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AB-777 Property tax postponement.(2019-2020)



Current Version: 04/24/19 - Amended Assembly         Compare Versions information image


AB777:v98#DOCUMENT

Amended  IN  Assembly  April 24, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 777


Introduced by Assembly Members Patterson and Levine
(Coauthors: Assembly Members Dahle and Mathis)(Coauthors: Assembly Members Dahle, Mathis, and Voepel)
(Coauthors: Senators Chang and Galgiani)

February 19, 2019


An act to amend Sections 16180 and 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 777, as amended, Patterson. Property tax postponement.
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 postpnement 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 $35,000. $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 instead require property tax postponement payments to bear interest at a rate equal to the rate of interest earned by the Pooled Money Investment Account. 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 $35,000 $35,500 or the “very low income” limit 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.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 16180 of the Government Code is amended 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 Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), and Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code.
(b) The Controller shall do all of the following:
(1) On June 30, 2017, transfer any moneys in the fund in excess of twenty million dollars ($20,000,000) to the General Fund.
(2) On June 30, 2018, and on June 30, 2019, transfer any moneys in the fund in excess of fifteen million dollars ($15,000,000) to the General Fund.
(3) On July 1, 2019, and on July 1 each year thereafter, up to 1 percent of the amount available in the fund for disbursements relating to the postponement of property taxes shall be available for residential dwellings that are manufactured homes pursuant to Chapter 3.3 (commencing with Section 20639).
(c) On or after January 1, 2015, 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.

SEC. 2.

 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 equal to the rate of interest earned by the Pooled Money Investment Account. 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. 3.

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

20585.
 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 thirty-five thousand five hundred dollars ($35,000) ($35,500) or the “very low income” limit limit, as adjusted for household size, for the county in which the household is located as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code, whichever is greater.

SEC. 4.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because 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.