BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 801|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: SB 801
Author: Committee on Governance and Finance
Introduced:3/24/15
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 4/29/15
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Pavley
NO VOTE RECORDED: Moorlach
SUBJECT: Property tax postponement
SOURCE: State Controller Betty Yee
DIGEST: This bill makes minor, technical changes to the
Property Tax Postponement Program.
ANALYSIS:
Existing law:
1)Establishes the Senior Citizens and Disabled Citizens Property
Tax Postponement Law (PTP), which allows the State Controller
to pay property taxes to county tax collectors, on behalf of
individuals over the age of 62 or disabled persons making less
than $39,000 in income per year.
2)Directs the Controller to secure repayment of the loan by
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recording a lien against the claimant's property, which is
satisfied when the home is sold or refinanced. As liens are
repaid out of sales proceeds, revenue flows back to the
Controller, who in turn uses these funds to pay property taxes
for new applicants.
3)Until recently, prohibited persons from filing new claims for
property tax postponement, and the Controller from accepting
applications (SBX3-8, Ducheny, Chapter 4, Statutes of 2009-10,
Third Extraordinary Session). However, the Legislature
resuscitated the program last year by removing SBX3-8's
prohibition, albeit with tightened eligibility criteria, and a
requirement for the Controller to transfer to the General Fund
repayments received above a $20 million total (AB 2231,
Gordon, Chapter 703, Statutes of 2014).
4)States that under the prior PTP program, the Controller
provided "certificates of eligibility" to applicants to pay
their property taxes. The Controller submitted these "checks"
to the county. The renewed program uses electronic funds
transfers instead, and while AB 2231 removed almost all
references to certificates of eligibility, it didn't make the
change in Government Code (G.C.) §16183, which also contains
two paragraphs labelled as (1).
5)Requires county treasurers under the prior program to add the
property description to the lien for properties owned by
individuals enrolled in the program, and then forward the lien
to the county recorder for filing. However, for the new
program, AB 2231 instead directs the Controller to prepare the
lien and file it with the recorder.
6)Provides, generally, that county tax collectors should refund
property tax overpayments directly to taxpayers; however, when
the Controller pays on behalf of a taxpayer who successfully
appeals the Controller's determination of eligibility, and
that taxpayer has already paid, the law doesn't explicitly
require the refund.
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This bill:
1)Removes the reference to certificates in G.C. §16183
2)Corrects duplicate numbering in that same section.
3)Clarifies that interest rates for past loans are calculated at
the Pooled Money Investment Account rate as was the case under
the former program, while future loans pay the 7% rate
provided for in AB 2231.
4)Replaces references from county tax collectors to the
Controller in sections for preparing liens.
5)Deletes the information required as part of the lien.
6)Changes the verb from "recorded" to "executed" to
appropriately reflect the Controller's role in the revised
program.
7)States explicitly that in the event an appeal reverses the
initial denial of eligibility, and the Controller sends a
payment for taxes due in the same fiscal year for which the
taxpayer has paid the taxes, the county must refund that
amount.
Comments
When AB 2231 resurrected the PTP program, it didn't change all
the statutes necessary for the Controller to ensure that the law
would be administered effectively. SB 801 consolidates several
minor, technical changes to PTP program statutes to assist the
Controller implement the program as she prepares to again begin
accepting applications in September. Senate Rule 23 requires
all members of a Committee to sign Committee Bills prior to
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introduction, so SB 801 can only contain items with universal
agreement; should anyone object to a provision in the measure,
it will be removed.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:NoLocal: No
SUPPORT: (Verified5/5/15)
State Controller Betty Yee (source)
OPPOSITION: (Verified5/5/15)
None received
Prepared by:Colin Grinnell / GOV. & F. / (916) 651-4119
5/6/15 16:16:33
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