HomeMy WebLinkAboutMINUTES - 06172014 - C.28RECOMMENDATION(S):
ADOPT a "Support" position on AB 2231 (Gordon), as amended: State Controller: Property Tax Postponement, a
bill that relates to claims for postponement under the Senior Citizens and Disabled Citizens Property Tax
Postponement Law and makes changes concerning eligibility, repayment of postponed taxes, delinquent penalties and
interest, electronic funds transfer requirements, the sale of tax-defaulted property, public meetings, and other matters,
as recommended by the Legislation Committee.
FISCAL IMPACT:
1) State General Fund costs to the Controller of approximately $3.5 million in FY 2015-16 to re-initiate the program,
eventually decreasing to annual administration costs of approximately $3 million per year. Over the long term, these
costs may be offset, at least in part, by ongoing interest on loans and the Fund, and fees generated by the program.
2) In order to re-initiate the PTP program, a source of initial seed capital funds and an appropriation to the Controller
to make the first loans will be required.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 06/17/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: L. DeLaney,
925-335-1097
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: June 17, 2014
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Stephanie L. Mello, Deputy
cc:
C. 28
To:Board of Supervisors
From:LEGISLATION COMMITTEE
Date:June 17, 2014
Contra
Costa
County
Subject:Support position on AB 2231: State Controller: Property Tax Postponement (Gordon), as amended
BACKGROUND:
At its June 5, 2014 meeting, the Legislation Committee considered the recommendation from the County
Treasurer-Tax Collector to recommend a position of "Support" to the Board of Supervisors on AB 2231. Chair
Mitchoff has previously signed a letter of support, which is attached.
CURRENT STATUS: 05/27/2014: In ASSEMBLY. Read third time. Passed ASSEMBLY. *****To SENATE.
SUMMARY : This bill reinstates the Senior Citizens and Disabled Citizens Property Tax Postponement (PTP)
program, allowing applications to the State Controller to provide property tax deferment to seniors and disabled
persons to recommence on July 1, 2015. In summary, this bill:
1) Establishes the Senior Citizens and Disabled Citizens Property Tax Postponement Fund (Fund) within the State
Treasury and annually appropriates funds for the purposes of paying costs and disbursements related to the PTP
program; requires the Controller to transfer moneys in the Fund in excess of $10 million to the General Fund (GF).
2) Increases the amount of equity required of applicants in a residential dwelling from 20% to 40% of the full
value of the property to be eligible for the PTP program.
3) Requires loan payments and funds derived from the voluntary sale of a residential dwelling that has a lien
placed on it due to the PTP program to be deposited into the Fund.
4) Repeals current law allowing the Controller to subordinate liens for postponement of real property taxes, and
instead requires all liens under the PTP program to have the priority of judgment liens.
5) Provides that taxes shall become due and payable in full if, in addition to current law, the claimant is
refinancing the residential dwelling or has executed a reverse mortgage.
6) Requires a county tax collector to notify the Controller within 60 days of any property subject to a PTP
program lien that becomes tax defaulted.
7) Requires the Controller, upon request of the tax collector, to provide information that is required for the
preparation and enforcement of the sale of property.
8) Makes various other modifications to the procedures for filings for the PTP program as well as notifications
and payments with respect to tax delinquent properties.
COMMENTS
1) Purpose. According to the author, this bill would reinstate the PTP program and give seniors and disabled
Californians some financial flexibility. The bill would also incorporate several changes to the suspended PTP
program designed to secure the PTP Fund ensure the program's long-term sustainability.
The author claims the PTP program provided assistance to nearly 6,000 California seniors and disabled persons
over the 30 years it was previously in operation. After five years of suspension, the homes of some former
participants in the program are now at risk of tax default sale. This bill would provide relief to those on fixed
incomes who are unable to pay their tax bills and risk losing their homes.
2) Background to the PTP Program. The state currently has and has had several property tax relief programs
benefitting elderly and disabled persons, including property tax reappraisal relief, property tax assistance, and
property tax postponement. Unlike assistance programs that refund a percentage of property taxes paid, the PTP
program provides a direct grant to qualifying seniors and disabled persons who own their residence, allowing
recipients to defer payment of all or a portion of their property taxes.
Historically, aggregate loan repayments have equaled or exceeded the program's administrative costs, and over the
long-term, the program has been self-supporting. In addition to allowing program participants to remain in their
homes, the PTP program has reduced county property tax default rates and increased county tax collection
revenues.
The state has not provided funding for the PTP program since the 2007-08 budget and has not paid claims since
2008. On February 20, 2009, the postponement program was indefinitely suspended as part of the budget
reductions to the state's GF programs; the funding was eliminated, and the Controller was prohibited from
accepting new applications from that date.
3) Implementation and Seed Capital. The bill currently contains no appropriation or other source of seed funding
to reinitiate loans, and the Controller has identified several implementation concerns and areas where the program
could be further refined and improved. Should this bill be passed by this Committee, the members may wish to
encourage the author to continue working with the Controller to resolve these issues.
4) Related Legislation. AB 1322 (Patterson) of 2013 was similar to this bill and would have reinstated the Senior
Citizens' PTP program that provided property tax deferment to seniors and disabled persons. That bill was held on
the Suspense File of this Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
California Association of County Treasurers and Tax Collectors (Sponsor)
California State Association of Counties
California Taxpayers Association
Opposition
None on file
CONSEQUENCE OF NEGATIVE ACTION:
Contra Costa County would not have a position on the bill.
CHILDREN'S IMPACT STATEMENT:
None.
ATTACHMENTS
AB 2231 Bill Text
AB 2231 "Chair" support letter
The Board of Supervisors
County Administration Building
651 Pine Street, Room 106
Martinez, California 94553
John Gioia, 1st District
Candace Andersen, 2nd District
Mary N. Piepho, 3rd District
Karen Mitchoff, 4th District
Federal D. Glover, 5th District
May 13, 2014
The Honorable Mike Gatto
Chair, Assembly Appropriations Committee
Capitol Building #2114
Sacramento, CA 95814
RE: AB 2231 (Gordon) Property Tax Postponement – SUPPORT, hearing May 14, 2014
Dear Assembly Member Gatto:
As Chair of the Board of Supervisors of Contra Costa County, I write to inform you of my
support for AB 2231, which reinstates the Senior Citizens and Disabled Citizens Property Tax
Postponement (PTP) program to provide property tax deferment to seniors and disabled persons.
California has several property tax programs benefiting the elderly and disabled individuals,
including property tax reappraisal relief, property tax assistance, and property tax postponement.
The assistance program provides a direct grant to qualifying seniors and disabled individuals
who own or rent a residence and allows eligible homeowners to defer payment of all, or a
portion, of the property taxes on their residence. Over the 30 years it was in operation, this
property tax postponement program helped almost 6,000 California seniors and disabled citizens.
Unfortunately, the State has not provided funding for the assistance program since the 2007-08
Budget, and in 2009, the postponement program was indefinitely suspended as part of budget
reductions. After five years of non-payment, the homes of some former participants in this
program are now at risk of tax sale. For those living on fixed incomes, a tax bill may mean losing
their home.
AB 2231 would reinstate the property-tax postponement program and incorporate several
changes to increase the sustainability of the program, giving qualified seniors and disabled
Californians some much needed financial flexibility. Additionally, the proposed program
changes in AB 2231 will go a long way to helping secure the PTP Fund and to ensuring the long-
term sustainability of the program. Reinstituting this program statewide would help all elderly
and disabled Californians take advantage of this benefit to help them stay in their homes.
David Twa
Clerk of the Board
and
County Administrator
(925) 335-1900
Contra
Costa
County
AB 2231 (Gordon) Property Tax Postponement
May 13, 2014
Page 2 of 2
For these reasons, I support AB 2231 and urge your Committee to support the bill.
Sincerely,
KAREN MITCHOFF
Chair, Board of Supervisors
cc: Members, Board of Supervisors
Contra Costa County Legislative Delegation
David Twa, County Administrator
Members, Assembly Appropriations Committee
Assembly Member Richard S. Gordon, author
Russell Watts, Contra Costa County Treasurer-Tax Collector
Cathy Christian, Nielsen Merksamer
AMENDED IN ASSEMBLY APRIL 21, 2014
AMENDED IN ASSEMBLY MARCH 24, 2014
california legislature—2013–14 regular session
ASSEMBLY BILL No. 2231
Introduced by Assembly Members Gordon, Levine, and Patterson
February 20, 2014
An act to amend Sections 16181, 16182, 16184, 16186, 16190, 16200,
16210, 16211, 16211.5, and 16213 and 16211.5 of, to repeal Sections
16185, 16212, 16213, and 16214 of, and to repeal and add Section
16180 of, the Government Code, and to amend Sections 2514, 3375,
20503, 20583, 20584, 20602, 20621, 20622, 20645.5, and 20645.6 of,
to amend and repeal Section 20623 of, to repeal Section 20583.1 of, to
add Section 3376 to, and to repeal Chapter 3.3 (commencing with
Section 20639) of Part 10.5 of Division 2 of, the Revenue and Taxation
Code, relating to state government, and making an appropriation
therefor.
legislative counsel’s digest
AB 2231, as amended, Gordon. State Controller: property tax
postponement.
The Senior Citizens and Disabled Citizens Property Tax Postponement
Law, until February 20, 2009, authorized a claimant, as defined, to file
a claim with the Controller to postpone the payment of ad valorem
property taxes, where if household income, as defined, did not exceed
specified amounts. That law authorized the Controller, upon approval
of the claim, to either make a payment 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 certificate, as
97
provided. That law required these payments to be made out of specified
funds appropriated to the Controller, and also required certain repaid
property tax postponement payments to be paid into an impound account
and transferred, as specified, to the General Fund. That law also required
all sums paid by the Controller for postponed property taxes to be
secured by a lien in favor of the State of California.
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 make inoperative the prohibition against a person
filing a claim for postponement and the Controller from accepting
applications for postponement under the program as of July 1, 2015,
and would repeal these provisions on January 1, 2016. This bill would
exclude losses and nonexpenses from “income” for purposes of these
provisions. This bill would also exclude mobilehomes and houseboats
from the scope of these provisions, would repeal the related Senior
Citizens Mobilehome Property Tax Postponement Law, and make
conforming changes to related provisions.
This bill would create in the State Treasury a Senior Citizens and
Disabled Citizens Property Tax Postponement Fund. This bill would
delete the requirement that funds be placed in an impound account and
would, instead, require that repaid property tax postponement payments
be directly deposited into the newly created fund. The bill would
continuously appropriate these funds to the Controller for purposes of
administering the property tax postponement program, as specified.
Existing law authorizes the Controller to subordinate the lien for
postponed property taxes where if the Controller determines
subordination is appropriate.
This bill would eliminate that authorization and make other
conforming changes.
Existing law requires that the owners equity interest in the residential
dwelling be at least 20% of the full value of the property in order to be
eligible to participate in the postponement program.
This bill would increase the equity requirement to at least 40%.
Existing law requires the repayment of postponed taxes in specified
circumstances.
This bill would, in addition, require repayment if the claimant
refinances the dwelling or has elected to participate in a revenue
mortgage program for the dwelling. The bill would require that the
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county tax collector notify the Controller within 60 days of all property
subject to a “Notice of Lien for Postponed Property Taxes” becoming
tax defaulted or subject to collection procedures, as specified.
Existing law requires a claim for postponement to be filed after May
15 of the calendar year in which the fiscal year for which postponement
is claimed begins, and on or before December 10 of that fiscal year.
This bill would instead require a claim for postponement to be filed
after September 1 of the calendar year in which the fiscal year for which
postponement is claimed begins, and on or before April 10 of that fiscal
year.
Existing law makes optional certain duties of local agencies related
to recordation of the tax lien.
This bill would delete that provision, thereby imposing a
state-mandated local program.
Existing law requires, if a postponement claim, as specified, is filed
timely but before the delinquency date of the first or 2nd installment
of property taxes, that any delinquent penalties and interest for the fiscal
year be canceled unless the failure to perfect the claim was due to willful
neglect on the part of the claimant or representative, in which case the
certificates of eligibility for the fiscal year can be used to pay delinquent
taxes only if accompanied by sufficient amounts to pay the delinquent
interest and penalties.
This bill would instead require, if a postponement claim is filed timely
before the delinquency date of the 2nd installment of property taxes on
the secured roll, that any delinquent penalties, costs, fees, and interest
accrued for the fiscal year be canceled. This bill would instead require,
in the event of willful neglect to perfect the claim, that an electronic
funds transfer for that current fiscal year be used to pay only the
delinquent taxes. This bill would authorize the tax collector, if the
payment 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, to return the electronic
funds transfer to the Controller to deny the postponement claim. This
bill would require the Controller to provide a specified notification to
the claimant and a copy of the notification to the tax collector.
This bill would also require the Controller, upon written request of
the tax collector, to provide the tax collector with information that is
required for the preparation and enforcement of the sale of tax-defaulted
property, and would require the tax collector or his or her designee to
certify, under penalty of perjury, that the information is requested for
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AB 2231— 3 —
these purposes. This bill would also provide that any information
provided to the tax collector is not a public record and is not open to
public inspection. By requiring the tax collector to make a certification
under penalty of perjury, this bill would expand the crime of perjury
thereby imposing a state-mandated local program.
Existing constitutional provisions require that a statute that limits the
right of access to the meetings of public bodies or the writings of public
officials and agencies be adopted with findings demonstrating the
interest protected by the limitation and the need for protecting that
interest.
This bill would make legislative findings to that effect.
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.
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 16180 of the Government Code is
line 2 repealed.
line 3 SEC. 2. Section 16180 is added to the Government Code, to
line 4 read:
line 5 16180. (a) There is hereby created in the State Treasury a
line 6 Senior Citizens and Disabled Citizens Property Tax Postponement
line 7 Fund. Subject to subdivision (b) and notwithstanding Section
line 8 13340, the fund is continuously appropriated to the Controller,
line 9 commencing January 1, 2015, for purposes of administering this
line 10 chapter, including, but not limited to, necessary administrative
line 11 costs and disbursements relating to the postponement of property
line 12 taxes pursuant to the Senior Citizens and Disabled Citizens
line 13 Property Tax Postponement Law (Chapter 2 (commencing with
line 14 Section 20581) of Part 10.5 of Division 2 of the Revenue and
line 15 Taxation Code).
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— 4 —AB 2231
line 1 (b) The Controller shall transfer any moneys in the fund in
line 2 excess of ten million dollars ($10,000,000) to the General Fund.
line 3 (c) Any loan repayments relating to the Senior Citizens and
line 4 Disabled Citizens Property Tax Postponement Law shall be
line 5 deposited into the Senior Citizens and Disabled Citizens Property
line 6 Tax Postponement Fund.
line 7 SEC. 3. Section 16181 of the Government Code is amended to
line 8 read:
line 9 16181. (a) The Controller shall maintain a record of all
line 10 properties against which a notice of lien for postponed property
line 11 taxes has been recorded. The record shall include, but not be
line 12 limited to, the names of each claimant, a description of the real
line 13 property against which the lien is recorded, the identification
line 14 number of the notice of lien assigned by the Controller, and the
line 15 amount of the lien.
line 16 (b) The Controller shall maintain a record of all properties
line 17 against which the Department of Housing and Community
line 18 Development has been notified to withhold the transfer of title.
line 19 The record shall include, but not be limited to, the names of each
line 20 claimant, a description of the mobilehome against which a lien is
line 21 charged, and the amount of the lien.
line 22 (c)
line 23 (b) Upon written request of any person or entity, or the agent
line 24 of either, having a legal or equitable interest in real property or a
line 25 mobilehome which that is subject to a lien for postponed taxes,
line 26 the Controller shall within 10 working days following receipt of
line 27 the request issue a written statement showing the amount of the
line 28 obligation secured by the lien as of the date of such the statement
line 29 and such any other information as will reasonably enable the person
line 30 or entity, or the agent of either, to determine the amount to be paid
line 31 the Controller in order to obtain a certificate of release or discharge
line 32 of the lien for postponed taxes.
line 33 (d)
line 34 (c) The Controller shall adopt regulations necessary to
line 35 implement the provisions of this chapter and may establish a
line 36 reasonable fee, not to exceed ten dollars ($10), for the provision
line 37 of the statement of lien status provided for herein.
line 38 SEC. 3.
line 39 SEC. 4. Section 16182 of the Government Code is amended
line 40 to read:
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AB 2231— 5 —
line 1 16182. (a) All sums paid by the Controller under the provisions
line 2 of this chapter, together with interest thereon, shall be secured by
line 3 a lien in favor of the State of California when funds are transferred
line 4 to the county by the Controller upon the real property for which
line 5 property taxes have been postponed. In the case of a residential
line 6 dwelling which is part of a larger parcel taxed as a unit, such as a
line 7 duplex, farm, or multipurpose or multidwelling building, the lien
line 8 shall be against the entire tax parcel.
line 9 (b) In the case of real property:
line 10 (1) The lien shall be evidenced by a notice of lien for postponed
line 11 property taxes executed by the Controller, or the authorized
line 12 delegate of the Controller, and shall secure all sums paid or owing
line 13 pursuant to this chapter, including amounts paid subsequent to the
line 14 initial payment of postponed taxes on the real property described
line 15 in the notice of lien.
line 16 (2) The notice of lien may bear the facsimile signature of the
line 17 Controller. Each signature shall be that of the person who shall be
line 18 in the office at the time of execution of the notice of lien; provided,
line 19 however, that such notice of lien shall be valid and binding
line 20 notwithstanding any such person having ceased to hold the office
line 21 of Controller before the date of recordation.
line 22 (3) The form and contents of the notice of lien for postponed
line 23 property taxes shall be prescribed by the Controller and shall
line 24 include, but not be limited to, the following:
line 25 (A) The names of all record owners of the real property for
line 26 which the Controller has advanced funds for the payment of real
line 27 property taxes.
line 28 (B) A description of the real property for which real property
line 29 taxes have been paid.
line 30 (C) The identification number of the notice of lien which has
line 31 been assigned the lien by the Controller.
line 32 (4) The notice of lien shall be recorded in the office of the
line 33 county recorder for the county in which the real property subject
line 34 to the lien is located.
line 35 (5) The recorded notice of lien shall be indexed in the Grantor
line 36 Index to the names of all record owners of the real property and
line 37 in the Grantee Index to the Controller of the State of California.
line 38 (6) After the notice of lien has been duly recorded and indexed,
line 39 it shall be returned by the county recorder to the office of the
line 40 Controller. The recorder shall provide the county tax collector with
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line 1 a copy of the notice of lien which has been recorded by the
line 2 Controller.
line 3 (7) From the time of recordation of a notice of lien for postponed
line 4 property taxes, a lien shall attach to the real property described
line 5 therein and shall have the priority of a judgment lien for all
line 6 amounts secured thereby, except that the lien shall remain in effect
line 7 until it is released by the Controller in the manner prescribed by
line 8 Section 16186.
line 9 SEC. 5. Section 16184 of the Government Code is amended to
line 10 read:
line 11 16184. The Controller shall reduce the amount of the obligation
line 12 secured by the lien against the real property or mobilehome by the
line 13 amount of any payments received for that purpose and by
line 14 notification of any amounts paid by the Franchise Tax Board
line 15 pursuant to Section 20564 or by any amounts authorized pursuant
line 16 to subdivision (f) of Section 20621 of the Revenue and Taxation
line 17 Code. The Controller shall also increase the amount of the
line 18 obligation secured by such the lien by the amount of any
line 19 subsequent payments made pursuant to Section 16180 with respect
line 20 to the real property and to reflect the accumulation of interest. All
line 21 such increases and decreases shall be entered in the record
line 22 described in Section 16181.
line 23 SEC. 4.
line 24 SEC. 6. Section 16185 of the Government Code is repealed.
line 25 SEC. 5.
line 26 SEC. 7. Section 16186 of the Government Code is amended
line 27 to read:
line 28 16186. If at any time the amount of the obligation secured by
line 29 the lien for postponed property taxes is paid in full or otherwise
line 30 discharged, the Controller, or the authorized delegate of the
line 31 Controller, shall in the case of real property:
line 32 (a) Execute and cause to be recorded in the office of the county
line 33 recorder of the county wherein the real property described in the
line 34 lien is located, a release of the lien conclusively evidencing the
line 35 satisfaction of all amounts secured by the lien. The cost of
line 36 recording the release of the lien shall be added to and become part
line 37 of the obligation secured by the lien being released.
line 38 (b) Direct the tax collector to remove from the secured roll, the
line 39 information required to be entered thereon by paragraph (1) of
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AB 2231— 7 —
line 1 subdivision (a) of Section 2514 of the Revenue and Taxation Code
line 2 with respect to the property described in the lien.
line 3 (c) Direct the assessor to remove from the assessment records
line 4 applicable to the property described in the lien, the information
line 5 required to be entered on such records by Section 2515 of the
line 6 Revenue and Taxation Code.
line 7 SEC. 6.
line 8 SEC. 8. Section 16190 of the Government Code is amended
line 9 to read:
line 10 16190. All amounts owing pursuant to Article 1 (commencing
line 11 with Section 16180) of this chapter shall become due if any of the
line 12 following occurs:
line 13 (a) The claimant, who is either the sole owner or sole possessory
line 14 interest holder of the residential dwelling, as defined in Section
line 15 20583 or Section 20640 of the Revenue and Taxation Code, or a
line 16 coowner or copossessory interest holder with a person other than
line 17 a spouse or other individual eligible to postpone property taxes
line 18 pursuant to Chapter 2 (commencing with Section 20581), Chapter
line 19 3.3 (commencing with Section 20639), or Chapter 3.5
line 20 (commencing with Section 20640) of Part 10.5 of Division 2 of
line 21 such code, ceases to occupy the premises as his residential
line 22 dwelling, dies, or sells, conveys, or disposes of the property, or
line 23 allows any tax or special assessment on the premises described in
line 24 Section 20583 of such code to become delinquent. If the sole owner
line 25 or possessory interest holder claimant dies and his or her surviving
line 26 spouse inherits the premises and continues to own and occupy it
line 27 as his or her principal place of residence, then the lien amount does
line 28 not become due and payable unless taxes or special assessments
line 29 described in the preceding sentence become delinquent, or such
line 30 surviving spouse dies, or sells, conveys or disposes of the interest
line 31 in the property.
line 32 (b) The claimant, who is a coowner or copossessory interest
line 33 holder of the residential dwelling, as defined in Section 20583 or
line 34 Section 20640.2 of the Revenue and Taxation Code, with a spouse
line 35 or another individual eligible to postpone property taxes pursuant
line 36 to Chapter 2 (commencing with Section 20581), Chapter 3.3
line 37 (commencing with Section 20639), or Chapter 3.5 (commencing
line 38 with Section 20640) of Part 10.5 of Division 2 of such code, dies,
line 39 and the surviving spouse or other surviving eligible individual
line 40 allows any tax or special assessment on the premises described in
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— 8 —AB 2231
line 1 Section 20583 of such code to become delinquent or such surviving
line 2 spouse or other individual ceases to occupy the premises as a
line 3 residential dwelling, dies, or conveys, or disposes of the interest
line 4 in the property.
line 5 (c) The failure of the claimant to perform those acts the claimant
line 6 is required to perform where such performance is secured, or will
line 7 be secured in the event of nonperformance, by a lien which is
line 8 senior to that of the lien provided by Section 16182.
line 9 (d) Postponement was erroneously allowed because eligibility
line 10 requirements were not met.
line 11 (e) The claimant is refinancing the residential dwelling.
line 12 (f) The claimant has elected to participate in a reverse mortgage
line 13 program for the residential dwelling.
line 14 SEC. 7.
line 15 SEC. 9. Section 16200 of the Government Code is amended
line 16 to read:
line 17 16200. In the event that the Controller receives the notice
line 18 described in Section 16187 of this code or Section 3375 of the
line 19 Revenue and Taxation Code, the Controller may take any of the
line 20 following actions which will best serve the interests of the state:
line 21 (a) Notify by United States mail the tax collector or other party
line 22 that such notice has been received and that the Controller must be
line 23 given at least 20 days prior notice of the date that the property will
line 24 be sold at auction. If the Controller elects to proceed under this
line 25 subdivision, the Controller may use funds appropriated by Section
line 26 16100 to bid on the property at the auction up to the amount
line 27 secured by the state’s lien on the property and any lien on such
line 28 property having priority over the state’s lien. All additional
line 29 amounts paid pursuant to this subdivision shall be added to the
line 30 amount secured by the lien on such property provided for in Article
line 31 1 (commencing with Section 16180) of this chapter.
line 32 (b) Acknowledge by United States mail that the notice required
line 33 by Section 16187 of this code or Section 3375 of the Revenue and
line 34 Taxation Code has been received.
line 35 SEC. 8.
line 36 SEC. 10. Section 16210 of the Government Code is amended
line 37 to read:
line 38 16210. In the event that the amount secured by the state’s lien
line 39 provided for in Article 1 (commencing with Section 16180) is paid
line 40 by reason of the sale or condemnation of the property on which
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AB 2231— 9 —
line 1 the lien attaches, the funds so received shall be placed in the Senior
line 2 Citizens and Disabled Citizens Property Tax Postponement Fund.
line 3 SEC. 9.
line 4 SEC. 11. Section 16211 of the Government Code is amended
line 5 to read:
line 6 16211. The claimant under Chapter 2 (commencing with
line 7 Section 20581), Chapter 3 (commencing with Section 20625), or
line 8 Chapter 3.5 (commencing with Section 20640) of Part 10.5 of
line 9 Division 2 of the Revenue and Taxation Code whose residential
line 10 dwelling was sold or condemned may shall not draw upon the
line 11 amount in the account to purchase a new residential dwelling, and
line 12 the amount so drawn shall be secured by a new lien against the
line 13 new residential dwelling from the time the Controller records the
line 14 new lien against the new residential dwelling as provided for under
line 15 Section 16182. Senior Citizens and Disabled Citizens Property
line 16 Tax Postponement Fund.
line 17 In the case of real property, the Controller shall subordinate the
line 18 new lien to the lien of the note and deed of trust of the purchase
line 19 money obligations used in the acquisition of the new residential
line 20 dwelling, provided the claimant has an equity of at least 40 percent
line 21 of the full value of the property, as required by paragraph (1) of
line 22 subdivision (b) of Section 20583 of the Revenue and Taxation
line 23 Code, prior to recordation of that subordination. The lien shall
line 24 have priority over all subsequent liens, except as provided in
line 25 Section 2192.1 of the Revenue and Taxation Code.
line 26 SEC. 10.
line 27 SEC. 12. Section 16211.5 of the Government Code is amended
line 28 to read:
line 29 16211.5. (a) In the event that the real property securing the
line 30 state’s lien provided for in Article 1 (commencing with Section
line 31 16180) is the residential dwelling of a claimant under Chapter 2
line 32 (commencing with Section 20581) of Part 10.5 of Division 2 of
line 33 the Revenue and Taxation Code and is voluntarily sold, the funds
line 34 derived from the voluntary sale of the residential dwelling shall
line 35 be placed in the Senior Citizens and Disabled Citizens Property
line 36 Tax Postponement Fund. At that time, the Controller shall release
line 37 the state’s lien in the manner prescribed by Section 16186.
line 38 (b) The claimant under Chapter 2 (commencing with Section
line 39 20581) of Part 10.5 of Division 2 of the Revenue and Taxation
line 40 Code whose residential dwelling was voluntarily sold shall not
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line 1 draw upon the amount in the Senior Citizens and Disabled Citizens
line 2 Property Tax Postponement Fund.
line 3 SEC. 11.
line 4 SEC. 13. Section 16212 of the Government Code is repealed.
line 5 SEC. 12. Section 16213 of the Government Code is amended
line 6 to read:
line 7 16213. At the end of the six-month period specified in Section
line 8 16210 or the six-month period specified in Section 16211.5, all
line 9 funds remaining in an impound account shall be transferred to the
line 10 Senior Citizens and Disabled Citizens Property Tax Postponement
line 11 Fund, established pursuant to Section 16180.
line 12 SEC. 14. Section 16213 of the Government Code is repealed.
line 13 16213. At the end of the six-month period specified in Section
line 14 16210 or the six-month period specified in Section 16211.5, all
line 15 funds remaining in an impound account shall be transferred to the
line 16 General Fund.
line 17 SEC. 13.
line 18 SEC. 15. Section 16214 of the Government Code is repealed.
line 19 SEC. 14.
line 20 SEC. 16. Section 2514 of the Revenue and Taxation Code is
line 21 amended to read:
line 22 2514. (a) With respect to a claimant whose property taxes are
line 23 paid by a lender from an impound, trust, or other type of account
line 24 described in Section 2954 of the Civil Code, the tax collector shall
line 25 notify the auditor of the claimant’s name and address, and the
line 26 duplicate amount of money the Controller transferred to the tax
line 27 collector via an electronic fund transfer.
line 28 The county auditor, treasurer, or disbursing officer shall send a
line 29 check in the amount of money based on the electronic transfer by
line 30 the Controller, to the Controller within 60 days of the replicated
line 31 payment.
line 32 (b) The procedures established by this chapter shall not be
line 33 construed to require a lender to alter the manner in which a lender
line 34 makes payment of the property taxes of such a claimant.
line 35 SEC. 15.
line 36 SEC. 17. Section 3375 of the Revenue and Taxation Code is
line 37 amended to read:
line 38 3375. The county tax collector shall notify the Controller within
line 39 60 days, in the manner as the Controller shall direct, of all property
line 40 subject to a “Notice of Lien for Postponed Property Taxes”
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line 1 recorded pursuant to Section 16182 of the Government Code that
line 2 becomes tax defaulted subsequent to the date of entry on the
line 3 secured roll of the information required by subdivision (a) of
line 4 Section 2514.
line 5 SEC. 16.
line 6 SEC. 18. Section 3376 is added to the Revenue and Taxation
line 7 Code, to read:
line 8 3376. (a) Upon request of the tax collector, the Controller shall
line 9 provide to the tax collector information that is required for the
line 10 preparation and enforcement of the sale of property under Part 6
line 11 (commencing with Section 3351) of Division 1. This information
line 12 may include social security numbers.
line 13 (b) The tax collector or his or her designee shall certify, under
line 14 penalty of perjury, to the Controller, that the information requested
line 15 pursuant to subdivision (a) is required for the purposes specified
line 16 in subdivision (a).
line 17 (c) Any information provided to the tax collector pursuant to
line 18 this subdivision is not a public record and is not open to public
line 19 inspection.
line 20 SEC. 17.
line 21 SEC. 19. Section 20503 of the Revenue and Taxation Code is
line 22 amended to read:
line 23 20503. (a) “Income” means adjusted gross income as defined
line 24 in Section 17072 plus all of the following cash items:
line 25 (1) Public assistance and relief.
line 26 (2) Nontaxable amount of pensions and annuities.
line 27 (3) Social security benefits (except Medicare).
line 28 (4) Railroad retirement benefits.
line 29 (5) Unemployment insurance payments.
line 30 (6) Veterans’ benefits.
line 31 (7) Exempt interest received from any source.
line 32 (8) Gifts and inheritances in excess of three hundred dollars
line 33 ($300), other than transfers between members of the household.
line 34 Gifts and inheritances include noncash items.
line 35 (9) Amounts contributed on behalf of the contributor to a
line 36 tax-sheltered retirement plan or deferred compensation plan.
line 37 (10) Temporary workers’ compensation payments.
line 38 (11) Sick leave payments.
line 39 (12) Nontaxable military compensation as defined in Section
line 40 112 of the Internal Revenue Code.
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line 1 (13) Nontaxable scholarship and fellowship grants as defined
line 2 in Section 117 of the Internal Revenue Code.
line 3 (14) Nontaxable gain from the sale of a residence as defined in
line 4 Section 121 of the Internal Revenue Code.
line 5 (15) Life insurance proceeds to the extent that the proceeds
line 6 exceed the expenses incurred for the last illness and funeral of the
line 7 deceased spouse of the claimant. “Expenses incurred for the last
line 8 illness” includes unreimbursed expenses paid or incurred during
line 9 the income calendar year and any expenses paid or incurred
line 10 thereafter up until the date the claim is filed. For purposes of this
line 11 paragraph, funeral expenses shall not exceed five thousand dollars
line 12 ($5,000).
line 13 (16) If an alternative minimum tax is required to be paid
line 14 pursuant to Chapter 2.1 (commencing with Section 17062) of Part
line 15 10, the amount of alternative minimum taxable income (whether
line 16 or not cash) in excess of the regular taxable income.
line 17 (17) Annual winnings from the California Lottery in excess of
line 18 six hundred dollars ($600) for the current year.
line 19 (b) For purposes of this chapter, total income shall be determined
line 20 for the calendar year (or approved fiscal year ending within that
line 21 calendar year) which ends within the fiscal year for which
line 22 assistance is claimed.
line 23 (c) For purposes of this chapter, all losses and nonexpenses shall
line 24 be converted to zero for the purpose of determining whether the
line 25 homeowner meets the Property Tax Postponement requirement.
line 26 (d) For purposes of Chapter 2 (commencing with Section
line 27 20581), Chapter 3 (commencing with Section 20625), and Chapter
line 28 3.5 (commencing with Section 20640), total income shall be
line 29 determined for the calendar year ending immediately prior to the
line 30 commencement of the fiscal year for which postponement is
line 31 claimed.
line 32 SEC. 18.
line 33 SEC. 20. Section 20583 of the Revenue and Taxation Code is
line 34 amended to read:
line 35 20583. (a) “Residential dwelling” means a dwelling occupied
line 36 as the principal place of residence of the claimant, and so much
line 37 of the land surrounding it as is reasonably necessary for use of the
line 38 dwelling as a home, owned by the claimant, the claimant and
line 39 spouse, or by the claimant and either another individual eligible
line 40 for postponement under this chapter or an individual described in
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line 1 subdivision (a), (b), or (c) of Section 20511 and located in this
line 2 state. It shall include condominiums that are assessed as realty for
line 3 local property tax purposes. It also includes part of a multidwelling
line 4 or multipurpose building and a part of the land upon which it is
line 5 built.
line 6 (b) As used in this chapter in reference to ownership interests
line 7 in residential dwellings, “owned” includes (1) the interest of a
line 8 vendee in possession under a land sale contract provided that the
line 9 contract or memorandum thereof is recorded and only from the
line 10 date of recordation of the contract or memorandum thereof in the
line 11 office of the county recorder where the residential dwelling is
line 12 located, (2) the interest of the holder of a life estate provided that
line 13 the instrument creating the life estate is recorded and only from
line 14 the date of recordation of the instrument creating the life estate in
line 15 the office of the county recorder where the residential dwelling is
line 16 located, but “owned” does not include the interest of the holder of
line 17 any remainder interest or the holder of a reversionary interest in
line 18 the residential dwelling, (3) the interest of a joint tenant or a tenant
line 19 in common in the residential dwelling or the interest of a tenant
line 20 where title is held in tenancy by the entirety or a community
line 21 property interest where title is held as community property, and
line 22 (4) the interest in the residential dwelling in which the title is held
line 23 in trust, as described in subdivision (d) of Section 62, provided
line 24 that the Controller determines that the state’s interest is adequately
line 25 protected.
line 26 (c) Except as provided in subdivision (c), and Chapter 3
line 27 (commencing with Section 20625), ownership must be evidenced
line 28 by an instrument duly recorded in the office of the county where
line 29 the residential dwelling is located.
line 30 (d) “Residential dwelling” does not include any of the following:
line 31 (1) Any residential dwelling in which the owners do not have
line 32 an equity of at least 40 percent of the full value of the property as
line 33 determined for purposes of property taxation or at least 40 percent
line 34 of the fair market value as determined by the Controller and where
line 35 the Controller determines that the state’s interest is adequately
line 36 protected. The 40-percent equity requirement shall be met at the
line 37 time the claimant or authorized agent files an initial postponement
line 38 claim and tenders to the tax collector the initial certificate of
line 39 eligibility described in Sections 20602, 20639.6, and 20640.6.
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line 1 (2) Any residential dwelling in which the claimant’s interest is
line 2 held pursuant to a contract of sale or under a life estate, unless the
line 3 claimant obtains the written consent of the vendor under the
line 4 contract of sale, or the holder of the reversionary interest upon
line 5 termination of the life estate, for the postponement of taxes and
line 6 the creation of a lien on the real property in favor of the state for
line 7 amounts postponed pursuant to this act.
line 8 (3) Any residential dwelling on which the claimant does not
line 9 receive a secured tax bill.
line 10 (4) Any residential dwelling in which the claimant’s interest is
line 11 held as a possessory interest, except as provided in Chapter 3.5
line 12 (commencing with Section 20640).
line 13 SEC. 19.
line 14 SEC. 21. Section 20583.1 of the Revenue and Taxation Code
line 15 is repealed.
line 16 SEC. 20.
line 17 SEC. 22. Section 20584 of the Revenue and Taxation Code is
line 18 amended to read:
line 19 20584. (a) “Property taxes” means all ad valorem property
line 20 taxes, special assessments, and other charges or user fees which
line 21 are attributable to the residential dwelling on the county tax bill
line 22 and the ad valorem property taxes, special assessments, or other
line 23 charges or user fees appearing on the tax bill of any chartered city
line 24 which levies and collects its own property taxes.
line 25 (b) Whenever a residential dwelling is an integral part of a larger
line 26 tax unit, such as a duplex, farm or a multipurpose building,
line 27 “property taxes” shall be the percentage of the total property taxes
line 28 as the value of the residential dwelling is of the value of the total
line 29 tax unit.
line 30 (c) “Property taxes” means property taxes for current fiscal
line 31 years for which the claim is made and excludes delinquent taxes
line 32 for prior fiscal years.
line 33 SEC. 21.
line 34 SEC. 23. Section 20602 of the Revenue and Taxation Code is
line 35 amended to read:
line 36 20602. Upon approval of a claim described in Section 20601,
line 37 the Controller shall make payments directly to a county tax
line 38 collector for the property taxes owed on behalf of a qualified
line 39 claimant. Payments may, upon appropriation by the Legislature,
line 40 be made out of the amounts otherwise appropriated pursuant to
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line 1 Section 16100 of the Government Code that are secured by a
line 2 secured tax lien and obligation as specified by Article 1
line 3 (commencing with Section 16180) of Chapter 5 of Division 4 of
line 4 the Government Code.
line 5 SEC. 22.
line 6 SEC. 24. Section 20621 of the Revenue and Taxation Code is
line 7 amended to read:
line 8 20621. Each claimant applying for postponement under Article
line 9 2 (commencing with Section 20601) shall file a claim under penalty
line 10 of perjury with the Controller on a form supplied by the Controller.
line 11 The claim shall contain all of the following:
line 12 (a) Evidence acceptable to the Controller that the person was a
line 13 “senior citizen claimant” or a “blind or disabled claimant.”
line 14 (b) A statement showing the household income for the period
line 15 set forth in Section 20503.
line 16 (c) A statement describing the residential dwelling in a manner
line 17 that the Controller may prescribe.
line 18 (d) The name of the county in which the residential dwelling is
line 19 located and the address of the residential dwelling.
line 20 (e) The county assessor’s parcel number applicable to the
line 21 property for which the claimant is applying for the postponement
line 22 of property taxes.
line 23 (f) (1) Documentation evidencing the current existence of any
line 24 abstract of judgment, federal tax lien, or state tax lien filed or
line 25 recorded against the applicant, and any recorded mortgage or deed
line 26 of trust that affects the subject residential dwelling, for the purpose
line 27 of determining that the claimant possesses a 40-percent equity in
line 28 the subject residential dwelling as required by paragraph (1) of
line 29 subdivision (b) of Section 20583.
line 30 (2) Actual costs, not in excess of fifty dollars ($50), paid by the
line 31 claimant to obtain the documentation shall reduce the amount of
line 32 the lien for the year, but not the face amount of the payment
line 33 prescribed in Section 16180 of the Government Code.
line 34 (g) Other information required by the Controller to establish
line 35 eligibility.
line 36 SEC. 23.
line 37 SEC. 25. Section 20622 of the Revenue and Taxation Code is
line 38 amended to read:
line 39 20622. The claim for postponement shall be filed after
line 40 September 1 of the calendar year in which the fiscal year for which
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line 1 postponement is claimed begins, and on or before April 10 of that
line 2 fiscal year; if April 10th falls on Saturday, Sunday, or a legal
line 3 holiday, the date is extended to the next business day.
line 4 SEC. 24.
line 5 SEC. 26. Section 20623 of the Revenue and Taxation Code is
line 6 amended to read:
line 7 20623. (a) No person shall file a claim for postponement under
line 8 this chapter on or after the effective date of the act adding this
line 9 section, and the Controller shall not accept applications for
line 10 postponement under this chapter on or after that date.
line 11 (b) This section shall become inoperative on July 1, 2015, and
line 12 as of January 1, 2016, is repealed, unless a later enacted statute
line 13 that is enacted before January 1, 2016, deletes or extends the dates
line 14 on which it becomes inoperative and is repealed.
line 15 SEC. 25.
line 16 SEC. 27. Chapter 3.3 (commencing with Section 20639) of
line 17 Part 10.5 of Division 2 of the Revenue and Taxation Code is
line 18 repealed.
line 19 SEC. 26.
line 20 SEC. 28. Section 20645.5 of the Revenue and Taxation Code
line 21 is amended to read:
line 22 20645.5. (a) If a postponement claim under Chapter 2
line 23 (commencing with Section 20581), Chapter 3.3 (commencing with
line 24 Section 20639), or Chapter 3.5 (commencing with Section 20640)
line 25 is filed timely before the delinquency date of the second installment
line 26 of property taxes on the secured roll, then any delinquent penalties,
line 27 costs, fees, and interest accrued for that fiscal year shall be canceled
line 28 unless the failure to perfect the claim was due to willful neglect
line 29 on the part of the claimant or representative.
line 30 (b) In the event of willful neglect, an electronic funds transfer
line 31 for that current fiscal year can be used to pay delinquent taxes only
line 32 if accompanied by sufficient amounts to pay all of the delinquent
line 33 penalties, costs, fees, and interest. If an amount sufficient to pay
line 34 all of the delinquent penalties, costs, fees, and interest is not
line 35 received by the tax collector within 30 days from the date of the
line 36 electronic funds transfer, the tax collector may return the electronic
line 37 funds transfer to the Controller to deny the postponement claim.
line 38 (c) (1) The Controller shall notify the claimant in writing when
line 39 the electronic funds transfer has been submitted to the tax collector.
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line 1 (2) In the event of willful neglect, in addition to the information
line 2 required pursuant to paragraph (1), the Controller shall also notify
line 3 the claimant in writing and provide a copy of the notification to
line 4 the tax collector, that a payment amount sufficient to pay all of
line 5 the delinquent penalties, costs, fees, and interest must be received
line 6 by the tax collector within 30 days from the date of the electronic
line 7 funds transfer, and that if this payment is not received by the tax
line 8 collector, the tax collector may return the electronic funds transfer
line 9 to the Controller to deny the postponement claim.
line 10 SEC. 27.
line 11 SEC. 29. Section 20645.6 of the Revenue and Taxation Code
line 12 is amended to read:
line 13 20645.6. (a) If the Controller denies a postponement claim
line 14 under Chapter 2 (commencing with Section 20581), Chapter 3
line 15 (commencing with Section 20625), Chapter 3.3 (commencing with
line 16 Section 20639), or Chapter 3.5 (commencing with Section 20640),
line 17 and the denial is reversed after appeal pursuant to Section 20645.1,
line 18 the Controller shall electronically transfer funds to the county, if
line 19 the taxes for the fiscal year have been paid, for the amount of the
line 20 taxes. If the taxes for the fiscal year are delinquent, any resulting
line 21 penalties or interest shall be canceled.
line 22 (b) The Controller shall notify the claimant in writing when an
line 23 electronic funds transfer has been made pursuant to subdivision
line 24 (a).
line 25 SEC. 28.
line 26 SEC. 30. The Legislature finds and declares that Section 16
line 27 of this act, which adds Section 3376 to the Revenue and Taxation
line 28 Code, imposes a limitation on the public’s right of access to the
line 29 meetings of public bodies or the writings of public officials and
line 30 agencies within the meaning of Section 3 of Article I of the
line 31 California Constitution. Pursuant to that constitutional provision,
line 32 the Legislature makes the following findings to demonstrate the
line 33 interest protected by this limitation and the need for protecting
line 34 that interest:
line 35 In order to protect those persons subject to enforcement of Part
line 36 6 (commencing with Section 3351) of Division 1 of the Revenue
line 37 and Taxation Code against the risk of identity theft, it is in the
line 38 state’s interest to limit public access to information.
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line 1 SEC. 29.
line 2 SEC. 31. No reimbursement is required by this act pursuant
line 3 to Section 6 of Article XIII B of the California Constitution for
line 4 certain costs that may be incurred by a local agency or school
line 5 district because, in that regard, this act creates a new crime or
line 6 infraction, eliminates a crime or infraction, or changes the penalty
line 7 for a crime or infraction, within the meaning of Section 17556 of
line 8 the Government Code, or changes the definition of a crime within
line 9 the meaning of Section 6 of Article XIII B of the California
line 10 Constitution.
line 11 However, if the Commission on State Mandates determines that
line 12 this act contains other costs mandated by the state, reimbursement
line 13 to local agencies and school districts for those costs shall be made
line 14 pursuant to Part 7 (commencing with Section 17500) of Division
line 15 4 of Title 2 of the Government Code.
O
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