Bill Text: CA SB801 | 2015-2016 | Regular Session | Chaptered
Bill Title: Property tax postponement.
Spectrum: Slight Partisan Bill (Democrat 5-2)
Status: (Passed) 2015-09-30 - Chaptered by Secretary of State. Chapter 391, Statutes of 2015. [SB801 Detail]
Download: California-2015-SB801-Chaptered.html
BILL NUMBER: SB 801 CHAPTERED
BILL TEXT
CHAPTER 391
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2015
APPROVED BY GOVERNOR SEPTEMBER 30, 2015
PASSED THE SENATE SEPTEMBER 2, 2015
PASSED THE ASSEMBLY SEPTEMBER 1, 2015
AMENDED IN ASSEMBLY AUGUST 18, 2015
AMENDED IN ASSEMBLY JUNE 29, 2015
INTRODUCED BY Committee on Governance and Finance (Senators
Hertzberg (Chair), Bates, Beall, Hernandez, Lara, Nguyen, and Pavley)
MARCH 24, 2015
An act to amend Sections 16180, 16182, 16183, 16190, 16191, and
16192 of the Government Code, and to amend Sections 2515, 20505,
20586, 20601, 20602, 20603, 20621, 20622, 20627, 20630, 20630.5,
20638, 20639.2, 20640.2, 20640.3, 20640.4, 20640.6, 20640.7, 20640.8,
20640.9, 20645.5, and 20645.6 of, and to repeal Sections 20633,
20639.3, 20639.4, 20639.5, 20639.6, 20639.7, 20639.8, and 20639.9 of,
the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 801, Committee on Governance and Finance. Property tax
postponement.
Existing law, on and after February 20, 2009, prohibited a person
from filing a claim for postponement of tax, and prohibited the
Controller from accepting applications for postponement of tax, under
the Senior Citizens and Disabled Citizens Property Tax Postponement
Law. Existing law, as of July 1, 2016, makes inoperative the
prohibition against a qualifying person, as specified, filing a claim
for postponement and the Controller from accepting applications for
postponement under the program and repeals this prohibition on
January 1, 2017.
This bill, among other things, would eliminate outdated references
to "certificates of eligibility" that were previously used under the
postponement law. The bill would permit the Controller to release a
lien if there is a foreclosure on an obligation secured by a lien
that is senior in recording priority. The bill would standardize the
definition of a claimant so that all references include blind and
disabled persons, as defined. The bill would eliminate references to
certain duties on the part of local tax officials, with respect to
lien notices, to conform to the superseding duties of the Controller
in preparing and filing the notice of lien for postponed taxes with
the county recorder at the time payment is made, and would specify
payments by the Controller to the county and the refund by the county
of taxes paid when a taxpayer successfully appeals his or her denial
of postponement under the law. The bill would clarify that the
interest rate on existing loans made prior to the postponement law's
suspension will continue to accrue at the rate specified prior to the
suspension of the program. The bill would remove references
regarding the eligibility of mobilehome properties to participate in
the program and would add references specifying that co-op properties
are eligible for the program. The bill would also delete and update
outdated references and make other technical and conforming changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16180 of the Government Code is amended to
read:
16180. (a) There is hereby created in the State Treasury a Senior
Citizens and Disabled Citizens Property Tax Postponement Fund. The
fund shall be an interest-bearing fund. Subject to subdivision (b)
and notwithstanding Section 13340, the fund is continuously
appropriated to the Controller, commencing January 1, 2015, for
purposes of administering this chapter, including, but not limited
to, necessary administrative costs and disbursements relating to the
postponement of property taxes pursuant to the Property Tax
Postponement Law (Chapter 2 (commencing with Section 20581), Chapter
3 (commencing with Section 20625), and Chapter 3.5 (commencing with
Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation
Code).
(b) The Controller shall do both of the following:
(1) On June 30, 2017, transfer any moneys in the fund in excess of
twenty million dollars ($20,000,000) to the General Fund.
(2) On June 30, 2018, and on June 30 each year thereafter,
transfer any moneys in the fund in excess of fifteen million dollars
($15,000,000) to the General Fund.
(c) On or after January 1, 2015, any loan repayments relating to
the Senior Citizens and Disabled Citizens Property Tax Postponement
Law shall be deposited into the Senior Citizens and Disabled Citizens
Property Tax Postponement Fund.
(d) Any funds remaining upon the effective date of this section in
an impound account formerly provided for pursuant to this chapter,
shall be transferred to the Senior Citizens and Disabled Citizens
Property Tax Postponement Fund.
SEC. 2. 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 in favor of the State of California when funds are transferred
to the county by the Controller upon the real property for which
property taxes have been postponed. 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) Within 14 business days of the transfer of funds and the
notice of lien to the county by the Controller, 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 executed 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 recording priority to the lien of the State of
California.
(c) In the case of mobilehome loans established prior to February
20, 2009, all of the following shall apply:
(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 owing pursuant to
this chapter.
(2) From the time that 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 unit 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.
(3) 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.
SEC. 3. 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) Beginning July 1, 2016, 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, and shall
become effective for new deferrals, beginning on July 1, 1984, and on
July 1 of each immediately succeeding year, until June 30, 2016.
(3) For loans made prior to June 30, 2016, 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.
(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 an electronic funds transfer is made
by the Controller to the tax collector or the delinquency date of the
respective tax installment, whichever is later.
(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.
SEC. 4. Section 16190 of the Government Code is amended to read:
16190. All amounts owing pursuant to Article 1 (commencing with
Section 16180) of this chapter shall become due if any of the
following occurs:
(a) The claimant, who is either the sole owner or sole possessory
interestholder of the residential dwelling, as defined in Section
20583 or Section 20640 of the Revenue and Taxation Code, or a coowner
or copossessory interestholder with a person other than a spouse or
other individual eligible to postpone property taxes 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) of Part 10.5 of Division
2 of that code, ceases to occupy the premises as his residential
dwelling, dies, or sells, conveys, or disposes of the property, or
allows any tax or special assessment on the premises described in
Section 20583 of such code to become delinquent. If the sole owner or
possessory interestholder claimant dies and his or her surviving
spouse inherits the premises and continues to own and occupy it as
his or her principal place of residence, then the lien amount does
not become due and payable unless taxes or special assessments
described in the preceding sentence become delinquent, or such
surviving spouse dies, or sells, conveys, or disposes of the interest
in the property.
(b) The claimant, who is a coowner or copossessory interestholder
of the residential dwelling, as defined in Section 20583 or Section
20640.2 of the Revenue and Taxation Code, with a spouse or another
individual eligible to postpone property taxes 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) of Part 10.5 of Division 2 of that
code, dies, and the surviving spouse or other surviving eligible
individual allows any tax or special assessment on the premises
described in Section 20583 of such code to become delinquent or such
surviving spouse or other individual ceases to occupy the premises as
a residential dwelling, dies, or conveys, or disposes of the
interest in the property.
(c) The failure of the claimant to perform those acts the claimant
is required to perform where such performance is secured, or will be
secured in the event of nonperformance, by a lien which is senior to
that of the lien provided by Section 16182.
(d) Postponement was erroneously allowed because eligibility
requirements were not met.
(e) The claimant is refinancing the residential dwelling.
(f) The claimant has elected to participate in a reverse mortgage
program for the residential dwelling.
SEC. 5. Section 16191 of the Government Code is amended to read:
16191. The amounts paid pursuant to Section 16180 shall continue
to draw interest but amounts owing pursuant to Article 1 (commencing
with Section 16180) of this chapter shall not become due and payable
if any of the following occurs:
(a) The claimant continues to own and occupy or hold the
possessory interest and occupy the premises as a residential
dwelling, but ceases to postpone property taxes 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) of Part 10.5 of Division 2 of the
Revenue and Taxation Code, and does not allow any tax or assessment
against the premises, as described in Section 20583 of such code, to
become delinquent.
(b) The surviving spouse of a claimant continues to own and occupy
or hold the possessory interest and occupy the premises as a
residential dwelling, but is ineligible to postpone property taxes
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) of Part 10.5
of Division 2 of the Revenue and Taxation Code, or elects not to
postpone such taxes, and does not allow any tax or assessment against
the premises, as described in Section 20583 of such code, to become
delinquent.
(c) The surviving individual otherwise eligible to postpone
property taxes 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)
of Part 10.5 of Division 2 of the Revenue and Taxation Code continues
to own and occupy or hold the possessory interest and occupy the
premises as a residential dwelling, but elects not to postpone the
property taxes pursuant to such chapter, and does not allow any tax
or assessment against the premises, as described in Section 20583 of
such code, to become delinquent.
SEC. 6. Section 16192 of the Government Code is amended to read:
16192. If, at any time, a person meeting the requirements of
subdivision (a) or (c) of Section 16191 elects, or any surviving
spouse described in subdivision (b) of such section becomes eligible,
or otherwise elects, to postpone property taxes pursuant to Chapter
2 (commencing with Section 20581), Chapter 3 (commencing with Section
20625), or Chapter 3.5 (commencing with Section 20640) of Part 10.5
of Division 2 of the Revenue and Taxation Code, payments made
pursuant to Section 16180 shall be added to the amount of the lien
existing against the residential dwelling.
SEC. 7. Section 2515 of the Revenue and Taxation Code is amended
to read:
2515. (a) Upon receiving a "notice of lien for postponed property
taxes" from the Controller, the tax collector or the assessor,
whichever is applicable, shall immediately 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, if such 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 within 60
days of processing 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. 8. Section 20505 of the Revenue and Taxation Code is amended
to read:
20505. "Claimant" means an individual who--
(a) 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 (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) 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 (1) 62 years of age or older by December 31 of the
fiscal year for which postponement is claimed, or (2) 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.
SEC. 9. 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
or her decision shall be final.
SEC. 10. Section 20601 of the Revenue and Taxation Code is amended
to read:
20601. Subject to the limitations provided in this chapter, a
claimant may file with the Controller, pursuant to Article 3
(commencing with Section 20621) of this chapter, a claim for
postponement from the State of California of a sum equal to, but not
exceeding, the amount of property taxes, as defined in Section 20584,
due on the residential dwelling for the fiscal year for which the
claim is made.
SEC. 11. Section 20602 of the Revenue and Taxation Code is amended
to read:
20602. Upon approval of a claim described in Section 20601, the
Controller shall make payments directly to a 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 appropriated pursuant to Section 16180 of the Government Code
that are secured by a secured tax lien and obligation as specified
by Article 1 (commencing with Section 16180) of Chapter 5 of Division
4 of the Government Code.
SEC. 12. Section 20603 of the Revenue and Taxation Code is amended
to read:
20603. The Controller shall prescribe the manner in which a
claimant eligible under this chapter, who for any reason is
incapacitated, may appoint his or her spouse or an authorized agent,
or have any such person appointed for such claimant, for all purposes
of claiming and receiving postponement of property taxes.
SEC. 13. 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 (1) is
62 years of age or older on or before December 31 of the fiscal year
for which the postponement is claimed or (2) 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
the postponement is claimed, whichever is earlier.
(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 40-percent equity in the
subject residential dwelling as required by paragraph (1) of
subdivision (b) of Section 20583.
(2) Actual costs, not in excess of fifty dollars ($50), paid by
the claimant to obtain the documentation shall 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) Other information required by the Controller to establish
eligibility.
SEC. 14. Section 20622 of the Revenue and Taxation Code is amended
to read:
20622. The claim for postponement shall be filed after October 1
of the fiscal year in which the postponement is claimed and on or
before February 10 of that fiscal year; if February 10th falls on
Saturday, Sunday, or a legal holiday, the date is extended to the
next business day.
SEC. 15. Section 20627 of the Revenue and Taxation Code is amended
to read:
20627. A tenant-stockholder claimant (hereinafter referred to as
"claimant") is an individual who, on the last day of the calendar
year ending immediately prior to the commencement of the fiscal year
for which postponement is claimed is: (a) a tenant-stockholder in a
cooperative housing corporation (as defined in Section 216(b) of the
Internal Revenue Code) and (b) occupies as a principal place of
residence a residential unit in the cooperative housing corporation
(notwithstanding Section 216(b) of the Internal Revenue Code). For
the purposes of this chapter, a claimant must be (1) 62 years of age
or older on or before December 31 of the fiscal year for which
postponement is claimed or (2) 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 the
postponement is claimed, whichever is earlier.
SEC. 16. Section 20630 of the Revenue and Taxation Code is amended
to read:
20630. (a) A claimant may file with the Controller, a claim for
postponement from the State of California of a sum equal to, but not
exceeding the amount of property taxes, as defined in Section 20629,
for the fiscal year for which the claim is made.
(b) Upon verification of the eligibility requirements set forth in
Section 20630.5, 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 the following:
(1) A statement signed by an authorized officer of the cooperative
housing corporation indicating the amount of the claimant's
proportionate share of property taxes and the method used to compute
such amount.
(2) A recognition agreement signed by the claimant and executed by
an officer of the corporation which acknowledges the assignment of
the proprietary lease and the pledging of the claimant's shares in
the corporation as security for postponement, and sets forth the
rights and duties of the state, the corporation and the claimant with
respect to such stock and the proprietary lease. The recognition
agreement shall be in such form and contain such provisions as the
Controller shall prescribe.
(3) Any other additional security interest, created and perfected
with respect to the rights of third persons in the manner provided by
law for such type of security interest, which the Controller deems
necessary to protect the interest of the state with regard to the
repayment of postponed amounts by the claimant or a deceased claimant'
s estate.
(c) When the Controller approves the Notice of Election to
Postpone, the Controller shall make payments directly to a county tax
collector for the property taxes owed on behalf of the claimant.
Payments may, upon appropriation by the Legislature, be made out of
the amounts appropriated pursuant to Section 16180 of the Government
Code that are secured by a secured tax lien and obligation as
specified by Article 1 (commencing with Section 16180) of Chapter 5
of Division 4 of the Government Code.
SEC. 17. Section 20630.5 of the Revenue and Taxation Code is
amended to read:
20630.5. Claims made under this chapter shall be filed with the
Controller after October 1 of the fiscal year in which postponement
is claimed and on or before February 10 of such fiscal year. If
February 10th falls on Saturday, Sunday or a legal holiday, the date
is extended to the next business day. The claim shall be on a form
supplied by the Controller and shall contain:
(a) Evidence acceptable to the Controller that the individual was
an eligible claimant.
(b) A statement showing the household income for the period set
forth in Section 20503.
(c) A statement describing the residential dwelling.
(d) Any other information necessary for the Controller to
determine eligibility under this chapter.
SEC. 18. Section 20633 of the Revenue and Taxation Code is
repealed.
SEC. 19. Section 20638 of the Revenue and Taxation Code is amended
to read:
20638. Upon written request of a person who has postponed
pursuant to this chapter, or an agent of such person, or an agent of
the affected cooperative housing corporation, the Controller shall
issue such person a written statement showing the total amount
postponed, together with accrued interest. The Controller may
establish a reasonable fee, not to exceed thirty dollars ($30) for
the provision of the statement of postponement status provided by
this section.
SEC. 20. Section 20639.2 of the Revenue and Taxation Code is
amended to read:
20639.2. (a) As used in this part, "mobilehome" means a
mobilehome, as defined in Sections 18008 and 18211 of the Health and
Safety Code, to which one of the following applies:
(1) It was first sold new on or after July 1, 1980.
(2) It was first sold new on or before June 30, 1980, and with
respect to which the license fee required to be paid pursuant to Part
5 (commencing with Section 10701) of Division 2 has been delinquent
for 120 days or more.
(3) It was first sold new on or before June 30, 1980, and a
request for voluntary transfer to local property taxation was made
pursuant to Section 18119 of the Health and Safety Code.
(b) As used in this chapter, "postponement" refers to mobilehome
loans established prior to February 20, 2009.
SEC. 21. Section 20639.3 of the Revenue and Taxation Code is
repealed.
SEC. 22. Section 20639.4 of the Revenue and Taxation Code is
repealed.
SEC. 23. Section 20639.5 of the Revenue and Taxation Code is
repealed.
SEC. 24. Section 20639.6 of the Revenue and Taxation Code is
repealed.
SEC. 25. Section 20639.7 of the Revenue and Taxation Code is
repealed.
SEC. 26. Section 20639.8 of the Revenue and Taxation Code is
repealed.
SEC. 27. Section 20639.9 of the Revenue and Taxation Code is
repealed.
SEC. 28. Section 20640.2 of the Revenue and Taxation Code is
amended to read:
20640.2. For the purposes of this chapter:
(a) "Possessory interest" means (1) possession of, or right to the
possession of land located in this state whether or not coupled with
ownership of the residential dwelling on the same, or (2) a
possessory interest or right of occupancy on tax exempt land;
(b) "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, located on possessory interest property. It shall include
condominiums upon which property taxes, as defined in subdivision
(c), are assessed. It also includes part of a multidwelling or
multipurpose building and a part of the land upon which it is built.
(c) "Property taxes" means the amount of property tax for which
the claimant is personally liable as assessee or is obligated to pay
directly to the tax collector pursuant to the terms of the agreement
establishing the possessory interest, including all ad valorem
property taxes, special assessments, capitalization of leasehold
interest, and other charges or user fees which are attributable to
the residential dwelling on the county tax bill and the ad valorem
property taxes, special assessments, capitalization of leasehold
interest, or other charges or user fees appearing on the tax bill of
any chartered city which levies and collects its own property taxes.
SEC. 29. Section 20640.3 of the Revenue and Taxation Code is
amended to read:
20640.3. A claimant is an individual who:
(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) (1) Is 62 years of age or older on or before December 31 of
the fiscal year for which postponement is claimed or (2) 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 the postponement is claimed, whichever is earlier.
SEC. 30. 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) 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.
SEC. 31. 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, the Controller shall make
payments directly to a county tax collector, or chartered city that
levies and collects its own taxes, for the property taxes owed on
behalf of the claimant. Payments may, upon appropriation by the
Legislature, be made out of the amounts appropriated pursuant to
Section 16180 of the Government Code that are secured by a secured
tax lien and obligation as specified by Article 1 (commencing with
Section 16180) of Chapter 5 of Division 4 of the Government Code.
(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.
SEC. 32. Section 20640.7 of the Revenue and Taxation Code is
amended to read:
20640.7. The Controller shall prescribe the manner in which a
claimant eligible under this chapter, who for any reason is
incapacitated, may appoint his or her spouse or an authorized agent,
or have any such person appointed for such claimant, for all purposes
of claiming and receiving postponement of property taxes.
SEC. 33. Section 20640.8 of the Revenue and Taxation Code is
amended to read:
20640.8. The claim for postponement shall be filed after October
1 of the fiscal year in which postponement is claimed and on or
before February 10 of such fiscal year. If February 10th falls on
Saturday, Sunday or a legal holiday, the date is extended to the next
business day.
SEC. 34. 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:
(a) Evidence acceptable to the Controller that the person was 62
years of age or older, or blind or disabled as described in Section
20640.3.
(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 Controller to establish
eligibility.
SEC. 35. Section 20645.5 of the Revenue and Taxation Code is
amended to read:
20645.5. (a) If a postponement claim under Chapter 2 (commencing
with Section 20581), Chapter 3.3 (commencing with Section 20639), or
Chapter 3.5 (commencing with Section 20640) is received by the
Controller by February 10 for the fiscal year in which postponement
is being claimed or by another date set by the Controller pursuant to
Section 20622, then any delinquent penalties, costs, fees, and
interest accrued for that fiscal year shall be canceled unless the
failure to perfect the claim was due to willful neglect on the part
of the claimant or representative.
(b) In the event of willful neglect, an electronic funds transfer
for that current fiscal year can be used to pay delinquent taxes only
if accompanied by sufficient amounts to pay all of the delinquent
penalties, costs, fees, and interest. If an amount sufficient to pay
all of the delinquent penalties, costs, fees, and interest is not
received by the tax collector within 30 days from the date of the
electronic funds transfer, the tax collector may return the
electronic funds transfer to the Controller to deny the postponement
claim.
(c) (1) The Controller shall notify the claimant in writing when
the electronic funds transfer has been submitted to the tax
collector.
(2) In the event of willful neglect, in addition to the
information required pursuant to paragraph (1), the Controller shall
also notify the claimant in writing and provide a copy of the
notification to the tax collector, that a payment amount sufficient
to pay all of the delinquent penalties, costs, fees, and interest
must be received by the tax collector within 30 days from the date of
the electronic funds transfer, and that if this payment is not
received by the tax collector, the tax collector may return the
electronic funds transfer to the Controller to deny the postponement
claim.
SEC. 36. Section 20645.6 of the Revenue and Taxation Code is
amended to read:
20645.6. (a) If the Controller denies a postponement claim under
Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with
Section 20625), Chapter 3.3 (commencing with Section 20639), or
Chapter 3.5 (commencing with Section 20640), and the denial is
reversed after appeal pursuant to Section 20645.1, the Controller
shall electronically transfer funds to the county for the amount of
the taxes. If the taxes for the fiscal year were previously paid, the
county shall refund the overpayment to the taxpayer. If the taxes
for the fiscal year are delinquent, any resulting penalties or
interest shall be canceled.
(b) The Controller shall notify the claimant in writing when an
electronic funds transfer has been made pursuant to subdivision (a).
