Bill Text: CA AB1093 | 2023-2024 | Regular Session | Introduced

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

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Bill Title: Property taxation: manufactured homes: tax collection.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2023-09-01 - In committee: Held under submission. [AB1093 Detail]

Download: California-2023-AB1093-Introduced.html

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CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1093

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Introduced by Assembly Member Jim Patterson

February 15, 2023

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An act to amend Section 5832 of the Revenue and Taxation Code, relating to manufactured homes.

LEGISLATIVE COUNSEL'S DIGEST

AB 1093, as introduced, Jim Patterson. Property taxation: manufactured homes: tax collection.

(1) Existing law, the Manufactured Home Property Tax Law, establishes a process governing the taxation of manufactured homes, including mobilehomes, as defined. Existing law requires the county tax collector, upon application, to issue a tax clearance certificate or a conditional tax clearance certificate if specified requirements are met. Existing law requires a tax clearance certificate issued to be used to permit registration of used manufactured homes and for other purposes prescribed by the Controller. The tax clearance certificate may indicate that the county tax collector finds that no local property tax is due or is likely to become due or that any applicable local property taxes have been paid or are to be paid in a manner not requiring the withholding of registration or the transfer of registration. Existing law requires a conditional tax clearance certificate issued to indicate that the county tax collector finds that a tax liability exists, the amount due, and the final date that amount may be paid before a further tax liability is incurred.

This bill would revise the above-described procedures for issuing a tax clearance certificate and for the collection of unpaid, estimated taxes. The bill would authorize the tax certificate to also indicate that the county tax collector finds that property taxes are not yet payable, as described. With respect to the collection of taxes that are not yet payable, the bill would require those taxes to be computed by a certificate or statement prepared by the appropriate state or local official giving their estimate of those taxes or assessments and a tax clearance certificate would not be permitted to be issued until the security for payment of the taxes not yet payable has been received by the county tax collector. The bill would also require payment of estimated taxes to be received by the county tax collector in the county where the manufactured home is located for each manufactured home transfer prior to transfer.

The bill would make conforming changes with respect to the provision governing conditional tax clearance certificates issued, requiring the certificate to indicate the final date for payment of a tax liability. By placing new duties on local government officials with respect to these property tax collection procedures, the bill would impose a state-mandated local program.

(2) Existing law authorizes the conditional tax clearance to be in any form as prescribed by the Controller. Existing law also makes the issuance, alteration, forgery, or use of any tax clearance certificate or conditional certificate in a manner contrary to the requirements of the Controller a misdemeanor.

By changing the procedures for issuing tax clearance certificates, the bill would expand the scope of an existing crime, thereby imposing a state-mandated local program.

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

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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Bill Text

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

SECTION 1.

 Section 5832 of the Revenue and Taxation Code is amended to read:

5832.

 (a) (1) Upon application, the county tax collector shall issue a tax clearance certificate or a conditional tax clearance certificate.

(2) (A) Any tax clearance certificate issued shall be used to permit registration of used manufactured homes and for any other purposes that may be prescribed by the Controller. The certificate may indicate that the county tax collector finds that no local property tax is due or is likely to become due, taxes are due, are not yet payable as described in subparagraph (B), or that any applicable local property taxes have been paid or are to be paid in a manner not requiring the withholding of registration or the transfer of registration.

(B) Collection of taxes that are not yet payable shall be computed by a certificate or statement prepared by the appropriate state or local official giving their estimate of those taxes or assessments and a tax clearance certificate shall not be issued until the security for payment of the taxes not yet payable has been received by the county tax collector. Payment of estimated taxes shall be received by the county tax collector in the county where the manufactured home is located for each manufactured home transfer prior to transfer.

(3) Any conditional tax clearance certificate issued shall indicate that the county tax collector finds that a tax liability exists, the amount due, and the final date that amount may be paid before a further tax liability is incurred. paid. The certificate shall be in any form that the Controller may prescribe, and shall be executed, issued, and accepted for clearance of registration or permit issuance on the conditions which the Controller may prescribe.

(b) Within five working days of receipt of the written demand for a conditional tax clearance certificate or tax clearance certificate, the county tax collector shall forward the conditional tax clearance certificate or tax clearance certificate, showing no tax liability exists, to the requesting escrow officer. In the event the final due date of the tax clearance certificate or conditional tax clearance certificate expires within 30 days of the date of its issuance, an additional conditional tax clearance certificate or tax clearance certificate shall be completed, which has a final due date of at least 30 days beyond the date of issuance. The tax collector shall not charge a fee for the issuance of a certificate unless a previously issued tax clearance certificate or conditional tax clearance certificate expires prior to the date upon which title transfers. The fee for the issuance of a subsequent certificate with respect to that manufactured home shall be an amount equal to the actual costs of preparing and processing that certificate.

(c) If the tax collector fails to comply with the demand within 30 days from the date the demand is mailed, the escrow officer may close the escrow in accordance with the provisions of subdivision (m) of Section 18035 of the Health and Safety Code.

(d) Notwithstanding any provisions of law requiring the tax collector to issue a tax clearance certificate or conditional tax clearance certificate within a specified period of time, when an escrow information demand is made pursuant to Section 18035 of the Health and Safety Code for a manufactured home that has not been enrolled in the county, the tax collector shall be afforded the number of working days necessary for the assessor to determine the value of the manufactured home and for the auditor to extend tax liability.

(e) The issuance, alteration, forgery, or use of any tax clearance certificate or conditional certificate in a manner contrary to the requirements of the Controller constitutes a misdemeanor.

(f) (1) Prior to January 1, 2021, a person with a conditional transfer of title as described in subparagraph (A) of paragraph (4) of subdivision (d) of Section 18116.1 of the Health and Safety Code may apply to the tax collector to issue either a tax liability or tax clearance certificate. The county tax collector shall issue a tax liability certificate if the person pays the taxes reasonably owed from the date of sale as shown on the conditional transfer of title, without penalties or interest, and not to exceed the amounts attributable one year prior to January 1, 2017.

(2) Upon issuance of a tax clearance or liability certificate, the applicant shall be listed as the owner of record for all local property tax purposes and the home shall not be subject to lien or seizure based on any taxes, penalties, or interest as noted on the certificate issued pursuant to paragraph (1). The tax collector shall notify the assessor and other county agencies of the change.

(3) This subdivision does not relieve any owner other than the applicant from tax liability, including penalties and interest, arising from nonpayment prior to the date of sale, or prohibit a county tax collector from collecting delinquent taxes, penalties, or interest due prior to the date of sale, from any owner other than the applicant.

SEC. 2.

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

However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.