Bill Text: CA AB2231 | 2013-2014 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: State Controller: property tax postponement.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2014-09-28 - Chaptered by Secretary of State - Chapter 703, Statutes of 2014. [AB2231 Detail]
Download: California-2013-AB2231-Amended.html
Bill Title: State Controller: property tax postponement.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2014-09-28 - Chaptered by Secretary of State - Chapter 703, Statutes of 2014. [AB2231 Detail]
Download: California-2013-AB2231-Amended.html
BILL NUMBER: AB 2231 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 4, 2014
AMENDED IN SENATE JUNE 19, 2014
AMENDED IN ASSEMBLY APRIL 21, 2014
AMENDED IN ASSEMBLY MARCH 24, 2014
INTRODUCED BY Assembly Members Gordon, Levine, and Patterson
FEBRUARY 20, 2014
An act to amend Sections 16181, 16182, 16184, 16186, 16190, 16200,
16210, 16211, 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, 2515, 3375, 3691,20503,
20583, 20584, 20602, 20621, 20622, 20639.10, 20639.11, 20639.12,
20645.5, and 20645.6 of, to amend and repeal Section 20623 of, to
repeal Section 20583.1 of, to add Section 3376 to, the Revenue and
Taxation Code, relating to state government, and making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.
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, 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 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, 2016,
and would repeal this prohibition on January 1, 2017. This bill would
authorize a claim for postponement to be filed after September 1 of
the fiscal year in which the postponement that is
claimed begins, and on or before April 10 of that
fiscal year, as specified.
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, and
make conforming changes to related provisions.
The Senior Citizens Mobilehome Property Tax Postponement Law
provides for all amounts postponed in the case of a mobilehome to be
due if the claimant dies, unless the surviving spouse or other person
eligible to postpone continues to occupy the mobilehome.
This bill would limit this exception to the circumstance in which
the surviving spouse who was previously approved continues to occupy
the mobilehome.
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 require any impound account funds remaining on January 1, 2015,
to be transferred to the 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 establish a fee to
implement these provisions, not to exceed $10.
This bill would authorize the Controller to charge a fee not
exceeding $30.
Existing law authorizes the Controller to subordinate the lien for
postponed property taxes if the Controller determines subordination
is appropriate.
This bill would eliminate that authorization and make other
conforming changes.
Existing law requires that the owners
owner's equity interest in the residential dwelling be at least
20% of the full value of the property at the time the claimant
files an initial postponement claim in order to be eligible to
participate in the postponement program.
This bill would increase the equity requirement to at least
40%. 40% for each postponement claim.
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 the
tax collector or the assessor to notify the Controller if
assessment records applicable to property for which taxes have been
postponed reveal a change in ownership within 60 days of
having received notification of processing that
change, and require that the county tax collector or assessor
notify the Controller within 60 days of all property subject to
a "Notice of Lien for Postponed Property Taxes" and processed
for notice of becoming tax defaulted, becoming subject
to collection procedures, defaulted or of
the claimant for that property, if residential, transferring
ownership or changing his or her mailing address, or having been
determined to be deceased.
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. The bill would require the notice of
lien to be recorded within 14 days of the transfer of funds and
notice of lien to the county by the Controller. The bill would impose
additional requirements in the case of liens upon mobilehome loans
established prior to February 20, 2009, and specify procedures to be
followed by the Controller if the obligation secured by the lien is
paid in full or otherwise discharged.
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. The bill would require the tax collector or
assessor, in the case of a tax-defaulted property sale, to include
the outstanding balance of the property tax postponement loan in the
minimum bid. The bill would require that, in the event that the
property fails to receive the minimum bid and the minimum bid is
reduced, all moneys paid to the Controller's office and county tax
collector be a proportionate allocation of the total moneys owed.
The bill would also require the tax collector or his or her
designee to certify, under penalty of perjury, that the information
is requested for 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 law authorizes a tax collector, 5 years or more after a
nonresidential commercial property has become tax defaulted, to sell
the property, as specified.
This bill would authorize a county to adopt conditions and
procedures to delay the sale of property that it deems may be
eligible to file a property tax postponement claim, as specified.
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.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16180 of the Government Code is repealed.
SEC. 2. Section 16180 is added to the Government Code, to read:
16180. (a) There is hereby created in the State Treasury a Senior
Citizens and Disabled Citizens Property Tax Postponement Fund. The
fund shall be an interest-bearing fund. Subject to subdivision (b)
and notwithstanding Section 13340, the fund is continuously
appropriated to the Controller, commencing January 1, 2015, for
purposes of administering this chapter, including, but not limited
to, necessary administrative costs and disbursements relating to the
postponement of property taxes pursuant to the Senior Citizens and
Disabled Citizens Property Tax Postponement Law (Chapter 2
(commencing with Section 20581) of Part 10.5 of Division 2 of the
Revenue and Taxation Code).
(b) The Controller shall transfer any moneys in the fund in excess
of ten million dollars ($10,000,000) to the General Fund.
(c) Any loan repayments relating to the Senior Citizens and
Disabled Citizens Property Tax Postponement Law shall be deposited
into the Senior Citizens and Disabled Citizens Property Tax
Postponement Fund.
(d) Any funds remaining on January 1, 2015, in an impound account
formerly provided for pursuant to this chapter, shall be transferred
to the Disabled Citizens Property Tax Postponement Fund.
SEC. 3. Section 16181 of the Government Code is amended to read:
16181. (a) The Controller shall maintain a record of all
properties against which a notice of lien for postponed property
taxes has been recorded. The record shall include, but not be limited
to, the names of each claimant, a description of the real property
against which the lien is recorded, the identification number of the
notice of lien assigned by the Controller, and the amount of the
lien.
(b) Upon written request of any person or entity, or the agent of
either, having a legal or equitable interest in real property that is
subject to a lien for postponed taxes, the Controller shall within
10 working days following receipt of the request issue a written
statement showing the amount of the obligation secured by the lien as
of the date of the statement and any other information as will
reasonably enable the person or entity, or the agent of either, to
determine the amount to be paid the Controller in order to obtain a
certificate of release or discharge of the lien for postponed taxes.
(c) The Controller shall adopt regulations necessary to implement
the provisions of this chapter and may establish a reasonable fee,
not to exceed thirty dollars ($30), for the provision of the
statement of lien status provided for herein.
SEC. 4. Section 16182 of the Government Code is amended to read:
16182. (a) All sums paid by the Controller under the provisions
of this chapter, together with interest thereon, shall be secured by
a lien in favor of the State of California when funds are transferred
to the county by the Controller upon the real property for which
property taxes have been postponed. In the case of a residential
dwelling which is part of a larger parcel taxed as a unit, such as a
duplex, farm, or multipurpose or multidwelling building, the lien
shall be against the entire tax parcel.
(b) In the case of real property:
(1) The lien shall be evidenced by a notice of lien for postponed
property taxes executed by the Controller, or the authorized delegate
of the Controller, and shall secure all sums paid or owing pursuant
to this chapter, including amounts paid subsequent to the initial
payment of postponed taxes on the real property described in the
notice of lien.
(2) The notice of lien may bear the facsimile signature of the
Controller. Each signature shall be that of the person who shall be
in the office at the time of execution of the notice of lien;
provided, however, that such notice of lien shall be valid and
binding notwithstanding any such person having ceased to hold the
office of Controller before the date of recordation.
(3) The form and contents of the notice of lien for postponed
property taxes shall be prescribed by the Controller and shall
include, but not be limited to, the following:
(A) The names of all record owners of the real property for which
the Controller has advanced funds for the payment of real property
taxes.
(B) A description of the real property for which real property
taxes have been paid.
(C) The identification number of the notice of lien which has been
assigned the lien by the Controller.
(4) Within 14 business days of the transfer of funds and the
notice of lien to the county by the Controller, the notice of lien
shall be recorded in the office of the county recorder for the county
in which the real property subject to the lien is located.
(5) The recorded notice of lien shall be indexed in the Grantor
Index to the names of all record owners of the real property and in
the Grantee Index to the Controller of the State of California.
(6) After the notice of lien has been duly recorded and indexed,
it shall be returned by the county recorder to the office of the
Controller. The recorder shall provide the county tax collector with
a copy of the notice of lien which has been recorded by the
Controller.
(7) From the time of recordation of a notice of lien for postponed
property taxes, a lien shall attach to the real property described
therein and shall have the priority of a judgment lien for all
amounts secured thereby, except that the lien shall remain in effect
until it is released by the Controller in the manner prescribed by
Section 16186.
(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 excused by the Controller, or the authorized delegate
of the Controller, and shall secure all sums paid owing pursuant to
this chapter.
(2) From the time that the Department of Housing and Community
Development receives the notice of lien from the Controller, the
department shall impose a moratorium on any other amendments to the
permanent title record of the mobilehome unit until released by the
controller in the manner prescribed by Section 16186, or an
authorization for the amendments is given by the Controller in
writing.
(3) From the time of filing a notice of lien, a lien shall attach
to the mobilehome for which eligibility for the postponement of
property taxes has been granted.
SEC. 5. Section 16184 of the Government Code is amended to read:
16184. 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 or by any
amounts authorized pursuant to subdivision (f) of Section 20621 of
the Revenue and Taxation Code. 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. 6. Section 16185 of the Government Code is repealed.
SEC. 7. Section 16186 of the Government Code is amended to read:
16186. (a) If at any time the amount of the obligation secured by
the lien for postponed property taxes is paid in full or otherwise
discharged, the Controller, or the authorized delegate of the
Controller, shall in the case of real property:
(1) Execute and cause to be recorded in the office of the county
recorder of the county wherein the real property described in the
lien is located, a release of the lien conclusively evidencing the
satisfaction of all amounts secured by the lien. The cost of
recording the release of the lien shall be added to and become part
of the obligation secured by the lien being released.
(2) Direct the tax collector to remove from the secured roll, the
information required to be entered thereon by paragraph (1) of
subdivision (a) of Section 2514 of the Revenue and Taxation Code with
respect to the property described in the lien.
(3) Direct the assessor to remove from the assessment records
applicable to the property described in the lien, the information
required to be entered on such records by Section 2515 of the Revenue
and Taxation Code.
(b) If at any time the amount of the obligation secured by the
lien for postponed property taxes is paid in full or otherwise
discharged, the Controller, or the authorized delegate of the
Controller Controller, shall, in the
case of mobilehome loans established prior to February 20, 2009:
(1) Direct the tax collector to remove from the secured roll the
information required to be entered thereon by paragraph (1) of
subdivision (a) of Section 2514 of the Revenue and Taxation Code.
(2) Transmit a Release of Lien to the owner of the mobilehome, or
the owner's heirs or assigns. The owner, or the owner's heirs or
assigns, shall transmit the Release of Lien, and a fee of six dollars
($6), to the Department of Housing and Community Development. Upon
receipt of the Release of Lien and the fee, the department shall
terminate the restriction on the permanent title record as provided
in Section 16182.
SEC. 8. Section 16190 of the Government Code is amended to read:
16190. All amounts owing pursuant to Article 1 (commencing with
Section 16180) of this chapter shall become due if any of the
following occurs:
(a) The claimant, who is either the sole owner or sole possessory
interestholder of the residential dwelling, as defined in Section
20583 or Section 20640 of the Revenue and Taxation Code, or a coowner
or copossessory interestholder with a person other than a spouse or
other individual eligible to postpone property taxes pursuant to
Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing
with Section 20639), or Chapter 3.5 (commencing with Section 20640)
of Part 10.5 of Division 2 of such code, ceases to occupy the
premises as his residential dwelling, dies, or sells, conveys, or
disposes of the property, or allows any tax or special assessment on
the premises described in Section 20583 of such code to become
delinquent. If the sole owner or possessory interestholder claimant
dies and his or her surviving spouse inherits the premises and
continues to own and occupy it as his or her principal place of
residence, then the lien amount does not become due and payable
unless taxes or special assessments described in the preceding
sentence become delinquent, or such surviving spouse dies, or sells,
conveys, or disposes of the interest in the property.
(b) The claimant, who is a coowner or copossessory interestholder
of the residential dwelling, as defined in Section 20583 or Section
20640.2 of the Revenue and Taxation Code, with a spouse or another
individual eligible to postpone property taxes pursuant to Chapter 2
(commencing with Section 20581), Chapter 3.3 (commencing with Section
20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5
of Division 2 of such code, dies, and the surviving spouse or other
surviving eligible individual allows any tax or special assessment on
the premises described in Section 20583 of such code to become
delinquent or such surviving spouse or other individual ceases to
occupy the premises as a residential dwelling, dies, or conveys, or
disposes of the interest in the property.
(c) The failure of the claimant to perform those acts the claimant
is required to perform where such performance is secured, or will be
secured in the event of nonperformance, by a lien which is senior to
that of the lien provided by Section 16182.
(d) Postponement was erroneously allowed because eligibility
requirements were not met.
(e) The claimant is refinancing the residential dwelling.
(f) The claimant has elected to participate in a reverse mortgage
program for the residential dwelling.
SEC. 9. Section 16200 of the Government Code is amended to read:
16200. In the event that the Controller receives the notice
described in Section 16187 of this code or Section 3375 of the
Revenue and Taxation Code, the Controller may take any of the
following actions which will best serve the interests of the state:
(a) 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 16100 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. 10. Section 16210 of the Government Code is amended to read:
16210. In the event that the amount secured by the state's lien
provided for in Article 1 (commencing with Section 16180) is paid by
reason of the sale or condemnation of the property on which the lien
attaches, the funds so received shall be placed in the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund.
SEC. 11. Section 16211 of the Government Code is amended to read:
16211. The claimant under Chapter 2 (commencing with Section
20581), Chapter 3 (commencing with Section 20625), or Chapter 3.5
(commencing with Section 20640) of Part 10.5 of Division 2 of the
Revenue and Taxation Code whose residential dwelling was sold or
condemned shall not draw upon the amount in the Senior Citizens and
Disabled Citizens Property Tax Postponement Fund.
SEC. 12. Section 16211.5 of the Government Code is amended to
read:
16211.5. (a) In the event that the real property securing the
state's lien provided for in Article 1 (commencing with Section
16180) is the residential dwelling of a claimant under Chapter 2
(commencing with Section 20581) of Part 10.5 of Division 2 of the
Revenue and Taxation Code and is voluntarily sold, the funds derived
from the voluntary sale of the residential dwelling shall be placed
in the Senior Citizens and Disabled Citizens Property Tax
Postponement Fund. At that time, the Controller shall release the
state's lien in the manner prescribed by Section 16186.
(b) The claimant under Chapter 2 (commencing with Section 20581)
of Part 10.5 of Division 2 of the Revenue and Taxation Code whose
residential dwelling was voluntarily sold shall not draw upon the
amount in the Senior Citizens and Disabled Citizens Property Tax
Postponement Fund.
SEC. 13. Section 16212 of the Government Code is repealed.
SEC. 14. Section 16213 of the Government Code is repealed.
SEC. 15. Section 16214 of the Government Code is repealed.
SEC. 16. Section 2514 of the Revenue and Taxation Code is amended
to read:
2514. (a) 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 transferred to the tax
collector via an electronic fund transfer.
The county auditor, treasurer, or disbursing officer shall 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.
(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. 17. Section 2515 of the Revenue and Taxation Code is amended
to read:
2515. (a) Upon receipt processing
of a "notice of lien for postponed property taxes" from the tax
collector, the tax collector or the assessor
assessor, whichever is applicable, shall
immediately:
(1) Enter, on the notice of lien, a description of the real
property for which the taxes have been paid by use of a certificate
of eligibility pursuant to Section 2514. Such description shall be a
"metes and bounds," "lot-block-tract," or such other description as
is determined by the Controller to sufficiently describe the real
property for the purpose of securing the state's lien.
(2) Enter on the notice of lien, the names of all record owners of
the property described under subdivision (a) of this section, as
disclosed by the assessor's records.
(3) Upon entry of the information required by subdivisions (a) and
(b) of this section on the notice of lien, the assessor shall
immediately forward the notice of lien to the county recorder.
(4) Enter on the assessment records applicable to the property,
the fact that the taxes on the property have been postponed and the
Controller's identification number, and shall, 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 having received notification 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 lessees, and other lienors.
SEC. 18. Section 3375 of the Revenue and Taxation Code is amended
to read:
3375. The county tax collector or assessor, whichever is
applicable, shall notify the Controller within 60 days, in the
manner as the Controller shall direct, of all property subject to a
"Notice of Lien for Postponed Property Taxes" recorded pursuant to
Section 16182 of the Government Code that:
and for which notice of any of the following has been processed:
(a) Becomes tax defaulted subsequent to the date of entry on the
secured roll of the information required by subdivision (a) of
Section 2514; or
(b) Becomes subject to those collection procedures that are
available for collection of delinquent taxes or assessments on the
unsecured roll; or
(c)
(b) The claimant of which transfers ownership or
changes his or her mailing address, and the property is a residential
property; or
(d)
(c) The claimant of which has been determined to be
deceased.
SEC. 19. Section 3376 is added to the Revenue and Taxation Code,
to read:
3376. (a) Upon request of the tax collector, the Controller shall
provide to the tax collector information that is required for the
preparation and enforcement of the sale of property under Part 6
(commencing with Section 3351) of Division 1. This information may
include social security numbers.
(b) The tax collector or his or her designee shall certify, under
penalty of perjury, to the Controller, that the information requested
pursuant to subdivision (a) is required for the purposes specified
in subdivision (a).
(c) Any information provided to the tax collector pursuant
subdivision (a) is not a public record and is not open to public
inspection.
(d) In the event of a tax-defaulted property sale, the tax
collector or assessor shall include the outstanding balance of the
property tax postponement loan in the minimum bid. Should the
property fail to receive the minimum bid, and the minimum bid is
reduced, all moneys paid to the Controller's office and county tax
collector shall be a proportionate allocation of the total moneys
owed.
SEC. 20. Section 3691 of the Revenue and Taxation Code is amended
to read:
3691. (a) (1) (A) Five years or more, or three years or more in
the case of nonresidential commercial property, after the property
has become tax defaulted, the tax collector shall have the power to
sell and shall attempt to sell in accordance with Section 3692 all or
any portion of tax-defaulted property that has not been redeemed,
without regard to the boundaries of the parcels, as provided in this
chapter, unless by other provisions of law the property is not
subject to sale. Any person, regardless of any prior or existing lien
on, claim to, or interest in, the property, may purchase at the
sale. In the case of tax-defaulted property that has been damaged by
a disaster in an area declared to be a disaster area by local, state,
or federal officials and whose damage has not been substantially
repaired, the five-year period set forth in this subdivision shall be
tolled until five years have elapsed from the date the damage to the
property was incurred.
(B) A county may elect, by an ordinance or resolution adopted by a
majority vote of its entire governing body, to adopt conditions and
procedures for the delay of sale of properties as described in
subparagraph (A) that it finds may be eligible to file a property tax
postponement claim with the State Controller prior to January 1,
2017.
(C) A county may elect, by an ordinance or resolution adopted by a
majority vote of its entire governing body, to have the five-year
time period described in subparagraph (A) apply to tax-defaulted
nonresidential commercial property.
(D) For purposes of this subdivision, "nonresidential commercial
property" means all property except the following:
(i) A constructed single-family or multifamily unit that is
intended to be used primarily as a permanent residence, is used
primarily as a permanent residence, or that is zoned as a residence,
and the land on which that unit is constructed.
(ii) Real property that is used and zoned for producing commercial
agricultural commodities.
(2) When a part of a tax-defaulted parcel is sold, the balance
continues subject to redemption and shall be separately valued for
the purpose of redemption in the manner provided by Chapter 2
(commencing with Section 4131) of Part 7.
(3) The tax collector shall provide notice of an intended sale
under this subdivision in the manner prescribed by Sections 3704 and
3704.5 and any other applicable statute. If the intended sale is of
nonresidential commercial property that has been tax-defaulted for
fewer than five years, all of the following apply:
(A) On or before the notice date, the tax collector shall also
mail, in the manner specified in paragraph (1) of subdivision (c) of
Section 2924b of the Civil Code, notice containing any information
contained in the publication required under Sections 3704 and 3704.5
to, as applicable, all of the following:
(i) The parties specified in paragraph (2) of subdivision (c) of
Section 2924b of the Civil Code.
(ii) Each taxing agency specified in paragraph (3) of subdivision
(c) of Section 2924b of the Civil Code.
(iii) Any beneficiary of a deed of trust or a mortgagee of any
mortgage recorded against the nonresidential commercial property, and
any assignee or vendee of these beneficiaries or mortgagees.
(B) For purposes of this paragraph:
(i) "Notice date" means a date not less than 45 days nor more than
120 days before an intended sale or not less than 45 days nor more
than 120 days before the date upon which the property may be sold.
(ii) "Recording date of the notice of default" as used in
subdivision (c) of Section 2924b of the Civil Code means a date that
is 30 days before the notice date.
(iii) "Deed of trust or mortgage being foreclosed" as used in
subdivision (c) of Section 2924b of the Civil Code means the
defaulted tax lien.
(b) (1) (A) Three years or more after the property has become tax
defaulted and a request has been made by a city, county, city and
county, or nonprofit organization pursuant to Section 3692.4, or a
request has been made by a person or entity that has recorded a
nuisance abatement lien on that property, to offer that property at
the next scheduled tax sale, the tax collector shall have the power
to sell and may sell all or any portion of tax-defaulted property
that has not been redeemed, without regard to the boundaries of
parcels, as provided in this chapter at the next scheduled tax sale,
unless by other provisions of law the property is not subject to
sale. Any person, regardless of any prior or existing lien on, claim
to, or interest in, the property, may purchase at the sale.
(B) When a part of a tax-defaulted parcel is sold, the balance
continues subject to redemption and shall be separately valued for
the purpose of redemption in the manner provided by Chapter 2
(commencing with Section 4131) of Part 7.
(2) Before the tax collector sells vacant residential developed
property pursuant to this subdivision, actual notice, by certified
mail, shall be provided to the property owner, if the property owner'
s identity can be determined from the county assessor's or county
recorder's records. The tax collector's power of sale shall not be
affected by the failure of the property owner to receive notice.
(3) Before the tax collector sells vacant residential developed
property pursuant to this subdivision, notice of the sale shall be
given in the manner specified by Section 3704.7.
(c) The amendments made to this section by the act adding this
subdivision apply to property that becomes tax defaulted on or after
January 1, 2005.
SEC. 21. Section 20503 of the Revenue and Taxation Code is amended
to read:
20503. (a) "Income" means adjusted gross income as defined in
Section 17072 plus all of the following cash items:
(1) Public assistance and relief.
(2) Nontaxable amount of pensions and annuities.
(3) Social security benefits (except Medicare).
(4) Railroad retirement benefits.
(5) Unemployment insurance payments.
(6) Veterans' benefits.
(7) Exempt interest received from any source.
(8) Gifts and inheritances in excess of three hundred dollars
($300), other than transfers between members of the household. Gifts
and inheritances include noncash items.
(9) Amounts contributed on behalf of the contributor to a
tax-sheltered retirement plan or deferred compensation plan.
(10) Temporary workers' compensation payments.
(11) Sick leave payments.
(12) Nontaxable military compensation as defined in Section 112 of
the Internal Revenue Code.
(13) Nontaxable scholarship and fellowship grants as
defined in Section 117 of the Internal Revenue Code.
(14) Nontaxable gain from the sale of a residence as defined in
Section 121 of the Internal Revenue Code.
(15) Life insurance proceeds to the extent that the proceeds
exceed the expenses incurred for the last illness and funeral of the
deceased spouse of the claimant. "Expenses incurred for the last
illness" includes unreimbursed expenses paid or incurred during the
income calendar year and any expenses paid or incurred thereafter up
until the date the claim is filed. For purposes of this paragraph,
funeral expenses shall not exceed five thousand dollars ($5,000).
(16) If an alternative minimum tax is required to be paid pursuant
to Chapter 2.1 (commencing with Section 17062) of Part 10, the
amount of alternative minimum taxable income (whether or not cash) in
excess of the regular taxable income.
(17) Annual winnings from the California Lottery in excess of six
hundred dollars ($600) for the current year.
(b) For purposes of this chapter, total income shall be determined
for the calendar year (or approved fiscal year ending within that
calendar year) which ends within the fiscal year for which assistance
is claimed.
(c) For purposes of this chapter, 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. 22. 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
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 at
the each time the claimant or authorized agent
files an initial a postponement
claim and tenders to the tax collector the initial
certificate of eligibility described in Sections 20602, 20639.6, and
20640.6. 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).
SEC. 23. Section 20583.1 of the Revenue and Taxation Code is
repealed.
SEC. 24. Section 20584 of the Revenue and Taxation Code is amended
to read:
20584. (a) "Property taxes" means all ad valorem property taxes,
special assessments, and other charges or user fees which are
attributable to the residential dwelling on the county tax bill and
the ad valorem property taxes, special assessments, or other charges
or user fees appearing on the tax bill of any chartered city which
levies and collects its own property taxes.
(b) Whenever a residential dwelling is an integral part of a
larger tax unit, such as a duplex, farm or a multipurpose building,
"property taxes" shall be the percentage of the total property taxes
as the value of the residential dwelling is of the value of the total
tax unit.
(c) "Property taxes" means property taxes for current fiscal years
for which the claim is made and excludes delinquent taxes for prior
fiscal years.
SEC. 25. Section 20602 of the Revenue and Taxation Code is amended
to read:
20602. Upon approval of a claim described in Section 20601, the
Controller shall make payments directly to a county tax collector for
the property taxes owed on behalf of a qualified claimant. Payments
may, upon appropriation by the Legislature, be made out of the
amounts otherwise appropriated pursuant to Section 16100 of the
Government Code that are secured by a secured tax lien and obligation
as specified by Article 1 (commencing with Section 16180) of Chapter
5 of Division 4 of the Government Code.
SEC. 26. Section 20621 of the Revenue and Taxation Code is amended
to read:
20621. Each claimant applying for postponement under Article 2
(commencing with Section 20601) shall file a claim under penalty of
perjury with the Controller on a form supplied by the Controller. The
claim shall contain all of the following:
(a) Evidence acceptable to the Controller that the person was a
"senior citizen claimant" or a "blind or disabled claimant."
(b) A statement showing the household income for the period set
forth in Section 20503.
(c) A statement describing the residential dwelling in a manner
that the Controller may prescribe.
(d) The name of the county in which the residential dwelling is
located and the address of the residential dwelling.
(e) The county assessor's parcel number applicable to the property
for which the claimant is applying for the postponement of property
taxes.
(f) (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. 27. Section 20622 of the Revenue and Taxation Code is amended
to read:
20622. The claim for postponement shall be filed after September
1 of the fiscal year in which the postponement that
is claimed begins, and on or before
April 10 of that fiscal year; if April 10th falls on Saturday,
Sunday, or a legal holiday, the date is extended to the next business
day.
SEC. 28. Section 20623 of the Revenue and Taxation Code is amended
to read:
20623. (a) No person shall file a claim for postponement under
this chapter on or after the effective date of the act adding this
section, and the Controller shall not accept applications for
postponement under this chapter on or after that date.
(b) This section shall become inoperative on July 1, 2016, and as
of January 1, 2017, is repealed.
SEC. 29. Section 20639.10 of the Revenue and Taxation Code is
amended to read:
20639.10. The Controller shall maintain a record of all persons
who have received postponement amounts pursuant to this chapter. That
record shall include the name and address of the claimant, the name
and address of the legal owner of the mobilehome, the name and
address of any other party whose consent is required by this chapter,
and any other information deemed necessary by the Controller for
administration purposes.
SEC. 30. Section 20639.11 of the Revenue and Taxation Code is
amended to read:
20639.11. All amounts postponed pursuant to this chapter shall be
due if any of the following occurs:
(a) The claimant ceases to occupy the residential dwelling as the
principal place of residence, sells sells,
or otherwise disposes of his or her mobilehome.
(b) The claimant dies. However, if the surviving spouse was
previously approved pursuant to this chapter continues to occupy the
mobilehome, then the postponed amounts shall not be due unless that
person dies or ceases to occupy the residential dwelling.
(c) The failure of a claimant to perform those acts required by
the legal owner or junior lienholder.
(d) The claimant allows any subsequent taxes to remain unpaid or
to be transferred to the unsecured roll.
(e) Postponement was erroneously allowed because eligibility
requirements were not met.
SEC. 31. Section 20639.12 of the Revenue and Taxation Code is
amended to read:
20639.12. If the Controller determines that amounts postponed
under this chapter have become due and payable, the Controller may
take any or all of the following actions:
(a) Demand payment of that amount from the claimant, the estate of
any decedent claimant, or any person who was a cotenant with the
claimant pursuant to the registration card.
(b) Direct the Department of General Services to seize and sell
any property pledged by the claimant as security for postponement.
(c) Request the Attorney General to bring an action to recover
amounts postponed under this chapter by the claimant.
(d) Utilize any or all of the other enforcement and foreclosure
provisions set forth in Article 3 (commencing with Section 16200) of
Chapter 6 of Part 1 of Division 4 of Title 2 of the Government Code,
as may be applicable.
SEC. 32. 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 filed timely before
the delinquency date of the second installment of property taxes on
the secured roll, then any delinquent penalties, costs, fees, and
interest accrued for that fiscal year shall be canceled unless the
failure to perfect the claim was due to willful neglect on the part
of the claimant or representative.
(b) In the event of willful neglect, an electronic funds transfer
for that current fiscal year can be used to pay delinquent taxes only
if accompanied by sufficient amounts to pay all of the delinquent
penalties, costs, fees, and interest. If an amount sufficient to pay
all of the delinquent penalties, costs, fees, and interest is not
received by the tax collector within 30 days from the date of the
electronic funds transfer, the tax collector may return the
electronic funds transfer to the Controller to deny the postponement
claim.
(c) (1) The Controller shall notify the claimant in writing when
the electronic funds transfer has been submitted to the tax
collector.
(2) In the event of willful neglect, in addition to the
information required pursuant to paragraph (1), the Controller shall
also notify the claimant in writing and provide a copy of the
notification to the tax collector, that a payment amount sufficient
to pay all of the delinquent penalties, costs, fees, and interest
must be received by the tax collector within 30 days from the date of
the electronic funds transfer, and that if this payment is not
received by the tax collector, the tax collector may return the
electronic funds transfer to the Controller to deny the postponement
claim.
SEC. 33. Section 20645.6 of the Revenue and Taxation Code is
amended to read:
20645.6. (a) If the Controller denies a postponement claim under
Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with
Section 20625), Chapter 3.3 (commencing with Section 20639), or
Chapter 3.5 (commencing with Section 20640), and the denial is
reversed after appeal pursuant to Section 20645.1, the Controller
shall electronically transfer funds to the county, if the taxes for
the fiscal year have been paid, for the amount of the taxes. If the
taxes for the fiscal year are delinquent, any resulting penalties or
interest shall be canceled.
(b) The Controller shall notify the claimant in writing when an
electronic funds transfer has been made pursuant to subdivision (a).
SEC. 34. The Legislature finds and declares that Section 16 of
this act, which adds Section 3376 to the Revenue and Taxation Code,
imposes a limitation on the public's right of access to the meetings
of public bodies or the writings of public officials and agencies
within the meaning of Section 3 of Article I of the California
Constitution. Pursuant to that constitutional provision, the
Legislature makes the following findings to demonstrate the interest
protected by this limitation and the need for protecting that
interest:
In order to protect those persons subject to enforcement of Part 6
(commencing with Section 3351) of Division 1 of the Revenue and
Taxation Code against the risk of identity theft, it is in the state'
s interest to limit public access to information.
SEC. 35. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because, in that regard, this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.
SEC. 36. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to avoid the imminent sale of tax-defaulted dwellings of
vulnerable Californians, it is necessary that this act take effect
immediately.
