BILL NUMBER: AB 1029 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JANUARY 13, 2010
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, to
amend Sections 16182, 16183, 16200, 16202, and 16211 of, to
repeal Sections 16211.5, 16213, and 16214 of, and to
16211, 16211.5, and 16213 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
, and declaring the urgency thereof, to take effect immediately
.
LEGISLATIVE COUNSEL'S DIGEST
AB 1029, as amended, Blumenfield. Taxation: property tax
postponement.
The Senior Citizens and Disabled Citizens Property Tax
Postponement Law, until February 20, 2009, authorized a claimant, as
defined, to file 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 ,
either 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 , which has priority over
all other subsequently filed liens . 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
This bill would also make conforming changes to
related provisions The Senior Citizens
Mobilehome Property Tax Postponement Law and The Senior Citizens
Possessory Interest Holder Property Tax Postponement Law .
Existing law, on and after February 20, 2009, prohibits a person
from filing a claim for postponement, and prohibits the Controller
from accepting applications for postponement, under the Senior
Citizens and Disabled Citizens Property Tax Postponement Law.
This bill would repeal that provision.
This bill would, for the 2009-10 and 2010-11 fiscal years,
authorize the tax collector to cancel any delinquent penalties 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.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) Since 1977, the Senior Citizens and Disabled Citizens Property
Tax Postponement Law has helped eligible elderly and disabled
residents on fixed incomes remain in their homes by deferring payment
of property taxes until the house is sold or ownership otherwise
transferred.
(b) Suspension of the Senior Citizens and Disabled Citizens
Property Tax Postponement Law in February 2009 has exposed
participants to possible default on property taxes in December 2009
and thereafter, and has heightened fears of home foreclosures.
(c) While counties may not force the sale of a home to collect on
delinquent property taxes for five years, no similar delay applies to
lenders that would protect the elderly and disabled who would have
participated in the property tax deferral program established
pursuant to the Senior Citizens and Disabled Citizens Property Tax
Postponement Law had it not been suspended.
SEC. 2. Section 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, as evidences of this
participation, 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. SEC. 3. Section 16180 of
the Government Code is repealed.
SEC. 2. SEC. 4. 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. SEC. 5. Section 16182 of the
Government Code is amended to read:
16182. (a) All sums paid by the Controller under the provisions
of this chapter, together with interest thereon, shall be secured by
a lien 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. No
twithstanding any other provision of law to the contrary,
a lien secured pursuant to this chapter shall have priority over all
other subsequently filed liens secured by the real property,
mobilehome, or 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 acknowledgment of receipt and
amendment of the permanent title record.
(7) From the time the Department of Housing and Community
Development receives the notice of lien from the Controller, the
department shall impose a moratorium on any other amendments to the
permanent title record of the mobilehome for purposes of transferring
any ownership interest or transferring or creating any security
interest in the mobilehome, until released by the Controller in the
manner prescribed by Section 16186 or an authorization for the
amendments is given by the Controller in writing.
(d) From the time of filing a notice of lien, a lien shall attach
to the mobilehome for which eligibility for the postponement of
property taxes has been granted.
(e) Notwithstanding any other provision in this section, any
action required of a local agency by this section in order to give
effect to the Senior Citizens Mobilehome Property Tax Postponement
Law (Chapter 3.3 (commencing with Section 20639) of Part 10.5 of
Division 2 of the Revenue and Taxation Code, and that has been
determined by the Commission on State Mandates to be a reimbursable
mandate, shall be optional.
SEC. 4. SEC. 6. Section 16183 of the
Government Code is amended to read:
16183. (a) From the time a payment is made pursuant to Section
16180, the amount of that payment shall bear interest at a rate (not
compounded), determined as follows:
(1) For the period ending June 30, 1984, the rate of interest
shall be 7 percent per annum.
(2) The Controller shall establish 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 year. 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 4 percent.
However, the maximum annual rate of interest established shall not
exceed 7 percent per annum, and shall become effective for new
deferrals, beginning on January 1, 2010, and on January 1 of each
immediately succeeding year.
(3) For deferrals made prior to January 1, 2010, the rate of
interest provided pursuant to this subdivision for the first 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 date the Controller issues the property tax
postponement payment to the county .
(e) The Controller shall include on forms supplied to claimants
pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641 of
the Revenue and Taxation Code, a statement of the interest rate which
shall apply to amounts postponed for the fiscal year to which the
form applies.
(f) The Controller shall assess an annual fee of seventy-five
dollars ($75) to all claimant accounts
claimants, as defined in Section 20505 of the Revenue and
Taxation Code, approved to participate in the property tax
postponement program and for which property taxes are deferred
on or after January 1, 2010.
(g) Amounts collected pursuant to this section shall be deposited
into the Senior Citizens and Disabled Citizens Property Tax
Postponement Fund for expenditures in the manner provided in Section
16180.
SEC. 5. SEC. 7. Section 16200 of the
Government Code is amended to read:
16200. In the event that the Controller receives the notice
described in Section 16187 of this code or Section 3375 of the
Revenue and Taxation Code, the Controller may take any of the
following actions which will best serve the interests of the state:
(a) The Out of the amount appropriated by
the Legislature or otherwise deposited into the Senior Citizens and
Disabled Citizens Property Tax Postponement Fund, the
Controller may pay the amount of any delinquent taxes, interest, or
penalties on the property or the amount of any other obligation
secured by a lien or encumbrance on the property and add such amount
to the amount secured by the lien on such property provided for in
Article 1 (commencing with Section 16180) of this chapter.
(b) Notify by United States mail the tax collector or other party
that such notice has been received and that the Controller must be
given at least 20 days prior notice of the date that the property
will be sold at auction. If the Controller elects to proceed under
this subdivision, the Controller may use money in the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund, or
from any appropriation in lieu thereof, to bid on the property
at the auction up to the amount secured by the state's lien on the
property and any lien on such property having priority over the state'
s lien. All additional amounts paid pursuant to this subdivision
shall be added to the amount secured by the lien on such property
provided for in Article 1 (commencing with Section 16180) of this
chapter.
(c) Acknowledge by United States mail that the notice required by
Section 16187 of this code or Section 3375 of the Revenue and
Taxation Code has been received.
(d) The Controller may pay any costs incurred pursuant to this
section from any funds available for program expenditures.
SEC. 6. SEC. 8. Section 16202 of the
Government Code is amended to read:
16202. (a) Notwithstanding any other provision of law, in the
event that the state acquires an interest in real property pursuant
to subdivision (b) of Section 16200, the Controller may, in addition
to the options provided in Section 16201, take any other action with
respect to that real property interest as will best serve the
interest of the state. These actions may include, but shall not be
limited to, the sale, lease, or retention of any interest so
acquired. The Controller may contract with licensed real estate
brokers, maintenance and repair contractors, security contractors,
appraisers, property managers, insurance brokers, and any other
experts or specialists as may be necessary to protect or preserve the
state's interest in that property. The Controller may pay the costs
incurred pursuant to those contracts from money in the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund, or
from any appropriation in lieu thereof .
(b) The sale of those interests may be made on the basis of
conventional financing arrangements including the securing of payment
through the use of promissory notes, deeds of trust, and other
accepted methods of deferred payment.
(c) The Controller may pay any costs incurred pursuant to this
section from any funds available for program expenditures.
SEC. 7. SEC. 9. Section 16211 of the
Government Code is amended to read:
16211. The claimant under Chapter 2 (commencing with Section
20581), Chapter 3.3 (commencing with Section 20639, or Chapter 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.
SEC. 9. Section 16213 of the Government Code is
repealed.
SEC. 10. Section 16214 of the Government Code
is repealed.
SEC. 10. Section 16211.5 of the
Government Code is amended to read:
16211.5. (a) In the event that the real property securing the
state's lien provided for in Article 1 (commencing with Section
16180) is the residential dwelling of a claimant under Chapter 2
(commencing with Section 20581) of Part 10.5 of Division 2 of the
Revenue and Taxation Code and is voluntarily sold, the funds derived
from the voluntary sale of the residential dwelling shall be placed
in an impound account for a period of six months. In connection with
the establishment of such account, the Controller shall release the
state's lien in the manner prescribed by Section 16186.
(b) The claimant under Chapter 2 (commencing with Section 20581)
of Part 10.5 of Division 2 of the Revenue and Taxation Code whose
residential dwelling was voluntarily sold may draw upon the amount in
the account to purchase a new residential dwelling, and the amount
so drawn shall be secured by a new lien against the new residential
dwelling from the time the Controller records the new lien against
the new residential dwelling as provided for under Section 16182.
The 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. 11. Section 16213 of the Government
Code is amended to read:
16213. At the end of the six-month period specified in Section
16210 or the six-month period specified in Section 16211.5, all funds
remaining in an impound account shall be transferred to the
General Fund Senior Citizens and Disabled Citizens
Property Tax Postponement Fund .
SEC. 11. SEC. 12. Section 2505 of
the Revenue and Taxation Code is amended to read:
2505. (a) Except as provided in subdivision (b), the tax
collector or treasurer for any city or county may in his or her
discretion accept negotiable paper in payment of any tax, or
assessment, or on a redemption.
(b) The tax collector of a county shall accept a property tax
postponement payment from the Controller issued pursuant to Section
20602 to pay all or any part of any ad valorem property tax, special
assessment, or other charge or user fee appearing on the county tax
bill. The tax collector, treasurer, or other official charged with
the duty of collecting taxes for a chartered city which levies and
collects its own property taxes shall accept a property tax
postponement payment from the Controller issued pursuant to Section
20602 to pay all or any part of any ad valorem property tax, special
assessment, or other charge or user fee appearing on the tax bill of
such city. A 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 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.
SEC. 12. SEC. 13. Section 2514 of
the Revenue and Taxation Code is amended to read:
2514. (a) Upon receipt of a property tax postponement payment
from the Controller issued pursuant to Section 20602, the tax
collector shall ascertain whether the amount of the property tax
postponement 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 process the property tax postponement payment from the
Controller and mark the tax paid. Upon acceptance of the property tax
postponement payment from the Controller:
(1) The tax collector shall enter the fact that taxes on the
property have been postponed in appropriate columns on the roll. In
the case of the secured roll, this information may be entered in that
portion of the roll that has been designated for tax default
information required by Section 3439.
(2) In the case of a property tax postponement payment issued
pursuant to Section 20602, the tax collector shall determine if the
property is subject to a property tax postponement lien recorded
pursuant to Section 16182 of the Government Code. If the property is
not subject to such a lien, the tax collector shall enter the address
of the property, the name of the claimant, the county code, and the
assessor's parcel number on a "notice of lien for postponed property
taxes" form which shall be provided by the Controller. The tax
collector shall thereafter forward the notice of lien form to the
assessor.
(3) With respect to a claimant whose property taxes are paid by a
lender from an impound, trust, or other type of account described in
Section 2954 of the Civil Code, the tax collector shall notify the
auditor of the claimant's name and address, and the amount of the
property tax postponement payment.
The auditor, treasurer, or disbursing officer shall send a check
in the amount of the property tax postponement payment to the
claimant within 30 days following the date on which the installment
is paid by the lender or the property tax postponement payment is
received from the Controller, whichever is later.
(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. SEC. 14. Section 2515 of
the Revenue and Taxation Code is amended to read:
2515. (a) Upon receipt of a "notice of lien for postponed
property taxes" from the tax collector, the assessor shall
immediately:
(1) Enter, on the notice of lien, a description of the real
property for which the taxes have been paid by the Controller
pursuant to Section 2514. Such description shall be a "metes and
bounds," "lot-block-tract," or any other description as is determined
by the Controller to sufficiently describe the real property for the
purpose of securing the state's lien.
(2) Enter on the notice of lien, the names of all record owners
of the property described under subdivision (a) of this section, as
disclosed by the assessor's records.
(3) Upon entry of the information required by subdivisions (a)
and (b) on the notice of lien, the assessor shall immediately forward
the notice of lien to the county recorder.
(4) Enter on the assessment records applicable to the property,
the fact that the taxes on the property have been postponed and the
Controller's identification number, and shall, when the record
reveals a change in the ownership status of the property subsequent
to the date of entry of the postponement information thereon, notify
the Controller of the change in the ownership status in the manner
prescribed by the Controller.
(b) From the time of recordation of the notice of lien pursuant
to Section 16182 of the Government Code, the lien for postponed
property taxes shall be deemed to impart
constructive notice of the contents thereof to
subsequent purchasers, mortgagees, lessees and other lienors.
SEC. 14. SEC. 15. Section 20503 of
the Revenue and Taxation Code is amended to read:
20503. (a) "Income" means adjusted gross income as defined in
Section 17072 plus all of the following cash items:
(1) Public assistance and relief.
(2) Nontaxable amount of pensions and annuities.
(3) Social security benefits (except Medicare).
(4) Railroad retirement benefits.
(5) Unemployment insurance payments.
(6) Veterans' benefits.
(7) Exempt interest received from any source.
(8) Gifts and inheritances in excess of three hundred dollars
($300), other than transfers between members of the household. Gifts
and inheritances include noncash items.
(9) Amounts contributed on behalf of the contributor to a
tax-sheltered retirement plan or deferred compensation plan.
(10) Temporary workers' compensation payments.
(11) Sick leave payments.
(12) Nontaxable military compensation as defined in Section 112
of the Internal Revenue Code.
(13) Nontaxable scholarship and fellowship grants as defined in
Section 117 of the Internal Revenue Code.
(14) Nontaxable gain from the sale of a residence as defined in
Section 121 of the Internal Revenue Code.
(15) Life insurance proceeds to the extent that the proceeds
exceed the expenses incurred for the last illness and funeral of the
deceased spouse of the claimant. "Expenses incurred for the last
illness" includes unreimbursed expenses paid or incurred during the
income calendar year and any expenses paid or incurred thereafter up
until the date the claim is filed. For purposes of this paragraph,
funeral expenses shall not exceed five thousand dollars ($5,000).
(16) If an alternative minimum tax is required to be paid
pursuant to Chapter 2.1 (commencing with Section 17062) of Part 10,
the amount of alternative minimum taxable income (whether or not
cash) in excess of the regular taxable income.
(17) Annual winnings from the California Lottery in excess of six
hundred dollars ($600) for the current year.
(b) For purposes of this chapter, total income shall be
determined for the calendar year (or approved fiscal year ending
within that calendar year) which ends within the fiscal year for
which assistance is claimed.
SEC. 15. SEC. 16. Section 20505 of
the Revenue and Taxation Code is amended to read:
20505. For purposes of this chapter, "claimant" means an
individual who was either (1) 62 years of age or older on the last
day of the calendar year or approved fiscal year designated in
subdivision (b) of Section 20503, or (2) blind or disabled, as
defined in Section 12050 of the Welfare and Institutions Code on the
last day of the calendar year or approved fiscal year designated in
subdivision (b) of Section 20503, who was a member of the household,
and who was either: (1) the owner and occupier of a residential
dwelling on the last day of the year designated in subdivision (b) of
Section 20503, or (2) the renter of a rented residence on or before
the last day of the year designated in subdivision (b) of Section
20503. An individual who qualifies as an owner-claimant may not
qualify as a renter-claimant for the same year.
SEC. 16. SEC. 17. Section 20582 of
the Revenue and Taxation Code is amended to read:
20582. Unless the context otherwise requires, the definitions
given in this chapter shall govern the construction of Chapter 2
(commencing with Section 20581), Chapter 3.3 (commencing with Section
20639), Chapter 3.5 (commencing with Section 20640), and Chapter 4
(commencing with Section 20641).
SEC. 17. SEC. 18. Section 20583 of
the Revenue and Taxation Code is amended to read:
20583. (a) "Residential dwelling" means a dwelling occupied as
the principal place of residence of the claimant, and so much of the
land surrounding it as is reasonably necessary for use of the
dwelling as a home, owned by (1) the claimant, (2) the claimant and
the claimant's spouse, (3) the claimant and parents, children
(natural or adopted), or grandchildren of either the claimant or the
claimant's spouse, 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 another individual
eligible for postponement under this chapter and located in this
state. It shall include condominiums and mobilehomes that are
assessed as realty for local property tax purposes. It also includes
part of a multidwelling or multipurpose building and a part of the
land upon which it is built. In the case of a mobilehome not assessed
as real property that is located on land owned by the claimant,
"residential dwelling" includes the land on which the mobilehome is
situated and so much of the land surrounding it as reasonably
necessary for use of the mobilehome as a home. It shall also include
a dwelling unit that is a mobilehome owned by a claimant subject to
property taxation pursuant to Part 13 (commencing with Section 5800)
of Division 1 and located on land that is owned or rented by the
claimant.
(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), 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 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.
(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 prior to the Controller issuing payment as prescribed in Section
20602.
(2) Any residential dwelling in which the claimant's interest is
held pursuant to a contract of sale or under a life estate, unless
the claimant obtains the written consent of the vendor under the
contract of sale, or the holder of the reversionary interest upon
termination of the life estate, for the postponement of taxes and the
creation of a lien on the real property in favor of the state for
amounts postponed pursuant to this act.
(3) Any residential dwelling on which the claimant does not
receive a secured tax bill.
(4) Any residential dwelling in which the claimant's interest is
held as a possessory interest, except as provided in Chapter 3.5
(commencing with Section 20640).
SEC. 18. SEC. 19. Section 20583.1 of
the Revenue and Taxation Code is amended to read:
20583.1. For purposes of Section 20583, "residential dwelling"
shall not include houseboats and floating homes.
SEC. 19. SEC. 20. 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. SEC. 21. Section 20585 of
the Revenue and Taxation Code is amended to read:
20585. Postponement shall not be allowed under this chapter,
Chapter 3.3 (commencing with Section 20639), or Chapter 3.5
(commencing with Section 20640) if household income exceeds either of
the following amounts:
(a) For the 1976 calendar year or for any approved fiscal year
commencing within that calendar year, household income shall not
exceed twenty thousand dollars ($20,000).
(b) For all subsequent calendar years and approved fiscal years,
postponement shall not be allowed under this chapter, Chapter 3.3
(commencing with Section 20639), or Chapter 3.5 (commencing with
Section 20640) if household income exceeds an amount determined as
follows:
(1) On or before March 1 of each year, the California Department
of Industrial Relations shall transmit to the Controller the
percentages of increase in the California Consumer Price Index for
all Urban Consumers and in the California Consumer Price Index for
Urban Wage Earners and Clerical Workers of December of the prior
calendar year over December of the preceding calendar year.
(2) The Controller shall compute an inflation adjustment factor
by adding 100 percent to the larger of the California Consumer Price
Index percentage increases furnished pursuant to paragraph (1).
(3) In 1978, the Franchise Tax Board shall multiply twenty
thousand dollars ($20,000) by the inflation adjustment factor to
determine the maximum allowable gross household income for the 1977
calendar year and for approved fiscal years commencing within that
calendar year. In 1979 and subsequent calendar years through and
including 1983, the Controller shall multiply the maximum allowable
household income determined for the preceding calendar year by the
inflation adjustment factor to determine the maximum allowable
household income for the applicable calendar year and approved fiscal
years commencing within that calendar year. In determining the
maximum allowable household income pursuant to this section, the
Controller shall round that amount to the nearest hundred dollar
amount.
(c) For calendar year 1984 and subsequent calendar years and for
approved fiscal years commencing within those years, postponement
shall not be allowed under this chapter, Chapter 3.3 (commencing with
Section 20639), or Chapter 3.5 (commencing with Section 20640), if
household income exceeds an amount determined as follows:
(1) For claimants who filed and qualified in the calendar year
1983 and for whom postponement has been allowed for each subsequent
calendar year up to and including the calendar year 2007, thirty-four
thousand dollars ($34,000). For these same claimants, for the
calendar year 2008 or for any approved fiscal year commencing within
that calendar year, household income shall not exceed thirty-five
thousand five hundred dollars ($35,500).
(2) For all other claimants, for calendar years up to and
including 2006, household income shall not exceed twenty-four
thousand dollars ($24,000). For these same claimants, for the 2007
calendar year or for any approved fiscal year commencing within that
calendar year, household income shall not exceed thirty-one thousand
five hundred dollars ($31,500). For these same claimants, for the
2008 calendar year or for any approved fiscal year commencing within
that calendar year, household income shall not exceed thirty-five
thousand five hundred dollars ($35,500).
(3) (A) For all claimants for the calendar year 2009 or for any
approved fiscal year commencing within that calendar year,
postponement shall not be allowed under this chapter, Chapter 3.3
(commencing with Section 20639), or Chapter 3.5 (commencing with
Section 20640), if household income exceeds thirty-five thousand five
hundred dollars ($35,500).
(B) For the 2010 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. SEC. 22. Section 20586 of
the Revenue and Taxation Code is amended to read:
20586. For the purposes of Chapter 2 (commencing with Section
20581), Chapter 3.3 (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. SEC. 23. 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. SEC. 24. 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. SEC. 25. 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. SEC. 26. 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. SEC. 27. 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. SEC. 28. Section 20602 of
the Revenue and Taxation Code is repealed.
SEC. 27. SEC. 29. 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 and shall provide to the Controller
the amount of the claimant's taxes due .
(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. SEC. 30. Section 20621 of
the Revenue and Taxation Code is amended to read:
20621. Each claimant applying for postponement under Article 2
(commencing with Section 20601) shall file a claim under penalty of
perjury with the Controller on a form supplied by the Controller. The
claim shall contain all of the following:
(a) Evidence acceptable to the Controller that the person was a
"senior citizen claimant" or a "blind or disabled claimant."
(b) A statement showing the household income for the period set
forth in Section 20503.
(c) A statement describing the residential dwelling in a manner
that the Controller may prescribe.
(d) The name of the county in which the residential dwelling is
located and the address of the residential dwelling.
(e) The county assessor's parcel number applicable to the
property for which the claimant is applying for the postponement of
property taxes.
(f) Documentation evidencing the current existence of any
abstract of judgment, federal tax lien, or state tax lien filed or
recorded against the applicant, and any recorded mortgage or deed of
trust that affects the subject residential dwelling, for the purpose
of determining that the claimant possesses a 20-percent equity in the
subject residential dwelling as required by paragraph (1) of
subdivision (e) of Section 20583.
(g) Authorization for the Controller to pay the claimant's
property taxes, if approved, and promising repayment of the loan as
provided by Section 16190 of the Government Code.
(h) Other information required by the Controller to establish
eligibility.
SEC. 29. SEC. 31. Section 20622 of
the Revenue and Taxation Code is amended to read:
20622. (a) The claim for postponement shall be filed after July 1
of the calendar year in which the fiscal year for which postponement
is claimed begins, and on or before September 30 of that fiscal
year. If September 30 falls on Saturday, Sunday, or a legal holiday,
the date is extended to the next business day. Any claim for
postponement filed after September 30, and on or before June 30, may
be considered for good cause.
(b) Any claims for postponement for the 2009-10 fiscal year shall
be filed after the effective date of the act adding this section and
on or before April 9, 2010.
SEC. 30. SEC. 32. Section 20623 of
the Revenue and Taxation Code is repealed.
SEC. 31. SEC. 33. Chapter 3
(commencing with Section 20625) of Part 10.5 of Division 2 of the
Revenue and Taxation Code is repealed.
SEC. 32. SEC. 34. Section 20639.1 of
the Revenue and Taxation Code is amended to read:
20639.1. (a) Unless the context otherwise requires or unless
otherwise provided in this chapter, the definitions given in Chapter
2 (commencing with Section 20581) shall govern the construction of
this chapter.
(b) Unless the context otherwise dictates or unless otherwise
provided in this chapter, the provisions of Chapter 1 (commencing
with Section 101) and Chapter 2 (commencing with Section 155) of Part
1 of Division 1 of this code, Section 2931c of the Civil Code,
Chapter 4.5 (commencing with Section 14735) of Part 5.5 of Division 3
of Title 2 of the Government Code, Chapter 6 (commencing with
Section 16180) of Part 1 of Division 4 of Title 2 of the Government
Code, Division 13 (commencing with Section 17000) of the Health and
Safety Code, and Division 9 (commencing with Section 9101) of the
Commercial Code shall be applicable to property tax postponements
made pursuant to this chapter.
SEC. 33. SEC. 35. Section 20639.6 of
the Revenue and Taxation Code is amended to read:
20639.6. (a) Upon receipt of the information described in
Section 20639.9, the Controller shall determine whether the state's
interest would be adequately protected if postponement is granted,
and, if so, the Controller shall issue a property tax postponement
payment as provided by Section 20602.
(b) The Controller shall secure a lien against the mobilehome
that is sufficient to secure the state's interest in loan repayment.
SEC. 34. SEC. 36. Section 20639.8 of
the Revenue and Taxation Code is amended to read:
20639.8. The claim for postponement shall be filed pursuant to
Section 20622.
SEC. 35. SEC. 37. 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 as provided by Section 20621. A claim
filed under this chapter shall also include both of the following:
(a) A copy of the Certificate of Title issued by the Department
of Housing and Community Development or the certificate of ownership
issued by the Department of Motor Vehicles.
(b) A copy of the registration card issued by the Department of
Housing and Community Development or the Department of Motor
Vehicles.
SEC. 36. SEC. 38. Section 20639.11
of the Revenue and Taxation Code is amended to read:
20639.11. All amounts postponed pursuant to this chapter shall
become due and payable as provided by Section 16190 of the Government
Code.
SEC. 37.
SEC. 39. Section 20640.1 of the Revenue and Taxation Code
is amended to read:
20640.1. (a) Unless the context otherwise requires or unless
otherwise provided in this chapter, the definitions given in Chapter
2 (commencing with Section 20581) shall govern the construction of
this chapter.
(b) Unless the context otherwise dictates or unless otherwise
provided in this chapter, the provisions of Chapter 2 (commencing
with Section 20581), Civil Code Section 2924b, Civil Code Section
2931c, Chapter 4.5 (commencing with Section 14735) of Part 5.5 of
Division 3 of Title 2 of the Government Code, Chapter 6 (commencing
with Section 16180) of Part 1 of Division 4 of Title 2 of the
Government Code shall be applicable to property tax postponements
made pursuant to this chapter.
SEC. 38. SEC. 40. 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).
(c) Satisfies the requirements specified in paragraph (1) or (2)
of subdivision (a) of Section 20589.
SEC. 39. SEC. 41. Section 20640.4 of
the Revenue and Taxation Code is amended to read:
20640.4. (a) Subject to the limitations provided in Chapter 2
(commencing with Section 20581) or this chapter, a claimant may file
with the Controller, a claim for postponement of a sum equal to, but
not exceeding the amount of property taxes, for the fiscal year for
which the claim is made.
(b) Upon verification of the eligibility requirements set forth
in Section 20640.9 the Controller shall mail the claimant a Notice of
Election to Postpone which shall be in the form and contain such
information as the Controller may prescribe. Accompanying the notice
shall be a statement explaining that in order for the claimant to
postpone all or part of the property taxes, the Notice of Election to
Postpone must be mailed to the Controller with a copy of the
instrument creating the possessory interest, said copy to be
certified by the county recorder of the county in which such real
property is located. Where a memorandum of lease has been recorded in
lieu of such instrument, a certified copy of said memorandum shall
accompany the copy of the instrument creating the possessory
interest.
(c) (1) Except as provided in this section, any possessory
interest or improvement on which property taxes are delinquent at the
time the application for postponement under this chapter is made or
on which any other property tax or special assessment imposed by a
special district or other tax code area are delinquent at the time
the application for postponement under this chapter is made shall not
be eligible for postponement.
(2) For 1978-79 and thereafter, any taxes or assessments which
became delinquent after the claimant was 62 and before a lien is
established pursuant to Section 16182 of the Government Code shall
not disqualify an otherwise eligible claimant for postponement under
this chapter. An application to postpone taxes for 1978-79 or
thereafter also constitutes an application for postponement of all
such delinquent taxes and assessments, together with any penalties,
interest, fees, or other charges resulting from such delinquency and
such amounts shall, unless otherwise paid by the claimant, be paid
out of the amount appropriated by Section 16100 of the Government
Code and shall be added to and become part of the obligation secured
by the lien provided by Section 16182 of the Government Code.
(d) The Controller shall mail to claimant for due execution the
appropriate security instrument for claimant's form of lease,
including the consent to assignment required by Section 20640.5(b).
SEC. 40. SEC. 42. Section 20640.6 of
the Revenue and Taxation Code is amended to read:
20640.6. (a) Upon receipt of the information described in
Section 20640.4 and Section 20640.5, the Controller shall determine
whether the state's interest would be adequately protected if
postponement is granted, and if so, shall issue a property tax
postponement payment as provided by Section 20602.
(b) The Controller shall secure a lien against the possessory
interest that is sufficient to secure the state's interest in loan
repayment.
SEC. 41. SEC. 43. Section 20640.8 of
the Revenue and Taxation Code is amended to read:
20640.8. The claim for postponement shall be filed pursuant to
Section 20622.
SEC. 42. SEC. 44. 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 pursuant to Section 20621.
SEC. 43. SEC. 45. Section 20640.11
of the Revenue and Taxation Code is amended to read:
20640.11. All amounts postponed pursuant to this chapter shall
become due and payable as provided by Section 16190 of the Government
Code.
SEC. 44. SEC. 46. Section 20641 of
the Revenue and Taxation Code is amended to read:
20641. Forms filed pursuant to this part shall not be under oath
but shall contain, or be verified by, a written declaration that they
are made under the penalty of perjury. All forms filed pursuant to
Chapter 1 (commencing with Section 20501) shall require such
information as the Franchise Tax Board may from time to time
prescribe, and shall be filed with the Franchise Tax Board. The
Franchise Tax Board shall prepare blank forms for the claimant and
shall distribute them throughout the state and furnish them upon
application. All forms filed pursuant to Chapter 2 (commencing with
Section 20581), Chapter 3.3 (commencing with Section 20639), or
Chapter 3.5 (commencing with Section 20640), shall require such
information as the Controller may from time to time prescribe, shall
be filed with the Controller, and the Controller shall prepare such
blank forms for the claimant and shall distribute them throughout the
state and furnish them upon application.
SEC. 45. SEC. 47. Section 20643 of
the Revenue and Taxation Code is amended to read:
20643. If any claimant fails or refuses to furnish any
information requested in writing by the Franchise Tax Board, pursuant
to this part, Chapter 1 (commencing with Section 20501), or by the
Controller, pursuant to Chapter 2 (commencing with Section 20581),
Chapter 3.3 (commencing with Section 20639), or Chapter 3.5
(commencing with Section 20640) or files a fraudulent claim, the
assistance or postponement authorized by this part shall be
disallowed.
SEC. 46. SEC. 48. 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.
SEC. 49. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to provide assistance to seniors and disabled citizens as
quickly as possible, it is necessary that this act take immediate
effect.
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