Amended in Senate April 10, 2014

Senate Bill No. 1214

Introduced by Senator Anderson

February 20, 2014

An act to amend begin delete Section 16213 end delete begin insert Sections 16211 and 16213 end insert of, and to repeal and add Section 16180 of, the Government Code, and to begin insert amend Sections 3375, end insert begin insert 20584, 20645.5, end insert begin insert and 20645.6 end insert begin insert of, to end insert amend and repeal Section 20623 begin delete of end delete begin insert of, and to add Section 3376 to, end insert the Revenue and Taxation Code, relating to state government, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 1214, as amended, Anderson. State Controller: 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. That 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. That law required these payments to be made out of specified funds appropriated to the Controller, as specified, and also required certain repaid property tax postponement payments to be paid into an impound account and transferred, as specified, to the General Fund.

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 make inoperative the prohibition against a person filing a claim for postponement and the Controller from accepting applications for postponement under the program as of July 1, 2015, and would repeal these provisions on January 1, 2016.

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This

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begin insert The end insert bill would create in the State Treasury a Senior Citizens and Disabled Citizens Property Tax Postponement Fund. The bill would require that repaid property tax postponement payments be transferred from the impound account to, or be directly deposited into, the newly created fund. The bill would continuously appropriate these funds to the Controller for purposes of administering the property tax postponement program, as specified.

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Existing law requires that the owners equity interest in the residential dwelling be at least 20% of the full value of the property in order to be eligible to participate in the postponement program.

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This bill would increase the equity requirement to at least 40%.

end insert begin insert

Existing law requires, if a postponement claim, as specified, is filed timely but before the delinquency date of the first or 2nd installment of property taxes, that any delinquent penalties and interest for the fiscal year be canceled unless the failure to perfect the claim was due to willful neglect on the part of the claimant or representative, in which case the certificates of eligibility for the fiscal year can be used to pay delinquent taxes only if accompanied by sufficient amounts to pay the delinquent interest and penalties.

end insert begin insert

This bill would instead require, if a postponement claim is filed timely before the delinquency date of the 2nd installment of property taxes on the secured roll, that any delinquent penalties, costs, fees, and interest accrued for the fiscal year be canceled. The bill would instead require, in the event of willful neglect to perfect the claim, that an electronic funds transfer for that current fiscal year be used to pay the delinquent taxes only if the amount is sufficient to pay delinquent penalties, costs, fees, and interest. The bill would authorize the tax collector, if the payment amount sufficient to pay all of the delinquent penalties, costs, fees, and interest is not received by the tax collector within 30 days from the date of the electronic funds transfer, to return the electronic funds transfer to the Controller to deny the postponement claim. The bill would require the Controller to provide a specified notification to the claimant and a copy of the notification to the tax collector.

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The bill would also require the Controller, upon written request of the tax collector, to provide the tax collector with information that is required for the preparation and enforcement of the sale of tax-defaulted property, and would require the tax collector or his or her designee to certify, under penalty of perjury, that the information is requested for these purposes. The bill would also provide that any information provided to the tax collector is not a public record and is not open to public inspection. By requiring the tax collector to make a certification under penalty of perjury, the bill would expand the crime of perjury, thereby imposing a state-mandated local program.

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Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

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This bill would make legislative findings to that effect.

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

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

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Vote: ²⁄₃. Appropriation: yes. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

SECTION 1.  

Section 16180 of the Government Code is
repealed.

SEC. 2.  

Section 16180 is added to the Government Code, to
read:

16180.  

(a) There is hereby created in the State Treasury a
Senior Citizens and Disabled Citizens Property Tax Postponement
Fund. Subject to subdivision (b) and notwithstanding Section
13340, the fund is continuously appropriated to the Controller,
commencing January 1, 2015, for purposes of administering this
chapter, including, but not limited to, necessary administrative
costs and disbursements relating to the postponement of property
taxes pursuant to the Senior Citizens and Disabled Citizens
Property Tax Postponement Law (Chapter 2 (commencing with
Section 20581) of Part 10.5 of Division 2 of the Revenue and
Taxation Code).

(b) The Controller shall transfer any moneys in the fund in
excess of ten million dollars ($10,000,000) to the General Fund.

(c) Any loan repayments relating to the Senior Citizens and
Disabled Citizens Property Tax Postponement Law that are not
deposited into an impound account, as described in Section 16210
or 16211.5, shall be deposited into the Senior Citizens and Disabled
Citizens Property Tax Postponement Fund.

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begin insert SEC. 3. end insert   

end insert

begin insert Section 16211 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

16211.  

begin insert (a) end insert begin insert   end insert The claimant 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 begin delete 20640) end delete begin insert 20640)) end insert 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.

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In

end delete

begin insert (b) end insert begin insert   end insert begin insert In end insert 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 begin delete 20 end delete begin insert 40 end insert
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.

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

Section 16213 of the Government Code is amended
to read:

16213.  

At the end of the six-month period specified in Section
16210 or the six-month period specified in Section 16211.5, all
funds remaining in an impound account shall be transferred to the
Senior Citizens and Disabled Citizens Property Tax Postponement
Fund, established pursuant to Section 16180.

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begin insert SEC. 5. end insert   

end insert

begin insert Section 3375 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

3375.  

The tax collector shall notify the Controller, in begin delete such end delete begin insert the end insert
manner as the Controller shall direct, of all property subject to a
“Notice of Lien for Postponed Property Taxes” recorded pursuant
to Section 16182 of the Government Code begin delete , which: end delete begin insert that becomes
tax defaulted subsequent to the date of entry on the secured roll
of the information required by subdivision (a) of Section 2514. end insert

begin delete

(a) Becomes tax defaulted subsequent to the date of entry on
the secured roll of the information required by paragraph (1) of
subdivision (a) of Section 2514; or

(b) Becomes subject to those collection procedures that are
available for collection of delinquent taxes or assessments on the
unsecured roll.

end delete

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 3376 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 3376. end insert   

(a) Upon request of the tax collector, the Controller
shall provide to the tax collector information that is required for
the preparation and enforcement of the sale of property under this
part. This information may include social security numbers.

(b) The tax collector or his or her designee shall certify, under
penalty of perjury, to the Controller, that the information requested
pursuant to subdivision (a) is required for the purposes specified
in subdivision (a).

(c) Any information provided to the tax collector pursuant to
this subdivision is not a public record and is not open to public
inspection.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 20584 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

20584.  

(a) “Property taxes” means all ad valorem property
taxes, special assessments, and other charges or user fees begin delete which end delete
begin insert that end insert are attributable to the residential dwelling on the county tax
bill and the ad valorem property taxes, special assessments, or
other charges or user fees appearing on the tax bill of any chartered
city begin delete which end delete begin insert that end insert levies and collects its own property taxes.

(b) Whenever a residential dwelling is an integral part of a larger
tax unit, such as a duplex, farm or a multipurpose building,
“property taxes” shall be the percentage of the total property taxes
as the value of the residential dwelling is of the value of the total
tax unit.

(c) “Property taxes” includes any property taxes begin delete that become
delinquent after the claimant was 62 years of age or after the
claimant became blind or disabled as defined in Section 12050 of
the Welfare and Institutions Code. end delete begin insert for current fiscal years for
which the claim is made and excludes delinquent taxes for prior
fiscal years. end insert

begin delete SEC. 4. end delete
begin insert SEC. 8. end insert   

Section 20623 of the Revenue and Taxation Code is
amended to read:

20623.  

(a) No person shall file a claim for postponement under
this chapter on or after the effective date of the act adding this
section, and the Controller shall not accept applications for
postponement under this chapter on or after that date.

(b) This section shall become inoperative on July 1, 2015, and
as of January 1, 2016, is repealed, unless a later enacted statute
that is enacted before January 1, 2016, deletes or extends the dates
on which it becomes inoperative and is repealed.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 20645.5 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

20645.5.  

begin insert (a) end insert begin insert   end insert 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 begin delete but end delete before begin insert the end insert delinquency date of the begin delete first or end delete second
installment of property begin delete taxes, end delete begin insert taxes on the secured roll, end insert then any
delinquent begin delete penalties end delete begin insert penalties, costs, fees, end insert and interest begin insert accrued end insert for
begin delete such end delete begin insert that end insert 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. begin delete In end delete

begin insert (b) end insert begin insert   end insert begin insert In end insert the event of begin delete such end delete willful neglect, begin delete the certificates of
eligibility for such end delete begin insert an electronic funds transfer for that current end insert
fiscal year can be used to pay delinquent taxes only if accompanied
by sufficient amounts to pay begin insert all of end insert the delinquent begin delete interest and
penalties. end delete begin insert penalties, costs, fees, and interest. If an amount sufficient
to pay all of the delinquent penalties, costs, fees, and interest is
not received by the tax collector within 30 days from the date of
the electronic funds transfer, the tax collector may return the
electronic funds transfer to the Controller to deny the postponement
claim. end insert

begin insert

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

end insert begin insert

(2) In the event of willful neglect, in addition to the information
required pursuant to paragraph (1), the Controller shall also notify
the claimant in writing and provide a copy of the notification to
the tax collector, that a payment amount sufficient to pay all of
the delinquent penalties, costs, fees, and interest must be received
by the tax collector within 30 days from the date of the electronic
funds transfer, and that if this payment is not received by the tax
collector, the tax collector may return the electronic funds transfer
to the Controller to deny the postponement claim.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 20645.6 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is amended to read: end insert

20645.6.  

begin insert (a) end insert begin insert   end insert 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 begin delete such end delete begin insert the end insert denial is reversed after appeal pursuant to Section
20645.1, the Controller shall begin delete issue a warrant to the claimant, end delete
begin insert electronically transfer funds to the county, end insert if the taxes for the fiscal
year have been paid, for the amount of begin delete such end delete begin insert the end insert taxes. If the taxes
for the fiscal year are delinquent, any resulting penalties or interest
shall be canceled.

begin insert

(b) The Controller shall notify the claimant in writing when an
electronic funds transfer has been made pursuant to subdivision
(a).

end insert

begin insert

begin insert SEC. 11. end insert   

end insert begin insert

The Legislature finds and declares that Section 6 of
this act, which adds Section 3376 to the Revenue and Taxation
Code, imposes a limitation on the public’s right of access to the
meetings of public bodies or the writings of public officials and
agencies within the meaning of Section 3 of Article I of the
California Constitution. Pursuant to that constitutional provision,
the Legislature makes the following findings to demonstrate the
interest protected by this limitation and the need for protecting
that interest:

end insert begin insert

In order to protect those persons subject to enforcement of Part
6 (commencing with Section 3351) of Division 1 of the Revenue
and Taxation Code against the risk of identity theft, it is in the
state’s interest to limit public access to information.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert begin insert

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

end insert