BILL NUMBER: SB 909 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 26, 2016
PASSED THE ASSEMBLY AUGUST 24, 2016
AMENDED IN ASSEMBLY AUGUST 19, 2016
AMENDED IN ASSEMBLY JUNE 27, 2016
AMENDED IN SENATE MARCH 29, 2016
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, 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 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 trust.
This bill would incorporate additional changes to Section 20583 of
the Revenue and Taxation Code proposed by AB 1952 that would become
operative if both bills are enacted and this bill is enacted last.
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.
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, and (4)
the interest, including the interest of a beneficiary of a special
needs trust, in the residential dwelling in which the title is held
in trust, as described in subdivision (d) of Section 62, 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. 1.5. 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, and (4)
the interest, including the interest of a beneficiary of a special
needs trust, in the residential dwelling in which the title is held
in trust, as described in subdivision (d) of Section 62, 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).
(5) Any residential dwelling that is subject to a Property
Assessed Clean Energy bond, or PACE bond, as defined in Section 26054
of the Public Resources Code.
SEC. 2. Section 1.5 of this bill incorporates amendments to
Section 20583 of the Revenue and Taxation Code proposed by both this
bill and Assembly Bill 1952. It shall only become operative if (1)
both bills are enacted and become effective on or before January 1,
2017, (2) each bill amends Section 20583 of the Revenue and Taxation
Code, and (3) this bill is enacted after Assembly Bill 1952, in which
case Section 1 of this bill shall not become operative.
SEC. 3. 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.