AB 777

Bill Subjects

Abstract

The Senior Citizens and Disabled Citizens Property Tax Postponement Law authorizes a claimant to file a claim with the Controller to postpone the payment of property taxes that are due on the residential dwelling of the claimant, as provided, and requires the claim for postponement to be filed under penalty of perjury. Existing law establishes the Senior Citizens and Disabled Citizens Property Tax Postponement Fund, a continuously appropriated fund, in the State Treasury for, among other things, disbursements relating to the postponement of property taxes, as provided. Existing law requires the Controller, on June 30, 2018, and on June 30 each year thereafter, to transfer any moneys in the fund in excess of $15,000,000 to the General Fund. Existing law requires property tax postponement payments, from the time a payment is made, to bear interest at the rate of 7% per annum. Existing law prohibits the postponement of property taxes if the claimant's household income exceeds $35,500. This bill would require the annual transfer of moneys in excess of $15,000,000 from the Senior Citizens and Disabled Citizens Property Tax Postponement Fund to the General Fund to occur until June 30, 2019. The bill, beginning July 1, 2020, would lower the rate of interest on property tax postponement payments from 7% per annum to 5% per annum. The bill would revise the income limitations described above to instead provide that the claimant's household income cannot exceed $35,500 or the "very low income" limit, as adjusted for household size, for the county in which the household is located, as published annually by the Department of Housing and Community Development, whichever is greater. Because this bill would provide for additional expenditures from the Senior Citizens and Disabled Citizens Property Tax Postponement Fund, a continuously appropriated fund, it would make an appropriation. By increasing the circumstances in which claims for postponement are required to be filed under penalty of perjury, this bill would expand the crime of perjury, thereby imposing 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 no reimbursement is required by this act for a specified reason.