SB 1214

Bill Subjects

Abstract

The Senior Citizens and Disabled Citizens Property Tax Postponement Law, until February 20, 2009, authorized a claimant, as defined, to file a claim with the Controller to postpone the payment of ad valorem property taxes, where household income, as defined, did not exceed specified amounts. That law authorized the Controller, upon approval of the claim, to either make 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, as specified, and also required certain repaid property tax postponement payments to be paid into an impound account and transferred, as specified, to the General Fund. 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 these provisions on January 1, 2017. The bill would create in the State Treasury a Senior Citizens and Disabled Citizens Property Tax Postponement Fund and would require the fund to be an interest bearing fund. The bill would require that repaid property tax postponement payments be directly deposited into the newly created fund. The bill would also require any remaining impound account funds as of January 1, 2015, to be transferred into the newly created fund. The bill would continuously appropriate these funds to the Controller for purposes of administering the property tax postponement program, as specified. Existing law requires a tax collector to notify the Controller, as directed, of all property subject to a recorded notice of lien for postponed property taxes that becomes tax defaulted subsequent to the date of entry on the secured roll of specified information or becomes subject to collection procedures. This bill would, instead, require a tax collector or assessor, as applicable, to notify the Controller, within 60 days, as directed, of all property subject to such a recorded notice that becomes tax defaulted subsequent to the date of entry on the secured roll of specified information, or where the claimant has transferred ownership of residential dwelling or there has been a change of mailing address, or the claimant has been determined to be deceased. Existing law requires the Controller to maintain a record of all properties against which a notice of lien for postponed property taxes has been recorded, and upon written request of any person or entity, as specified, issue a written statement of lien status, as provided. Existing law authorizes the Controller to establish a reasonable fee, not to exceed $10, for the provision of the statement of lien status. This bill would increase the limitation on the amount of the fee the Controller is authorized to establish for providing the statement of lien status from $10 to $30. Existing law requires that the owners equity interest in the residential dwelling be at least 20% of the full value of the property in order to be eligible to participate in the postponement program. This bill would increase the equity requirement to at least 40%. The bill would make conforming changes to related provisions. Existing law requires a claim for postponement to be filed after May 15 of the calendar year in which the postponement is claimed, 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 fiscal year in which postponement is claimed, and on or before April 10 of that fiscal year. 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. The 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 the delinquent taxes only if the amount is sufficient to pay delinquent penalties, costs, fees, and interest. The 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. The bill would require the Controller to provide a specified notification to the claimant and a copy of the notification to the tax collector. The bill would require the Controller, upon approval of a claim, to make payments directly to a county tax collector for the property taxes owed on behalf of a qualified claimant. The bill would revise existing provisions relating to certificates of eligibility and warrants to conform to the electronic funds transfer provisions. The bill would also require the Controller, upon written request of the tax collector, to provide the tax collector with information that is required for the preparation and enforcement of the sale of tax-defaulted property, and would require the tax collector or his or her designee to certify, under penalty of perjury, that the information is requested for these purposes. The 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, the bill would expand the crime of perjury, thereby imposing a state-mandated local program. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.