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SB-770 Property tax postponement: residential dwelling: minimum equity.(2019-2020)

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Date Published: 05/01/2019 09:00 PM
SB770:v97#DOCUMENT

Amended  IN  Senate  May 01, 2019
Amended  IN  Senate  March 27, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill No. 770


Introduced by Senator Galgiani

February 22, 2019


An act to amend Section Sections 20583 and 20621 of the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


SB 770, as amended, Galgiani. Property tax postponement: residential dwelling: minimum equity.
The Senior Citizens and Disabled Citizens Property Tax Postponement 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 on the claimant’s residential dwelling, as provided. Existing law requires the owner’s equity interest in the residential dwelling to be at least 40% of the full value of the property at the time the claimant or authorized agent files an initial postponement claim in order to be eligible to participate in the postponement program.
This bill would decrease the equity requirement to at least 20% for each postponement claim. instead require, if there is more than one other encumbrance against the property at the time of initial postponement, the owner’s equity interest to be at least 40%, and if there is one or fewer other encumbrances against the property at the time of initial postponement, the owner’s equity interest to be at least 20%. The bill would also make a conforming change to a related provision.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 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 and manufactured homes 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) For purposes of this chapter, the registered owner of a manufactured home shall be deemed to be the owner of the manufactured home.
(d) 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.
(e) “Residential dwelling” does not include any of the following:
(1) (A) Any residential dwelling in which the owners do not have an equity of at either of the following:
(i) If there is more than one other encumbrance against the property at the time of initial postponement, at least 20 40 percent of the full value of the property as determined for purposes of property taxation or at least 20 40 percent of the fair market value as determined by the Controller and where the Controller determines that Controller.
(ii) If there is one or fewer other encumbrances against the property at the time of initial postponement, at least 20 percent of the full value of the property as determined for purposes of property taxation or at least 20 percent of the fair market value as determined by the Controller.
(B) The Controller shall determine that the state’s interest is adequately protected. The 20-percent equity protected by the equity requirement established by subparagraph (A).
(C) The equity requirement established by subparagraph (A) shall be met each time the claimant or authorized agent files a postponement claim. 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).

SEC. 2.

 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 (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) subparagraph (A) of paragraph (1) of subdivision (e) 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.