Amended in Assembly August 18, 2015

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 Sections 16180, 16182, 16183, 16190, 16191, and 16192 of the Government Code,begin insert andend insert to amend Sections 2515, 20505, 20586, 20601,begin insert 20602,end insert 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This bill, among other things, would eliminate outdated references to “certificates of eligibility” that were previously used under the postponement law.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 standardize 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 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:

P2    1

SECTION 1.  

Section 16180 of the Government Code is
2amended to read:

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
11Property Tax Postponement Law (Chapter 2 (commencing with
12Section 20581), Chapter 3 (commencing with Section 20625), and
13Chapter 3.5 (commencing with Sectionbegin delete 20640))end deletebegin insert 20640)end insert of Part
1410.5 of Division 2 of the Revenue and Taxation Code).

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

16(1) On June 30, 2017, transfer any moneys in the fund in excess
17of twenty million dollars ($20,000,000) to the General Fund.

P3    1(2) On June 30, 2018, and on June 30 each year thereafter,
2transfer any moneys in the fund in excess of fifteen million dollars
3($15,000,000) to the General Fund.

4(c) On or after January 1, 2015, any loan repayments relating
5to the Senior Citizens and Disabled Citizens Property Tax
6Postponement Law shall be deposited into the Senior Citizens and
7Disabled Citizens Property Tax Postponement Fund.

8(d) Any funds remaining upon the effective date of this section
9in an impound account formerly provided for pursuant to this
10chapter, shall be transferred to the Senior Citizens and Disabled
11Citizens Property Tax Postponement Fund.

12

SEC. 2.  

Section 16182 of the Government Code is amended
13to read:

14

16182.  

(a) All sums paid by the Controller under the provisions
15of this chapter, together with interest thereon, shall be secured by
16a lien in favor of the State of California when funds are transferred
17to the county by the Controller upon the real property for which
18property taxes have been postponed. In the case of a residential
19dwelling which is part of a larger parcel taxed as a unit, such as a
20duplex, farm, or multipurpose or multidwelling building, the lien
21shall be against the entire tax parcel.

22(b) In the case of real property:

23(1) The lien shall be evidenced by a notice of lien for postponed
24property taxes executed by the Controller, or the authorized
25delegate of the Controller, and shall secure all sums paid or owing
26pursuant to this chapter, including amounts paid subsequent to the
27initial payment of postponed taxes on the real property described
28in the notice of lien.

29(2) The notice of lien may bear the facsimile signature of the
30Controller. Each signature shall be that of the person who shall be
31in the office at the time of execution of the notice of lien; provided,
32however, that such notice of lien shall be valid and binding
33notwithstanding any such person having ceased to hold the office
34of Controller before the date of recordation.

35(3) The form and contents of the notice of lien for postponed
36property taxes shall be prescribed by the Controller and shall
37include, but not be limited to, the following:

38(A) The names of all record owners of the real property for
39which the Controller has advanced funds for the payment of real
40property taxes.

P4    1(B) A description of the real property for which real property
2taxes have been paid.

3(C) The identification number of the notice of lien which has
4been assigned the lien by the Controller.

5(4) Within 14 business days of the transfer of funds and the
6notice of lien to the county by the Controller, the notice of lien
7shall be recorded in the office of the county recorder for the county
8in which the real property subject to the lien is located.

9(5) The recorded notice of lien shall be indexed in the Grantor
10Index to the names of all record owners of the real property and
11in the Grantee Index to the Controller of the State of California.

12(6) After the notice of lien has been duly recorded and indexed,
13it shall be returned by the county recorder to the office of the
14Controller. The recorder shall provide the county tax collector with
15a copy of the notice of lien which has been executed by the
16Controller.

17(7) From the time of recordation of a notice of lien for postponed
18property taxes, a lien shall attach to the real property described
19therein and shall have the priority of a judgment lien for all
20amounts secured thereby, except that the lien shall remain in effect
21until either of the following occurs:

22(A) It is released by the Controller in the manner prescribed by
23Section 16186.

24(B) The foreclosure or sale of an obligation secured by a lien
25which is senior in recording priority to the lien of the State of
26California.

27(c) In the case of mobilehome loans established prior to February
2820, 2009, all of the following shall apply:

29(1) The lien shall be evidenced by a notice of lien for postponed
30property taxes executed by the Controller, or the authorized
31delegate of the Controller, and shall secure all sums paid owing
32pursuant to this chapter.

33(2) From the time that the Department of Housing and
34Community Development receives the notice of lien from the
35Controller, the department shall impose a moratorium on any other
36amendments to the permanent title record of the mobilehome unit
37until released by the Controller in the manner prescribed by Section
3816186, or an authorization for the amendments is given by the
39Controller in writing.

P5    1(3) From the time of filing a notice of lien, a lien shall attach to
2the mobilehome for which eligibility for the postponement of
3property taxes has been granted.

4

SEC. 3.  

Section 16183 of the Government Code is amended
5to read:

6

16183.  

(a) From the time a payment is made pursuant to
7Section 16180, the amount of that payment shall bear interest at a
8rate (not compounded), determined as follows:

9(1) Beginning July 1, 2016, the rate of interest shall be 7 percent
10per annum.

11(2) The Controller shall establish an adjusted rate of interest for
12the purpose of this subdivision not later than July 15th of any year
13if the effective annual yield of the Pooled Money Investment
14Account for the prior fiscal year is at least a full percentage point
15more or less than the interest rate which is then in effect. The
16adjusted rate of interest shall be equal per annum to the effective
17annual yield earned in the prior fiscal year by the Pooled Money
18Investment Account rounded to the nearest full percent, and shall
19become effective for new deferrals, beginning on July 1, 1984,
20and on July 1 of each immediately succeeding year, until June 30,
212016.

22(3) For loans made prior to June 30, 2016, the rate of interest
23provided pursuant to this subdivision for the first fiscal year
24commencing after payment is made pursuant to Section 16180
25shall apply for that fiscal year and each fiscal year thereafter until
26these postponed property taxes are repaid.

27(b) The interest provided for in subdivision (a) shall be applied
28beginning the first day of the month following the month in which
29that payment is made and continuing on the first day of each month
30thereafter until that amount is paid. In the event that any payments
31are applied, in any month, to reduce the amount paid pursuant to
32Section 16180, the interest provided for herein shall be applied to
33the balance of that amount beginning on the first day of the
34following month.

35(c) In computing interest in accordance with this section,
36fractions of a cent shall be disregarded.

37(d) For the purpose of this section, the time a payment is made
38shall be deemed to be the time an electronic funds transfer is made
39by the Controller to the tax collector or the delinquency date of
40the respective tax installment, whichever is later.

P6    1(e) The Controller shall include on forms supplied to claimants
2pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641
3of the Revenue and Taxation Code, a statement of the interest rate
4which shall apply to amounts postponed for the fiscal year to which
5the form applies.

6

SEC. 4.  

Section 16190 of the Government Code is amended
7to read:

8

16190.  

All amounts owing pursuant to Article 1 (commencing
9with Section 16180) of this chapter shall become due if any of the
10following occurs:

11(a) The claimant, who is either the sole owner or sole possessory
12interestholder of the residential dwelling, as defined in Section
1320583 or Section 20640 of the Revenue and Taxation Code, or a
14coowner or copossessory interestholder with a person other than
15a spouse or other individual eligible to postpone property taxes
16pursuant to Chapter 2 (commencing with Section 20581), Chapter
173 (commencing with Section 20625), Chapter 3.3 (commencing
18with Section 20639), or Chapter 3.5 (commencing with Section
1920640) of Part 10.5 of Division 2 ofbegin delete suchend deletebegin insert thatend insert code, ceases to
20occupy the premises as his residential dwelling, dies, or sells,
21conveys, or disposes of the property, or allows any tax or special
22assessment on the premises described in Section 20583 of such
23code to become delinquent. If the sole owner or possessory
24interestholder claimant dies and his or her surviving spouse inherits
25the premises and continues to own and occupy it as his or her
26principal place of residence, then the lien amount does not become
27due and payable unless taxes or special assessments described in
28the preceding sentence become delinquent, or such surviving
29spouse dies, or sells, conveys, or disposes of the interest in the
30property.

31(b) The claimant, who is a coowner or copossessory
32interestholder of the residential dwelling, as defined in Section
3320583 or Section 20640.2 of the Revenue and Taxation Code, with
34a spouse or another individual eligible to postpone property taxes
35pursuant to Chapter 2 (commencing with Section 20581), Chapter
363 (commencing with Section 20625), Chapter 3.3 (commencing
37with Section 20639), or Chapter 3.5 (commencing with Section
3820640) of Part 10.5 of Division 2 ofbegin delete suchend deletebegin insert thatend insert code, dies, and the
39surviving spouse or other surviving eligible individual allows any
40tax or special assessment on the premises described in Section
P7    120583 of such code to become delinquent or such surviving spouse
2or other individual ceases to occupy the premises as a residential
3dwelling, dies, or conveys, or disposes of the interest in the
4property.

5(c) The failure of the claimant to perform those acts the claimant
6is required to perform where such performance is secured, or will
7be secured in the event of nonperformance, by a lien which is
8senior to that of the lien provided by Section 16182.

9(d) Postponement was erroneously allowed because eligibility
10requirements were not met.

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

12(f) The claimant has elected to participate in a reverse mortgage
13program for the residential dwelling.

14

SEC. 5.  

Section 16191 of the Government Code is amended
15to read:

16

16191.  

The amounts paid pursuant to Section 16180 shall
17continue to draw interest but amounts owing pursuant to Article
181 (commencing with Section 16180) of this chapter shall not
19become due and payable if any of the following occurs:

20(a) The claimant continues to own and occupy or hold the
21possessory interest and occupy the premises as a residential
22dwelling, but ceases to postpone property taxes pursuant to Chapter
232 (commencing with Section 20581), Chapter 3 (commencing with
24Section 20625), Chapter 3.3 (commencing with Section 20639),
25or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of
26Division 2 of the Revenue and Taxation Code, and does not allow
27any tax or assessment against the premises, as described in Section
2820583 of such code, to become delinquent.

29(b) The surviving spouse of a claimant continues to own and
30occupy or hold the possessory interest and occupy the premises
31as a residential dwelling, but is ineligible to postpone property
32taxes pursuant to Chapter 2 (commencing with Section 20581),
33Chapter 3 (commencing with Section 20625), Chapter 3.3
34(commencing with Section 20639), or Chapter 3.5 (commencing
35with Section 20640) of Part 10.5 of Division 2 of the Revenue and
36Taxation Code, or elects not to postpone such taxes, and does not
37allow any tax or assessment against the premises, as described in
38Section 20583 of such code, to become delinquent.

39(c) The surviving individual otherwise eligible to postpone
40property taxes pursuant to Chapter 2 (commencing with Section
P8    120581), Chapter 3 (commencing with Section 20625), Chapter 3.3
2(commencing with Section 20639), or Chapter 3.5 (commencing
3with Section 20640) of Part 10.5 of Division 2 of the Revenue and
4Taxation Code continues to own and occupy or hold the possessory
5interest and occupy the premises as a residential dwelling, but
6elects not to postpone the property taxes pursuant to such chapter,
7and does not allow any tax or assessment against the premises, as
8described in Section 20583 of such code, to become delinquent.

9

SEC. 6.  

Section 16192 of the Government Code is amended
10to read:

11

16192.  

If, at any time, a person meeting the requirements of
12subdivision (a) or (c) of Section 16191 elects, or any surviving
13spouse described in subdivision (b) of such section becomes
14eligible, or otherwise elects, to postpone property taxes pursuant
15to Chapter 2 (commencing with Section 20581), Chapter 3
16(commencing with Section 20625), or Chapter 3.5 (commencing
17with Section 20640) of Part 10.5 of Division 2 of the Revenue and
18Taxation Code, payments made pursuant to Section 16180 shall
19be added to the amount of the lien existing against the residential
20dwelling.

21

SEC. 7.  

Section 2515 of the Revenue and Taxation Code is
22amended to read:

23

2515.  

(a) Upon receiving a “notice of lien for postponed
24property taxes” from the Controller, the tax collector or the
25assessor, whichever is applicable, shall immediately enter on the
26assessment records applicable to the property, the fact that the
27taxes on the property have been postponed and the Controller’s
28identification number, and shall, if such record reveals a change
29in the ownership status of the property subsequent to the date of
30entry of the postponement information thereon, notify the
31Controller within 60 days of processing the change in the
32ownership status in the manner prescribed by the Controller.

33(b) From the time of recordation of the notice of lien pursuant
34to Section 16182 of the Government Code, the lien for postponed
35property taxes shall be deemed to impart constructive notice of
36the contents thereof to subsequent purchasers, mortgagees, lessees,
37and other lienors.

38

SEC. 8.  

Section 20505 of the Revenue and Taxation Code is
39amended to read:

40

20505.  

“Claimant” means an individual who--

P9    1(a) For purposes of this chapter was either (1) 62 years of age
2or older on the last day of the calendar year or approved fiscal year
3designated in subdivision (b) or (c) of Section 20503, whichever
4is applicable, or (2) blind or disabled, as defined in Section 12050
5of the Welfare and Institutions Code on the last day of the calendar
6year or approved fiscal year designated in subdivision (b) of
7Section 20503, who was a member of the household, and who was
8either: (1) the owner and occupier of a residential dwelling on the
9last day of the year designated in subdivision (b) or (c) of Section
1020503, or (2) the renter of a rented residence on or before the last
11day of the year designated in subdivision (b) of Section 20503. An
12individual who qualifies as an owner-claimant may not qualify as
13a renter-claimant for the same year.

14(b)  For purposes of Chapter 2 (commencing with Section
1520581), Chapter 3 (commencing with Section 20625), Chapter 3.3
16(commencing with Section 20639), and Chapter 3.5 (commencing
17with Section 20640) was a member of the household and either an
18owner-occupant, or a tenant stockholder occupant, or a possessory
19interestholder occupant, or a mobilehome owner-occupant, as the
20case may be, of the residential dwelling as to which postponement
21is claimed on the last day of the year designated in subdivision (b)
22or (c) of Section 20503, and who was (1) 62 years of age or older
23by December 31 of the fiscal year for which postponement is
24 claimed, or (2) blind or disabled, as defined in Section 12050 of
25the Welfare and Institutions Code, at the time of application or on
26December 10 of the fiscal year for which postponement is claimed,
27whichever is earlier.

28

SEC. 9.  

Section 20586 of the Revenue and Taxation Code is
29amended to read:

30

20586.  

For the purposes of Chapter 2 (commencing with
31Section 20581), Chapter 3 (commencing with Section 20625),
32Chapter 3.3 (commencing with Section 20639), and Chapter 3.5
33(commencing with Section 20640), only one claimant per
34household each year shall be entitled to postponement. When two
35or more individuals in a household are qualified as claimants, they
36may determine who the claimant shall be. Such decision is
37irrevocable. If the individuals are unable to agree, the matter shall
38be determined by the Controller and his or her decision shall be
39final.

P10   1

SEC. 10.  

Section 20601 of the Revenue and Taxation Code is
2amended to read:

3

20601.  

Subject to the limitations provided in this chapter, a
4claimant may file with the Controller, pursuant to Article 3
5(commencing with Section 20621) of this chapter, a claim for
6postponement from the State of California of a sum equal to, but
7not exceeding, the amount of property taxes, as defined in Section
820584, due on the residential dwelling for the fiscal year for which
9the claim is made.

10begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 20602 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
11amended to read:end insert

12

20602.  

Upon approval of a claim described in Section 20601,
13the Controller shall make payments directly to a county tax
14collector for the property taxes owed on behalf of a qualified
15claimant. Payments may, upon appropriation by the Legislature,
16be made out of the amountsbegin delete otherwiseend delete appropriated pursuant to
17Sectionbegin delete 16100end deletebegin insert 16180end insert of the Government Code that are secured by
18a secured tax lien and obligation as specified by Article 1
19(commencing with Section 16180) of Chapter 5 of Division 4 of
20the Government Code.

21

begin deleteSEC. 11.end delete
22begin insertSEC. 12.end insert  

Section 20603 of the Revenue and Taxation Code is
23amended to read:

24

20603.  

The Controller shall prescribe the manner in which a
25claimant eligible under this chapter, who for any reason is
26incapacitated, may appoint his or her spouse or an authorized agent,
27or have any such person appointed for such claimant, for all
28purposes of claiming and receiving postponement of property
29taxes.

30

begin deleteSEC. 12.end delete
31begin insertSEC. 13.end insert  

Section 20621 of the Revenue and Taxation Code is
32amended to read:

33

20621.  

Each claimant applying for postponement under Article
342 (commencing with Section 20601) shall file a claim under penalty
35of perjury with the Controller on a form supplied by the Controller.
36The claim shall contain all of the following:

37(a) Evidence acceptable to the Controller that the person (1) is
3862 years of age or older on or before December 31 of the fiscal
39year for which the postponement is claimed or (2) blind or disabled,
40as defined in Section 12050 of the Welfare and Institutions Code,
P11   1at the time of application or on December 10 of the fiscal year for
2which the postponement is claimed, whichever is earlier.

3(b) A statement showing the household income for the period
4set forth in Section 20503.

5(c) A statement describing the residential dwelling in a manner
6that the Controller may prescribe.

7(d) The name of the county in which the residential dwelling is
8located and the address of the residential dwelling.

9(e) The county assessor’s parcel number applicable to the
10property for which the claimant is applying for the postponement
11of property taxes.

12(f) (1) Documentation evidencing the current existence of any
13abstract of judgment, federal tax lien, or state tax lien filed or
14recorded against the applicant, and any recorded mortgage or deed
15of trust that affects the subject residential dwelling, for the purpose
16of determining that the claimant possesses a 40-percent equity in
17the subject residential dwelling as required by paragraph (1) of
18subdivision (b) of Section 20583.

19(2) Actual costs, not in excess of fifty dollars ($50), paid by the
20claimant to obtain the documentation shall reduce the amount of
21the lien for the year, but not the face amount of the payment
22prescribed in Section 16180 of the Government Code.

23(g) Other information required by the Controller to establish
24eligibility.

25

begin deleteSEC. 13.end delete
26begin insertSEC. 14.end insert  

Section 20622 of the Revenue and Taxation Code is
27amended to read:

28

20622.  

The claim for postponement shall be filed after October
291 of the fiscal year in which the postponement is claimed and on
30or before February 10 of that fiscal year; if February 10th falls on
31Saturday, Sunday, or a legal holiday, the date is extended to the
32next business day.

33

begin deleteSEC. 14.end delete
34begin insertSEC. 15.end insert  

Section 20627 of the Revenue and Taxation Code is
35amended to read:

36

20627.  

A tenant-stockholder claimant (hereinafter referred to
37as “claimant”) is an individual who, on the last day of the calendar
38year ending immediately prior to the commencement of the fiscal
39year for which postponement is claimed is: (a) a tenant-stockholder
40in a cooperative housing corporation (as defined in Section 216(b)
P12   1of the Internal Revenue Code) and (b) occupies as a principal place
2of residence a residential unit in the cooperative housing
3corporation (notwithstanding Section 216(b) of the Internal
4Revenue Code). For the purposes of this chapter, a claimant must
5be (1) 62 years of age or older on or before December 31 of the
6fiscal year for which postponement is claimed or (2) blind or
7disabled, as defined in Section 12050 of the Welfare and
8Institutions Code, at the time of application or on December 10 of
9the fiscal year for which the postponement is claimed, whichever
10is earlier.

11

begin deleteSEC. 15.end delete
12begin insertSEC. 16.end insert  

Section 20630 of the Revenue and Taxation Code is
13amended to read:

14

20630.  

(a) A claimant may file with the Controller, a claim
15for postponement from the State of California of a sum equal to,
16but not exceeding the amount of propertybegin delete taxes (asend deletebegin insert taxes, asend insert defined
17in Sectionbegin delete 20629)end deletebegin insert 20629,end insert for the fiscal year for which the claim
18is made.

19(b) Upon verification of the eligibility requirements set forth in
20Section 20630.5, the Controller shall mail the claimant a Notice
21of Election to Postpone which shall be in the form and contain
22such information as the Controller may prescribe. Accompanying
23the notice shall be a statement explaining that in order for the
24claimant to postpone all or part of the property taxes, the Notice
25of Election to Postpone must be mailed to the Controller with the
26following:

27(1) A statement signed by an authorized officer of the
28cooperative housing corporation indicating the amount of the
29claimant’s proportionate share of property taxes and the method
30used to compute such amount.

31(2) A recognition agreement signed by the claimant and executed
32by an officer of the corporation which acknowledges the
33assignment of the proprietary lease and the pledging of the
34claimant’s shares in the corporation as security for postponement,
35and sets forth the rights and duties of the state, the corporation and
36the claimant with respect to such stock and the proprietary lease.
37The recognition agreement shall be in such form and contain such
38provisions as the Controller shall prescribe.

39(3) Any other additional security interest, created and perfected
40with respect to the rights of third persons in the manner provided
P13   1by law for such type of security interest, which the Controller
2deems necessary to protect the interest of the state with regard to
3the repayment of postponed amounts by the claimant or a deceased
4claimant’s estate.

5(c) When the Controller approves the Notice of Election to
6Postpone, the Controller shall make payments directly to a county
7tax collector for the property taxes owed on behalf of the claimant.
8Payments may, upon appropriation by the Legislature, be made
9out of the amountsbegin delete otherwiseend delete appropriated pursuant to Section
10begin delete 16100end deletebegin insert 16180end insert of the Government Code that are secured by a secured
11tax lien and obligation as specified by Article 1 (commencing with
12Section 16180) of Chapter 5 of Division 4 of the Government
13Code.

14

begin deleteSEC. 16.end delete
15begin insertSEC. 17.end insert  

Section 20630.5 of the Revenue and Taxation Code
16 is amended to read:

17

20630.5.  

Claims made under this chapter shall be filed with
18the Controller after October 1 of the fiscal year in which
19postponement is claimed and on or before February 10 of such
20fiscal year. If February 10th falls on Saturday, Sunday or a legal
21holiday, the date is extended to the next business day. The claim
22shall be on a form supplied by the Controller and shall contain:

23(a) Evidence acceptable to the Controller that the individual
24was an eligible claimant.

25(b) A statement showing the household income for the period
26set forth in Section 20503.

27(c) A statement describing the residential dwelling.

28(d) Any other information necessary for the Controller to
29determine eligibility under this chapter.

30

begin deleteSEC. 17.end delete
31begin insertSEC. 18.end insert  

Section 20633 of the Revenue and Taxation Code is
32repealed.

33

begin deleteSEC. 18.end delete
34begin insertSEC. 19.end insert  

Section 20638 of the Revenue and Taxation Code is
35amended to read:

36

20638.  

Upon written request of a person who has postponed
37pursuant to this chapter, or an agent of such person, or an agent of
38the affected cooperative housing corporation, the Controller shall
39issue such person a written statement showing the total amount
40postponed, together with accrued interest. The Controller may
P14   1establish a reasonable fee, not to exceed thirty dollars ($30) for
2the provision of the statement of postponement status provided by
3this section.

4

begin deleteSEC. 19.end delete
5begin insertSEC. 20.end insert  

Section 20639.2 of the Revenue and Taxation Code
6 is amended to read:

7

20639.2.  

(a) As used in this part, “mobilehome” means a
8mobilehome, as defined in Sections 18008 and 18211 of the Health
9and Safety Code, to which one of the following applies:

10(1) It was first sold new on or after July 1, 1980.

11(2) It was first sold new on or before June 30, 1980, and with
12respect to which the license fee required to be paid pursuant to
13Part 5 (commencing with Section 10701) of Division 2 has been
14delinquent for 120 days or more.

15(3) It was first sold new on or before June 30, 1980, and a
16request for voluntary transfer to local property taxation was made
17pursuant to Section 18119 of the Health and Safety Code.

18(b) As used in this chapter, “postponement” refers to
19mobilehome loans established prior to February 20, 2009.

20

begin deleteSEC. 20.end delete
21begin insertSEC. 21.end insert  

Section 20639.3 of the Revenue and Taxation Code
22 is repealed.

23

begin deleteSEC. 21.end delete
24begin insertSEC. 22.end insert  

Section 20639.4 of the Revenue and Taxation Code
25 is repealed.

26

begin deleteSEC. 22.end delete
27begin insertSEC. 23.end insert  

Section 20639.5 of the Revenue and Taxation Code
28 is repealed.

29

begin deleteSEC. 23.end delete
30begin insertSEC. 24.end insert  

Section 20639.6 of the Revenue and Taxation Code
31 is repealed.

32

begin deleteSEC. 24.end delete
33begin insertSEC. 25.end insert  

Section 20639.7 of the Revenue and Taxation Code
34 is repealed.

35

begin deleteSEC. 25.end delete
36begin insertSEC. 26.end insert  

Section 20639.8 of the Revenue and Taxation Code
37 is repealed.

38

begin deleteSEC. 26.end delete
39begin insertSEC. 27.end insert  

Section 20639.9 of the Revenue and Taxation Code
40 is repealed.

P15   1

begin deleteSEC. 27.end delete
2begin insertSEC. 28.end insert  

Section 20640.2 of the Revenue and Taxation Code
3 is amended to read:

4

20640.2.  

For the purposes of this chapter:

5(a) “Possessory interest” means (1) possession of, or right to
6the possession of land located in this state whether or not coupled
7with ownership of the residential dwelling on the same, or (2) a
8possessory interest or right of occupancy on tax exempt land;

9(b) “Residential dwelling” means a dwelling occupied as the
10principal place of residence of the claimant, and so much of the
11land surrounding it as is reasonably necessary for use of the
12dwelling as a home, located on possessory interest property. It
13shall include condominiums upon which property taxes, as defined
14in subdivision (c), are assessed. It also includes part of a
15multidwelling or multipurpose building and a part of the land upon
16which it is built.

17(c) “Property taxes” means the amount of property tax for which
18the claimant is personally liable as assessee or is obligated to pay
19directly to the tax collector pursuant to the terms of the agreement
20establishing the possessory interest, including all ad valorem
21property taxes, special assessments, capitalization of leasehold
22interest, and other charges or user fees which are attributable to
23the residential dwelling on the county tax bill and the ad valorem
24property taxes, special assessments, capitalization of leasehold
25interest, or other charges or user fees appearing on the tax bill of
26any chartered city which levies and collects its own property taxes.

27

begin deleteSEC. 28.end delete
28begin insertSEC. 29.end insert  

Section 20640.3 of the Revenue and Taxation Code
29 is amended to read:

30

20640.3.  

A claimant is an individual who:

31(a) Holds a right to a possessory interest pursuant to a validly
32recorded instrument conveying such possessory interest for a term
33of years no less than 45 years beyond the last day of the calendar
34year ending immediately prior to the fiscal year for which taxes
35are initially postponed;

36(b) Occupies as a principal place of residence the residential
37dwelling affixed to such possessory interest real property on the
38last day of the year designated in Section 20503(c) of this code;

39(c) (1) Is 62 years of age or older on or before December 31 of
40the fiscal year for which postponement is claimed or (2) blind or
P16   1disabled, as defined in Section 12050 of the Welfare and
2Institutions Code, at the time of application or on December 10 of
3the fiscal year for which the postponement is claimed, whichever
4is earlier.

5

begin deleteSEC. 29.end delete
6begin insertSEC. 30.end insert  

Section 20640.4 of the Revenue and Taxation Code
7 is amended to read:

8

20640.4.  

(a) Subject to the limitations provided in Chapter 1
9(commencing with Section 20501), Chapter 2 (commencing with
10Section 20581), or this chapter, a claimant may file with the
11Controller, a claim for postponement of a sum equal to, but not
12exceeding the amount of property taxes, for the fiscal year for
13which the claim is made.

14(b) Upon verification of the eligibility requirements set forth in
15Section 20640.9 the Controller shall mail the claimant a Notice of
16Election to Postpone which shall be in the form and contain such
17information as the Controller may prescribe. Accompanying the
18notice shall be a statement explaining that in order for the claimant
19to postpone all or part of the property taxes, the Notice of Election
20 to Postpone must be mailed to the Controller with a copy of the
21instrument creating the possessory interest, said copy to be certified
22by the county recorder of the county in which such real property
23is located. Where a memorandum of lease has been recorded in
24lieu of such instrument, a certified copy of said memorandum shall
25accompany the copy of the instrument creating the possessory
26interest.

27(c)  begin deleteExcept as provided in this section, any end deletebegin insertAny end insertpossessory
28interest or improvement on which property taxes are delinquent
29at the time the application for postponement under this chapter is
30made or on which any other property tax or special assessment
31imposed by a special district or other tax code area are delinquent
32at the time the application for postponement under this chapter is
33made shall not be eligible for postponement.

34

begin deleteSEC. 30.end delete
35begin insertSEC. 31.end insert  

Section 20640.6 of the Revenue and Taxation Code
36 is amended to read:

37

20640.6.  

(a)  Upon receipt of the information described in
38Section 20640.4 and Section 20640.5, thebegin delete Stateend delete Controller shall
39determine whether the state’s interest would be adequately
40protected if postponement is granted, and if so, the Controller shall
P17   1make payments directly to a county taxbegin delete collectorend deletebegin insert collector, or
2chartered city that levies and collects its own taxes,end insert
for the property
3taxes owed on behalf of the claimant. Payments may, upon
4appropriation by the Legislature, be made out of the amounts
5begin delete otherwiseend delete appropriated pursuant to Sectionbegin delete 16100end deletebegin insert 16180end insert of the
6Government Code that are secured by a secured tax lien and
7obligation as specified by Article 1 (commencing with Section
816180) of Chapter 5 of Division 4 of the Government Code.

9(b) The Controller shall cause to be recorded with the county
10recorder of the county in which the real property is located, a copy
11of any instrument creating a security interest, which shall include
12applicable consent forms, in favor of the state. The instrument
13shall contain a legal description of the real property subject to the
14possessory interest; and, if the legal description of the possessory
15interest describes an area less than the entire property ownership,
16the notice or document shall also contain a reference to the record
17of the acquisition instrument to the entire parcel from which the
18possessory interest was created. The priority of the security interest
19shall be as of the date of recordation.

20

begin deleteSEC. 31.end delete
21begin insertSEC. 32.end insert  

Section 20640.7 of the Revenue and Taxation Code
22 is amended to read:

23

20640.7.  

The Controller shall prescribe the manner in which
24a claimant eligible under this chapter, who for any reason is
25incapacitated, may appoint his or her spouse or an authorized agent,
26or have any such person appointed for such claimant, for all
27purposes of claiming and receiving postponement of property
28taxes.

29

begin deleteSEC. 32.end delete
30begin insertSEC. 33.end insert  

Section 20640.8 of the Revenue and Taxation Code
31 is amended to read:

32

20640.8.  

The claim for postponement shall be filed after
33October 1 of the fiscal year in which postponement is claimed and
34on or before February 10 of such fiscal year. If February 10th falls
35on Saturday, Sunday or a legal holiday, the date is extended to the
36next business day.

37

begin deleteSEC. 33.end delete
38begin insertSEC. 34.end insert  

Section 20640.9 of the Revenue and Taxation Code
39 is amended to read:

P18   1

20640.9.  

Each claimant applying for postponement under this
2chapter shall file a claim under penalty of perjury with the
3Controller on a form supplied by the Controller. The claim shall
4contain:

5(a) Evidence acceptable to the Controller that the person was
662 years of age or older, or blind or disabled as described in Section
720640.3.

8(b) A statement showing the household income for the period
9set forth in Section 20503.

10(c) A statement describing the residential dwelling in such
11manner as the Controller may prescribe.

12(d) The name of the county in which the residential dwelling is
13located and the address of the residential dwelling.

14(e) The county assessor’s parcel number applicable to the
15property for which the claimant is applying for the postponement
16of property taxes.

17(f) Other information required by thebegin delete Stateend delete Controller to
18establish eligibility.

19

begin deleteSEC. 34.end delete
20begin insertSEC. 35.end insert  

Section 20645.5 of the Revenue and Taxation Code
21 is amended to read:

22

20645.5.  

(a) If a postponement claim under Chapter 2
23(commencing with Section 20581), Chapter 3.3 (commencing with
24Section 20639), or Chapter 3.5 (commencing with Section 20640)
25is received by the Controller by February 10 for the fiscal year in
26which postponement is being claimed or by another date set by
27the Controller pursuant to Section 20622, then any delinquent
28penalties, costs, fees, and interest accrued for that fiscal year shall
29be canceled unless the failure to perfect the claim was due to willful
30neglect on the part of the claimant or representative.

31(b) In the event of willful neglect, an electronic funds transfer
32for that current fiscal year can be used to pay delinquent taxes only
33if accompanied by sufficient amounts to pay all of the delinquent
34penalties, costs, fees, and interest. If an amount sufficient to pay
35all of the delinquent penalties, costs, fees, and interest is not
36received by the tax collector within 30 days from the date of the
37electronic funds transfer, the tax collector may return the electronic
38funds transfer to the Controller to deny the postponement claim.

39(c) (1) The Controller shall notify the claimant in writing when
40the electronic funds transfer has been submitted to the tax collector.

P19   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. 35.end delete
11begin insertSEC. 36.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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