Amended in Assembly June 27, 2016

Amended in Senate March 29, 2016

Senate Bill No. 909

Introduced by Senator Beall

(Coauthors: Senators Anderson and Hancock)

January 26, 2016

An act to amend Section 20583 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 909, as amended, Beall. Property tax postponement: special needs trust claimants.

Existing law authorizes the Controller, upon approval of a claim for the postponement of ad valorem property taxes, to directly pay a county tax collector for the property taxes owed by the claimant, as provided. Existing law requires all sums paid for the postponement of property taxes pursuant to these provisions to be secured by a lien in favor of the state. Amounts owed by a claimant are due if the claimant, or his or her surviving spouse, ceases to occupy the premises as his or her residential dwelling, dies, disposes of the property, or allows specified taxes and special assessments to become delinquent, as provided. Existing law requires that the residential dwelling be owned by the claimant, the claimant and spouse, or the claimant and begin delete specified end delete another specified individual. Existing law requires a claimant to file a claim containing specified information, including a description of the residential dwelling, under penalty of perjury.

This bill would provide that “owned” for these purposes includes the interest of a beneficiary of a special needs begin delete trust, in which title is held in trust, as specified. end delete begin insert trust. end insert

By requiring a special needs trust claimant for property tax postponement to file certain information under penalty of perjury, thereby expanding the crime of perjury, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 20583 of the Revenue and Taxation Code
is amended to read:

20583.  

(a) “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, owned by the claimant, the claimant and
spouse, or by the claimant and either another individual eligible
for postponement under this chapter or an individual described in
subdivision (a), (b), or (c) of Section 20511 and located in this
state. It shall include condominiums that are assessed as realty for
local property tax purposes. It also includes part of a multidwelling
or multipurpose building and a part of the land upon which it is
built.

(b) As used in this chapter in reference to ownership interests
in residential dwellings, “owned” includes (1) the interest of a
vendee in possession under a land sale contract provided that the
contract or memorandum thereof is recorded and only from the
date of recordation of the contract or memorandum thereof in the
office of the county recorder where the residential dwelling is
located, (2) the interest of the holder of a life estate provided that
the instrument creating the life estate is recorded and only from
the date of recordation of the instrument creating the life estate in
the office of the county recorder where the residential dwelling is
located, but “owned” does not include the interest of the holder of
any remainder interest or the holder of a reversionary interest in
the residential dwelling, (3) the interest of a joint tenant or a tenant
in common in the residential dwelling or the interest of a tenant
where title is held in tenancy by the entirety or a community
property interest where title is held as community property, begin insert and end insert
(4) the begin delete interest end delete begin insert interest, including the interest of a beneficiary of
a special needs trust, end insert in the residential dwelling in which the title
is held in trust, as described in subdivision (d) of Section 62, begin delete and
(5) the interest of a beneficiary of a special needs trust, in which
title is held in trust, as described in subdivision (d) of Section 62, end delete
provided that the Controller determines that the state’s interest is
adequately protected.

(c) Except as provided in subdivision (c), and Chapter 3
(commencing with Section 20625), ownership must be evidenced
by an instrument duly recorded in the office of the county where
the residential dwelling is located.

(d) “Residential dwelling” does not include any of the following:

(1) Any residential dwelling in which the owners do not have
an equity of at least 40 percent of the full value of the property as
determined for purposes of property taxation or at least 40 percent
of the fair market value as determined by the Controller and where
the Controller determines that the state’s interest is adequately
protected. The 40-percent equity requirement shall be met each
time the claimant or authorized agent files a postponement claim.

(2) Any residential dwelling in which the claimant’s interest is
held pursuant to a contract of sale or under a life estate, unless the
claimant obtains the written consent of the vendor under the
contract of sale, or the holder of the reversionary interest upon
termination of the life estate, for the postponement of taxes and
the creation of a lien on the real property in favor of the state for
amounts postponed pursuant to this act.

(3) Any residential dwelling on which the claimant does not
receive a secured tax bill.

(4) Any residential dwelling in which the claimant’s interest is
held as a possessory interest, except as provided in Chapter 3.5
(commencing with Section 20640).

SEC. 2.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.