CC SR 20160920 M - AB 1952 Postpone Property Tax for Seniors & Disabled CitizensRANCHO PALOS VERDES CITY COUNCIL
AGENDA REPORT
AGENDA DESCRIPTION:
MEETING DATE: 09/20/2016
AGENDA HEADING: Consent Calendar
Consideration and possible action to request that Governor Brown sign Assembly Bill
No. 1952 regarding property tax postponement for seniors and disabled citizens
RECOMMENDED COUNCIL ACTION:
(1) Authorize the Mayor to sign a letter to Governor Brown requesting his signature
on Assembly Bill No. 1952 (AB 1952) regarding property tax postponement for
seniors and disabled citizens.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Kit Fox, AICP, Senior Administrative Analysti�
REVIEWED BY: Gabriella Yap, Deputy City Manager.'
APPROVED BY: Doug Willmore, City Manager,..`, J
ATTACHED SUPPORTING DOCUMENTS:
A. Draft signature request for AB 1952 (page A-1)
B. AB 1952 (page B-1)
BACKGROUND AND DISCUSSION:
On September 7, 2016, Staff participated in League of California Cities -sponsored
webinar addressing the end of the FY15-16 State legislative session. League Staff
identified a number of bills that the League supported, and asked cities to consider
sending signature requests to Governor Brown. Among these was Assembly Bill
No. 1952 (AB 1952), which deals with property tax postponement for seniors and
disabled citizens.
The property tax postponement (PTP) program allows the State Controller to help
seniors and disabled persons making less than $35,000 in income per year stay in their
homes and reduce their risk of default and delinquency. Currently, the program faces
funding limitations that were imposed when it was reestablished in 2014, and it will soon
run out of money without changes to its limitations. Among others, AB 1952 improves
the PTP program by authorizing the Director of Finance to supplement funds to cover
the program's administrative costs, and allows the Controller to deduct administrative
1
costs and approved claims prior to shifting remaining funds to the General Fund. These
changes provide program administrators with the tools to improve the longevity and
success of the program.
AB 1952 provides for the on-going viability of the PTP program, which could help
qualifying City residents to stay in their homes in the face of rising property tax bills.
Therefore, Staff has prepared a signature request (Attachment A) for the Mayor's
signature.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative action is available for
the City Council's consideration:
Do not authorize the Mayor to sign the signature request for AB 1952.
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September 20, 2016
Via FAX: (916) 558-3177
The Honorable Edmund G. Brown, Jr.
Governor, State of California
State Capitol Building
Sacramento, CA 95814
SUBJECT: Assembly Bill 1952 (Gordon) Property Tax Postponement: Request for
Signature
Dear Governor Brown:
The City of Rancho Palos Verdes respectfully requests your signature on Assembly Bill
1952 (Gordon), which will assist the implementation of the recently -reestablished
Property Tax Postponement (PTP) Program by providin, the necessary flexibility to
ensure program sustainability.
The PTP program allows the State Controller to ` e p seniors and disabled persons
making less than $35,000 in income per year stay in their homes and reduce their risk of
default and delinquency. Currently, the program faces funding limitations imposed upon
reestablishment (AB 2231; Gordon 2014) and will soon run out of money without changes
to its limitations. Among others, AB 1952 improves the PTP program by authorizing the
Director of Finance to supplement funds to cover the program's administrative costs and
allows the Controller to deduct administrative costs and approved claims prior to shifting
remaining funds to the General Fund. These changes provide program administrators
the tools to improve the longevity and success of the program.
Although a long-term solution is still needed, AB 1952 maximizes existing program
resources and benefits. For these reasons, the City of Rancho Palos Verdes requests
your signature on this bill.
Sincerely,
Ken Dyda
Mayor
Cc: Rancho Palos Verdes City Council
The Honorable Richard Gordon
Michael Martinez, Deputy Legislative Secretary, Office of Governor Edmund G.
Brown, Jr.
Meg Desmond, League of California Cities, mdesmond(a)cacities.org
Jeff Kiernan, League of California Cities, ikiernan(a)cacities.org
Doug Willmore, City Manager
Gabriella Yap, Deputy City Manager
A-1
Assembly Bill No. 1952
Passed the Assembly August 25, 2016
Chief Clerk of the Assembly
Passed the Senate August 22, 2016
Secretary of the Senate
This bill was received by the Governor this day
of , 2016, at o'clock M.
Private Secretary of the Governor
AB 1952 —2—
CHAPTER 2—
CHAPTER
An act to amend Sections 16180, 16182, 16183, 16184, 16186.5,
16200, 16202, and 27282 of the Government Code, and to amend
Sections 2514, 2515, 2781, 20503, 20505, 20583, 20585, 20586,
20621, 20627, 20640.3, 20641, 20645.5, and 20645.6 of the
Revenue and Taxation Code, relating to taxation, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1952, Gordon. Property tax postponement.
(1) Existing law authorizes the Controller, upon approval of a
claim for the postponement of ad valorem property taxes, to
directly pay a county tax collector for the property taxes owed by
the claimant, as provided. Existing law establishes the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund
and continuously appropriates moneys in the fund to the Controller
for specified purposes, including disbursements relating to the
postponement of property taxes pursuant to the Property Tax
Postponement Law. Existing law requires the Controller to, on
June 30, 2018, and on June 30 each year thereafter, transfer any
moneys in the fund in excess of $15,000,000 to the General Fund.
This bill would eliminate the requirement that the Controller
transfer any moneys in the fund in excess of $15,000,000 to the
General Fund. The bill would authorize the Director of Finance,
upon determination by the Controller that there are insufficient
moneys in the fund to cover the cost of all approved claims for the
postponement of property taxes, to authorize a transfer from the
General Fund to the Senior Citizens and Disabled Citizens Property
Tax Postponement Fund in an amount necessary to pay those
claims, as specified. By authorizing the expenditure of additional
General Fund moneys for the purpose of the property tax
postponement program, this bill would make an appropriation.
(2) Existing law requires that all sums paid for the postponement
of property taxes be secured by a lien in favor of the state. In the
case of a lien on real property for this purpose, existing law
requires, among other things, the recorder for the county in which
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the real property is subject to the lien to provide a copy of the
notice of lien to the county tax collector.
This bill would additionally require the county recorder to
provide a copy of the notice of lien to the county assessor.
(3) Existing law establishes a formula for calculating the interest
on a payment made by the Controller for postponed property taxes
from the time a payment is made. Under existing law, for purposes
of this provision, a payment is deemed to be made at 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. Existing law, in the event of willful neglect,
authorizes an electronic funds transfer for that current fiscal year
to be used to pay delinquent taxes only if accompanied by sufficient
amounts to pay all of the delinquent penalties, costs, fees, and
interest. Existing law, if a denial of a claim for postponement is
reversed on appeal, requires the Controller to electronically transfer
funds to the county.
This bill would instead deem a payment to be made at the time
a payment is made by the Controller to the tax collector or the
delinquency date of the respective tax installment, whichever is
later. The bill would instead authorize a payment from the
Controller to be used to pay delinquent taxes under the
circumstances described above. The bill would eliminate the
requirement that funds be transferred electronically if a denial of
a claim for postponement is reversed on appeal. The bill would
also make various conforming changes.
(4) Existing law requires the Controller to reduce the amount
of the obligation secured by the lien against the real property by
the amount of any payments received for that purpose and by
specified amounts paid by the Franchise Tax Board or by certain
other authorized amounts.
This bill would require that payments received for the reduction
of the obligation be applied first to any interest due on the loan,
2nd to the principal property tax amount, and finally, if there is
any remaining balance, to administrative fees.
(5) Existing law authorizes recordation of certain documents,
including a release, discharge, or subordination of a lien for
postponed property taxes, without acknowledgment, certificate of
acknowledgment, or further proof.
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AB 1952
This bill would delete the reference to the subordination of a
lien for postponed property taxes from the above-described list of
documents that may be recorded without acknowledgment,
certificate of acknowledgment, or further proof.
(6) Existing law requires, with respect to a claimant whose
property taxes are paid by a lender from an impound, trust, or other
specified type of account, the tax collector to notify the auditor of
the claimant's name and address, and the duplicate amount of
money the Controller transferred to the tax collector via an
electronic fund transfer. Existing law requires the county auditor,
treasurer, or disbursing officer to send a check, in the amount of
money based on the electronic transfer by the Controller, to the
Controller within 60 days of the replicated payment.
This bill would require the county tax collector to notify the
auditor, as described above, upon receipt of the payment by the
Controller. The bill would require the tax collector to maintain a
record of the fact that taxes on the property have been postponed
and, in the case of the secured roll, authorize entry of this
information in that portion of the roll which has been designated
for tax default information. The bill would require the county
auditor, treasurer, or disbursing officer to refund a replicated
payment to the claimant, instead of the Controller.
(7) Existing law, upon receipt of a "notice of lien for postponed
property taxes" from the Controller, requires the tax collector or
the assessor, whichever is applicable, to 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 to notify the Controller of a subsequent
change in ownership status, as provided.
This bill would instead require the assessor to maintain a record
of the fact that the taxes on the property have been postponed and
the Controller's identification number and to notify the Controller
as described above.
(8) Existing law requires, for purposes of the
Gonsalves-Deukmejian-Petris Senior Citizens Property Tax
Assistance Law, that all losses and nonexpenses be converted to
zero for the purpose of determining whether the homeowner meets
the property tax postponement requirement.
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This bill would instead require that all losses and nonexpenses
be converted to zero, as specified above, for the purposes of the
Property Tax Postponement Law.
(9) Existing law requires that a claimant for property tax
postponement, generally, be an individual who is a member of the
household, is either an owner -occupant, tenant stockholder
occupant, or possessory interestholder occupant of the residential
dwelling as to which postponement is claimed, and is either 62
years of age or older, blind, or disabled. With respect to blind and
disabled claimants, existing law requires that the claimant be blind
or disabled, as specified, at the time of application or on December
10 of the fiscal year for which postponement is claimed, whichever
is earlier.
This bill would instead require, for blind and disabled claimants,
that the claimant be blind or disabled at the time of application or
on February 10 of the fiscal year for which postponement is
claimed.
(10) Existing law requires that a claim for postponement of
property taxes be for the residential dwelling, defined generally
as the principal place of residence of the claimant and so much of
the land surrounding it as is reasonably necessary for the use of
the dwelling as a home that is owned by the claimant alone or by
the claimant and other specified individuals.
Existing law authorizes an applicant, defined as including a
public agency, an entity acting on behalf of and with the written
consent of a public agency, or a financial institution for specified
purposes, to assist property owners in financing the installation of
distributed generation renewable energy sources, electric vehicle
charging infrastructure, or energy or water efficiency improvements
through the issuance of Property Assessed Clean Energy (PACE)
bonds that are secured by a voluntary contractual assessment on
property or a special tax on property.
This bill would exclude from a residential dwelling eligible for
the property tax postponement program any residential dwelling
that is subject to a PACE bond.
(11) This bill would make various technical changes related to
the property tax postponement program, including updating
statutory references to the Senior Citizens and Disabled Citizens
Property Tax Postponement Fund and deleting obsolete references
to certificates of eligibility and postponement for mobilehomes.
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AB 1952
(12) This bill would incorporate additional changes to Section
20583 of the Revenue and Taxation Code proposed by SB 909
that would become operative if this bill and SB 909 are enacted
and this bill is enacted last.
(13) By changing the duties of local officials with respect to the
administration of the property tax postponement program, this bill
would impose a state -mandated local program.
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, if the Commission on State
Mandates determines that the bill contains costs mandated by the
state, reimbursement for those costs shall be made pursuant to
these statutory provisions.
Appropriation: yes.
The people of the State of California do enact as follows:
SECTION 1. Section 16180 of the Government Code, as
amended by Section 1 of Chapter 391 of the Statutes of 2015, 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. 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) 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.
(c) Any funds remaining upon the effective date of this section
in an impound account formerly provided for pursuant to this
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chapter, shall be transferred to the Senior Citizens and Disabled
Citizens Property Tax Postponement Fund.
(d) If the Controller determines that there are insufficient
moneys in the fund to cover the cost of all claims that will be
approved for the postponement of property taxes in that fiscal year,
the Controller shall notify the Director of Finance on or before
April 1 of each year of the deficiency. The Director of Finance
may authorize a transfer from the General Fund to the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund
in an amount necessary to cover the costs of paying those claims
within 60 days of receiving notice of deficiency and not sooner
than 30 days after providing written notification of the
authorization of that expenditure to the chairperson of the fiscal
committees of each house of the Legislature and the Chairperson
of the Joint Legislative Budget Committee.
SEC. 2. Section 16182 of the Government Code, as amended
by Section 2 of Chapter 391 of the Statutes of 2015, 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.
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AB 1952
(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 Controller shall provide the county tax collector
and the county assessor with a copy of the notice of lien which
has been executed.
(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
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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, as amended
by Section 3 of Chapter 391 of the Statutes of 2015, 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.
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AB 1952 —10—
(c)
10—
(c) In computing interest in accordance with this section,
fractions of a cent shall be disregarded.
(d) For the purpose of this section, the time a payment is made
shall be deemed to be the time a payment 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, 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 16184 of the Government Code is amended
to read:
16184. (a) The Controller shall reduce the amount of the
obligation secured by the lien against the real property by the
amount of any payments received for that purpose and by
notification of any amounts paid by the Franchise Tax Board
pursuant to Section 20564 of the Revenue and Taxation Code or
by any amounts authorized pursuant to subdivision (f) of Section
20621 of the Revenue and Taxation Code. Any payment received
for that purpose shall be applied in the following order:
(1) To any interest due on the loan.
(2) To the principal property tax amount.
(3) The remaining balance, if any, to administrative fees.
(b) The Controller shall also increase the amount of the
obligation secured by the lien by the amount of any subsequent
payments made pursuant to Section 16180 with respect to the real
property and to reflect the accumulation of interest. All such
increases and decreases shall be entered in the record described in
Section 16181.
SEC. 5. Section 16186.5 of the Government Code is amended
to read:
16186.5. In the event that a payment which is made to satisfy
an obligation secured by a lien for postponed property taxes
exceeds the amount owing to the state, the Controller may refund
the overpayment to the party entitled thereto. The Controller shall
pay those refunds out of the amount appropriated by Section 16180,
or any appropriation in lieu thereof.
SEC. 6. Section 16200 of the Government Code is amended
to read:
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16200. In the event that the Controller receives the notice
described in Section 16187 of this code or Section 3375 of the
Revenue and Taxation Code, the Controller may take any of the
following actions which will best serve the interests of the state:
(a) Notify, by United States mail, the tax collector or other party
that such notice has been received and that the Controller must be
given at least 20 days prior notice of the date that the property will
be sold at auction. If the Controller elects to proceed under this
subdivision, the Controller may use funds appropriated by Section
16180 to bid on the property at the auction up to the amount
secured by the state's lien on the property and any lien on such
property having priority over the state's lien. All additional
amounts paid pursuant to this subdivision shall be added to the
amount secured by the lien on such property provided for in Article
1 (commencing with Section 16180) of this chapter.
(b) Acknowledge by United States mail that the notice required
by Section 16187 of this code or Section 3375 of the Revenue and
Taxation Code has been received.
SEC. 7. Section 16202 of the Government Code is amended
to read:
16202. Notwithstanding any other provision of law, in the
event that the state acquires an interest in real property pursuant
to subdivision (b) of Section 16200, the Controller may, in addition
to the options provided in Section 16201, take any other action
with respect to that real property interest as will best serve the
interest of the state. These actions may include, but shall not be
limited to, the sale, lease, or retention of any interest so acquired.
The Controller may contract with licensed real estate brokers,
maintenance and repair contractors, security contractors, appraisers,
property managers, insurance brokers, and any other experts or
specialists as may be necessary to protect or preserve the state's
interest in that property. The Controller may pay the costs incurred
pursuant to those contracts out of the amount appropriated by
Section 16180, or from any appropriation in lieu thereof.
The sale of those interests may be made on the basis of
conventional financing arrangements including the securing of
payment through the use of promissory notes, deeds of trust, and
other accepted methods of deferred payment.
SEC. 8. Section 27282 of the Government Code is amended
to read:
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AB 1952 —12-
27282.
12-
27282. (a) The following documents maybe recorded without
acknowledgment, certificate of acknowledgment, or further proof:
(1) A judgment affecting the title to or possession of real
property, authenticated by the certificate of the clerk of the court
in which the judgment was rendered.
(2) A notice of support judgment, an interstate lien, a release
of lien, or any other document completed and recorded by a local
child support agency or a state agency acting pursuant to Title
IV -D of the Social Security Act (42 U.S.C. Sec. 651 et seq.).
(3) A notice of location of mining claim.
(4) Certificates of amounts of taxes, interest and penalties due,
notices of state tax liens and extensions thereof executed by the
state, county, or city taxing agencies or officials pursuant to
Chapter 14 (commencing with Section 7150) of Division 7 of Title
1 of the Government Code, and Sections 2191.3, 2191.4, and 11495
of the Revenue and Taxation Code, and releases, partial releases,
and subordinations executed pursuant to Chapter 14 (commencing
with Section 7150) of Division 7 of Title 1 of the Government
Code, and Sections 2191.4, 11496, 14307, and 14308 of the
Revenue and Taxation Code.
(5) Notices of lien for postponed property taxes executed
pursuant to Section 16182.
(6) A release or discharge of a lien for postponed property taxes
as authorized by Chapter 6 (commencing with Section 16180) of
Part 1 of Division 4 of Title 2.
(7) A fixture filing as defined by paragraph (40) of subdivision
(a) of Section 9102 of the Commercial Code.
(8) An order affecting title to or possession of real property
issued by a court in an action subject to Section 12527,
authenticated by the certificate of the clerk of the court in which
the order was issued or a copy of that order authenticated by a
declaration under penalty of perjury by the Attorney General or
by an assistant or deputy of the Attorney General attesting that the
contents of the copy are the same as the original order issued by
the court.
(9) A court certified copy of a satisfaction of judgment.
(10) A certificate of correction filed pursuant to Sections 66470
and 66472.1.
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(b) Any document described in this section, from the time it is
filed with the recorder for record, is constructive notice of the
contents thereof to subsequent purchasers and mortgagees.
SEC. 9. Section 2514 of the Revenue and Taxation Code is
amended to read:
2514. (a) Upon receipt of the payment by the Controller
described in Section 20602, 20630, or 20640.6, the following shall
occur:
(1) The tax collector shall maintain a record of the fact that taxes
on the property have been postponed. In the case of the secured
roll, this information may be entered in that portion of the roll
which has been designated for tax default information as required
by Section 3439.
(2) With respect to a claimant whose property taxes are paid by
a lender from an impound, trust, or other type of account described
in Section 2954 of the Civil Code, the tax collector shall notify
the auditor of the claimant's name and address, and the duplicate
amount of money the Controller paid to the tax collector.
The county auditor, treasurer, or disbursing officer shall refund
the amount of money, based on the payment by the Controller, to
the claimant within 60 days of the replicated payment.
(b) The procedures established by this chapter shall not be
construed to require a lender to alter the manner in which a lender
makes payment of the property taxes of such a claimant.
SEC. 10. Section 2515 of the Revenue and Taxation Code is
amended to read:
2515. (a) Upon receiving a copy of the "notice of lien for
postponed property taxes" from the Controller, the assessor shall
maintain a record of 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.
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AB 1952 —14—
SEC.
14—
SEC. 11. Section 2781 of the Revenue and Taxation Code is
amended to read:
2781. If a taxpayer or agent for the taxpayer submits a payment
indicated for application to a specific tax or tax installment and
that tax or tax installment already has been paid, the county shall
return the replicated payment to the tendering party within 60 days
of the date the payment becomes final. For purposes of this section,
"final" means the original payment that is not subject to
chargeback, dishonor, or reversal. However, when a replicated
payment is made of any tax or tax installment paid by the
Controller to the county pursuant to Section 2514, the amount of
the replicated payment shall be paid to the claimant on whose
behalf the payment was made.
SEC. 12. Section 20503 of the Revenue and Taxation Code is
amended to read:
20503. (a) "Income" means adjusted gross income as defined
in Section 17072 plus all of the following cash items:
(1) Public assistance and relief.
(2) Nontaxable amount of pensions and annuities.
(3) Social security benefits (except Medicare).
(4) Railroad retirement benefits.
(5) Unemployment insurance payments.
(6) Veterans' benefits.
(7) Exempt interest received from any source.
(8) Gifts and inheritances in excess of three hundred dollars
($300), other than transfers between members of the household.
Gifts and inheritances include noncash items.
(9) Amounts contributed on behalf of the contributor to a
tax-sheltered retirement plan or deferred compensation plan.
(10) Temporary workers' compensation payments.
(11) Sick leave payments.
(12) Nontaxable military compensation as defined in Section
112 of the Internal Revenue Code.
(13) Nontaxable scholarship and fellowship grants as defined
in Section 117 of the Internal Revenue Code.
(14) Nontaxable gain from the sale of a residence as defined in
Section 121 of the Internal Revenue Code.
(15) Life insurance proceeds to the extent that the proceeds
exceed the expenses incurred for the last illness and funeral of the
deceased spouse of the claimant. "Expenses incurred for the last
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illness" includes unreimbursed expenses paid or incurred during
the income calendar year and any expenses paid or incurred
thereafter up until the date the claim is filed. For purposes of this
paragraph, funeral expenses shall not exceed five thousand dollars
($5,000).
(16) If an alternative minimum tax is required to be paid
pursuant to Chapter 2.1 (commencing with Section 17062) of Part
10, the amount of alternative minimum taxable income (whether
or not cash) in excess of the regular taxable income.
(17) Annual winnings from the California Lottery in excess of
six hundred dollars ($600) for the current year.
(b) For purposes of this chapter, total income shall be determined
for the calendar year (or approved fiscal year ending within that
calendar year) which ends within the fiscal year for which
assistance is claimed.
(c) For purposes of Chapter 2 (commencing with Section 20581),
Chapter 3 (commencing with Section 20625), and Chapter 3.5
(commencing with Section 20640), all losses and nonexpenses
shall be converted to zero for the purpose of determining whether
the homeowner meets the Property Tax Postponement requirement.
(d) For purposes of Chapter 2 (commencing with Section
20581), Chapter 3 (commencing with Section 20625), and Chapter
3.5 (commencing with Section 20640), total income shall be
determined for the calendar year ending immediately prior to the
commencement of the fiscal year for which postponement is
claimed.
SEC. 13. Section 20505 of the Revenue and Taxation Code,
as amended by Section 8 of Chapter 391 of the Statutes of 2015,
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
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day
16—
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
February 10 of the fiscal year for which postponement is claimed.
SEC. 14. Section 20583 of the Revenue and Taxation Code is
amended to read:
20583. (a) "Residential dwelling" means a dwelling occupied
as the principal place of residence of the claimant, and so much
of the land surrounding it as is reasonably necessary for use of the
dwelling as a home, owned by the claimant, the claimant and
spouse, or by the claimant and either another individual eligible
for postponement under this chapter or an individual described in
subdivision (a), (b), or (c) of Section 20511 and located in this
state. It shall include condominiums that are assessed as realty for
local property tax purposes. It also includes part of a multidwelling
or multipurpose building and a part of the land upon which it is
built.
(b) As used in this chapter in reference to ownership interests
in residential dwellings, "owned" includes (1) the interest of a
vendee in possession under a land sale contract provided that the
contract or memorandum thereof is recorded and only from the
date of recordation of the contract or memorandum thereof in the
office of the county recorder where the residential dwelling is
located, (2) the interest of the holder of a life estate provided that
the instrument creating the life estate is recorded and only from
the date of recordation of the instrument creating the life estate in
the office of the county recorder where the residential dwelling is
located, but "owned" does not include the interest of the holder of
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any remainder interest or the holder of a reversionary interest in
the residential dwelling, (3) the interest of a joint tenant or a tenant
in common in the residential dwelling or the interest of a tenant
where title is held in tenancy by the entirety or a community
property interest where title is held as community property, and
(4) the interest in the residential dwelling in which the title is held
in trust, as described in subdivision (d) of Section 62, provided
that the Controller determines that the state's interest is adequately
protected.
(c) Except as provided in subdivision (c), and Chapter 3
(commencing with Section 20625), ownership must be evidenced
by an instrument duly recorded in the office of the county where
the residential dwelling is located.
(d) "Residential dwelling" does not include any of the following:
(1) Any residential dwelling in which the owners do not have
an equity of at least 40 percent of the full value of the property as
determined for purposes of property taxation or at least 40 percent
of the fair market value as determined by the Controller and where
the Controller determines that the state's interest is adequately
protected. The 40 -percent equity requirement shall be met each
time the claimant or authorized agent files a postponement claim.
(2) Any residential dwelling in which the claimant's interest is
held pursuant to a contract of sale or under a life estate, unless the
claimant obtains the written consent of the vendor under the
contract of sale, or the holder of the reversionary interest upon
termination of the life estate, for the postponement of taxes and
the creation of a lien on the real property in favor of the state for
amounts postponed pursuant to this act.
(3) Any residential dwelling on which the claimant does not
receive a secured tax bill.
(4) Any residential dwelling in which the claimant's interest is
held as a possessory interest, except as provided in Chapter 3.5
(commencing with Section 20640).
(5) Any residential dwelling that is subject to a Property
Assessed Clean Energy bond, or PACE bond, as defined in Section
26054 of the Public Resources Code.
SEC. 14.5. Section 20583 of the Revenue and Taxation Code
is amended to read:
20583. (a) "Residential dwelling" means a dwelling occupied
as the principal place of residence of the claimant and so much of
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the
18—
the land surrounding it as is reasonably necessary for use of the
dwelling as a home, owned by the claimant, the claimant and
spouse, or by the claimant and either another individual eligible
for postponement under this chapter or an individual described in
subdivision (a), (b), or (c) of Section 20511 and located in this
state. It shall include condominiums that are assessed as realty for
local property tax purposes. It also includes part of a multidwelling
or multipurpose building and a part of the land upon which it is
built.
(b) As used in this chapter in reference to ownership interests
in residential dwellings, "owned" includes (1) the interest of a
vendee in possession under a land sale contract provided that the
contract or memorandum thereof is recorded and only from the
date of recordation of the contract or memorandum thereof in the
office of the county recorder where the residential dwelling is
located, (2) the interest of the holder of a life estate provided that
the instrument creating the life estate is recorded and only from
the date of recordation of the instrument creating the life estate in
the office of the county recorder where the residential dwelling is
located, but "owned" does not include the interest of the holder of
any remainder interest or the holder of a reversionary interest in
the residential dwelling, (3) the interest of a joint tenant or a tenant
in common in the residential dwelling or the interest of a tenant
where title is held in tenancy by the entirety or a community
property interest where title is held as community property, and
(4) the interest, including the interest of a beneficiary of a special
needs trust, in the residential dwelling in which the title is held in
trust, as described in subdivision (d) of Section 62, provided that
the Controller determines that the state's interest is adequately
protected.
(c) Except as provided in subdivision (c), and Chapter 3
(commencing with Section 20625), ownership must be evidenced
by an instrument duly recorded in the office of the county where
the residential dwelling is located.
(d) "Residential dwelling" does not include any of the following:
(1) Any residential dwelling in which the owners do not have
an equity of at least 40 percent of the full value of the property as
determined for purposes of property taxation or at least 40 percent
of the fair market value as determined by the Controller and where
the Controller determines that the state's interest is adequately
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protected. The 40 -percent equity requirement shall be met each
time the claimant or authorized agent files a postponement claim.
(2) Any residential dwelling in which the claimant's interest is
held pursuant to a contract of sale or under a life estate, unless the
claimant obtains the written consent of the vendor under the
contract of sale, or the holder of the reversionary interest upon
termination of the life estate, for the postponement of taxes and
the creation of a lien on the real property in favor of the state for
amounts postponed pursuant to this act.
(3) Any residential dwelling on which the claimant does not
receive a secured tax bill.
(4) Any residential dwelling in which the claimant's interest is
held as a possessory interest, except as provided in Chapter 3.5
(commencing with Section 20640).
(5) Any residential dwelling that is subject to a Property
Assessed Clean Energy bond, or PACE bond, as defined in Section
26054 of the Public Resources Code.
SEC. 15. Section 20585 of the Revenue and Taxation Code is
amended to read:
20585. Postponement shall not be allowed under this chapter,
Chapter 3 (commencing with Section 20625), or Chapter 3.5
(commencing with Section 20640) if household income exceeds
thirty five thousand five hundred dollars ($35,500).
SEC. 16. 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), 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. 17. Section 20621 of the Revenue and Taxation Code,
as amended by Section 13 of Chapter 391 of the Statues of 2015,
is amended to read:
20621. Each claimant applying for postponement under Article
2 (commencing with Section 2060 1) shall file a claim under penalty
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of
20—
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 February 10 of the fiscal year for
which the postponement is claimed.
(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. 18. Section 20627 of the Revenue and Taxation Code,
as amended by Section 15 of Chapter 391 of the Statutes of 2015,
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
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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 February 10 of
the fiscal year for which the postponement is claimed.
SEC. 19. Section 20640.3 of the Revenue and Taxation Code,
as amended by Section 29 of Chapter 391 of the Statutes of 2015,
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 subdivision (d) of Section 20503.
(c) Is either (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 February 10 of
the fiscal year for which the postponement is claimed.
SEC. 20. Section 20641 of the Revenue and Taxation Code is
amended to read:
20641. Forms filed pursuant to this part shall not be under oath
but shall contain, or be verified by, a written declaration that they
are made under the penalty of perjury. All forms filed pursuant to
Chapter 1 (commencing with Section 20501) shall require such
information as the Franchise Tax Board may from time to time
prescribe, and shall be filed with the Franchise Tax Board. The
Franchise Tax Board shall prepare blank forms for the claimant
and shall distribute them throughout the state and furnish them
upon application. All forms filed pursuant to Chapter 2
(commencing with Section 20581), Chapter 3 (commencing with
Section 20625), or Chapter 3.5 (commencing with Section 20640),
shall require such information as the Controller may from time to
time prescribe, shall be filed with the Controller, and the Controller
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shall
22—
shall prepare such blank forms for the claimant and shall distribute
them throughout the state and furnish them upon application.
SEC. 21. 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, a payment from the Controller
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
payment from the Controller, the tax collector may return the
payment to the Controller to deny the postponement claim.
(c) (1) The Controller shall notify the claimant in writing when
the payment 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 payment from
the Controller to the county and that if this payment is not received
by the tax collector, the tax collector may return the payment to
the Controller to deny the postponement claim.
SEC. 22. 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 transfer funds to the county for the amount of
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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 a
payment has been made pursuant to subdivision (a).
SEC. 23. Section 14.5 of this bill incorporates amendments to
Section 20583 of the Revenue and Taxation Code proposed by
both this bill and Senate Bill 909. It shall only become operative
if (1) both bills are enacted and become effective on or before
January 1, 2017, (2) each bill amends Section 20583 of the
Revenue and Taxation Code, and (3) this bill is enacted after Senate
Bill 909, in which case Section 14 of this bill shall not become
operative.
SEC. 24. If the Commission on State Mandates determines
that this act contains costs mandated by the state, reimbursement
to local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.
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Approved , 2016
Governor