BILL NUMBER: AB 1718 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 15, 2010
AMENDED IN ASSEMBLY MAY 28, 2010
AMENDED IN ASSEMBLY APRIL 27, 2010
AMENDED IN ASSEMBLY MARCH 11, 2010
INTRODUCED BY Assembly Member Blumenfield
( Coauthors: Assembly Members
Huffman, Ma, Torres, and Yamada
)
( Coauthors: Senators
Alquist and Correa )
FEBRUARY 2, 2010
An act to amend Sections 16181, 16182, 16183,
16184, 16185, 16186, 16190, 16191, 16192, 16200, 16202, 16211,
16211.5, and 53684 of, and to repeal and add Sections 16180 and 16213
of, the Government Code, and to amend Sections 2505, 2515,
3698.5, 3698.7, 3793.1, 4671, 4671.3, 4672.3, 4673, 4673.1, 4674,
4703, 4703.2, 20503, 20505, 20542, 20582, 20583,
20583.1, 20585, 20586, 20605, 20621, 20622, 20639.1,
20639.6, 20639.8, 20639.9, 20639.11, 20640.1, 20640.3,
20640.4, 20640.6, 20640.8, 20640.9, 20640.11, 20641, and
20643 20641.5, 20643, 20645.5, and 20645.6 of,
to add Sections 20584.1, 20587, 20588, 20589, 20590, 20591,
and 20648 and 20591 to, to repeal Section 20623
of, to repeal Chapter 3 (commencing with Section 20625) and
Chapter 3.3 (commencing with Section 20639) of Part 10.5 of
Division 2 of, and to repeal and add Sections 2514 and 20602 of, the
Revenue and Taxation Code, relating to taxation, making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1718, as amended, Blumenfield. Taxation: property tax
postponement.
The Senior Citizens and Disabled Citizens Property Tax
Postponement Law, until February 20, 2009, authorized a claimant, as
defined, to file a claim with the Controller to postpone the payment
of ad valorem property taxes, where household income, as defined, did
not exceed specified amounts. Existing law authorized the
Controller, upon approval of the claim, to either make payment
directly to specified entities, or to issue the claimant a
certificate of eligibility that constituted a written promise of the
state to pay the amount specified on the certificate, as provided.
Existing law required these payments to be made out of a specified
funds appropriated to the Controller, as specified, and also required
repaid property tax postponement payments be transferred, as
specified, to the General Fund.
This bill would revise and recast the provisions of the Senior
Citizens and Disabled Citizens Property Tax Postponement Law to,
among other things, delete the Controller's authority, either to make
payments directly to specified entities or to issue a property tax
postponement payment on behalf of the claimant upon receipt of a
specified verification from the county tax collector.
This bill would instead authorize the Controller to use moneys in
the Senior Citizens and Disabled Citizens Property Tax Postponement
Fund, a continuously appropriated fund that this bill would create,
to make property tax postponement payments, as specified, or to pay
costs incurred in administrating the program or the fund. By
increasing the duties of local officials to administer the program,
this bill would impose a state-mandated local program. This
bill would require all sums paid by the Controller to be secured by a
lien, which has priority over all other subsequently filed
liens the same priority as a county tax lien, as
described . This bill would require the Controller to prescribe
a maximum annual postponement loan amount, and would require the
Controller to annually calculate the interest rate to be applied to a
deferral made on or after January 1, 2010
2012 , as provided. This bill would require property tax
postponement loan repayments, for all property tax postponement loans
made after January 1, 2010 February 20, 2009
, to be deposited into the fund. This bill would require the
Controller to assess an annual fee of $75 on each participant of the
program for whom property taxes are deferred on or after January 1,
2010, and the proceeds of the fee to be deposited in the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund. By
requiring moneys to be deposited within a continuously appropriated
fund, this bill would make an appropriation.
This bill would also create the Property Tax Postponement
Participating Local Agency Account, a trust account within the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund, and
would require any moneys deposited in the fund by a county or city
and county participating in the program to be held for in the account
for 10 years from the date of their deposit. The bill would specify
the annual interest rate applicable to moneys in the account. By
requiring additional moneys to be deposited within a continuously
appropriated fund, this bill would make an appropriation.
This bill would prohibit a mortgagee, trustee, or other person
authorized to take sale on real property due to the mortgagor's or
trustor's failure to pay property taxes from filing a notice of
default for 5 years following the initiation of that
authorization from the date on which the property
taxes became delinquent, if the mortgagor or trustor provides
evidence of participation in the property tax postponement program
, as specified . The bill would require the Controller to
provide specified program participants with written confirmation of
participation for use as evidence.
This bill would also make conforming changes to the
Senior Citizens Mobilehome Property Tax Postponement Law and the
Senior Citizens Possessory Interest Holder Property Tax
Postponement Law.
Existing law, on and after February 20, 2009, prohibits a person
from filing a claim for postponement, and prohibits the Controller
from accepting applications for postponement, under the Senior
Citizens and Disabled Citizens Property Tax Postponement Law.
This bill would repeal that provision.
This bill would, for the 2009-10 and 2010-11 fiscal years,
authorize the tax collector to cancel any delinquent penalties owed
by the claimant for those fiscal years if a postponement claim is
timely filed, as specified.
The Senior Citizens Tenant-Stockholder Property Tax Postponement
Law authorizes a tenant-stockholder claimant, as defined, to file
with the Controller a claim to postpone the payment of ad valorem
property taxes, as specified.
This bill would repeal that law and make conforming changes to
related provisions.
The Senior Citizens Mobilehome Property Tax Postponement Law
authorizes a mobilehome claimant, as defined, to file with the
Controller a claim to postpone the payment of ad valorem property
taxes, as specified.
This bill would repeal that law and make conforming changes to
related provisions.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Since 1977, the Senior Citizens and Disabled Citizens Property
Tax Postponement Law has helped eligible elderly and disabled
residents on fixed incomes remain in their homes by deferring payment
of property taxes until the house is sold or ownership otherwise
transferred.
(b) Suspension of the Senior Citizens and Disabled Citizens
Property Tax Postponement Law in February 2009 has exposed
participants to possible default on property taxes in December 2009
and thereafter, and has heightened fears of home foreclosures.
(c) While counties may not force the sale of a home to collect on
delinquent property taxes for five years, no similar delay applies to
lenders that would protect the elderly and disabled who would have
participated in the property tax deferral program established
pursuant to the Senior Citizens and Disabled Citizens Property Tax
Postponement Law had it not been suspended.
SEC. 2. Section 16180 of the Government Code is repealed.
SEC. 3. Section 16180 is added to the Government Code, to read:
16180. (a) The Senior Citizens and Disabled Citizens Property Tax
Postponement Fund is hereby created in the State Treasury.
Notwithstanding Section 13340, moneys in the fund are continuously
appropriated to the Controller, without regard to fiscal year, for
use in accordance with this chapter.
(b) All expenses incurred in carrying out the provisions of this
chapter and Chapter 2 (commencing with Section 20581), Chapter 3.3
(commencing with Section 20639), and Chapter 3.5 (commencing with
Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation
Code shall be payable solely from the fund. No liability or
obligation shall be imposed upon the state, and none shall be
incurred by the Controller, beyond those authorized by this chapter
or Chapter 2 (commencing with Section 20581), Chapter 3.3
(commencing with Section 20639), and Chapter 3.5
(commencing with Section 20640) of Part 10.5 of Division 2 of the
Revenue and Taxation Code.
(c) The Controller may use moneys in the fund for either of the
following purposes:
(1) To make property tax payments on behalf of claimants pursuant
to this chapter and Chapter 2 of Part 10.5 of Division 2 of the
Revenue and Taxation Code.
(2) To pay costs incurred in administering the program or the
fund.
(d) Any moneys deposited into the Senior Citizens and Disabled
Citizens Property Tax Postponement Fund by a participating county or
city and county shall be held in a trust account which is hereby
created and titled the Property Tax Postponement Participating Local
Agency Account. All moneys in the account shall be nonstate moneys
, be exempt from subdivision (d), and shall be
used exclusively by the Controller for the purpose specified in
paragraph (1) of subdivision (c).
(e) Deposits into the Property Tax Postponement
Participating Local Agency Account shall not be subject to claim by
the participating local agency until 10 years after the date of
deposit into the account. The Controller shall credit to each
subaccount in the account an annual interest rate equal to the 5
percent per annum or an amount calculated using the interest rate on
the United States Treasury's 10-year bond note at the date of deposit
plus 2 percent, whichever is higher which shall be repaid 10 years
after the deposit date. If money in a subaccount is used for the
purpose specified in paragraph (1) of subdivision (c), interest shall
continue to be credited as provided in this subdivision.
(f) Deposits into the Property Tax Postponement
Participating Local Agency Account authorized by resolution of a
county board of supervisors shall be deemed consistent with prudent
financial management pursuant to Section 53637 of the Government
Code, and a prudent investment of public funds pursuant to Sections
27000.3 and 27000.5 of the Government Code.
(g) The aggregate amount deposited into the Property Tax
Postponement Participating Local Agency Account
shall not exceed thirty million dollars ($30,000,000) annually.
(h) The Controller shall be responsible for maintaining the
account and shall maintain a separate subaccount for each deposit
made.
(i) (1) Except for amounts appropriated by the Legislature for the
Controller's costs to administer the program in its initial year,
moneys deposited into this fund shall be from non-General Fund
revenue sources and any repayment made to a participating local
agency of any principal and interest shall be made exclusively from
this fund and shall not be a General Fund obligation.
(2) Property tax postponement payments repaid pursuant to the
Senior Citizens and Disabled Citizens Property Tax Postponement
law Law as it existed on February 19,
2009, shall continue to be transferred to the General Fund.
SEC. 4. Section 16181 of the Government
Code is amended to read:
16181. (a) The Controller shall maintain a record of all
properties against which a notice of lien for postponed property
taxes has been recorded. The record shall include, but not be limited
to, the names of each claimant, a description of the real property
against which the lien is recorded, the identification number of the
notice of lien assigned by the Controller, and the amount of the
lien.
(b) The Controller shall maintain a record of all properties
against which the Department of Housing and Community Development has
been notified to withhold the transfer of title. The record shall
include, but not be limited to, the names of each claimant, a
description of the mobilehome against which a lien is charged, and
the amount of the lien.
(c) Upon written request of any person or entity, or the agent of
either, having a legal or equitable interest in real property
or a mobilehome which is subject to a lien for
postponed taxes, the Controller shall within 10 working days
following receipt of the request issue a written statement showing
the amount of the obligation secured by the lien as of the date of
such statement and such other information as will reasonably enable
the person or entity, or the agent of either, to determine the amount
to be paid the Controller in order to obtain a certificate of
release or discharge of the lien for postponed taxes.
(d) The Controller shall adopt regulations necessary to implement
the provisions of this chapter and may establish a reasonable fee,
not to exceed ten dollars ($10), for the provision of the statement
of lien status provided for herein.
SEC. 4. SEC. 5. 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 upon the real property
or a mobilehome for which property taxes have been
postponed, or both. 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. Notwithstanding any other law to the contrary,
this lien shall have the same priority as a county property tax lien,
as described in Section 2192.1 of the Revenue and Taxation Code.
(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) 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 recorded 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
county tax lien, as described in Section 2192.1 of the
Revenue and Taxation Code, for all amounts secured thereby,
except that the lien shall remain in effect until 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 priority to the lien of the State of California.
(c) In the case of mobilehomes:
(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.
(2) The notice of lien may bear the facsimile signature of the
Controller. The signature shall be that of the person who is in the
office at the time of execution of the notice of lien. However, the
notice of lien is valid and binding notwithstanding the person having
ceased to hold the office of Controller before the date of filing.
(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, all of the following:
(A) The name or names of the registered owner or owners, legal
owner or owners, if different than the registered owner or owners and
the names, if any, of all junior lienholders.
(B) The identification number of the notice of lien which has been
assigned the lien by the Controller.
(4) The notice of lien shall be transmitted to the Department of
Housing and Community Development at its office in Sacramento,
California.
(5) Upon receipt of the notice of lien for postponed property
taxes from the Controller, the Department of Housing and Community
Development shall amend the permanent title record of the mobilehome
to reflect that the property taxes on the mobilehome are subject to
postponement.
(6) The Department of Housing and Community Development shall
provide the Controller with an acknowledgment of receipt and
amendment of the permanent title record.
(7) From the time 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 for purposes of transferring
any ownership interest or transferring or creating any security
interest in the mobilehome, 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.
(d) 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.
(e) Notwithstanding any other provision in this section, any
action required of a local agency by this section in order to give
effect to the Senior Citizens Mobilehome Property Tax Postponement
Law (Chapter 3.3 (commencing with Section 20639) of Part 10.5 of
Division 2 of the Revenue and Taxation Code), and that has been
determined by the Commission on State Mandates to be a reimbursable
mandate, shall be optional.
SEC. 5. SEC. 6. 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) For the period ending June 30, 1984, the rate of interest
shall be 7 percent per annum.
(2) The Controller shall establish for program participants a
(2) For the period commencing on July 1, 1984, and ending on
December 31, 2010, the Controller shall establish an adjusted rate of
interest for the purpose of this subdivision not later than July 15
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.
(3) 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.
(4) For the period commencing January
1, 2011, the Controller shall establish for program participants a
rate of interest equal to 7 percent per annum, unless a higher
rate is calculated at the interest rate based on the United States
Treasury's 10-year bond note at the time the Controller approves a
participant's application plus 4 percent, rounded to the nearest full
percent. The adjusted rate of interest shall be calculated no later
than July 15 of any year. The interest rate shall become effective
for new deferrals, beginning on January 1, 2010, and on January 1 of
each immediately succeeding year.
(3) For deferrals made prior to January 1, 2010, the rate of
interest provided pursuant to this subdivision for the first year
commencing after payment is made pursuant to Section 16180 shall
apply for that fiscal year and each fiscal year thereafter until
those postponed property taxes are repaid.
(4)
(5) For deferrals made on or after January 1,
2010 2012 , the rate of interest shall be
adjusted annually, pursuant to paragraph (2)
(4) .
(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 date the Controller issues the property tax
postponement payment to the county.
(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.
(f) The Controller shall assess an annual fee of seventy-five
dollars ($75) to all claimants, as defined in Section 20505 of the
Revenue and Taxation Code, approved to participate in the property
tax postponement program and for whom property taxes are deferred on
or after January 1, 2010.
(g) Amounts collected pursuant to this section shall be deposited
into the Senior Citizens and Disabled Citizens Property Tax
Postponement Fund for expenditures in the manner provided in Section
16180.
SEC. 7. Section 16184 of the Government
Code is amended to read:
16184. The Controller shall reduce the amount of the obligation
secured by the lien against the real property or mobilehome
by the amount of any payments received for that purpose and
by notification of any amounts paid by the Franchise Tax Board
pursuant to Section 20564 or by any amounts authorized pursuant to
subdivision (f) of Section 20621 of the Revenue and Taxation Code.
The Controller shall also increase the amount of the obligation
secured by such lien by the amount of any subsequent payments made
pursuant to Section 16180 with respect to the real property and to
reflect the accumulation of interest. All such increases and
decreases shall be entered in the record described in Section 16181.
SEC. 8. Section 16185 of the Government
Code is amended to read:
16185. Notwithstanding the provisions of Section 16182, provided
the interests of the state are adequately protected, the Controller
may subordinate the lien for postponed real property taxes where the
Controller determines subordination is appropriate.
A recital in a certificate of subordination, executed by the
Controller, recorded in the county wherein the notice of lien for
postponed property taxes has been recorded, subordinating such lien
to specifically identified liens or encumbrances shall be conclusive
in favor of all persons or entities thereafter dealing with the real
property.
A subordinated lien shall no longer maintain the same priority as
a county property tax lien, as described in Section 2192.1 of the
Revenue and Taxation Code, and shall not be included in a
tax-defaulted land sale price or distribution. The Controller's
subordinated lien shall have the same priority as a judgment lien for
the amount secured by that lien, except the lien shall remain in
effect until 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 priority to the lien of the state.
SEC. 9. Section 16186 of the Government
Code is amended to read:
16186. If at any time the amount of the obligation secured by the
lien for postponed property taxes is paid in full or otherwise
discharged, the Controller, or the authorized delegate of the
Controller, shall , in the case of real property, do the
following :
(a) In the case of real property:
(1)
(a) Execute and cause to be recorded in the office of
the county recorder of the county wherein the real property described
in the lien is located, a release of the lien conclusively
evidencing the satisfaction of all amounts secured by the lien. The
cost of recording the release of the lien shall be added to and
become part of the obligation secured by the lien being released.
(2)
(b) Direct the tax collector to remove from the secured
roll, the information required to be entered thereon by paragraph
(1) of subdivision (a) of Section 2514 of the Revenue and Taxation
Code with respect to the property described in the lien.
(3)
(c) Direct the assessor to remove from the assessment
records applicable to the property described in the lien, the
information required to be entered on such records by Section 2515 of
the Revenue and Taxation Code.
(b) In the case of a mobilehome:
(1) Direct the tax collector to remove from the secured roll the
information required to be entered thereon by paragraph (1) of
subdivision (a) of Section 2514 of the Revenue and Taxation Code.
(2) Transmit a Release of Lien to the owner of the mobilehome or
the owner's heirs or assigns. The owner, or the owner's heirs or
assigns, shall transmit the Release of Lien, and a fee of six dollars
($6), to the Department of Housing and Community Development. Upon
receipt of the Release of Lien and the fee, the department shall
terminate the restriction on the permanent title record as provided
by Section 16182.
SEC. 10. 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
interest holder of the residential dwelling, as defined in Section
20583 or Section 20640 of the Revenue and Taxation Code, or a coowner
or copossessory interest holder with a person other than a spouse or
other individual eligible to postpone property taxes pursuant to
Chapter 2 (commencing with Section 20581) , Chapter 3.3
(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 interest holder
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 interest holder
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 3.3 (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.
SEC. 11. 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 3.3 (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 3.3 (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 3.3 (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. 12. 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), 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. 6. SEC. 13. Section 16200 of
the Government Code is amended to read:
16200. In the event that the Controller receives the notice
described in Section 16187 of this code or Section 3375 of the
Revenue and Taxation Code, the Controller may take any of the
following actions which will best serve the interests of the state:
(a) Out of the amount appropriated by the Legislature or otherwise
deposited into the Senior Citizens and Disabled Citizens Property
Tax Postponement Fund, the Controller may pay the amount of any
delinquent taxes, interest, or penalties on the property or the
amount of any other obligation secured by a lien or encumbrance on
the property and add such amount to the amount secured by the lien on
such property provided for in Article 1 (commencing with Section
16180) of this chapter.
(b) Notify by United States mail the tax collector or other party
that such notice has been received and that the Controller must be
given at least 20 days prior notice of the date that the property
will be sold at auction. If the Controller elects to proceed under
this subdivision, the Controller may use moneys in the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund, or
from any appropriation in lieu thereof, to bid on the property at the
auction up to the amount secured by the state's lien on the property
and any lien on such property having priority over the state's lien.
All additional amounts paid pursuant to this subdivision shall be
added to the amount secured by the lien on such property provided for
in Article 1 (commencing with Section 16180) of this chapter.
(c) Acknowledge by United States mail that the notice required by
Section 16187 of this code or Section 3375 of the Revenue and
Taxation Code has been received.
SEC. 7. SEC. 14. Section 16202 of
the Government Code is amended to read:
16202. (a) Notwithstanding any other provision of law, in the
event that the state acquires an interest in real property pursuant
to subdivision (b) of Section 16200, the Controller may, in addition
to the options provided in Section 16201, take any other action with
respect to that real property interest as will best serve the
interest of the state. These actions may include, but shall not be
limited to, the sale, lease, or retention of any interest so
acquired. The Controller may contract with licensed real estate
brokers, maintenance and repair contractors, security contractors,
appraisers, property managers, insurance brokers, and any other
experts or specialists as may be necessary to protect or preserve the
state's interest in that property. The Controller may pay the costs
incurred pursuant to those contracts from moneys in the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund, or
from any appropriation in lieu thereof.
(b) The sale of those interests may be made on the basis of
conventional financing arrangements including the securing of payment
through the use of promissory notes, deeds of trust, and other
accepted methods of deferred payment.
SEC. 8. SEC. 15. Section 16211 of
the Government Code is amended to read:
16211. The claimant under Chapter 2 (commencing with Section
20581) , Chapter 3.3 (commencing with Section 20639), or
Chapter or Chapter 3.5 (commencing with Section
20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code
whose residential dwelling was sold or condemned may draw upon the
amount in the account to purchase a new residential dwelling, and the
amount so drawn shall be secured by a new lien against the new
residential dwelling from the time the Controller records the new
lien against the new residential dwelling as provided for under
Section 16182. In the case of real property, the new lien shall
have the same priority as a county tax lien, as described in Section
2192.1 of the Revenue and Taxation Code.
In the case of real property, the Controller shall subordinate the
new lien to the lien of the note and deed of trust of the purchase
money obligations used in the acquisition of the new residential
dwelling, provided the claimant has an equity of at least 20 percent
of the full value of the property, as required by paragraph (1) of
subdivision (b) of Section 20583 of the Revenue and Taxation Code,
prior to recordation of that subordination. The lien shall have
priority over all subsequent liens, except as provided in Section
2192.1 of the Revenue and Taxation Code.
SEC. 9. SEC. 16. Section 16211.5 of
the Government Code is amended to read:
16211.5. (a) In the event that the real property securing the
state's lien provided for in Article 1 (commencing with Section
16180) is the residential dwelling of a claimant under Chapter 2
(commencing with Section 20581) of Part 10.5 of Division 2 of the
Revenue and Taxation Code and is voluntarily sold, the funds derived
from the voluntary sale of the residential dwelling shall be placed
in an impound account for a period of six months. In connection with
the establishment of such account, the Controller shall release the
state's lien in the manner prescribed by Section 16186.
(b) The claimant under Chapter 2 (commencing with Section 20581)
of Part 10.5 of Division 2 of the Revenue and Taxation Code whose
residential dwelling was voluntarily sold may draw upon the amount in
the account to purchase a new residential dwelling, and the amount
so drawn shall be secured by a new lien against the new residential
dwelling from the time the Controller records the new lien against
the new residential dwelling as provided for under Section 16182.
The new lien shall have the same priority as a county tax lien,
as described in Section 2192.1 of the Revenue and Taxation Code.
The Controller shall subordinate such new lien to the note and
deed of trust of the purchase money obligations used in the
acquisition of the new residential dwelling, provided the claimant
has an equity of at least 20 percent of the full value of the
property, as required by paragraph (1) of subdivision (b) of Section
20583 of the Revenue and Taxation Code, prior to recordation of such
subordination. Such lien shall have priority over all subsequent
liens.
SEC. 10. SEC. 17. Section 16213 of
the Government Code is repealed.
SEC. 11. SEC. 18. Section 16213 is
added to the Government Code, to read:
16213. (a) For all property tax postponement loans made
after January 1, 2010 on or after February 20, 2009
, payments for amounts owed pursuant to Article 1 (commencing
with Section 16180) shall be deposited into the Senior Citizens and
Disabled Citizens Property Tax Postponement Fund.
(b) For all property tax postponement loans made before
December 31, 2009 February 20, 2009 , payments
for amounts owed pursuant to Article 1 (commencing with Section
16180) shall be placed into an impound account, as specified in
either Section 16210 or 16211.5, and shall be transferred to the
General Fund at the end of the applicable six-month period.
SEC. 12. SEC. 19. Section 53684 of
the Government Code is amended to read:
53684. (a) Unless otherwise provided by law, if the treasurer of
any local agency, or other official responsible for the funds of the
local agency, determines that the local agency has excess funds which
are not required for immediate use, the treasurer or other official
may, upon the adoption of a resolution by the legislative or
governing body of the local agency authorizing the investment of
funds pursuant to this section and with the consent of the county
treasurer, deposit the excess funds in the county treasury for the
purpose of investment by the county treasurer pursuant to Section
16180, 53601, or 53635.
(b) The county treasurer shall, at least quarterly, apportion any
interest or other increment derived from the investment of funds
pursuant to this section in an amount proportionate to the average
daily balance of the amounts deposited by the local agency and to the
total average daily balance of deposits in the investment pool. In
apportioning and distributing that interest or increment, the county
treasurer may use the cash method, the accrual method, or any other
method in accordance with generally accepted accounting principles.
Prior to distributing that interest or increment, the county
treasurer may deduct the actual costs incurred by the county in
administering this section in proportion to the average daily balance
of the amounts deposited by the local agency and to the total
average daily balance of deposits in the investment pool.
(c) The county treasurer shall disclose to each local agency that
invests funds pursuant to this section the method of accounting used,
whether cash, accrual, or other, and shall notify each local agency
of any proposed changes in the accounting method at least 30 days
prior to the date on which the proposed changes take effect.
(d) The treasurer or other official responsible for the funds of
the local agency may withdraw the funds of the local agency pursuant
to the procedure specified in Section 27136.
(e) Any moneys deposited in the county treasury for investment
pursuant to this section are not subject to impoundment or seizure by
any county official or agency while the funds are so deposited.
(f) This section is not operative in any county until the board of
supervisors of the county, by majority vote, adopts a resolution
making this section operative in the county.
(g) It is the intent of the Legislature in enacting this section
to provide an alternative procedure to Section 51301 for local
agencies to deposit money in the county treasury for investment
purposes. Nothing in this section shall, therefore, be construed as a
limitation on the authority of a county and a city to contract for
the county treasurer to perform treasury functions for a city
pursuant to Section 51301.
SEC. 13. SEC. 20. Section 2505 of
the Revenue and Taxation Code is amended to read:
2505. (a) Except as provided in subdivision (b), the tax
collector or treasurer for any city or county may in his or her
discretion accept negotiable paper in payment of any tax, or
assessment, or on a redemption.
(b) The tax collector of a county shall accept a property tax
postponement payment from the Controller issued pursuant to Section
20602 to pay all or any part of any ad valorem property tax, special
assessment, or other charge or user fee appearing on the county tax
bill. The tax collector, treasurer, or other official charged with
the duty of collecting taxes for a chartered city which levies and
collects its own property taxes shall accept a property tax
postponement payment from the Controller issued pursuant to Section
20602 to pay all or any part of any ad valorem property tax, special
assessment, or other charge or user fee appearing on the tax bill of
such city. A certificate for partial payment shall not be accepted
unless accompanied by an amount sufficient to fully pay the remaining
ad valorem property taxes, special assessment, or other charge or
fee appearing on the respective tax bill installment.
(c) Except as provided in Chapter 2 (commencing with Section
20581), Chapter 3.3 (commencing with Section 20639), Chapter 3.5
(commencing with Section 20640), or Chapter 4 (commencing with
Section 20641) of Part 10.5 of Division 2, a certificate of
eligibility shall not be used to pay any delinquent taxes,
assessments, penalties, costs, fees, or interest, or any redemption
charges.
(d) For the 1978-79 fiscal year and thereafter, except as to those
amounts which can be paid by a certificate pursuant to subdivision
(c), the tax collector shall not accept a certificate of eligibility
to pay all or part of any installment if tendered after the
delinquency date thereof, unless accompanied by an amount sufficient
to fully pay any delinquent taxes, assessments, costs, penalties,
interest, fees or other charges resulting from the delinquency or
delinquencies.
(e) In no event shall a certificate of eligibility be accepted
later than the expiration date designated thereon.
SEC. 14. SEC. 21. Section 2514 of
the Revenue and Taxation Code is repealed.
SEC. 15. SEC. 22. Section 2514 is
added to the Revenue and Taxation Code, to read:
2514. (a) Upon receipt of a property tax postponement payment
from the Controller issued pursuant to Section 20602, the tax
collector shall ascertain whether the amount of the property tax
postponement from the Controller, when added to other amounts
available for such purpose, is sufficient to pay the amount due and
owing.
If such is the case, the tax collector or his or her designee
shall process the property tax postponement payment from the
Controller and mark the tax paid. Upon acceptance of the property tax
postponement payment from the Controller:
(1) The tax collector shall enter the fact that taxes on the
property have been postponed in appropriate columns on the roll. In
the case of the secured roll, this information may be entered in that
portion of the roll that has been designated for tax default
information required by Section 3439.
(2) In the case of a property tax postponement payment issued
pursuant to Section 20602, the tax collector shall determine if the
property is subject to a property tax postponement lien recorded
pursuant to Section 16182 of the Government Code. If the property is
not subject to such a lien, the tax collector shall enter the address
of the property, the name of the claimant, the county code, and the
assessor's parcel number on a "notice of lien for postponed property
taxes" form which shall be provided by the Controller. The tax
collector shall thereafter forward the notice of lien form to the
assessor.
(3)
(2) With respect to a claimant whose property taxes are
paid by a lender from an impound, trust, or other type of account
described in Section 2954 of the Civil Code, the tax collector shall
notify the auditor of the claimant's name and address and the amount
of the property tax postponement payment.
The auditor, treasurer, or disbursing officer shall send a check
in the amount of the property tax postponement payment to the
claimant within 30 days following the date on which the
installment is paid by the lender or the property tax postponement
payment is received from the Controller, whichever is later.
claimant in accordance with Chapter 2.3
(commencing with Section 2780).
(b) The procedures established by this chapter shall not be
construed to require a lender to alter the manner in which a lender
makes payment of the property taxes of such claimant.
(c) Notwithstanding any other provision in this section, any
action required of a local agency by this section in order to give
effect to the Senior Citizens Mobilehome Property Tax Postponement
Law (Chapter 3.3 (commencing with Section 20639) of Part 10.5 of
Division 2), and that has been determined by the Commission on State
Mandates to be a reimbursable mandate, shall be optional.
SEC. 16. SEC. 23. Section 2515 of
the Revenue and Taxation Code is amended to read:
2515. (a) Upon receipt of a "notice of lien for postponed
property taxes" from the tax collector, the assessor shall
immediately:
(1) Enter, on the notice of lien, a description of the real
property for which the taxes have been paid by the Controller
pursuant to Section 2514. Such description shall be a "metes and
bounds," "lot-block-tract," or any other description as is determined
by the Controller to sufficiently describe the real property for the
purpose of securing the state's lien.
(2) Enter on the notice of lien, the names of all record owners of
the property described under subdivision (a), as disclosed by the
assessor's records.
(3) Upon entry of the information required by subdivisions (a) and
(b) on the notice of lien, the assessor shall immediately forward
the notice of lien to the county recorder.
(4) 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, when the 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 of 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. 24. Section 3698.5 of the Revenue
and Taxation Code is amended to read:
3698.5. (a) Except as provided in Section 3698.7, the minimum
price at which property may be offered for sale pursuant to this
chapter shall be an amount not less than the total amount necessary
to redeem, plus costs , on the redemption roll, and the total
amount necessary to redeem, if any, the Controller's notice of lien
for postponed property taxes . For purposes of this
subdivision:
(1) The "total amount necessary to redeem" is the sum of the
following:
(A) The amount of defaulted taxes.
(B) Delinquent penalties and costs.
(C) Redemption penalties.
(D) A redemption fee.
(2) "Costs" are those amounts described in subdivision (c) of
Section 3704.7, subdivisions (a) and (b) of Section 4112, Sections
4672, 4672.1, 4672.2, 4673, and subdivision (b) of Section 4673.1.
(3) The "Controller's notice of lien for postponed property taxes"
is the amount of all sums paid or owing pursuant to Section 16182 of
the Government Code, including amounts paid subsequent to the
initial payment of postponed property taxes on the real property
described in the notice of lien for postponed property taxes.
(b) This section shall not apply to property or interests that
qualify for sale in accordance with the provisions of subdivisions
(b) and (c) of Section 3692.
(c) Where property or property interests have been offered for
sale at least once and no acceptable bids therefor have been received
at the minimum price determined pursuant to subdivision (a), the tax
collector may, in his or her discretion and with the approval of the
board of supervisors, offer that same property or those interests at
the same or next scheduled sale at a minimum price that the tax
collector deems appropriate in light of the most current assessed
valuation of that property or those interests, or any unique
circumstance with respect to that property or those interests.
SEC. 25. Section 3698.7 of the Revenue
and Taxation Code is amended to read:
3698.7. (a) With respect to property for which a property tax
welfare exemption has been granted and that has become tax defaulted,
the minimum price at which the property may be offered for sale
pursuant to this chapter shall be the higher of the following:
(1) Fifty percent of the fair market value of the property. For
the purposes of this paragraph, "fair market value" means the amount
as defined in Section 110 as determined pursuant to an appraisal of
the property by the county assessor within one year immediately
preceding the date of the public auction. From the proceeds of the
sale, there shall be distributed to the county general fund an amount
to reimburse the county for the cost of appraising the property. The
value of the property as determined by the assessor pursuant to an
appraisal shall be conclusively presumed to be the fair market value
of the property for the purpose of determining the minimum price at
which the property may be offered for sale.
(2) The total amount necessary to redeem, plus costs. For purposes
of this paragraph:
(A) The "total amount necessary to redeem" is the sum of the
following:
(i) The amount of defaulted taxes.
(ii) Delinquent penalties and costs.
(iii) Redemption penalties.
(iv) A redemption fee.
(B) "Costs" are those amounts described in subdivision (c) of
Section 3704.7, subdivisions (a) and (b) of Section 4112, Sections
4672, 4672.1, 4672.2, and 4673, and subdivision (b) of Section
4673.1.
(C) The "Controller's notice of lien for postponed property taxes"
is the amount of all sums paid or owing pursuant to Section 16182 of
the Government Code, including amounts paid subsequent to the
initial payment of postponed property taxes on the real property
described in the notice of lien for postponed property taxes.
(b) This section shall not apply to property or interests that
qualify for sale in accordance with the provisions of subdivisions
(b) and (c) of Section 3692.
(c) Where property or property interests have been offered for
sale at least once and no acceptable bids therefor have been
received, the tax collector may, in his or her discretion and with
the approval of the board of supervisors, offer that property or
those interests at the next scheduled sale at a minimum price that
the tax collector deems appropriate.
SEC. 26. Section 3793.1 of the Revenue
and Taxation Code is amended to read:
3793.1. (a) The sales price of any property sold under this
article shall include, at a minimum, the amounts of all of the
following:
(1) All defaulted taxes and assessments, and all associated
penalties and costs on the redemption roll .
(2) Redemption penalties and fees incurred through the month of
the sale.
(3) All costs of the sale.
(4) An amount necessary to redeem the Controller's notice of lien
for postponed property taxes, current as of the month of the sale.
(b) If the property or property interests have been offered for
sale under the provisions of Chapter 7 (commencing with Section 3691)
at least once and no acceptable bids therefor have been received,
the tax collector may, in his or her discretion and with the approval
of the board of supervisors, offer that property or those interests
at a minimum price that the tax collector deems appropriate.
(c) The board of supervisors may permit a nonprofit organization
to purchase property or property interests by way of installment
payments.
SEC. 27. Section 4671 of the Revenue
and Taxation Code is amended to read:
4671. As used in this chapter, "taxes" includes all liens
determined by the application of an ad valorem tax rate which were,
at the time of declaration of default, included in the amount
necessary to redeem the property on the redemption roll
under Chapter 1 (commencing with Section 4101) of Part 7.
SEC. 28. Section 4671.3 of the Revenue
and Taxation Code is amended to read:
4671.3. As used in this chapter, "assessments" includes all liens
other than taxes which were, at the time of declaration of default,
included in the amount necessary to redeem the property on the
redemption roll under Chapter 1 (commencing with Section 4101)
of Part 7, and included in the amount necessary to redeem the
property from sale to any taxing agency entitled to share in the
proceeds.
SEC. 29. Section 4672.3 of the Revenue
and Taxation Code is amended to read:
4672.3. (a) To reimburse the county for the costs of a personal
contact, there shall be distributed to the tax collector a sum equal
to the total amount of costs of the tax collector, but not to exceed
one hundred dollars ($100), incurred in conducting the personal
contact pursuant to Section 3704.7, for all or any portion of each
separately valued parcel of real property subject to a power of sale
and sold to private parties or a taxing agency.
(b) The amount of the costs shall be paid from the total amount to
be distributed from the sold property, after satisfaction of the
amount specified in Section 4672 Sections
4672, 4672.1, and 4672.2 . If, after satisfaction of the amount
specified in Section 4672 those sections
, there is insufficient funds to pay the costs specified in
subdivision (a), the costs shall be reduced accordingly.
SEC. 30. Section 4673 of the Revenue
and Taxation Code is amended to read:
4673. (a) Amounts to reimburse the county
for the cost of advertising sales of tax-defaulted property shall be
distributed to the county general fund as provided in Section 3719.
(b) The amount of the cost of advertising the sales shall be paid
from the total amount to be distributed from the sold property, after
satisfaction of the amount specified in Sections 4672, 4672.1,
4672.2, and 4672.3. If, after satisfaction of the amount specified in
those sections, there are insufficient funds to pay the costs
specified in subdivision (a), the costs shall be reduced accordingly.
SEC. 31. Section 4673.1 of the Revenue
and Taxation Code is amended to read:
4673.1. After satisfaction of the amount specified in Sections
4672, 4672.1, 4672.2, 4672.3, and 4673, the proceeds shall
be distributed as follows:
(a) An amount of the proceeds up to but no greater than the amount
required, at the time of sale, to redeem the property from tax
default on the redemption roll and the sale to
any taxing agency entitled to share in the proceeds shall be
distributed as follows:
(1) A pro rata share shall be distributed to each assessment fund
in an amount bearing the same proportion as the assessment due each
fund bears to the total amount of taxes and assessments necessary to
redeem the property at the time of sale.
(2) The remaining balance of the proceeds to be distributed under
this section shall be distributed to each tax fund in an amount
bearing the same proportion to the balance remaining as the tax rate
for each fund bears to the total tax rate applicable to the property
for the fiscal year preceding that in which the property was sold.
(b) After
satisfaction of the amounts specified in subdivision (a), an amount
of the proceeds necessary to satisfy current taxes and assessments
and applicable penalties and costs thereon for the fiscal year in
which the tax sale is held shall be distributed as provided in
Chapter 1a (commencing with Section 4653) of this part. Current taxes
and assessments referred to herein include taxes and assessments
which would have been levied on the property if the property were not
tax-deeded to any taxing agency and remains subject to sale by, or
redemption from, the taxing agency.
(c) After satisfaction of the amounts specified in subdivisions
(a) and (b), an amount required, at the time of the sale, to redeem
the Controller's notice of lien for postponed property taxes.
SEC. 32. Section 4674 of the Revenue
and Taxation Code is amended to read:
4674. Any excess in the proceeds deposited in the delinquent tax
sale trust fund remaining after satisfaction of the amounts
distributed under Sections 4672, 4672.1, 4672.2, 4672.3,
4673, and 4673.1 shall be retained in the fund on account of, and may
be claimed by parties of interest in the property as provided in,
Section 4675. At the expiration of one year following the recordation
of the tax deed to the purchaser, any excess proceeds not claimed
under Section 4675 shall be distributed as provided in paragraph (2)
of subdivision (a) of Section 4673.1, except prior to the
distribution, the county may deduct those costs of maintaining the
redemption and tax-defaulted property files, and those costs of
administering and processing the claims for excess proceeds, that
have not been recovered under any other provision of law.
SEC. 33. Section 4703 of the Revenue
and Taxation Code is amended to read:
4703. In each county that elects to adopt the procedure
authorized by this chapter there is hereby created a tax losses
reserve fund.
(a) The tax losses reserve fund shall be used exclusively, as
hereinafter provided, to cover losses that may occur in the amount of
tax liens on the redemption roll as a result of special
sales of tax-defaulted property. Whenever in any year the amount of
the tax losses reserve fund has reached an amount equivalent to 1
percent of the total of all taxes and assessments levied on the
secured roll for that year for participating entities in the county,
the amounts hereinafter authorized to be credited to that fund may,
for the remainder of that year, be credited to the county general
fund.
(b) The auditor and treasurer shall keep apportioned tax resources
accounts in a manner that the balance of amounts apportioned to
funds on an accrual basis shall be known by both officers. In
addition, the auditor shall keep secured taxes receivable accounts in
a manner as to establish accountability for the amounts receivable
on the secured tax rolls. Secured tax rolls, as used in this chapter,
include delinquent rolls prescribed by Section 2627.
SEC. 34. Section 4703.2 of the Revenue
and Taxation Code is amended to read:
4703.2. (a) In any county electing to follow the procedure
authorized by this chapter, the board of supervisors may, by October
31 of any fiscal year, on the recommendation of the county auditor,
adopt a resolution electing to be governed by this section rather
than the provisions of Section 4703. Upon adoption, a copy of this
resolution shall be filed with the county auditor, the county
treasurer, and the county tax collector. Except as otherwise provided
in this subdivision, this election shall remain in effect each
fiscal year unless the board of supervisors adopts another resolution
by October 31 of a fiscal year electing to be governed instead by
Section 4703. For the 1993-94 fiscal year only, the election to be
governed by this section rather than Section 4703 may be made no
later than January 15, 1994. For the 1994-95 fiscal year only, an
election to be governed by this section rather than Section 4703 may
be rescinded, upon the recommendation of the county auditor, by a
resolution electing governance under Section 4703 that is adopted by
the board of supervisors on any date during that fiscal year.
(b) In each county that elects to adopt the procedure authorized
by this chapter and elects to be governed by this section rather than
Section 4703 there shall be created a tax losses reserve fund.
(c) The tax losses reserve fund shall be used exclusively, as
hereinafter provided, to cover losses that may occur in the amount of
tax liens on the redemption roll as a result of special
sales of tax-defaulted property. In a county electing to be subject
to this section rather than Section 4703, the tax losses reserve fund
shall be maintained at not less than 25 percent of the total
delinquent secured taxes and assessments for participating entities
in the county as calculated at the end of the fiscal year. At the end
of the fiscal year, amounts in the tax losses reserve fund that are
in excess of 25 percent of the total delinquent secured taxes and
assessments for participating entities in the county may be credited
to the county general fund.
(d) The auditor and treasurer shall keep apportioned tax resources
accounts in such a manner that the balance of amounts apportioned to
funds on an accrual basis shall be known by both officers. In
addition, the auditor shall keep secured taxes receivable accounts in
such a manner as to establish accountability for the amounts
receivable on the secured tax rolls. Secured tax rolls as used in
this chapter include delinquent rolls prescribed by Section 2627.
SEC. 17. SEC. 35. Section 20503 of
the Revenue and Taxation Code is amended to read:
20503. (a) "Income" means adjusted gross income as defined in
Section 17072 plus all of the following cash items:
(1) Public assistance and relief.
(2) Nontaxable amount of pensions and annuities.
(3) Social security benefits (except Medicare).
(4) Railroad retirement benefits.
(5) Unemployment insurance payments.
(6) Veterans' benefits.
(7) Exempt interest received from any source.
(8) Gifts and inheritances in excess of three hundred dollars
($300), other than transfers between members of the household. Gifts
and inheritances include noncash items.
(9) Amounts contributed on behalf of the contributor to a
tax-sheltered retirement plan or deferred compensation plan.
(10) Temporary workers' compensation payments.
(11) Sick leave payments.
(12) Nontaxable military compensation as defined in Section 112 of
the Internal Revenue Code.
(13) Nontaxable scholarship and fellowship grants as defined in
Section 117 of the Internal Revenue Code.
(14) Nontaxable gain from the sale of a residence as defined in
Section 121 of the Internal Revenue Code.
(15) Life insurance proceeds to the extent that the proceeds
exceed the expenses incurred for the last illness and funeral of the
deceased spouse of the claimant. "Expenses incurred for the last
illness" includes unreimbursed expenses paid or incurred during the
income calendar year and any expenses paid or incurred thereafter up
until the date the claim is filed. For purposes of this paragraph,
funeral expenses shall not exceed five thousand dollars ($5,000).
(16) If an alternative minimum tax is required to be paid pursuant
to Chapter 2.1 (commencing with Section 17062) of Part 10, the
amount of alternative minimum taxable income (whether or not cash) in
excess of the regular taxable income.
(17) Annual winnings from the California Lottery in excess of six
hundred dollars ($600) for the current year.
(b) For purposes of this chapter, total income shall be determined
for the calendar year (or approved fiscal year ending within that
calendar year) which ends within the fiscal year for which assistance
is claimed.
SEC. 18. SEC. 36. Section 20505 of
the Revenue and Taxation Code is amended to read:
20505. For purposes of this chapter, "claimant" means an
individual who 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) of Section 20503, 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) 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.
SEC. 37. Section 20542 of the Revenue
and Taxation Code is amended to read:
20542. (a) The Franchise Tax Board, pursuant to the provisions of
Article 3 (commencing with Section 20561), of this chapter, shall
provide assistance to the claimant based on a percentage of the
property tax accrued and paid by the claimant on the residential
dwelling as provided in Section 20543 or the statutory property tax
equivalent pursuant to Section 20544. In case of an owner-claimant,
the assistance shall be equal to the applicable percentage of
property taxes paid on the full value of the residential dwelling up
to, and including, thirty-four thousand dollars ($34,000). No
assistance shall be allowed for property taxes paid on that portion
of full value of a residential dwelling exceeding thirty-four
thousand dollars ($34,000). No assistance shall be provided if the
amount of the assistance claim is five dollars ($5) or less.
(b) For purposes of allowing assistance provided for by this
section:
(1) (A) Only one owner-claimant from one household each year shall
be entitled to assistance under this chapter. When two or more
individuals of a household are able to meet the qualifications for an
owner-claimant, they may determine who the owner-claimant shall be.
If they are unable to agree, the matter shall be referred to the
Franchise Tax Board and its decision shall be final.
(B) When two or more individuals pay rent for the same premises
and each individual meets the qualifications for a renter-claimant,
each qualified individual shall be entitled to assistance under this
part.
For the purposes of this subparagraph, a husband and wife residing
in the same premises shall be presumed to be one renter.
(2) Except as provided in paragraph (3), the right to file a claim
shall be personal to the claimant and shall not survive his death;
however, when a claimant dies after having filed a timely claim, the
amount thereof may be disbursed to the surviving spouse and, if no
surviving spouse, to any other member of the household who is a
qualified claimant. If there is no surviving spouse or otherwise
qualified claimant, the claim shall be disbursed to any other member
of the household. In the event two or more individuals qualify for
payment as either an otherwise qualified claimant or a member of the
household, they may determine which of them will be paid. If they are
unable to agree, the matter shall be referred to the Franchise Tax
Board and its decision shall be final.
(3) If, after January 1 of the property tax fiscal year for which
a claim may be filed, a claimant dies without filing a timely claim,
a claim on behalf of such claimant may be filed by the surviving
spouse within the filing period prescribed in subdivision (a) or (b)
of Section 20563.
(4) If an individual postponed taxes for any given property tax
fiscal year 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), then any claim for assistance under this chapter for
the same property tax fiscal year shall be filed by such individual
(assuming all other eligibility requirements in this chapter are
satisfied) and not an otherwise qualified member of the individual's
household.
SEC. 19. SEC. 38. Section 20582 of
the Revenue and Taxation Code is amended to read:
20582. Unless the context otherwise requires, the definitions
given in this chapter shall govern the construction of Chapter 2
(commencing with Section 20581), Chapter 3.3 (commencing
with Section 20639), Chapter 3.5 (commencing with Section
20640), and Chapter 4 (commencing with Section 20641).
SEC. 20. SEC. 39. 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 (1) the claimant, (2) the claimant and
the claimant's spouse, (3) the claimant and parents, children
(natural or adopted), or grandchildren of either the claimant or the
claimant's spouse, (4) the claimant and the spouse of any parent,
child (natural or adopted), or grandchild of either the claimant or
the claimant's spouse, or (5) the claimant and another individual
eligible for postponement under this chapter and located in this
state. It shall include condominiums and mobilehomes
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. In
the case of a mobilehome not assessed as real property that is
located on land owned by the claimant, "residential dwelling"
includes the land on which the mobilehome is situated and so much of
the land surrounding it as reasonably necessary for use of the
mobilehome as a home. It shall also include a dwelling unit that is a
mobilehome owned by a claimant subject to property taxation pursuant
to Part 13 (commencing with Section 5800) of Division 1 and located
on land that is owned or rented by the claimant. which
it is built. It also includes a mobilehome that is attached to a
permanent foundation and assessed as real property.
(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 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) For purposes of this chapter, the registered owner of a
mobilehome attached to a permanent foundation and assessed as
real property shall be deemed to be the owner of the
mobilehome.
(d) Except as provided in subdivision (c), ownership must be
evidenced by an instrument duly recorded in the office of the county
where the residential dwelling is located.
(e) "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 30 percent of the full value of the property as
determined for purposes of property taxation or at least 30 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 30-percent equity requirement shall be met at the time
the claimant or authorized agent files an initial postponement claim
and for each subsequent year of participation thereafter prior to
the Controller issuing payment as prescribed in Section 20602.
(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. 21. SEC. 40. Section 20583.1 of
the Revenue and Taxation Code is amended to read:
20583.1. For purposes of Section 20583, "residential dwelling"
shall not include houseboats and floating homes.
SEC. 22. SEC. 41. Section 20584.1 is
added to the Revenue and Taxation Code, to read:
20584.1. The Controller shall prescribe a maximum annual
postponement loan amount.
SEC. 23. SEC. 42. Section 20585 of
the Revenue and Taxation Code is amended to read:
20585. Postponement shall not be allowed under this chapter
, Chapter 3.3 (commencing with Section 20639), or
Chapter 3.5 (commencing with Section 20640) if household income
exceeds either any of the following
amounts:
(a) For the 1976 calendar year or for any approved fiscal year
commencing within that calendar year, household income shall not
exceed twenty thousand dollars ($20,000).
(b) For all subsequent calendar years and approved fiscal years,
postponement shall not be allowed under this chapter ,
Chapter 3.3 (commencing with Section 20639), or Chapter 3.5
(commencing with Section 20640) if household income exceeds an
amount determined as follows:
(1) On or before March 1 of each year, the California Department
of Industrial Relations shall transmit to the Controller the
percentages of increase in the California Consumer Price Index for
all Urban Consumers and in the California Consumer Price Index for
Urban Wage Earners and Clerical Workers of December of the prior
calendar year over December of the preceding calendar year.
(2) The Controller shall compute an inflation adjustment factor by
adding 100 percent to the larger of the California Consumer Price
Index percentage increases furnished pursuant to paragraph (1).
(3) In 1978, the Franchise Tax Board shall multiply twenty
thousand dollars ($20,000) by the inflation adjustment factor to
determine the maximum allowable gross household income for the 1977
calendar year and for approved fiscal years commencing within that
calendar year. In 1979 and subsequent calendar years through and
including 1983, the Controller shall multiply the maximum allowable
household income determined for the preceding calendar year by the
inflation adjustment factor to determine the maximum allowable
household income for the applicable calendar year and approved fiscal
years commencing within that calendar year. In determining the
maximum allowable household income pursuant to this section, the
Controller shall round that amount to the nearest hundred dollar
amount.
(c) For calendar year 1984 and subsequent calendar years and for
approved fiscal years commencing within those years, postponement
shall not be allowed under this chapter , Chapter 3.3
(commencing with Section 20639), or Chapter 3.5 (commencing
with Section 20640), if household income exceeds an amount
determined as follows:
(1) For claimants who filed and qualified in the calendar year
1983 and for whom postponement has been allowed for each subsequent
calendar year up to and including the calendar year 2007, thirty-four
thousand dollars ($34,000). For these same claimants, for the
calendar year 2008 or for any approved fiscal year commencing within
that calendar year, household income shall not exceed thirty-five
thousand five hundred dollars ($35,500).
(2) For all other claimants, for calendar years up to and
including 2006, household income shall not exceed twenty-four
thousand dollars ($24,000). For these same claimants, for the 2007
calendar year or for any approved fiscal year commencing within that
calendar year, household income shall not exceed thirty-one thousand
five hundred dollars ($31,500). For these same claimants, for the
2008 calendar year or for any approved fiscal year commencing within
that calendar year, household income shall not exceed thirty-five
thousand five hundred dollars ($35,500).
(3) (A) For all claimants for the calendar year 2009
2010 or for any approved fiscal year commencing
within that calendar year, postponement shall not be allowed under
this chapter , Chapter 3.3 (commencing with Section 20639),
or Chapter 3.5 (commencing with Section 20640), if
household income exceeds thirty-five thousand five hundred dollars
($35,500).
(B) For the 2010 2011 calendar year
and each subsequent calendar year, and for any approved fiscal year
commencing within that calendar year, the household income amount
specified in subparagraph (A) shall be adjusted for inflation, in
accordance with an inflation factor determined pursuant to paragraphs
(1) and (2) of subdivision (b).
SEC. 24. SEC. 43. Section 20586 of
the Revenue and Taxation Code is amended to read:
20586. (a) For the purposes of Chapter 2 (commencing with
Section 20581), Chapter 3.3 (commencing with Section 20639),
and Chapter 3.5 Section 20581) 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.
(b) Except as provided in Section 16190 of the Government Code
and, notwithstanding any law, any amounts paid by the Controller in
the county during a calendar year pursuant to the property tax
postponement program together with any accrued interest shall be
repaid by the claimant to the state no later than June 30 of the year
following the expiration of the 10-year period. A claimant's
continued participation in the program shall be conditioned upon
compliance with this subdivision.
SEC. 25. SEC. 44. Section 20587 is
added to the Revenue and Taxation Code, to read:
20587. (a) For the purposes of this chapter , "income"
means adjusted gross income as defined in Section 17072 plus all of
the following cash items:
(1) Public assistance and relief.
(2) Nontaxable amount of pensions and annuities.
(3) Social security benefits (except Medicare).
(4) Railroad retirement benefits.
(5) Unemployment insurance payments.
(6) Veterans' benefits.
(7) Exempt interest received from any source.
(8) Gifts and inheritances in excess of three hundred dollars
($300), other than transfers between members of the household. Gifts
and inheritances include noncash items.
(9) Amounts contributed on behalf of the contributor to a
tax-sheltered retirement plan or deferred compensation plan.
(10) Temporary workers' compensation payments.
(11) Sick leave payments.
(12) Nontaxable military compensation as defined in Section 112 of
the Internal Revenue Code.
(13) Nontaxable scholarship and fellowship grants as defined in
Section 117 of the Internal Revenue Code.
(14) Nontaxable gain from the sale of a residence as defined in
Section 121 of the Internal Revenue Code.
(15) Life insurance proceeds to the extent that the proceeds
exceed the expenses incurred for the last illness and funeral of the
deceased spouse of the claimant. "Expenses incurred for the last
illness" includes unreimbursed expenses paid or incurred during the
income calendar year and any expenses paid or incurred thereafter up
until the date the claim is filed. For purposes of this paragraph,
funeral expenses shall not exceed five thousand dollars ($5,000).
(16) If an alternative minimum tax is required to be paid pursuant
to Chapter 2.1 (commencing with Section 17062) of Part 10, the
amount of alternative minimum taxable income (whether or not cash) in
excess of the regular taxable income.
(17) Annual winnings from the California Lottery in excess of six
hundred dollars ($600) for the current year.
(b) The total household income shall not include amounts deducted
for a net business loss, net rental loss, net capital loss, or other
net losses, amounts deducted for depreciation, or other noncash
expenses.
(c) For purposes of Chapter 2 (commencing with Section 20581) and
Chapter 3.5 (commencing with Section 20640), total income shall be
determined for the calendar year ending immediately prior to the
commencement of the fiscal year for which postponement is claimed.
SEC. 26. SEC. 45. Section 20588 is
added to the Revenue and Taxation Code, to read:
20588. "Household income" means all income received by all
persons of a household while members of the household. In the case of
a nonresident claimant, "household income" also includes all income
of the claimant during the year without regard to source.
SEC. 27. SEC. 46. Section 20589 is
added to the Revenue and Taxation Code, to read:
20589. (a) "Claimant" means an individual who is either of the
following:
(1) 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 Section 20587, 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 or
Section 20587, who was a member of the household, and who was (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.
(2) (A) For purposes of this chapter , 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 possessory interestholder occupant,
or a mobilehome owner-occupant, as the case may
be, of the residential dwelling as to which postponement is claimed
and who was 62 years of age or older by December 31 of the fiscal
year for which postponement is claimed.
(B) For purposes of this chapter , 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 and who was 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.
(b) 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. 28. SEC. 47. Section 20590 is
added to the Revenue and Taxation Code, to read:
20590. "Household" includes the claimant and all other persons,
except bona fide renters, minors, or students (as defined by Section
151(c)(4) of the Internal Revenue Code), whose principal place of
residence is the residential dwelling of the claimant.
SEC. 29. SEC. 48. Section 20591 is
added to the Revenue and Taxation Code, to read:
20591. (a) A claimant shall not lose his or her eligibility for
property tax postponement if he or she is temporarily confined to a
hospital or medical institution for medical reasons where the
residential dwelling was the principal place of residence of the
claimant immediately prior to the confinement.
(b) For purposes of this section, "medical institution" means a
facility operated by, or licensed by, the United States, one of the
several states, a political subdivision of a state, the State
Department of Health Care Services, or exempt from such licensure
pursuant to subdivision (c) of Section 1312 of the Health and Safety
Code.
SEC. 30. SEC. 49. Section 20602 of
the Revenue and Taxation Code is repealed.
SEC. 31. SEC. 50. Section 20602 is
added to the Revenue and Taxation Code, to read:
20602. (a) Upon approval of a claim described in Section 20601,
the the Controller shall determine if the
property is subject to a property tax postponement lien recorded
pursuant to Section 16182 of the Government Code.
(1) If the property is subject to a property tax postponement
lien, the county tax collector shall provide the Controller the
amount of the claimant's property taxes due.
(2) If the property is not subject to a
property tax postponement lien, the Controller shall notify the
county tax collector, who shall enter the address of the property,
the name of the claimant, the county code, and the assessor's parcel
number on a notice of lien for postponed property taxes, on a form
which shall be provided by the Controller. The county tax collector
shall then forward the notice to the assessor. The county tax
collector shall provide verification that the "notice of lien for
postponed property taxes" has been filed in a manner prescribed by
the Controller and shall provide to the Controller the amount of the
claimant's taxes due.
(b) Upon receipt of the verification
amount of the claimant's taxes due and the verification of the notice
of lien for postponed property taxes required by subdivision
(a), the Controller shall issue a property tax postponement payment
on behalf of a qualified claimant in a manner prescribed by the
Controller.
(c) The Controller shall be indemnified from any losses that
result from the inaccurate filing of the "notice of lien for
postponed property taxes" by the county tax collector, assessor, or
county recorder.
SEC. 32. SEC. 51. Section 20605 of
the Revenue and Taxation Code is amended to read:
20605. (a) The postponement of property taxes pursuant to this
chapter shall not affect the obligation of a borrower to continue to
make payments to a lender with respect to an impound, trust, or other
type of account described in Section 2954 of the Civil Code which
was established prior to the effective date of subdivision (b).
(b) Except where required by federal law or regulation
, regulation, rule, or program, and
notwithstanding Sections 7153.2 and 7153.8 of the Financial Code, or
in the case of a loan which is made, guaranteed, or insured by a
federal government lending or insuring agency requiring the borrower
to make payments to a lender with respect to an impound, trust, or
other type of account described in Section 2954 of the Civil Code, or
where this subdivision would impair the obligations of a loan
agreement executed prior to the effective date of this subdivision,
no lender shall require a borrower to maintain an impound, trust or
other type of account with regard to taxes once such borrower has
elected to postpone such taxes pursuant to this chapter and has first
submitted to such lender evidence of tax postponement. Any payments
made by such borrower, prior to the time of submission of such
evidence of tax postponement, to such an impound, trust or other type
of account with regard to taxes for any such period, if not
previously used in payment or partial payment of such taxes, shall be
refunded to such borrower within 30 days thereafter.
(c) (1) A mortgagee, trustee, or other person authorized to take
sale on real property due to the mortgagor's or trustor's
failure to pay property taxes shall not file notice of default for
five years following the initial authorization to take sale if the
mortgagor or trustor provides evidence of participation in the
property tax postponement program established pursuant to Section
16180 of the Government Code.
(2) Notwithstanding
subdivision (b), no lender shall require a borrower to maintain an
impound, trust, or other type of account with regard to taxes for a
borrower who provides evidence of participation in the property tax
deferral program. sale shall not file a notice of
default based solely on a mortgagor's failure to pay property taxes,
until at least five years have elapsed from the date on
which the property taxes became delinquent, if the mortgagor or
trustor provided the mortgagee, trustee, or other person authorized
to take sale evidence of his or her participation in the Senior
Citizens and Disabled Citizens Property Tax Postponement Program
during the 2008-09 fiscal year.
(3)
(2) Written confirmation from the Controller
identifying the individual as a participant in the program
during the 2008-09 fiscal year shall be considered evidence of
participation in the property tax postponement program for purposes
of this section. The Controller shall provide written notice to
individuals that participated in the program during 2008 or
2009 the 2008-09 fiscal year for use as evidence
of participation.
SEC. 33. SEC. 52. 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."
(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) 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 30-percent equity in the
subject residential dwelling as required by paragraph (1) of
subdivision (e) of Section 20583.
(g) Authorization for the Controller to pay the claimant's
property taxes, if approved, and promising repayment of the loan as
provided by Section 16190 of the Government Code.
(h) Other information required by the Controller to establish
eligibility.
SEC. 34. SEC. 53. Section 20622 of
the Revenue and Taxation Code is amended to read:
20622. (a) The claim for
postponement shall be filed after July 1 of the calendar year in
which the fiscal year for which postponement is claimed begins, and
on or before September 30 of that fiscal year; if September 30 falls
on Saturday, Sunday, or a legal holiday, the date is extended to the
next business day. Any claim for postponement filed after September
30, and on or before June 30, may be considered for good cause.
(b) Any claims for postponement for the 2009-10 fiscal year shall
be filed after the effective date of the act adding this section and
on or before April 9, 2010.
SEC. 35. SEC. 54. Section 20623 of
the Revenue and Taxation Code is repealed.
SEC. 36. SEC. 55. Chapter 3
(commencing with Section 20625) of Part 10.5 of Division 2 of the
Revenue and Taxation Code is repealed.
SEC. 37. Section 20639.1 of the Revenue and
Taxation Code is amended to read:
20639.1. (a) Unless the context otherwise requires or unless
otherwise provided in this chapter, the definitions given in Chapter
2 (commencing with Section 20581) shall govern the construction of
this chapter.
(b) Unless the context otherwise dictates or unless otherwise
provided in this chapter, the provisions of Chapter 1 (commencing
with Section 101) and Chapter 2 (commencing with Section 155) of Part
1 of Division 1 of this code, Section 2931c of the Civil Code,
Chapter 4.5 (commencing with Section 14735) of Part 5.5 of Division 3
of Title 2 of the Government Code, Chapter 6 (commencing with
Section 16180) of Part 1 of Division 4 of Title 2 of the Government
Code, Division 13 (commencing with Section 17000) of the Health and
Safety Code, and Division 9 (commencing with Section 9101) of the
Commercial Code shall be applicable to property tax postponements
made pursuant to this chapter.
SEC. 38. Section 20639.6 of the Revenue and
Taxation Code is amended to read:
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 a property tax postponement payment as
provided by Section 20602.
(b) The Controller shall secure a lien against the mobilehome that
is sufficient to secure the state's interest in loan repayment.
SEC. 39. Section 20639.8 of the Revenue and
Taxation Code is amended to read:
20639.8. The claim for postponement shall be filed pursuant to
Section 20622.
SEC. 40. Section 20639.9 of the Revenue and
Taxation Code is amended to read:
20639.9. Each claimant applying for postponement under this
chapter shall file a claim under penalty of perjury as provided by
Section 20621. A claim filed under this chapter shall also include
both of the following:
(a) 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.
(b) A copy of the registration card issued by the Department of
Housing and Community Development or the Department of Motor
Vehicles.
SEC. 41. Section 20639.11 of the Revenue and
Taxation Code is amended to read:
20639.11. All amounts postponed pursuant to this chapter shall
become due and payable as provided by Sections 16180 and 16190 of the
Government Code.
SEC. 56. Chapter 3.3 (commencing with Section
20639) of Part 10.5 of Division 2 of the Revenue and
Taxation Code is repealed.
SEC. 42. SEC. 57. Section 20640.1 of
the Revenue and Taxation Code is amended to read:
20640.1. (a) Unless the context otherwise requires or unless
otherwise provided in this chapter, the definitions given in Chapter
2 (commencing with Section 20581) shall govern the construction of
this chapter.
(b) Unless the context otherwise dictates or unless otherwise
provided in this chapter, the provisions of Chapter 2 (commencing
with Section 20581), Civil Code Section 2924b, Civil Code Section
2931c, Chapter 4.5 (commencing with Section 14735) of Part 5.5 of
Division 3 of Title 2 of the Government Code, Chapter 6 (commencing
with Section 16180) of Part 1 of Division 4 of Title 2 of the
Government Code shall be applicable to property tax postponements
made pursuant to this chapter.
SEC. 43. SEC. 58. Section 20640.3 of
the Revenue and Taxation Code is amended to read:
20640.3. A claimant is an individual who does all of the
following:
(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 subdivision (c) of Section 20503.
(c) Satisfies the requirements specified in paragraph (1) or (2)
of subdivision (a) of Section 20589.
SEC. 44. SEC. 59. Section 20640.4 of
the Revenue and Taxation Code is amended to read:
20640.4. (a) Subject to the limitations provided in 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. 45. SEC. 60. 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 Controller shall determine
whether the state's interest would be adequately protected if
postponement is granted, and if so, shall issue a property tax
postponement payment as provided by Section 20602.
(b) The Controller shall secure a lien against the possessory
interest that is sufficient to secure the state's interest in loan
repayment.
SEC. 46. SEC. 61. Section 20640.8 of
the Revenue and Taxation Code is amended to read:
20640.8. The claim for postponement shall be filed pursuant to
Section 20622.
SEC. 47. SEC. 62. 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 pursuant to
Section 20621.
SEC. 48. SEC. 63. Section 20640.11
of the Revenue and Taxation Code is amended to read:
20640.11. All amounts postponed pursuant to this chapter shall
become due and payable as provided by Sections 16180 and 16190 of the
Government Code.
SEC. 49. SEC. 64. Section 20641 of
the Revenue and Taxation Code is amended to read:
20641. Forms filed pursuant to this part shall not be under oath
but shall contain, or be verified by, a written declaration that they
are made under the penalty of perjury. All forms filed pursuant to
Chapter 1 (commencing with Section 20501) shall require such
information as the Franchise Tax Board may from time to time
prescribe, and shall be filed with the Franchise Tax Board. The
Franchise Tax Board shall prepare blank forms for the claimant and
shall distribute them throughout the state and furnish them upon
application. All forms filed pursuant to Chapter 2 (commencing with
Section 20581) , Chapter 3.3 (commencing with Section
20639), or Chapter 3.5 (commencing with Section 20640),
shall require such information as the Controller may from time to
time prescribe, shall be filed with the Controller, and the
Controller shall prepare such blank forms for the claimant and shall
distribute them throughout the state and furnish them upon
application.
SEC. 65. Section 20641.5 of the Revenue
and Taxation Code is amended to read:
20641.5. If the Controller determines that good cause exists, a
reasonable extension for filing a 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) may be granted. However,
no extension shall be granted beyond the fiscal year for which
postponement is claimed.
SEC. 50. SEC. 66. Section 20643 of
the Revenue and Taxation Code is amended to read:
20643. If any claimant fails or refuses to furnish any
information requested in writing by the Franchise Tax Board, pursuant
to this part, Chapter 1 (commencing with Section 20501), or by the
Controller, pursuant to Chapter 2 (commencing with Section
20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5
Section 20581) or Chapter 3.5 (commencing with
Section 20640) or files a fraudulent claim, the assistance or
postponement authorized by this part shall be disallowed.
SEC. 51. Section 20648 is added to the Revenue
and Taxation Code, to read:
20648. For the 2009-10 and 2010-11 fiscal years, if a
postponement claim is filed under Chapter 2 (commencing with Section
20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5
(commencing with Section 20640), the tax collector may cancel any
delinquent penalties and interest owed by the claimant for those
fiscal years.
SEC. 67. Section 20645.5 of the Revenue
and Taxation Code is amended to read:
20645.5. 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 but before delinquency date of the first or second
installment of property taxes, then any delinquent penalties and
interest for such 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. In the event of such willful neglect, the
certificates of eligibility for such fiscal year can be used to pay
delinquent taxes only if accompanied by sufficient amounts to pay the
delinquent interest and penalties.
SEC. 68. Section 20645.6 of the Revenue
and Taxation Code is amended to read:
20645.6. 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 such denial is reversed after appeal pursuant to Section 20645.1,
the Controller shall issue a warrant to the claimant, if the taxes
for the fiscal year have been paid, for the amount of such taxes. If
the taxes for the fiscal year are delinquent, any resulting penalties
or interest shall be canceled.