Bill Text: CA AB1029 | 2009-2010 | Regular Session | Amended
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 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 JANUARY 4, 2010
AMENDED IN ASSEMBLY SEPTEMBER 3, 2009
INTRODUCED BY Assembly Member Blumenfield
FEBRUARY 27, 2009
An act to add Section 2923.57 to the Civil Code, relating
to mortgages. An act to amend Sections 16182, 16183,
16200, 16202, and 16211 of, to repeal Sections 16211.5, 16213, and
16214 of, and to repeal and add Section 16180 of, the Government
Code, and to amend Sections 2505, 2514, 2515, 20503, 20505, 20582,
20583, 20583.1, 20585, 20586, 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, 20643 of, to add Sections 20584.1,
20587, 20588, 20589, 20590, 20591, and 20648 to, to repeal Section
20623 and Chapter 3 (commencing with Section 20625) of Part 10.5 of
Division 2 of, and to repeal and add Section 20602 of, the Revenue
and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1029, as amended, Blumenfield. Mortgages: foreclosure:
tax deferral program participants. 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 with the Controller a claim 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 payments
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 claim, as provided. That law
required these payments to be made out of amounts appropriated by
the Controller, as specified.
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 to either make
payments directly to specified entities or to issue the claimant a
certificate of eligibility, and would instead require the Controller
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 authorize the Controller, upon
appropriation by the Legislature, to use moneys in the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund, which
this bill would create, to make property tax postponement payments.
This bill would require all sums paid by the Controller to be secured
by a lien of first priority. This bill would require the Controller
to prescribe a maximum annual postponement loan amount, and would
change the rate of interest for any deferrals made on or after
January 1, 2010, as provided. This bill would also make conforming
changes to related provisions.
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 and
interest owed by the claimant for those fiscal years if a
postponement claim is filed timely, 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 provided.
This bill would repeal that law and make conforming changes to
related provisions.
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.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16180 of the
Government Code is repealed.
16180. Out of the amount appropriated to the Controller by
Section 16100, the sum of twelve million seven hundred thousand
dollars ($12,700,000) for the 1977-78 fiscal year and each fiscal
year thereafter is hereby made available to the Controller to pay the
face amount of all certificates of eligibility for the postponement
of property taxes submitted to the Controller which are signed and
countersigned in the manner specified in Sections 20602, 20603,
20639.6, 20640.6, and 20640.7 of the Revenue and Taxation Code.
SEC. 2. 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. Upon
appropriation by the Legislature, the Controller shall use moneys in
the fund 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 both 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) The Controller shall regularly review the balance of the fund
and recommend transfers to the General Fund of any surplus moneys
unnecessary for the operation of the program or the fund.
SEC. 3. 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 of first priority in favor of the State of
California upon the real property or a mobilehome for which property
taxes have been postponed, or both. This lien shall have the
same priority as a county property tax lien pursuant to Section
2192.1 of the Revenue and Taxation Code. 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.
(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 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 acknowledgement 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. 4. Section 16183 of the Government
Code is amended to read:
16183. (a) (1) 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 an adjusted rate of interest
for the purpose of this subdivision not later than July 15th 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 plus no
less than 4 percent and no greater than 7 percent , and shall
become effective for new deferrals, beginning on July 1,
1984 January 1, 2010 , and on July
January 1 of each immediately succeeding year.
(3) The For deferrals made prior to
January 1, 2010, 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 deferrals made on or after January 1, 2010, the rate of
interest shall be adjusted annually, pursuant to paragraph (2).
(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 time a certificate of eligibility
is countersigned by the tax collector or the delinquency date of the
respective tax installment, whichever is later date
the Controller issues the property tax postponement payment .
(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 claimant accounts for which property taxes are
deferred on or after January 1, 2010.
SEC. 5. Section 16200 of th e
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
Section 16100, the 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 funds appropriated
by Section 16100 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.
(d) The Controller may pay any costs incurred pursuant to this
section from any funds available for program expenditures.
SEC. 6. 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
out of the amount appropriated by Section 16100, 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.
(c) The Controller may pay any costs incurred pursuant to this
section from any funds available for program expenditures.
SEC. 7. Section 16211 of the Government
Code is amended to read:
16211. 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 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 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. 8. Section 16211.5 of the
Government Code is repealed.
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 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, except as provided in Section 2192.1 of the Revenue and
Taxation Code.
SEC. 9. Section 16213 of the Government
Code is repealed.
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 General
Fund.
SEC. 10. Section 16214 of the
Government Code is repealed.
16214. All moneys in an impound account created pursuant to this
article are continually appropriated to the Controller for the
purposes of this article.
SEC. 11. 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
certificate of eligibility proper ty 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
certificate of eligibility 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 property
tax postponement 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 property tax postponement payment from the
Controller issued pursuant to Section 20602 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. 12. Section 2514 of the Revenue
and Taxation Code is amended to read:
2514. (a) Upon receipt of a certificate of eligibility
described in property tax postponement payment from
the Controller issued pursuant to Section 20602 ,
Section 20639.6, or Section 20640.6 signed by the claimant, the
claimant's spouse, or authorized agent appointed under regulations
adopted by the Controller pursuant to Section 20603 or Section
20640.7 , the tax collector shall ascertain whether the
amount of money entered on the certificate by such claimant
or agent of the property tax postponement payment from
the Controller , when added to other amounts available for
such purpose, are sufficient to pay the amount due and owing.
If such is the case, the tax collector or his or her designee
shall countersign the certificate process the
property tax postponement payment from the Controller and mark
the tax paid. Once signed and countersigned, a certificate
of eligibility shall be deemed a negotiable instrument for purposes
of all laws of this state, as specified in subdivision (d) of Section
20602. Upon acceptance of such a certificate
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 which that has
been designated for tax default information required by Section 3439.
(2) In the case of a certificate of eligibility
property tax postponement payment issued
pursuant to Section 20602, the tax collector shall determine if the
property described in the certificate of eligibility
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 amount paid by use of the certificate, the date of such
payment, the Controller's identification number shown on the
certificate of eligibility, the address of the property
covered by the certificate , and
the name of the claimant as shown on the
certificate , 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 such the
notice of lien form to the assessor.
(3) 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
money entered on the certificate the property
tax postponement payment .
The auditor, treasurer, or disbursing officer shall send a check
in the amount of money entered on the certificate to said
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 certificate of eligibility
property tax postponement payment is received
from the claimant Controller , whichever
is later.
(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. 13. 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 use of a
certificate of eligibility by the Controller
pursuant to Section 2514. Such description shall be a "metes and
bounds," "lot-block-tract," or such 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) of this section, as
disclosed by the assessor's records.
(3) Upon entry of the information required by subdivisions (a)
and (b) of this section 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 such
the property, the fact that the taxes on the
property have been postponed and the Controller's identification
number, and shall, when such 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 such 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.
14. 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.
(c) For purposes of Chapter 2 (commencing with Section 20581),
Chapter 3 (commencing with Section 20625), 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. 15. Section 20505 of the Revenue
and Taxation Code is amended to read:
20505. "Claimant" For purposes of this
chapter, "claimant" means an individual who--
(a) For purposes of
this chapter 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) or (c) of
Section 20503 , whichever is applicable , 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) 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.
(b) (1) For purposes of Chapter 2 (commencing with Section
20581), Chapter 3 (commencing with Section 20625), 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 tenant stockholder 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 on the last day of the year designated in subdivision (b) or
(c) of Section 20503, and who was 62 years of age or older by
December 31 of the fiscal year for which postponement is claimed.
(2) For purposes of Chapter 2 (commencing with Section 20581),
Chapter 3 (commencing with Section 20625), 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 on the last
day of the year designated in subdivision (c) of Section 20503, 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.
(c) 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. 16. Section 20582 of the Revenue
and Taxation Code is amended to read:
20582. Unless the context otherwise requires, the definitions
given in Chapter 1 (commencing with Section 20501) of this
part and in this article shall govern the construction of this
chapter 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. 17. 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, or
by (3) the claimant and parents, children (natural or
adopted), or grandchildren of either the claimant or
the claimant's spouse, or (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
either another individual eligible for
postponement under this chapter or an individual described
in subdivision (a), (b), or (c) of Section 20511 and
located in this state. It shall include condominiums 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.
(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 shall be deemed to be the owner of the mobilehome.
(d) Except as provided in subdivision (c) , and Chapter 3
(commencing with Section 20625) , ownership must be
evidenced by an instrument duly recorded in the office of the county
where the residential dwelling is located.
(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 20 percent of the full value of the
property as determined for purposes of property taxation or at least
20 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 20-percent equity requirement shall be met
at the time the claimant or authorized agent files an initial
postponement claim and tenders to the tax collector the initial
certificate of eligibility described in Sections 20602, 20639.6, and
20640.6. Controller determines that the owners do not
have sufficient equity to adequately protect the state's interest in
the eventual repayment of all property tax postponement loans at the
time that those loans become due and payable; or in which the
Controller determines that the owners, at the time of initial
postponement, do not have an equity of at least 20 percent of the
home's fair market value as determined by the Controller. Each year
that a claim for postponement is filed, the Controller shall make a
determination that the state's interest is adequately protected. The
Controller may deny additional postponement after the initial
postponement if the Controller determines that the state's interest
is not adequately protected.
(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).
(f) Notwithstanding subdivision (c) of Section 20584, houseboats
and floating homes, as defined by Section 20583.1, on which property
taxes are delinquent at the time the application for postponement
under this chapter is made, shall not be eligible for postponement.
SEC. 18. Section 20583.1 of the Revenue
and Taxation Code is amended to read:
20583.1. For purposes of Section 20583, "residential dwelling"
includes shall not include houseboats
and floating homes.
SEC. 19. 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. 20. Section 20585 of the Revenue
and Taxation Code is amended to read:
20585. Postponement shall not be allowed under this chapter
or Chapter 3 (commencing with Section 20625) ,
Chapter 3.3 (commencing with Section 20639), or Chapter 3.5
(commencing with Section 20640) if household income exceeds either 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 (commencing with Section 20625) , 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
(commencing with Section 20626), 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 or for any
approved fiscal year commencing within that calendar year,
postponement shall not be allowed under this chapter,
Chapter 3 (commencing with Section 20626), Chapter 3.3
(commencing with Section 20639), or Chapter 3.5 (commencing with
Section 20640), if household income exceeds thirty-nine
thirty-five thousand five hundred
dollars ($39,000) ($35,500) .
(B) For the 2010 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. 21. Section 20586 of the Revenue
and Taxation Code is amended to read:
20586. For the purposes of Chapter 2 (commencing with Section
20581) , Chapter 3 (commencing with Section 20625)
, Chapter 3.3 (commencing with Section 20639), 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 decision shall be final.
SEC. 22. 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. 23. 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. 24. 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 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. 25. 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. 26. 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, or exempt from such licensure pursuant to
subdivision (c) of Section 1312 of the Health and Safety Code.
SEC. 27. Section 20602 of the Revenue
and Taxation Code is repealed.
20602. (a) Upon approval of a claim described in Section 20601,
the Controller may do either of the following:
(1) Make payments directly to a lender, mortgage company, escrow
company, or county tax collector for the property taxes owed on
behalf of a qualified claimant. Payments may, upon appropriation by
the Legislature, be made out of the amounts otherwise appropriated
pursuant to Section 16100 of the Government Code that are secured by
a lien and obligation as specified by Article 1 (commencing with
Section 16180) of Chapter 5 of Division 4 of the Government Code.
(2) Issue to the claimant a certificate of eligibility, which
shall consist of two parts, both of which shall contain the name of
the claimant, the address of the residential dwelling on which the
claimant has applied for property tax postponement, and that other
information and in that form as the Controller shall prescribe. In
the event that that residential dwelling is located in a chartered
city which levies and collects its own taxes, the Controller shall
issue a duplicate certificate of eligibility to pay all or any part
of the property taxes appearing
on that city's tax bill. Each part of a certificate of
eligibility shall be payable in an unspecified amount and shall
contain statements to identify the property tax installment to which
it may be applied.
(b) The Controller shall prescribe the form of the certificates
of eligibility to pay all delinquent taxes and assessments authorized
by this chapter.
Upon or accompanying each certificate shall be a brief statement
explaining that (1) those taxpayers whose property taxes are paid by
a lender via an impound, trust or other similar account should enter
the total amount of each installment on their respective certificates
and mail both certificates to the tax collector at the same time,
and (2) those taxpayers will receive a refund check from the county
or city in the amount they entered on each certificate, within 30
days following the date on which the installment is paid by the
lender or the certificate of eligibility is received by the tax
collector, whichever is later, and (3) the intent of this procedure
is to make sure the taxes on the claimant's dwelling are not paid
twice.
(c) When a certificate of eligibility has been signed by the
claimant, his or her spouse, or authorized agent and countersigned by
the person authorized to collect property taxes or assessments for
the local agency, such certificate shall constitute a written promise
on the part of the State of California to pay the sum of money
specified therein and such signed and countersigned certificate shall
be deemed a negotiable instrument for the sole purpose of the
payment of property taxes owing in the name of the claimant or his or
her spouse for purposes of all laws of this state.
(d) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.
(e) The Controller shall issue certificates of eligibility claims
approved on or before September 30 between October 15 and November 1
of the fiscal year for which postponement is claimed. Certificates
for claims approved after September 30 shall be issued at such times
as the Controller determines will best implement the purpose of this
chapter.
(f) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency pursuant to subdivision (b) may obtain a duplicate copy
of said certificate as a replacement. (Under such conditions as may
be prescribed by the Controller, a duplicate copy shall be deemed as
having been filed with the local agency as of the date a claimant
requests issuance of such duplicate copy.)
SEC. 27. Section 20602 is added to the Revenue and Taxation Code,
to read:
20602. (a) Upon approval of a claim described in Section 20601,
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.
(b) Upon receipt of the verification 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. 28. 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) (1) 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 20-percent equity in the subject residential
dwelling as required by paragraph (1) of subdivision (b)
(e) of Section 20583.
(2) Actual costs, not in excess of fifty dollars ($50), paid by
the claimant to obtain the documentation shall, in the event the
Controller issues a certificate of eligibility, reduce the amount of
the lien for the year, but not the face amount of the payment
prescribed in Section 16180 of the Government Code.
(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.
(g)
(h) Other information required by the Controller to
establish eligibility.
SEC. 29. Section 20622 of the Revenue
and Taxation Code is amended to read:
20622. (a) The claim for postponement shall
be filed after May 15 July 1 of the
calendar year in which the fiscal year for which postponement is
claimed begins, and on or before December 10
September 30 of that fiscal year ; if December 10th
. 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. 30. Section 20623 of the Revenue
and Taxation Code is repealed.
20623. 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.
SEC. 31. Chapter 3 (commencing with Section 20625)
of Part 10.5 of Division 2 of the Revenue and Taxation
Code is repealed.
SEC. 32. 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 1 (commencing with Section 20501) and 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. 33. Section 20639.6 of the Revenue
and Taxation Code is ame nded 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 to the claimant a
certificate of eligibility containing the name of the claimant,
address of the residential dwelling on which the claimant has applied
for property tax postponement, and such other information and in
such form as the Controller shall prescribe. In the event that the
residential dwelling is located in a chartered city which levies and
collects its own taxes, the Controller shall issue a duplicate
certificate of eligibility to pay all or any part of property taxes
appearing on the city's tax bill a property tax
postponement payment as provided by Section 20602 .
(b) The Controller shall forward to the Department of
Housing and Community Development a notice of lien notifying the
department that the mobilehome described in the statement has been
approved for property tax postponement. The notice shall be in the
form and contain the information prescribed by the Controller
secure a lien against the mobilehome that is
sufficient to secure the state's interest in loan repayment .
(c) The department, upon receipt of the notice, shall amend the
permanent title record of the mobilehome to record the fact that
postponement has been approved.
(d) The Controller shall prescribe the form of certificates of
eligibility to pay all taxes and assessments authorized by this
chapter.
Upon or accompanying the certificates shall be a brief statement
explaining that, those taxpayers whose property taxes are paid by a
lender via an impound, trust, or other similar account shall enter
the total amount of each installment on the certificates and mail the
certificates to the tax collector and that they will receive a
refund check from the county or city in the amount they entered on
the certificate, within 30 days following the date on which the
installment is paid by the lender or the certificate of eligibility
is received by the tax collector, whichever is later.
(e) When a certificate of eligibility has been signed by the
claimant, the claimant's spouse, or authorized agent and
countersigned by the person authorized to collect property taxes or
assessments or the local agency, the certificate shall constitute a
written promise on the part of the State of California to pay the sum
of money specified therein and the signed and countersigned
certificate shall be deemed a negotiable instrument for the sole
purpose of the payment of property taxes owing in the name of the
claimant or the claimant's spouse for purposes of all laws of this
state.
(f) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.
(g) The Controller shall issue certificates of eligibility at the
times the Controller determines shall best implement the purpose of
this chapter.
(h) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency may obtain a duplicate copy of the certificate as a
replacement. Under the conditions which may be prescribed by the
Controller, a duplicate copy shall be deemed as having been filed
with the local agency as of the date a claimant requests issuance of
the duplicate copy.
SEC. 34. Section 20639.8 of the Revenue
and Taxation Code is amended to read:
20639.8. The claim for postponement shall be filed after
May 15 of the calendar year in which the fiscal year for which
postponement is claimed begins, and on or before December 10 of such
fiscal year pursuant to Section 20622 .
SEC. 35. 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 with the
Controller on a form supplied by the Controller. The claim shall
contain all of the following information as provided
by Section 20621. A claim filed under this chapter shall also include
both of the following :
(a) Evidence acceptable to the Controller that the person is a
senior citizen claimant.
(b) A statement showing the household income for the period set
forth in Section 20503.
(c) A statement describing the residential dwelling in the manner
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)
(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.
(g)
(b) A copy of the registration card issued by the
Department of Housing and Community Development or the Department of
Motor Vehicles.
(h) Other information required by the Controller to establish
eligibility.
SEC. 36. Section 20639.11 of the
Revenue and Taxation Code is amended to read:
20639.11. All amounts postponed pursuant to this chapter shall
be become due if any of the
following occurs: and payable as provided by Section
16190 of the Government Code.
(a) The claimant ceases to occupy the residential dwelling as the
principal place of residence, sells or otherwise disposes of his or
her mobilehome.
(b) The claimant dies. However, if the surviving spouse or
another person eligible to postpone pursuant to this chapter
continues to occupy the mobilehome, then the postponed amounts shall
not be due unless such person dies or ceases to occupy the
residential dwelling.
(c) The failure of a claimant to perform those acts required by
the legal owner or junior lienholder.
(d) The claimant allows any subsequent taxes to remain unpaid or
to be transferred to the unsecured roll.
(e) Postponement was erroneously allowed because eligibility
requirements were not met.
SEC. 37. 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 1 (commencing with Section 20501) and 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 and
Chapter 2 of this code (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. 38. Section 20640.3 of the Revenue
and Taxation Code is amended to read:
20640.3. A claimant is an individual who does both 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 Section 20503(c) of this
code; .
(c) Is 62 years of age or older on or before December 31
of the fiscal year for which postponement is claimed
Satisfies the requirements specified in paragraph (1) or (2) of
subdivision (a) of Section 20589 .
SEC. 39. Section 20640.4 of the Revenue
and Taxation Code is amended to read:
20640.4. (a) Subject to the limitations provided in
Chapter 1 (commencing with Section 20501), 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. 40. 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 State
Controller shall determine whether the state's interest would be
adequately protected if postponement is granted, and if so, shall
issue to the claimant a certificate of eligibility
containing the name of claimant, address of the residential dwelling
on which the claimant has applied for property tax postponement, and
any other information and in the form as the State Controller shall
prescribe. In the event that the residential dwelling is located in a
chartered city which levies and collects its own taxes, the
Controller shall issue a duplicate certificate of eligibility to pay
all or any part of property taxes appearing on the city's tax bill
a property tax postponement payment as provided by
Section 20602 .
(b) The Controller shall cause to be recorded with the
county recorder of the county in which the real property is located,
a copy of any instrument creating a security interest, which shall
include applicable consent forms, in favor of the state. The
instrument shall contain a legal description of the real property
subject to the possessory interest; and, if the legal description of
the possessory interest describes an area less than the entire
property ownership, the notice or document shall also contain a
reference to the record of the acquisition instrument to the entire
parcel from which the possessory interest was created. The priority
of the security interest shall be as of the date of recordation
secure a lien against the possessory interest that is
sufficient to secure the state's interest in loan repayment .
(c) The Controller shall prescribe the form of certificates of
eligibility to pay all delinquent taxes and assessments authorized by
this chapter.
Upon or accompanying each certificate shall be a brief statement
explaining that (1) those taxpayers whose property taxes are paid by
a lender via an impound, trust or other similar account should enter
the total amount of each installment on the certificates and mail the
certificates to the tax collector and (2) those taxpayers will
receive a refund check from the county or city in the amount they
entered on the certificate, within 30 days following the date on
which the installment is paid by the lender or the certificate of
eligibility is received by the tax collector, whichever is later.
(d) When a certificate of eligibility has been signed by the
claimant, his or her spouse, or authorized agent and countersigned by
the person authorized to collect property taxes or assessments for
the local agency, the certificate shall constitute a written promise
on the part of the State of California to pay the sum of money
specified therein and the signed and countersigned certificate shall
be deemed a negotiable instrument for the sole purpose of the payment
of property taxes owing in the name of the claimant or his or her
spouse for purposes of all laws of this state.
(e) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.
(f) The Controller shall issue certificates of eligibility at
such times as the Controller determines will best implement the
purpose of this chapter.
(g) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency may obtain a duplicate copy of the certificate as a
replacement. (Under conditions as may be prescribed by the
Controller, a duplicate copy shall be deemed as having been filed
with the local agency as of the date a claimant requests issuance of
a duplicate copy.)
SEC. 41. Section 20640.8 of the Revenue
and Taxation Code is amended to read:
20640.8. The claim for postponement shall be filed after
May 15 of the calendar year in which the fiscal year for which
postponement is claimed begins, and on or before December 10 of such
fiscal year. If December 10th falls on Saturday, Sunday or a legal
holiday, the date is extended to the next business day
pursuant to Section 20622 .
SEC. 42. 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 with the
Controller on a form supplied by the Controller. The claim shall
contain: pursuant to Section 20621.
(a) Evidence acceptable to the Controller that the person was a
"senior citizen claimant."
(b) A statement showing the household income for the period set
forth in Section 20503.
(c) A statement describing the residential dwelling in such
manner as 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) Other information required by the State Controller to
establish eligibility.
SEC. 43. Section 20640.11 of the
Revenue and Taxation Code is amended to read:
20640.11. All amounts postponed pursuant to this chapter shall
be due if any of the following occurs: become
due and payable as provided by Section 16190 of the Government Code.
(a) The claimant ceases to occupy the residential dwelling as the
principal place of residence, sells or otherwise disposes of his
possessory interest, or the possessory interest agreement expires by
its terms.
(b) The claimant dies. However, if the surviving spouse or
another person eligible to postpone pursuant to this chapter
continues to occupy the residential dwelling,
then the postponed amounts shall not be due
unless such person dies, or ceases to occupy the residential
dwelling.
(c) The failure of the claimant, the fee title owner, or any
owner of a prior recorded possessory interest to perform those acts
required by a security interest holder which is senior to the state's
security interest for postponed amounts.
(d) Postponement was erroneously allowed because eligibility
requirements were not met.
SEC. 44. 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 (commencing with Section 20625),
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. 45. 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 (commencing with Section 20625), Chapter
3.3 (commencing with Section 20639), 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. 46. 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 timely 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.
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.
