delete
begin delete

29(d) The Controller shall mail to claimant for due execution the
30appropriate security instrument for claimant’s form of lease,
31including the consent to assignment required by Section
3220640.5(b).

end delete
33begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 20640.6 of the end insertbegin insertRevenue and Taxation Codeend insert
34begin insert is amended to read:end insert

35

20640.6.  

(a)  Upon receipt of the information described in
36Section 20640.4 and Section 20640.5, the State Controller shall
37determine whether the state’s interest would be adequately
38protected if postponement is granted, and if so,begin delete shall issue to the
39claimant a certificate of eligibility containing the name of claimant,
40address of the residential dwelling on which the claimant has
P21   1applied for property tax postponement, and any other information
2and in the form as the State Controller shall prescribe. In the event
3that the residential dwelling is located in a chartered city which
4levies and collects its own taxes, the Controller shall issue a
5duplicate certificate of eligibility to pay all or any part of property
6taxes appearing on the city’s tax bill.end delete
begin insert the Controller shall make
7payments directly to a county tax collector for the property taxes
8owed on behalf of the claimant. Payments may, upon appropriation
9by the Legislature, be made out of the amounts otherwise
10appropriated pursuant to Section 16100 of the Government Code
11that are secured by a secured tax lien and obligation as specified
12by Article 1 (commencing with Section 16180) of Chapter 5 of
13Division 4 of the Government Code.end insert

14(b) The Controller shall cause to be recorded with the county
15recorder of the county in which the real property is located, a copy
16of any instrument creating a security interest, which shall include
17applicable consent forms, in favor of the state. The instrument
18shall contain a legal description of the real property subject to the
19possessory interest; and, if the legal description of the possessory
20interest describes an area less than the entire property ownership,
21the notice or document shall also contain a reference to the record
22of the acquisition instrument to the entire parcel from which the
23possessory interest was created. The priority of the security interest
24shall be as of the date of recordation.

begin delete

25(c) The Controller shall prescribe the form of certificates of
26eligibility to pay all delinquent taxes and assessments authorized
27by this chapter.

end delete
begin delete

28Upon or accompanying each certificate shall be a brief statement
29explaining that (1) those taxpayers whose property taxes are paid
30by a lender via an impound, trust or other similar account should
31enter the total amount of each installment on the certificates and
32mail the certificates to the tax collector and (2) those taxpayers
33will receive a refund check from the county or city in the amount
34they entered on the certificate, within 30 days following the date
35on which the installment is paid by the lender or the certificate of
36eligibility is received by the tax collector, whichever is later.

end delete
begin delete

37(d) When a certificate of eligibility has been signed by the
38claimant, his or her spouse, or authorized agent and countersigned
39by the person authorized to collect property taxes or assessments
40for the local agency, the certificate shall constitute a written
P22   1promise on the part of the State of California to pay the sum of
2money specified therein and the signed and countersigned
3certificate shall be deemed a negotiable instrument for the sole
4purpose of the payment of property taxes owing in the name of
5the claimant or his or her spouse for purposes of all laws of this
6state.

end delete
begin delete

7(e) A certificate of eligibility shall be valid for the duration
8prescribed thereon by the Controller.

end delete
begin delete

9(f) The Controller shall issue certificates of eligibility at such
10times as the Controller determines will best implement the purpose
11of this chapter.

end delete
begin delete

12(g) The Controller shall prescribe the manner in which a
13claimant eligible under this chapter, who has been issued a
14certificate of eligibility which is lost or destroyed prior to being
15filed with the local agency may obtain a duplicate copy of the
16certificate as a replacement. (Under conditions as may be
17prescribed by the Controller, a duplicate copy shall be deemed as
18having been filed with the local agency as of the date a claimant
19requests issuance of a duplicate copy.)

end delete
20begin insert

begin insertSEC. 31.end insert  

end insert

begin insertSection 20640.7 of the end insertbegin insertRevenue and Taxation Codeend insert
21begin insert is amended to read:end insert

22

20640.7.  

The Controller shall prescribe the manner in which
23a claimant eligible under this chapter, who for any reason is
24incapacitated, may appoint his or her spouse or an authorized agent,
25or have any such person appointed for such claimant, for all
26purposes of claiming andbegin delete using certificates of eligibility for theend delete
27begin insert receivingend insert postponement of property taxes.

28begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 20640.8 of the end insertbegin insertRevenue and Taxation Codeend insert
29begin insert is amended to read:end insert

30

20640.8.  

The claim for postponement shall be filed afterbegin delete May
3115end delete
begin insert October 1end insert of thebegin delete calendarend deletebegin insert fiscalend insert year in whichbegin delete the fiscal year
32for whichend delete
postponement is claimedbegin delete begins,end delete and on or before
33begin delete December 10end deletebegin insert February 10end insert of such fiscal year. Ifbegin delete December 10thend delete
34begin insert February 10thend insert falls on Saturday, Sunday or a legal holiday, the
35date is extended to the next business day.

36begin insert

begin insertSEC. 33.end insert  

end insert

begin insertSection 20640.9 of the end insertbegin insertRevenue and Taxation Codeend insert
37begin insert is amended to read:end insert

38

20640.9.  

Each claimant applying for postponement under this
39chapter shall file a claim under penalty of perjury with the
P23   1Controller on a form supplied by the Controller. The claim shall
2contain:

3(a) Evidence acceptable to the Controller that the person wasbegin delete a
4“senior citizen claimant.”end delete
begin insert 62 years of age or older, or blind or
5disabled as described in Section 20640.3.end insert

6(b) A statement showing the household income for the period
7set forth in Section 20503.

8(c) A statement describing the residential dwelling in such
9manner as the Controller may prescribe.

10(d) The name of the county in which the residential dwelling is
11located and the address of the residential dwelling.

12(e) The county assessor’s parcel number applicable to the
13property for which the claimant is applying for the postponement
14of property taxes.

15(f) Other information required by the State Controller to
16establish eligibility.

17begin insert

begin insertSEC. 34.end insert  

end insert

begin insertSection 20645.5 of the end insertbegin insertRevenue and Taxation Codeend insert
18begin insert is amended to read:end insert

19

20645.5.  

(a) If a postponement claim under Chapter 2
20(commencing with Section 20581), Chapter 3.3 (commencing with
21Section 20639), or Chapter 3.5 (commencing with Section 20640)
22isbegin delete filed timely before the delinquency date of the second installment
23of property taxes on the secured roll,end delete
begin insert received by the Controller
24by February 10 for the fiscal year in which postponement is being
25claimed or by another date set by the Controller pursuant to
26Section 20622,end insert
then any delinquent penalties, costs, fees, and
27interest accrued for that fiscal year shall be canceled unless the
28failure to perfect the claim was due to willful neglect on the part
29of the claimant or representative.

30(b) In the event of willful neglect, an electronic funds transfer
31for that current fiscal year can be used to pay delinquent taxes only
32if accompanied by sufficient amounts to pay all of the delinquent
33penalties, costs, fees, and interest. If an amount sufficient to pay
34all of the delinquent penalties, costs, fees, and interest is not
35received by the tax collector within 30 days from the date of the
36electronic funds transfer, the tax collector may return the electronic
37funds transfer to the Controller to deny the postponement claim.

38(c) (1) The Controller shall notify the claimant in writing when
39the electronic funds transfer has been submitted to the tax collector.

P24   1(2) In the event of willful neglect, in addition to the information
2required pursuant to paragraph (1), the Controller shall also notify
3the claimant in writing and provide a copy of the notification to
4the tax collector, that a payment amount sufficient to pay all of
5the delinquent penalties, costs, fees, and interest must be received
6by the tax collector within 30 days from the date of the electronic
7funds transfer, and that if this payment is not received by the tax
8collector, the tax collector may return the electronic funds transfer
9to the Controller to deny the postponement claim.

10

begin deleteSEC. 4.end delete
11begin insert SEC. 35.end insert  

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

13

20645.6.  

(a) If the Controller denies a postponement claim
14under Chapter 2 (commencing with Section 20581), Chapter 3
15(commencing with Section 20625), Chapter 3.3 (commencing with
16Section 20639), or Chapter 3.5 (commencing with Section 20640),
17and the denial is reversed after appeal pursuant to Section 20645.1,
18the Controller shall electronically transfer funds to the county for
19the amount of the taxes. If the taxes for the fiscal year were
20previously paid, the county shall refund the overpayment to the
21taxpayer. If the taxes for the fiscal year are delinquent, any resulting
22penalties or interest shall be canceled.

23(b) The Controller shall notify the claimant in writing when an
24electronic funds transfer has been made pursuant to subdivision
25(a).



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