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AB-133 Property tax postponement.(2019-2020)

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Date Published: 06/24/2019 02:00 PM
AB133:v95#DOCUMENT

Amended  IN  Senate  June 24, 2019
Amended  IN  Assembly  May 17, 2019
Amended  IN  Assembly  March 07, 2019
Amended  IN  Assembly  February 19, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 133


Introduced by Assembly Members Quirk-Silva and Patterson

December 05, 2018


An act to amend Section 16183 of the Government Code, and to amend Section 20585 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 133, as amended, Quirk-Silva. Property tax postponement.
Existing 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 pursuant to the Senior Citizens and Disabled Citizens Property Tax Postponement Law, the Senior Citizens Tenant-Stockholder Property Tax Postponement Law, the Senior Citizens Manufactured Home Property Tax Postponement Law, and the Senior Citizens Possessory Interest Holder Property Tax Postponement Law. Existing law, for purposes of these laws, does not allow a postponement of property taxes if the claimant’s household income exceeds $35,000. $35,500. Existing law continuously appropriates revenues in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund for, among other things, disbursements relating to the postponement of property taxes pursuant to these laws. Existing law requires property tax postponement payments, from the time a payment is made, to bear interest at the rate of 7% per annum.
This 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 to instead provide that a claimant’s household income cannot exceed $45,000, adjusted compounded annually, as provided. 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.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 16183 of the Government Code 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, 2020, the rate of interest shall be 5 percent per annum.
(2) Beginning July 1, 2016, until June 30, 2020, the rate of interest shall be 7 percent per annum.
(3) 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.
(4) 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.
(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, 20639.9, 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. 2.

 Section 20585 of the Revenue and Taxation Code is amended to read:

20585.
 (a) Postponement shall not be allowed under this chapter, Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) if household income exceeds forty-five thousand dollars ($45,000). the following:

(b)Beginning January 1, 2021, and each January 1 thereafter, the household income limit shall be increased by an amount equal to the annual increase in the California Consumer Price Index for all items, as determined by the Department of Industrial Relations, for the preceding year.

(1) Beginning July 1, 2016, to June 30, 2020, inclusive, thirty-five thousand five hundred dollars ($35,500).
(2) Beginning July 1, 2020, forty-five thousand dollars ($45,000).
(b) (1) Beginning January 1, 2021, and for each assessment year thereafter, the household income limit shall be compounded annually by an inflation factor that is the percentages of increase in the California Consumer Price Index for all Urban Consumers and in the California Consumer Price Index for Urban Wage Earners and Clerical Workers of December of the prior calendar year over December of the preceding calendar year, as determined by the Department of Industrial Relations.
(2) The Controller shall compute an inflation adjustment factor by adding 100 percent to the larger of the California Consumer Price Index percentage increases furnished pursuant to paragraph (1).