BILL NUMBER: SB 801 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 29, 2015
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
16180, 16182, 16183, 16190, 1 6191, and 16192 of the
Government Code, and to amend Sections
2515 and 20645.6 of 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, 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.
This bill bill, among other things,
would eliminate outdated references to "certificates of eligibility"
that were previously used under the postponement law. 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 standardiz e the
definition of a claimant so that all references include blind and
disabled persons, as defined. 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. 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.
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 16180 of the
Government Code is amended to read:
16180. (a) There is hereby created in the State Treasury a Senior
Citizens and Disabled Citizens Property Tax Postponement Fund. The
fund shall be an interest-bearing fund. Subject to subdivision (b)
and notwithstanding Section 13340, the fund is continuously
appropriated to the Controller, commencing January 1, 2015, for
purposes of administering this chapter, including, but not limited
to, necessary administrative costs and disbursements relating to the
postponement of property taxes pursuant to the Senior
Citizens and Disabled Citizens Property Tax Postponement
Law (Chapter 2 (commencing with Section 20581)
20581), Chapter 3 (commencing with Section 20625), and Chapter
3.5 (commencing with Section 20640)) of Part 10.5 of Division 2
of the Revenue and Taxation Code).
(b) The Controller shall do both of the following:
(1) On June 30, 2017, transfer any moneys in the fund in excess of
twenty million dollars ($20,000,000) to the General Fund.
(2) On June 30, 2018, and on June 30 each year thereafter,
transfer any moneys in the fund in excess of fifteen million dollars
($15,000,000) to the General Fund.
(c) On or after January 1, 2015, any loan repayments relating to
the Senior Citizens and Disabled Citizens Property Tax Postponement
Law shall be deposited into the Senior Citizens and Disabled Citizens
Property Tax Postponement Fund.
(d) Any funds remaining upon the effective date of this section in
an impound account formerly provided for pursuant to this chapter,
shall be transferred to the Senior Citizens and Disabled Citizens
Property Tax Postponement Fund.
SECTION 1. SEC. 2. 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 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. either of the following
occurs:
(A) It is released by the Controller in the manner prescribed by
Section 16186.
(B) The foreclosure or sale of an obligation secured by a lien
which is senior in recording priority to the lien of the State of
California.
(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 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. SEC. 3. Section 16183 of the
Government Code is amended to read:
16183. (a) 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) 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 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. 4. Section 16190 of the Government
Code is amended to read:
16190. All amounts owing pursuant to Article 1 (commencing with
Section 16180) of this chapter shall become due if any of the
following occurs:
(a) The claimant, who is either the sole owner or sole possessory
interestholder of the residential dwelling, as defined in Section
20583 or Section 20640 of the Revenue and Taxation Code, or a coowner
or copossessory interestholder with a person other than a spouse or
other individual eligible to postpone property taxes pursuant to
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) of Part 10.5
of Division 2 of such code, ceases to occupy the premises as his
residential dwelling, dies, or sells, conveys, or disposes of the
property, or allows any tax or special assessment on the premises
described in Section 20583 of such code to become delinquent. If the
sole owner or possessory interestholder claimant dies and his or her
surviving spouse inherits the premises and continues to own and
occupy it as his or her principal place of residence, then the lien
amount does not become due and payable unless taxes or special
assessments described in the preceding sentence become delinquent, or
such surviving spouse dies, or sells, conveys, or disposes of the
interest in the property.
(b) The claimant, who is a coowner or copossessory interestholder
of the residential dwelling, as defined in Section 20583 or Section
20640.2 of the Revenue and Taxation Code, with a spouse or another
individual eligible to postpone property taxes pursuant to 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) of
Part 10.5 of Division 2 of such code, dies, and the surviving spouse
or other surviving eligible individual allows any tax or special
assessment on the premises described in Section 20583 of such code to
become delinquent or such surviving spouse or other individual
ceases to occupy the premises as a residential dwelling, dies, or
conveys, or disposes of the interest in the property.
(c) The failure of the claimant to perform those acts the claimant
is required to perform where such performance is secured, or will be
secured in the event of nonperformance, by a lien which is senior to
that of the lien provided by Section 16182.
(d) Postponement was erroneously allowed because eligibility
requirements were not met.
(e) The claimant is refinancing the residential dwelling.
(f) The claimant has elected to participate in a reverse mortgage
program for the residential dwelling.
SEC. 5. Section 16191 of the Government
Code is amended to read:
16191. The amounts paid pursuant to Section 16180 shall continue
to draw interest but amounts owing pursuant to Article 1 (commencing
with Section 16180) of this chapter shall not become due and payable
if any of the following occurs:
(a) The claimant continues to own and occupy or hold the
possessory interest and occupy the premises as a residential
dwelling, but ceases to postpone property taxes pursuant to Chapter 2
(commencing with Section 20581), Chapter 3 (commencin
g with Section 20625), Chapter 3.3 (commencing with
Section 20639), or Chapter 3.5 (commencing with Section 20640) of
Part 10.5 of Division 2 of the Revenue and Taxation Code, and does
not allow any tax or assessment against the premises, as described in
Section 20583 of such code, to become delinquent.
(b) The surviving spouse of a claimant continues to own and occupy
or hold the possessory interest and occupy the premises as a
residential dwelling, but is ineligible to postpone property taxes
pursuant to 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) of
Part 10.5 of Division 2 of the Revenue and Taxation Code, or elects
not to postpone such taxes, and does not allow any tax or assessment
against the premises, as described in Section 20583 of such code, to
become delinquent.
(c) The surviving individual otherwise eligible to postpone
property taxes pursuant to 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) of Part 10.5 of Division 2 of the Revenue and Taxation
Code continues to own and occupy or hold the possessory interest and
occupy the premises as a residential dwelling, but elects not to
postpone the property taxes pursuant to such chapter, and does not
allow any tax or assessment against the premises, as described in
Section 20583 of such code, to become delinquent.
SEC. 6. Section 16192 of the Government
Code is amended to read:
16192. If, at any time, a person meeting the requirements of
subdivision (a) or (c) of Section 16191 elects, or any surviving
spouse described in subdivision (b) of such section becomes eligible,
or otherwise elects, to postpone property taxes pursuant to Chapter
2 (commencing with Section 20581), Chapter 3.3 (commencing
with Section 20639), Chapter 3 (commencing
with Section 20625), or Chapter 3.5 (commencing with Section
20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code,
payments made pursuant to Section 16180 shall be added to the amount
of the lien existing against the residential dwelling.
SEC. 3. SEC. 7. Section 2515 of the
Revenue and Taxation Code is amended to read:
2515. (a) Upon receiving a "notice of lien for postponed property
taxes" from the Controller, the tax collector or the assessor,
whichever is applicable, shall 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. 8. Section 20505 of the Revenue
and Taxation Code is amended to read:
20505. "Claimant" means an individual who--
(a) For purposes of this chapter was either (1) 62 years of age or
older on the last day of the calendar year or approved fiscal year
designated in subdivision (b) or (c) of Section 20503, whichever is
applicable, or (2) blind or disabled, as defined in Section 12050 of
the Welfare and Institutions Code on the last day of the calendar
year or approved fiscal year designated in subdivision (b) of Section
20503, who was a member of the household, and who was either: (1)
the owner and occupier of a residential dwelling on the last day of
the year designated in subdivision (b) or (c) of Section 20503, or
(2) the renter of a rented residence on or before the last day of the
year designated in subdivision (b) of Section 20503. An individual
who qualifies as an owner-claimant may not qualify as a
renter-claimant for the same year.
(b) (1) For purposes of Chapter 2 (commencing
with Section 20581), Chapter 3 (commencing with Section 20625),
Chapter 3.3 (commencing with Section 20639), and Chapter 3.5
(commencing with Section 20640) was a member of the household and
either an owner-occupant, or a tenant stockholder occupant, or a
possessory interestholder occupant, or a mobilehome owner-occupant,
as the case may be, of the residential dwelling as to which
postponement is claimed on the last day of the year designated in
subdivision (b) or (c) of Section 20503, and who was (1)
62 years of age or older by December 31 of the fiscal year for which
postponement is claimed.
(2) For purposes of
Chapter 2 (commencing with Section 20581), Chapter 3 (commencing
with Section 20625), Chapter 3.3 (commencing with Section 20639), and
Chapter 3.5 (commencing with Section 20640) was a member of the
household and an owner-occupant of the residential dwelling as to
which postponement is claimed on the last day of the year designated
in subdivision (c) of Section 20503, and who was
claimed, or (2) blind or disabled, as defined in Section 12050
of the Welfare and Institutions Code, at the time of application or
on December 10 of the fiscal year for which postponement is claimed,
whichever is earlier.
(c) Where amounts have been postponed for any given fiscal year
and the claimant continues to own and occupy the residential dwelling
on December 31 of the calendar year in which the fiscal year begins,
and the claimant sells the dwelling and buys a new residential
dwelling in this state on or before December 31 of the following
fiscal year and the new dwelling is the claimant's principal place of
residence, then in that event, the claimant shall be deemed to be a
qualified claimant for the purpose of this section. These regulations
shall become effective immediately upon filing with the Secretary of
State.
SEC. 9. Section 20586 of the Revenue
and Taxation Code is amended to read:
20586. For the purposes of Chapter 2 (commencing with Section
20581), Chapter 3 (commencing with Section 20625), Chapter 3.3
(commencing with Section 20639), and Chapter 3.5 (commencing with
Section 20640), only one claimant per household each year shall be
entitled to postponement. When two or more individuals in a household
are qualified as claimants, they may determine who the claimant
shall be. Such decision is irrevocable. If the individuals are unable
to agree, the matter shall be determined by the Controller and his
or her decision shall be final.
SEC. 10. Section 20601 of the Revenue
and Taxation Code is amended to read:
20601. Subject to the limitations provided in this chapter, a
claimant may file with the Controller, pursuant to Article 3
(commencing with Section 20621) of this chapter, a claim for
postponement from the State of California of a sum equal to, but not
exceeding, the amount of property taxes, as defined in Section 20584,
due on the residential dwelling for the fiscal year for which the
claim is made. Claims for the 1977-78 fiscal year only shall
also constitute a claim for any amounts described in subparagraph
(B) of paragraph (4) of subdivision (b) of Section 20583.
SEC. 11 . Section 20603 of the
Revenue and Taxation Code is amended to read:
20603. The Controller shall prescribe the manner in which a
claimant eligible under this chapter, who for any reason is
incapacitated, may appoint his or her spouse or an authorized agent,
or have any such person appointed for such claimant, for all purposes
of claiming and using certificates of eligibility for the
receiving postponement of property taxes.
SEC. 12. Section 20621 of the Revenue
and Taxation Code is amended to read:
20621. Each claimant applying for postponement under Article 2
(commencing with Section 20601) shall file a claim under penalty of
perjury with the Controller on a form supplied by the Controller. The
claim shall contain all of the following:
(a) Evidence acceptable to the Controller that the person
was a "senior citizen claimant" or a "blind or disabled claimant."
(1) is 62 years of age or older on or before December
31 of the fiscal year for which the postponement is claimed or (2)
blind or disabled, as defined in Section 12050
of the Welfare and Institutions Code, at the time of application or
on December 10 of the fiscal year for which the postponement is
claimed, whichever is earlier.
(b) A statement showing the household income for the period set
forth in Section 20503.
(c) A statement describing the residential dwelling in a manner
that the Controller may prescribe.
(d) The name of the county in which the residential dwelling is
located and the address of the residential dwelling.
(e) The county assessor's parcel number applicable to the property
for which the claimant is applying for the postponement of property
taxes.
(f) (1) Documentation evidencing the current existence of any
abstract of judgment, federal tax lien, or state tax lien filed or
recorded against the applicant, and any recorded mortgage or deed of
trust that affects the subject residential dwelling, for the purpose
of determining that the claimant possesses a 40-percent equity in the
subject residential dwelling as required by paragraph (1) of
subdivision (b) of Section 20583.
(2) Actual costs, not in excess of fifty dollars ($50), paid by
the claimant to obtain the documentation shall reduce the amount of
the lien for the year, but not the face amount of the payment
prescribed in Section 16180 of the Government Code.
(g) Other information required by the Controller to establish
eligibility.
SEC. 13. Section 20622 of the Revenue
and Taxation Code is amended to read:
20622. The claim for postponement shall be filed after
September 1 October 1 of the fiscal year in
which the postponement is claimed and on or before April 10
February 10 of that fiscal year; if
April 10th February 10th falls on Saturday,
Sunday, or a legal holiday, the date is extended to the next business
day.
SEC. 14. Section 20627 of the Revenue
and Taxation Code is amended to read:
20627. A tenant-stockholder claimant (hereinafter referred to as
"claimant") is an individual who, on the last day of the calendar
year ending immediately prior to the commencement of the fiscal year
for which postponement is claimed is: (a) a tenant-stockholder in a
cooperative housing corporation (as defined in Section 216(b) of the
Internal Revenue Code) and (b) occupies as a principal place of
residence a residential unit in the cooperative housing corporation
(notwithstanding Section 216(b) of the Internal Revenue Code). For
the purposes of this chapter, a claimant must be (1) 62
years of age or older on or before December 31 of the fiscal year for
which postponement is claimed. claimed or
(2) blind or disabled, as defined in Section 12050 of the
Welfare and Institutions Code, at the time of application or on
December 10 of the fiscal year for which the postponement is claimed,
whichever is earlier.
SEC. 15. Section 20630 of the Revenue
and Taxation Code is amended to read:
20630. (a) A claimant may file with the Controller, a claim for
postponement from the State of California of a sum equal to, but not
exceeding the amount of property taxes (as defined in Section 20629)
for the fiscal year for which the claim is made.
(b) Upon verification of the eligibility requirements set forth in
Section 20630.5, the Controller shall mail the claimant a Notice of
Election to Postpone which shall be in the form and contain such
information as the Controller may prescribe. Accompanying the notice
shall be a statement explaining that in order for the claimant to
postpone all or part of the property taxes, the Notice of Election to
Postpone must be mailed to the Controller with the following:
(1) A statement signed by an authorized officer of the cooperative
housing corporation indicating the amount of the claimant's
proportionate share of property taxes and the method used to compute
such amount.
(2) A recognition agreement signed by the claimant and executed by
an officer of the corporation which acknowledges the assignment of
the proprietary lease and the pledging of the claimant's shares in
the corporation as security for postponement, and sets forth the
rights and duties of the state, the corporation and the claimant with
respect to such stock and the proprietary lease. The recognition
agreement shall be in such form and contain such provisions as the
Controller shall prescribe.
(3) Any other additional security interest, created and perfected
with respect to the rights of third persons in the manner provided by
law for such type of security interest, which the Controller deems
necessary to protect the interest of the state with regard to the
repayment of postponed amounts by the claimant or a deceased claimant'
s estate.
(c) When the Controller approves the Notice of Election to
Postpone, a warrant in the amount of taxes the claimant
wishes to postpone shall be mailed to the claimant. All Notices of
Election to Postpone shall be mailed to the Controller no later than
June 30 of the fiscal year for which postponement is claimed.
the Controller shall make payments directly to a
county tax collector for the property taxes owed on behalf of the
claimant. Payments may, upon appropriation by the Legislature, be
made out of the amounts otherwise appropriated pursuant to Section
16100 of the Government Code that are secured by a secured
tax lien and obligation as specified by Article 1 (commencing with
Section 16180) of Chapter 5 of Division 4 of the Government Code.
SEC. 16. Section 20630.5 of the Revenue
and Taxation Code is amended to read:
20630.5. Claims made under this chapter shall be filed with the
Controller after May 15 October 1 of
the calendar fiscal year in which
the fiscal year for which postponement is claimed
begins, and on or before December
February 10 of such fiscal year. If
December February 10th falls on Saturday, Sunday
or a legal holiday, the date is extended to the next business day.
The claim shall be on a form supplied by the Controller and
shall contain:
(a) Evidence acceptable to the Controller that the individual was
an eligible claimant.
(b) A statement showing the household income for the period set
forth in subdivision (b) of Section 20503.
(c) A statement describing the residential dwelling.
(d) Any other information necessary for the Controller to
determine eligibility under this chapter.
SEC. 17. Section 20633 of the Revenue
and Taxation Code is repealed.
20633. If the interests of the state are adequately protected,
the Controller may subordinate the state's security for amounts
postponed under this chapter.
SEC. 18. Section 20638 of the Revenue
and Taxation Code is amended to read:
20638. Upon written request of a person who has
postponed pursuant to this chapter, or an agent of such person, or an
agent of the affected cooperative housing corporation, the
Controller shall issue such person a written statement showing the
total amount postponed, together with accrued interest. The
Controller may establish a reasonable fee, not to exceed ten
thirty dollars ($10)
($30) for the provision of the statement of postponement status
provided by this section.
SEC. 19. Section 20639.2 of the Revenue
and Taxation Code is amended to read:
20639.2. (a) As used in this part, "mobilehome" means a
mobilehome, as defined in Sections 18008 and 18211 of the Health and
Safety Code, to which one of the following applies:
(1) It was first sold new on or after July 1, 1980.
(2) It was first sold new on or before June 30, 1980, and with
respect to which the license fee required to be paid pursuant to Part
5 (commencing with Section 10701) of Division 2 has been delinquent
for 120 days or more.
(3) It was first sold new on or before June 30, 1980, and a
request for voluntary transfer to local property taxation was made
pursuant to Section 18119 of the Health and Safety Code.
(b) "Mobilehome," as used in this part, does not include a
mobilehome which has become real property by being affixed to land on
a permanent foundation system or otherwise and is taxed as all other
real property is taxed.
(b) As used in this chapter, "postponement" refers to mobilehome
loans established prior to February 20, 2009.
SEC. 20. Section 20639.3 of the Revenue
and Taxation Code is repealed.
20639.3. "Property taxes" means all ad valorem property taxes,
special assessments, and other charges or user fees which are
attributable to the residential dwelling on the county tax bill and
the ad valorem property taxes, special assessments, or other charges
or user fees appearing on the tax bill of any chartered city which
levies and collects its own property taxes.
SEC. 21. Section 20639.4 of the Revenue
and Taxation Code is repealed.
20639.4. (a) Subject to the limitations provided in Chapter 1
(commencing with Section 20501) or Chapter 2 (commencing with Section
20581), a claimant may file with the Controller a claim for
postponement of a sum equal to but not exceeding the amount of
property taxes for the fiscal year for which the claim is made.
(b) Any mobilehome on which property taxes are delinquent at the
time the application for postponement under this chapter is made or
on which any other property tax or special assessment imposed by a
special district or other tax code are delinquent at the time the
application for postponement under this chapter is made shall not be
eligible for postponement.
(c) The Controller shall mail to the claimant for due execution,
the appropriate security instruments required by the Controller.
SEC. 22. Section 20639.5 of the Revenue
and Taxation Code is repealed.
20639.5. The Controller may require security for the postponement
of property taxes pursuant to this chapter, of the following:
(a) A security interest in the mobilehome in the form and manner
prescribed by the Controller.
(b) Any other additional security interest created and perfected
with respect to the rights of third persons in the manner provided by
law for such type of security interest which the Controller deems
necessary to protect the interest of the state with regard to the
repayment of postponed amounts by the claimant or a deceased claimant'
s estate.
On the form supplied by the Controller, the claimant shall obtain
the written consent of any legal owner if other than the claimant and
the written consent of any junior lienholder. The consent shall be
in such form and contain such provisions as the Controller shall
prescribe, and shall provide for written notice by the legal owner
and or junior lienholder to the Controller of the occurrence of a
default by the claimant under the terms of an existing security
agreement.
(c) The consent of all co-owners, if any, to the pledging of the
mobilehome as security for the repayment of postponed property taxes.
SEC. 23. Section 20639.6 of the Revenue
and Taxation Code is repealed.
20639.6. (a) Upon receipt of the information described in Section
20639.9, the Controller shall determine whether the state's interest
would be adequately protected if postponement is granted, and, if
so, the Controller shall issue to the claimant a certificate of
eligibility containing the name of the claimant, address of the
residential dwelling on which the claimant has applied for property
tax postponement, and such other information and in such form as the
Controller shall prescribe. In the event that the residential
dwelling is located in a chartered city which levies and collects its
own taxes, the Controller shall issue a duplicate certificate of
eligibility to pay all or any part of property taxes appearing on the
city's tax bill.
(b) The Controller shall forward to the Department of Housing and
Community Development a notice of lien notifying the department that
the mobilehome described in the statement has been approved for
property tax postponement. The notice shall be in the form and
contain the information prescribed by the Controller.
(c) The department, upon receipt of the notice, shall amend the
permanent title record of the mobilehome to record the fact that
postponement has been approved.
(d) The Controller shall prescribe the form of certificates of
eligibility to pay all taxes and assessments authorized by this
chapter.
Upon or accompanying the certificates shall be a brief statement
explaining that, those taxpayers whose property taxes are paid by a
lender via an impound, trust, or other similar account shall enter
the total amount of each installment on the certificates and mail the
certificates to the tax collector and that they will receive a
refund check from the county or city in the amount they entered on
the certificate, within 30 days following the date on which the
installment is paid by the lender or the certificate of eligibility
is received by the tax collector, whichever is later.
(e) When a certificate of eligibility has been signed by the
claimant, the claimant's spouse, or authorized agent and
countersigned by the person authorized to collect property taxes or
assessments or the local agency, the certificate shall constitute a
written promise on the part of the State of California to pay the sum
of money specified therein and the signed and countersigned
certificate shall be deemed a negotiable instrument for the sole
purpose of the payment of property taxes owing in the name of the
claimant or the claimant's spouse for purposes of all laws of this
state.
(f) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.
(g) The Controller shall issue certificates of eligibility at the
times the Controller determines shall best implement the purpose of
this chapter.
(h) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency may obtain a duplicate copy of the certificate as a
replacement. Under the conditions which may be prescribed by the
Controller, a duplicate copy shall be deemed as having been filed
with the local agency as of the date a claimant requests issuance of
the duplicate copy.
SEC. 24. Section 20639.7 of the Revenue
and Taxation Code is repealed.
20639.7. The Controller shall prescribe the manner in which a
claimant eligible under this chapter, who for any reason is
incapacitated, may appoint his or her spouse or an authorized agent,
or have any such person appointed for the claimant, for all purposes
of claiming and using certificates of eligibility for the
postponement of property taxes.
SEC. 25. Section 20639.8 of the Revenue
and Taxation Code is repealed.
20639.8. The claim for postponement shall be filed after May 15
of the calendar year in which the fiscal year for which postponement
is claimed begins, and on or before December 10 of such fiscal year.
SEC. 26. Section 20639.9 of the Revenue
and Taxation Code is repealed.
20639.9. Each claimant applying for postponement under this
chapter shall file a claim under penalty of perjury with the
Controller on a form supplied by the Controller. The claim shall
contain all of the following information:
(a) Evidence acceptable to the Controller that the person is a
senior citizen claimant.
(b) A statement showing the household income for the period set
forth in Section 20503.
(c) A statement describing the residential dwelling in the manner
the Controller may prescribe.
(d) The name of the county in which the residential dwelling is
located and the address of the residential dwelling.
(e) The county assessor's parcel number applicable to the property
for which the claimant is applying for the postponement of property
taxes.
(f) A copy of the Certificate of Title issued by the Department of
Housing and Community Development or the certificate of ownership
issued by the Department of Motor Vehicles.
(g) A copy of the registration card issued by the Department of
Housing and Community Development or the Department of Motor
Vehicles.
(h) Other information required by the Controller to establish
eligibility.
SEC. 27. Section 20640.2 of the Revenue
and Taxation Code is amended to read:
20640.2. For the purposes of this chapter:
(a) "Possessory interest" means (1) possession of, or right to the
possession of land located in this state whether or not coupled with
ownership of the residential dwelling on the same, or (2) a
possessory interest or right of occupancy on tax exempt land;
(b) "Residential dwelling" means a dwelling occupied as the
principal place of residence of the claimant, and so much of the land
surrounding it as is reasonably necessary for use of the dwelling as
a home, located on possessory interest property. It shall include
condominiums and mobilehomes upon which property
taxes, as defined in subdivision (c), are assessed. It also includes
part of a multidwelling or multipurpose building and a part of the
land upon which it is built.
(c) "Property taxes" means the amount of property tax for which
the claimant is personally liable as assessee or is obligated to pay
directly to the tax collector pursuant to the terms of the agreement
establishing the possessory interest, including all ad valorem
property taxes, special assessments, capitalization of leasehold
interest, and other charges or user fees which are attributable to
the residential dwelling on the county tax bill and the ad valorem
property taxes, special assessments, capitalization of leasehold
interest, or other charges or user fees appearing on the tax bill of
any chartered city which levies and collects its own property taxes.
SEC. 28. Section 20640.3 of the Revenue
and Taxation Code is amended to read:
20640.3. A claimant is an individual who:
(a) Holds a right to a possessory interest pursuant to a validly
recorded instrument conveying such possessory interest for a term of
years no less than 45 years beyond the last day of the calendar year
ending immediately prior to the fiscal year for which taxes are
initially postponed;
(b) Occupies as a principal place of residence the residential
dwelling affixed to such possessory interest real property on the
last day of the year designated in Section 20503(c) of this code;
(c) Is (1) Is
62 years of age or older on or before December 31 of the fiscal year
for which postponement is claimed. claimed or
(2) blind or disabled, as defined in Section 12050 of the
Welfare and Institutions Code, at the time of application or on
December 10 of the fiscal year for which the postponement is claimed,
whichever is earlier.
SEC. 29. Section 20640.4 of the Revenue
and Taxation Code is amended to read:
20640.4. (a) Subject to the limitations provided in Chapter 1
(commencing with Section 20501), Chapter 2 (commencing with Section
20581), or this chapter, a claimant may file with the Controller, a
claim for postponement of a sum equal to, but not exceeding the
amount of property taxes, for the fiscal year for which the claim is
made.
(b) Upon verification of the eligibility requirements set forth in
Section 20640.9 the Controller shall mail the claimant a Notice of
Election to Postpone which shall be in the form and contain such
information as the Controller may prescribe. Accompanying the notice
shall be a statement explaining that in order for the claimant to
postpone all or part of the property taxes, the Notice of Election to
Postpone must be mailed to the Controller with a copy of the
instrument creating the possessory interest, said copy to be
certified by the county recorder of the county in which such real
property is located. Where a memorandum of lease has been recorded in
lieu of such instrument, a certified copy of said memorandum shall
accompany the copy of the instrument creating the possessory
interest.
(c) (1) Except as provided in this section, any
possessory interest or improvement on which property taxes are
delinquent at the time the application for postponement under this
chapter is made or on which any other property tax or special
assessment imposed by a special district or other tax code area are
delinquent at the time the application for postponement under this
chapter is made shall not be eligible for postponement.
(2) For 1978-79 and thereafter, any taxes or assessments which
became delinquent after the claimant was 62 and before a lien is
established pursuant to Section 16182 of the Government Code shall
not disqualify an otherwise eligible claimant for postponement under
this chapter. An application to postpone taxes for 1978-79 or
thereafter also constitutes an application for postponement of all
such delinquent taxes and assessments, together with any penalties,
interest, fees, or other charges resulting from such delinquency and
such amounts shall, unless otherwise paid by the claimant, be paid
out of the amount appropriated by Section 16100 of the Government
Code and shall be added to and become part of the obligation secured
by the lien provided by Section 16182 of the Government Code.
(d) The Controller shall mail to claimant for due execution the
appropriate security instrument for claimant's form of lease,
including the consent to assignment required by Section 20640.5(b).
SEC. 30. Section 20640.6 of the Revenue
and Taxation Code is amended to read:
20640.6. (a) Upon receipt of the information described in
Section 20640.4 and Section 20640.5, the State Controller shall
determine whether the state's interest would be adequately protected
if postponement is granted, and if so, shall issue to the
claimant a certificate of eligibility containing the name of
claimant, address of the residential dwelling on which the claimant
has applied for property tax postponement, and any other information
and in the form as the State Controller shall prescribe. In the event
that the residential dwelling is located in a chartered city which
levies and collects its own taxes, the Controller shall issue a
duplicate certificate of eligibility to pay all or any part of
property taxes appearing on the city's tax bill. the
Controller shall make payments directly to a county tax collector for
the property taxes owed on behalf of the claimant. Payments may, upo
n appropriation by the Legislature, be made out of the
amounts otherwise appropriated pursuant to Section 16100 of the
Government Code that are secured by a secured tax lien and obligation
as specified by Article 1 (commencing with Section 16180) of Chapter
5 of Division 4 of the Government Code.
(b) The Controller shall cause to be recorded with the county
recorder of the county in which the real property is located, a copy
of any instrument creating a security interest, which shall include
applicable consent forms, in favor of the state. The instrument shall
contain a legal description of the real property subject to the
possessory interest; and, if the legal description of the possessory
interest describes an area less than the entire property ownership,
the notice or document shall also contain a reference to the record
of the acquisition instrument to the entire parcel from which the
possessory interest was created. The priority of the security
interest shall be as of the date of recordation.
(c) The Controller shall prescribe the form of certificates of
eligibility to pay all delinquent taxes and assessments authorized by
this chapter.
Upon or accompanying each certificate shall be a brief statement
explaining that (1) those taxpayers whose property taxes are paid by
a lender via an impound, trust or other similar account should enter
the total amount of each installment on the certificates and mail the
certificates to the tax collector and (2) those taxpayers will
receive a refund check from the county or city in the amount they
entered on the certificate, within 30 days following the date on
which the installment is paid by the lender or the certificate of
eligibility is received by the tax collector, whichever is later.
(d) When a certificate of eligibility has been signed by the
claimant, his or her spouse, or authorized agent and countersigned by
the person authorized to collect property taxes or assessments for
the local agency, the certificate shall constitute a written promise
on the part of the State of California to pay the sum of money
specified therein and the signed and countersigned certificate shall
be deemed a negotiable instrument for the sole purpose of the payment
of property taxes owing in the name of the claimant or his or her
spouse for purposes of all laws of this state.
(e) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.
(f) The Controller shall issue certificates of eligibility at such
times as the Controller determines will best implement the purpose
of this chapter.
(g) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency may obtain a duplicate copy of the certificate as a
replacement. (Under conditions as may be prescribed by the
Controller, a duplicate copy shall be deemed as having been filed
with the local agency as of the date a claimant requests issuance of
a duplicate copy.)
SEC. 31. Section 20640.7 of the Revenue
and Taxation Code is amended to read:
20640.7. The Controller shall prescribe the manner in which a
claimant eligible under this chapter, who for any reason is
incapacitated, may appoint his or her spouse or an authorized agent,
or have any such person appointed for such claimant, for all purposes
of claiming and using certificates of eligibility for the
receiving postponement of property taxes.
SEC. 32. Section 20640.8 of the Revenue
and Taxation Code is amended to read:
20640.8. The claim for postponement shall be filed after
May 15 October 1 of the calendar
fiscal year in which the fiscal year
for which postponement is claimed begins,
and on or before December 10
February 10 of such fiscal year. If December 10th
February 10th falls on Saturday, Sunday or a
legal holiday, the date is extended to the next business day.
SEC. 33. Section 20640.9 of the Revenue
and Taxation Code is amended to read:
20640.9. Each claimant applying for postponement under this
chapter shall file a claim under penalty of perjury with the
Controller on a form supplied by the Controller. The claim shall
contain:
(a) Evidence acceptable to the Controller that the person was
a "senior citizen claimant." 62 years of age
or older, or blind or disabled as described in Section 20640.3.
(b) A statement showing the household income for the period set
forth in Section 20503.
(c) A statement describing the residential dwelling in such manner
as the Controller may prescribe.
(d) The name of the county in which the residential dwelling is
located and the address of the residential dwelling.
(e) The county assessor's parcel number applicable to the property
for which the claimant is applying for the postponement of property
taxes.
(f) Other information required by the State Controller to
establish eligibility.
SEC. 34. Section 20645.5 of the Revenue
and Taxation Code is amended to read:
20645.5. (a) If a postponement claim under Chapter 2 (commencing
with Section 20581), Chapter 3.3 (commencing with Section 20639), or
Chapter 3.5 (commencing with Section 20640) is filed timely
before the delinquency date of the second installment of property
taxes on the secured roll, received by the Controller
by February 10 for the fiscal year in which postponement is being
claimed or by another date set by the Controller pursuant to Section
20622, then any delinquent penalties, costs, fees, and interest
accrued for that fiscal year shall be canceled unless the failure to
perfect the claim was due to willful neglect on the part of the
claimant or representative.
(b) In the event of willful neglect, an electronic funds transfer
for that current fiscal year can be used to pay delinquent taxes only
if accompanied by sufficient amounts to pay all of the delinquent
penalties, costs, fees, and interest. If an amount sufficient to pay
all of the delinquent penalties, costs, fees, and interest is not
received by the tax collector within 30 days from the date of the
electronic funds transfer, the tax collector may return the
electronic funds transfer to the Controller to deny the postponement
claim.
(c) (1) The Controller shall notify the claimant in writing when
the electronic funds transfer has been submitted to the tax
collector.
(2) In the event of willful neglect, in addition to the
information required pursuant to paragraph (1), the Controller shall
also notify the claimant in writing and provide a copy of the
notification to the tax collector, that a payment amount sufficient
to pay all of the delinquent penalties, costs, fees, and interest
must be received by the tax collector within 30 days from the date of
the electronic funds transfer, and that if this payment is not
received by the tax collector, the tax collector may return the
electronic funds transfer to the Controller to deny the postponement
claim.
SEC. 4. SEC. 35. 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 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).