Bill Text: CA AB1029 | 2009-2010 | Regular Session | Amended

California Assembly Bill 1029 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Taxation: property tax postponement.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1029 Detail]

Download: California-2009-AB1029-Amended.html

BILL NUMBER: AB 1029	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  SEPTEMBER 3, 2009

INTRODUCED BY   Assembly Member Blumenfield

                        FEBRUARY 27, 2009

    An act to add and repeal Sections 17053.91 and 23649.1 of
the Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.   An act to add Section 2923.57
to the Civil Code, relating to mortgages. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1029, as amended, Blumenfield.  Manufacturers'
investment credit: qualified solar energy materials.  
Mortgages: foreclosure: tax deferral program participants.  

   Existing law, until January 1, 2013, and as applied to residential
mortgage loans for owner-occupied residences made from January 1,
2003, to December 31, 2007, inclusive, requires a mortgagee, trustee,
beneficiary, or authorized agent to wait 30 days after contact is
made with the borrower, or 30 days after satisfying due diligence
requirements to contact the borrower, as specified, before filing a
notice of default, in order to assess the borrower's financial
situation and to explore options to avoid foreclosure.  
   This bill would prohibit a mortgagee, trustee, or other person
authorized to take sale from filing a notice of default based on the
failure to pay property taxes prior to 90 days after contacting the
trustor or mortgagor, either in person or by telephone, to ascertain
if the trustor or mortgagor was a participant in the property tax
deferral program established pursuant to the Senior Citizens and
Disabled Citizens Property Tax Postponement Law. The bill would
provide that if the trustor or mortgagor was participating in the
property tax deferral program on or before February 19, 2009, and the
trustor or mortgagor, within a specified period, provides a copy of
the certificate of eligibility issued by the Controller to this
effect, the mortgagee, trustee, or other person authorized to take
sale is prohibited from filing a notice of default based on the
failure to pay property taxes for 5 years from the date of first
contacting the mortgagor or trustor.  
   The Personal Income Tax Law and the Bank and Corporation Tax Law
authorizes various credits against the taxes imposed by that law.
 
   This bill would allow a credit for taxable years beginning on or
after January 1, 2009, and before January 1, 2011, in an amount equal
to an unspecified percent of the amount paid or incurred during the
taxable year by a qualified taxpayer in connection with the
manufacture of qualified solar energy materials.  
   This bill would take effect immediately as a tax levy. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . 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 2923.57 is added to the  
Civil Code   , to read:  
   2923.57.  (a) This section shall apply only to a default on a
mortgage or deed of trust for the failure to pay property taxes.
   (b) A mortgagee, trustee, or other person authorized to take sale
shall not file a notice of default based on the failure to pay
property taxes prior to 90 days after contacting the trustor or
mortgagor, either in person or by telephone, to ascertain if the
trustor or mortgagor was a participant in the property tax deferral
program established 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.
   (c) If, within the 90-day period described in subdivision (a), the
mortgagee, trustee, or other person authorized to take sale is
informed that the trustor or mortgagor was participating in the
property tax deferral program on or before February 19, 2009, and the
trustor or mortgagor provides a copy of the certificate of
eligibility issued by the Controller that evidences this, the
mortgagee, trustee, or other person authorized to take sale shall not
file a notice of default based on the failure to pay property taxes
for five years from the date of first contacting the mortgagor or
trustor.  
  SECTION 1.    Section 17053.91 is added to the
Revenue and Taxation Code, to read:
   17053.91.  (a) For taxable years beginning on or after January 1,
2009, and before January 1, 2011, there shall be allowed as a credit
against the "net tax" (as defined in Section 17039) for the taxable
year an amount equal to ___ percent of the amount paid or incurred
during the taxable year by a taxpayer in connection with the
manufacture of qualified solar energy materials.
   (b) For purposes of this section:
   (1) "Manufacturing" means combining or processing components or
materials to increase their value for sale in the ordinary course of
business, but does not include construction, farming, power
generation, or processing natural resources.
   (2) "Qualified solar energy materials" means materials used in
solar energy systems that meet standards established by the
California Energy Commission and are approved for use in the
California Solar Initiative.
   (c) In the case where the credit otherwise allowed under this
section exceeds the "net tax" for the taxable year, that portion of
the credit that exceeds the "net tax" may be carried over to reduce
the net tax in the following taxable year, and the succeeding four
taxable years if necessary, until the credit is exhausted.
   (d) The Franchise Tax Board may prescribe rules and regulations to
carry out the purposes of this section, including any rules and
regulations necessary to prevent the avoidance of the effect of this
section through splitups, shell corporations, partnerships, tiered
ownership structures, sale-leaseback transactions, or otherwise.
   (e) This section shall remain in effect only until December 1,
2011, and as of that date is repealed.  
  SEC. 2.    Section 23649.1 is added to the Revenue
and Taxation Code, to read:
   23649.1.  (a) For taxable years beginning on or after January 1,
2009, and before January 1, 2011, there shall be allowed as a credit
against the "tax" as defined in Section 23036 for the taxable year an
amount equal to ___ percent of the amount paid or incurred during
the taxable year by a taxpayer in connection with the manufacture of
qualified solar energy materials.
   (b) For purposes of this section:
   (1) "Manufacturing" means combining or processing components or
materials to increase their value for sale in the ordinary course of
business, but does not include construction, farming, power
generation, or processing natural resources.
   (2) "Qualified solar energy materials" means materials used in
solar energy systems that meet standards established by the
California Energy Commission and are approved for use in the
California Solar Initiative.
   (c) In the case where the credit otherwise allowed under this
section exceeds the "net tax" for the taxable year, that portion of
the credit that exceeds the "net tax" may be carried over to reduce
the net tax in the following taxable year, and the succeeding four
taxable years if necessary, until the credit is exhausted.
   (d) The Franchise Tax Board may prescribe rules and regulations to
carry out the purposes of this section, including any rules and
regulations necessary to prevent the avoidance of the effect of this
section through splitups, shell corporations, partnerships, tiered
ownership structures, sale-leaseback transactions, or otherwise.
   (e) This section shall remain in effect only until December 1,
2011, and as of that date is repealed.  
  SEC. 3.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.