20640. This chapter shall be known and may be cited as the "Senior
Citizens Possessory Interest Holder Property Tax Postponement Law."
20640.1. (a) Unless the context otherwise requires or unless
otherwise provided in this chapter, the definitions given in Chapter
1 (commencing with Section 20501) and Chapter 2 (commencing with
Section 20581) shall govern the construction of this chapter.
(b) Unless the context otherwise dictates or unless otherwise
provided in this chapter, the provisions of Chapter 1 and Chapter 2
of this code, Civil Code Section 2924b, Civil Code Section 2931c,
Chapter 4.5 (commencing with Section 14735) of Part 5.5 of Division 3
of Title 2 of the Government Code, Chapter 6 (commencing with
Section 16180) of Part 1 of Division 4 of Title 2 of the Government
Code shall be applicable to property tax postponements made pursuant
to this chapter.
20640.2. For the purposes of this chapter:
(a) "Possessory interest" means (1) possession of, or right to the
possession of land located in this state whether or not coupled with
ownership of the residential dwelling on the same, or (2) a
possessory interest or right of occupancy on tax exempt land;
(b) "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, located on possessory interest property. It shall include
condominiums and mobilehomes upon which property taxes, as defined in
subdivision (c), are assessed. It also includes part of a
multidwelling or multipurpose building and a part of the land upon
which it is built.
(c) "Property taxes" means the amount of property tax for which
the claimant is personally liable as assessee or is obligated to pay
directly to the tax collector pursuant to the terms of the agreement
establishing the possessory interest, including all ad valorem
property taxes, special assessments, capitalization of leasehold
interest, and other charges or user fees which are attributable to
the residential dwelling on the county tax bill and the ad valorem
property taxes, special assessments, capitalization of leasehold
interest, or other charges or user fees appearing on the tax bill of
any chartered city which levies and collects its own property taxes.
20640.3. A claimant is an individual who:
(a) Holds a right to a possessory interest pursuant to a validly
recorded instrument conveying such possessory interest for a term of
years no less than 45 years beyond the last day of the calendar year
ending immediately prior to the fiscal year for which taxes are
initially postponed;
(b) Occupies as a principal place of residence the residential
dwelling affixed to such possessory interest real property on the
last day of the year designated in Section 20503(c) of this code;
(c) Is 62 years of age or older on or before December 31 of the
fiscal year for which postponement is claimed.
20640.4. (a) Subject to the limitations provided in Chapter 1
(commencing with Section 20501), Chapter 2 (commencing with Section
20581), or this chapter, a claimant may file with the Controller, a
claim for postponement of a sum equal to, but not exceeding the
amount of property taxes, for the fiscal year for which the claim is
made.
(b) Upon verification of the eligibility requirements set forth in
Section 20640.9 the Controller shall mail the claimant a Notice of
Election to Postpone which shall be in the form and contain such
information as the Controller may prescribe. Accompanying the notice
shall be a statement explaining that in order for the claimant to
postpone all or part of the property taxes, the Notice of Election to
Postpone must be mailed to the Controller with a copy of the
instrument creating the possessory interest, said copy to be
certified by the county recorder of the county in which such real
property is located. Where a memorandum of lease has been recorded in
lieu of such instrument, a certified copy of said memorandum shall
accompany the copy of the instrument creating the possessory
interest.
(c) (1) Except as provided in this section, any possessory
interest or improvement on which property taxes are delinquent at the
time the application for postponement under this chapter is made or
on which any other property tax or special assessment imposed by a
special district or other tax code area are delinquent at the time
the application for postponement under this chapter is made shall not
be eligible for postponement.
(2) For 1978-79 and thereafter, any taxes or assessments which
became delinquent after the claimant was 62 and before a lien is
established pursuant to Section 16182 of the Government Code shall
not disqualify an otherwise eligible claimant for postponement under
this chapter. An application to postpone taxes for 1978-79 or
thereafter also constitutes an application for postponement of all
such delinquent taxes and assessments, together with any penalties,
interest, fees, or other charges resulting from such delinquency and
such amounts shall, unless otherwise paid by the claimant, be paid
out of the amount appropriated by Section 16100 of the Government
Code and shall be added to and become part of the obligation secured
by the lien provided by Section 16182 of the Government Code.
(d) The Controller shall mail to claimant for due execution the
appropriate security instrument for claimant's form of lease,
including the consent to assignment required by Section 20640.5(b).
20640.5. (a) The Controller may require as security for the
postponement of property taxes pursuant to this chapter any of the
following:
1. An assignment to the State of California of the remaining term
of the claimant's possessory interest.
2. A security interest in any improvement owned or leased by
claimant located on the land which is subject to the possessory
interest.
3. Any other additional security interest, created and perfected
with respect to the rights of third persons in the manner provided by
law for such type of security interest, which the Controller deems
necessary to protect the interest of the state with regard to the
repayment of postponed amounts by the claimant or a deceased claimant'
s estate.
(b) On the form supplied by the Controller, the claimant shall
obtain the written consent of any coholder of the possessory interest
and of the grantor of the possessory interest to the assignment by
claimant of the remaining term of claimant's possessory interest. The
consent shall be in such form and contain such provisions as the
Controller shall prescribe, and shall provide for written notice by
the grantor of the possessory interest to the Controller of the
occurrence of a default by the claimant under the terms of the
instrument creating the possessory interest, a coholder or a prior
recorded possessory interest holder which would result in the
termination or diminution of claimant's interest.
The term "grantor of the possessory interest," as used in this
section shall be deemed to include the fee owner of the real property
subject to the possessory interest and the holders of all prior
recorded unterminated possessory interests.
20640.6. (a) Upon receipt of the information described in Section
20640.4 and Section 20640.5, the State Controller shall determine
whether the state's interest would be adequately protected if
postponement is granted, and if so, shall issue to the claimant a
certificate of eligibility containing the name of claimant, address
of the residential dwelling on which the claimant has applied for
property tax postponement, and any other information and in the form
as the State Controller shall prescribe. In the event that the
residential dwelling is located in a chartered city which levies and
collects its own taxes, the Controller shall issue a duplicate
certificate of eligibility to pay all or any part of property taxes
appearing on the city's tax bill.
(b) The Controller shall cause to be recorded with the county
recorder of the county in which the real property is located, a copy
of any instrument creating a security interest, which shall include
applicable consent forms, in favor of the state. The instrument shall
contain a legal description of the real property subject to the
possessory interest; and, if the legal description of the possessory
interest describes an area less than the entire property ownership,
the notice or document shall also contain a reference to the record
of the acquisition instrument to the entire parcel from which the
possessory interest was created. The priority of the security
interest shall be as of the date of recordation.
(c) The Controller shall prescribe the form of certificates of
eligibility to pay all delinquent taxes and assessments authorized by
this chapter.
Upon or accompanying each certificate shall be a brief statement
explaining that (1) those taxpayers whose property taxes are paid by
a lender via an impound, trust or other similar account should enter
the total amount of each installment on the certificates and mail the
certificates to the tax collector and (2) those taxpayers will
receive a refund check from the county or city in the amount they
entered on the certificate, within 30 days following the date on
which the installment is paid by the lender or the certificate of
eligibility is received by the tax collector, whichever is later.
(d) When a certificate of eligibility has been signed by the
claimant, his or her spouse, or authorized agent and countersigned by
the person authorized to collect property taxes or assessments for
the local agency, the certificate shall constitute a written promise
on the part of the State of California to pay the sum of money
specified therein and the signed and countersigned certificate shall
be deemed a negotiable instrument for the sole purpose of the payment
of property taxes owing in the name of the claimant or his or her
spouse for purposes of all laws of this state.
(e) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.
(f) The Controller shall issue certificates of eligibility at such
times as the Controller determines will best implement the purpose
of this chapter.
(g) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency may obtain a duplicate copy of the certificate as a
replacement. (Under conditions as may be prescribed by the
Controller, a duplicate copy shall be deemed as having been filed
with the local agency as of the date a claimant requests issuance of
a duplicate copy.)
20640.7. The Controller shall prescribe the manner in which a
claimant eligible under this chapter, who for any reason is
incapacitated, may appoint his or her spouse or an authorized agent,
or have any such person appointed for such claimant, for all purposes
of claiming and using certificates of eligibility for the
postponement of property taxes.
20640.8. The claim for postponement shall be filed after May 15 of
the calendar year in which the fiscal year for which postponement is
claimed begins, and on or before December 10 of such fiscal year. If
December 10th falls on Saturday, Sunday or a legal holiday, the date
is extended to the next business day.
20640.9. Each claimant applying for postponement under this chapter
shall file a claim under penalty of perjury with the Controller on a
form supplied by the Controller. The claim shall contain:
(a) Evidence acceptable to the Controller that the person was a
"senior citizen claimant."
(b) A statement showing the household income for the period set
forth in Section 20503.
(c) A statement describing the residential dwelling in such manner
as 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) Other information required by the State Controller to
establish eligibility.
20640.10. The Controller shall maintain a record of all persons who
have received postponement amounts pursuant to this chapter. Such
record shall include the name and address of the claimant, the name
and address of the fee title owner of the real property, the name and
address of any other party whose consent to the assignment is
required by this chapter, and any other information deemed necessary
by the Controller for administration purposes.
20640.11. All amounts postponed pursuant to this chapter shall be
due if any of the following occurs:
(a) The claimant ceases to occupy the residential dwelling as the
principal place of residence, sells or otherwise disposes of his
possessory interest, or the possessory interest agreement expires by
its terms.
(b) The claimant dies. However, if the surviving spouse or another
person eligible to postpone pursuant to this chapter continues to
occupy the residential dwelling, then the postponed amounts shall not
be due unless such person dies, or ceases to occupy the residential
dwelling.
(c) The failure of the claimant, the fee title owner, or any owner
of a prior recorded possessory interest to perform those acts
required by a security interest holder which is senior to the state's
security interest for postponed amounts.
(d) Postponement was erroneously allowed because eligibility
requirements were not met.
20640.12. If the Controller determines that amounts postponed under
this chapter have become due and payable, the Controller may take
any or all of the following actions:
(a) Demand payment of such amount from the claimant, the estate of
any decedent claimant, or any person who was a cotenant with the
claimant pursuant to the possessory interest agreement.
(b) Direct the Department of General Services to sell any property
pledged by the claimant as security for postponement.
(c) Request the Attorney General to bring an action to recover
amounts postponed under this chapter by the claimant.
(d) Utilize any or all of the enforcement and foreclosure
provisions set forth in Article 3, Chapter 6 of Part 1 of Division 4
of Title 2 of the Government Code.
20640. This chapter shall be known and may be cited as the "Senior
Citizens Possessory Interest Holder Property Tax Postponement Law."
20640.1. (a) Unless the context otherwise requires or unless
otherwise provided in this chapter, the definitions given in Chapter
1 (commencing with Section 20501) and Chapter 2 (commencing with
Section 20581) shall govern the construction of this chapter.
(b) Unless the context otherwise dictates or unless otherwise
provided in this chapter, the provisions of Chapter 1 and Chapter 2
of this code, Civil Code Section 2924b, Civil Code Section 2931c,
Chapter 4.5 (commencing with Section 14735) of Part 5.5 of Division 3
of Title 2 of the Government Code, Chapter 6 (commencing with
Section 16180) of Part 1 of Division 4 of Title 2 of the Government
Code shall be applicable to property tax postponements made pursuant
to this chapter.
20640.2. For the purposes of this chapter:
(a) "Possessory interest" means (1) possession of, or right to the
possession of land located in this state whether or not coupled with
ownership of the residential dwelling on the same, or (2) a
possessory interest or right of occupancy on tax exempt land;
(b) "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, located on possessory interest property. It shall include
condominiums and mobilehomes upon which property taxes, as defined in
subdivision (c), are assessed. It also includes part of a
multidwelling or multipurpose building and a part of the land upon
which it is built.
(c) "Property taxes" means the amount of property tax for which
the claimant is personally liable as assessee or is obligated to pay
directly to the tax collector pursuant to the terms of the agreement
establishing the possessory interest, including all ad valorem
property taxes, special assessments, capitalization of leasehold
interest, and other charges or user fees which are attributable to
the residential dwelling on the county tax bill and the ad valorem
property taxes, special assessments, capitalization of leasehold
interest, or other charges or user fees appearing on the tax bill of
any chartered city which levies and collects its own property taxes.
20640.3. A claimant is an individual who:
(a) Holds a right to a possessory interest pursuant to a validly
recorded instrument conveying such possessory interest for a term of
years no less than 45 years beyond the last day of the calendar year
ending immediately prior to the fiscal year for which taxes are
initially postponed;
(b) Occupies as a principal place of residence the residential
dwelling affixed to such possessory interest real property on the
last day of the year designated in Section 20503(c) of this code;
(c) Is 62 years of age or older on or before December 31 of the
fiscal year for which postponement is claimed.
20640.4. (a) Subject to the limitations provided in Chapter 1
(commencing with Section 20501), Chapter 2 (commencing with Section
20581), or this chapter, a claimant may file with the Controller, a
claim for postponement of a sum equal to, but not exceeding the
amount of property taxes, for the fiscal year for which the claim is
made.
(b) Upon verification of the eligibility requirements set forth in
Section 20640.9 the Controller shall mail the claimant a Notice of
Election to Postpone which shall be in the form and contain such
information as the Controller may prescribe. Accompanying the notice
shall be a statement explaining that in order for the claimant to
postpone all or part of the property taxes, the Notice of Election to
Postpone must be mailed to the Controller with a copy of the
instrument creating the possessory interest, said copy to be
certified by the county recorder of the county in which such real
property is located. Where a memorandum of lease has been recorded in
lieu of such instrument, a certified copy of said memorandum shall
accompany the copy of the instrument creating the possessory
interest.
(c) (1) Except as provided in this section, any possessory
interest or improvement on which property taxes are delinquent at the
time the application for postponement under this chapter is made or
on which any other property tax or special assessment imposed by a
special district or other tax code area are delinquent at the time
the application for postponement under this chapter is made shall not
be eligible for postponement.
(2) For 1978-79 and thereafter, any taxes or assessments which
became delinquent after the claimant was 62 and before a lien is
established pursuant to Section 16182 of the Government Code shall
not disqualify an otherwise eligible claimant for postponement under
this chapter. An application to postpone taxes for 1978-79 or
thereafter also constitutes an application for postponement of all
such delinquent taxes and assessments, together with any penalties,
interest, fees, or other charges resulting from such delinquency and
such amounts shall, unless otherwise paid by the claimant, be paid
out of the amount appropriated by Section 16100 of the Government
Code and shall be added to and become part of the obligation secured
by the lien provided by Section 16182 of the Government Code.
(d) The Controller shall mail to claimant for due execution the
appropriate security instrument for claimant's form of lease,
including the consent to assignment required by Section 20640.5(b).
20640.5. (a) The Controller may require as security for the
postponement of property taxes pursuant to this chapter any of the
following:
1. An assignment to the State of California of the remaining term
of the claimant's possessory interest.
2. A security interest in any improvement owned or leased by
claimant located on the land which is subject to the possessory
interest.
3. Any other additional security interest, created and perfected
with respect to the rights of third persons in the manner provided by
law for such type of security interest, which the Controller deems
necessary to protect the interest of the state with regard to the
repayment of postponed amounts by the claimant or a deceased claimant'
s estate.
(b) On the form supplied by the Controller, the claimant shall
obtain the written consent of any coholder of the possessory interest
and of the grantor of the possessory interest to the assignment by
claimant of the remaining term of claimant's possessory interest. The
consent shall be in such form and contain such provisions as the
Controller shall prescribe, and shall provide for written notice by
the grantor of the possessory interest to the Controller of the
occurrence of a default by the claimant under the terms of the
instrument creating the possessory interest, a coholder or a prior
recorded possessory interest holder which would result in the
termination or diminution of claimant's interest.
The term "grantor of the possessory interest," as used in this
section shall be deemed to include the fee owner of the real property
subject to the possessory interest and the holders of all prior
recorded unterminated possessory interests.
20640.6. (a) Upon receipt of the information described in Section
20640.4 and Section 20640.5, the State Controller shall determine
whether the state's interest would be adequately protected if
postponement is granted, and if so, shall issue to the claimant a
certificate of eligibility containing the name of claimant, address
of the residential dwelling on which the claimant has applied for
property tax postponement, and any other information and in the form
as the State Controller shall prescribe. In the event that the
residential dwelling is located in a chartered city which levies and
collects its own taxes, the Controller shall issue a duplicate
certificate of eligibility to pay all or any part of property taxes
appearing on the city's tax bill.
(b) The Controller shall cause to be recorded with the county
recorder of the county in which the real property is located, a copy
of any instrument creating a security interest, which shall include
applicable consent forms, in favor of the state. The instrument shall
contain a legal description of the real property subject to the
possessory interest; and, if the legal description of the possessory
interest describes an area less than the entire property ownership,
the notice or document shall also contain a reference to the record
of the acquisition instrument to the entire parcel from which the
possessory interest was created. The priority of the security
interest shall be as of the date of recordation.
(c) The Controller shall prescribe the form of certificates of
eligibility to pay all delinquent taxes and assessments authorized by
this chapter.
Upon or accompanying each certificate shall be a brief statement
explaining that (1) those taxpayers whose property taxes are paid by
a lender via an impound, trust or other similar account should enter
the total amount of each installment on the certificates and mail the
certificates to the tax collector and (2) those taxpayers will
receive a refund check from the county or city in the amount they
entered on the certificate, within 30 days following the date on
which the installment is paid by the lender or the certificate of
eligibility is received by the tax collector, whichever is later.
(d) When a certificate of eligibility has been signed by the
claimant, his or her spouse, or authorized agent and countersigned by
the person authorized to collect property taxes or assessments for
the local agency, the certificate shall constitute a written promise
on the part of the State of California to pay the sum of money
specified therein and the signed and countersigned certificate shall
be deemed a negotiable instrument for the sole purpose of the payment
of property taxes owing in the name of the claimant or his or her
spouse for purposes of all laws of this state.
(e) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.
(f) The Controller shall issue certificates of eligibility at such
times as the Controller determines will best implement the purpose
of this chapter.
(g) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency may obtain a duplicate copy of the certificate as a
replacement. (Under conditions as may be prescribed by the
Controller, a duplicate copy shall be deemed as having been filed
with the local agency as of the date a claimant requests issuance of
a duplicate copy.)
20640.7. The Controller shall prescribe the manner in which a
claimant eligible under this chapter, who for any reason is
incapacitated, may appoint his or her spouse or an authorized agent,
or have any such person appointed for such claimant, for all purposes
of claiming and using certificates of eligibility for the
postponement of property taxes.
20640.8. The claim for postponement shall be filed after May 15 of
the calendar year in which the fiscal year for which postponement is
claimed begins, and on or before December 10 of such fiscal year. If
December 10th falls on Saturday, Sunday or a legal holiday, the date
is extended to the next business day.
20640.9. Each claimant applying for postponement under this chapter
shall file a claim under penalty of perjury with the Controller on a
form supplied by the Controller. The claim shall contain:
(a) Evidence acceptable to the Controller that the person was a
"senior citizen claimant."
(b) A statement showing the household income for the period set
forth in Section 20503.
(c) A statement describing the residential dwelling in such manner
as 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) Other information required by the State Controller to
establish eligibility.
20640.10. The Controller shall maintain a record of all persons who
have received postponement amounts pursuant to this chapter. Such
record shall include the name and address of the claimant, the name
and address of the fee title owner of the real property, the name and
address of any other party whose consent to the assignment is
required by this chapter, and any other information deemed necessary
by the Controller for administration purposes.
20640.11. All amounts postponed pursuant to this chapter shall be
due if any of the following occurs:
(a) The claimant ceases to occupy the residential dwelling as the
principal place of residence, sells or otherwise disposes of his
possessory interest, or the possessory interest agreement expires by
its terms.
(b) The claimant dies. However, if the surviving spouse or another
person eligible to postpone pursuant to this chapter continues to
occupy the residential dwelling, then the postponed amounts shall not
be due unless such person dies, or ceases to occupy the residential
dwelling.
(c) The failure of the claimant, the fee title owner, or any owner
of a prior recorded possessory interest to perform those acts
required by a security interest holder which is senior to the state's
security interest for postponed amounts.
(d) Postponement was erroneously allowed because eligibility
requirements were not met.
20640.12. If the Controller determines that amounts postponed under
this chapter have become due and payable, the Controller may take
any or all of the following actions:
(a) Demand payment of such amount from the claimant, the estate of
any decedent claimant, or any person who was a cotenant with the
claimant pursuant to the possessory interest agreement.
(b) Direct the Department of General Services to sell any property
pledged by the claimant as security for postponement.
(c) Request the Attorney General to bring an action to recover
amounts postponed under this chapter by the claimant.
(d) Utilize any or all of the enforcement and foreclosure
provisions set forth in Article 3, Chapter 6 of Part 1 of Division 4
of Title 2 of the Government Code.
20640. This chapter shall be known and may be cited as the "Senior
Citizens Possessory Interest Holder Property Tax Postponement Law."
20640.1. (a) Unless the context otherwise requires or unless
otherwise provided in this chapter, the definitions given in Chapter
1 (commencing with Section 20501) and Chapter 2 (commencing with
Section 20581) shall govern the construction of this chapter.
(b) Unless the context otherwise dictates or unless otherwise
provided in this chapter, the provisions of Chapter 1 and Chapter 2
of this code, Civil Code Section 2924b, Civil Code Section 2931c,
Chapter 4.5 (commencing with Section 14735) of Part 5.5 of Division 3
of Title 2 of the Government Code, Chapter 6 (commencing with
Section 16180) of Part 1 of Division 4 of Title 2 of the Government
Code shall be applicable to property tax postponements made pursuant
to this chapter.
20640.2. For the purposes of this chapter:
(a) "Possessory interest" means (1) possession of, or right to the
possession of land located in this state whether or not coupled with
ownership of the residential dwelling on the same, or (2) a
possessory interest or right of occupancy on tax exempt land;
(b) "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, located on possessory interest property. It shall include
condominiums and mobilehomes upon which property taxes, as defined in
subdivision (c), are assessed. It also includes part of a
multidwelling or multipurpose building and a part of the land upon
which it is built.
(c) "Property taxes" means the amount of property tax for which
the claimant is personally liable as assessee or is obligated to pay
directly to the tax collector pursuant to the terms of the agreement
establishing the possessory interest, including all ad valorem
property taxes, special assessments, capitalization of leasehold
interest, and other charges or user fees which are attributable to
the residential dwelling on the county tax bill and the ad valorem
property taxes, special assessments, capitalization of leasehold
interest, or other charges or user fees appearing on the tax bill of
any chartered city which levies and collects its own property taxes.
20640.3. A claimant is an individual who:
(a) Holds a right to a possessory interest pursuant to a validly
recorded instrument conveying such possessory interest for a term of
years no less than 45 years beyond the last day of the calendar year
ending immediately prior to the fiscal year for which taxes are
initially postponed;
(b) Occupies as a principal place of residence the residential
dwelling affixed to such possessory interest real property on the
last day of the year designated in Section 20503(c) of this code;
(c) Is 62 years of age or older on or before December 31 of the
fiscal year for which postponement is claimed.
20640.4. (a) Subject to the limitations provided in Chapter 1
(commencing with Section 20501), Chapter 2 (commencing with Section
20581), or this chapter, a claimant may file with the Controller, a
claim for postponement of a sum equal to, but not exceeding the
amount of property taxes, for the fiscal year for which the claim is
made.
(b) Upon verification of the eligibility requirements set forth in
Section 20640.9 the Controller shall mail the claimant a Notice of
Election to Postpone which shall be in the form and contain such
information as the Controller may prescribe. Accompanying the notice
shall be a statement explaining that in order for the claimant to
postpone all or part of the property taxes, the Notice of Election to
Postpone must be mailed to the Controller with a copy of the
instrument creating the possessory interest, said copy to be
certified by the county recorder of the county in which such real
property is located. Where a memorandum of lease has been recorded in
lieu of such instrument, a certified copy of said memorandum shall
accompany the copy of the instrument creating the possessory
interest.
(c) (1) Except as provided in this section, any possessory
interest or improvement on which property taxes are delinquent at the
time the application for postponement under this chapter is made or
on which any other property tax or special assessment imposed by a
special district or other tax code area are delinquent at the time
the application for postponement under this chapter is made shall not
be eligible for postponement.
(2) For 1978-79 and thereafter, any taxes or assessments which
became delinquent after the claimant was 62 and before a lien is
established pursuant to Section 16182 of the Government Code shall
not disqualify an otherwise eligible claimant for postponement under
this chapter. An application to postpone taxes for 1978-79 or
thereafter also constitutes an application for postponement of all
such delinquent taxes and assessments, together with any penalties,
interest, fees, or other charges resulting from such delinquency and
such amounts shall, unless otherwise paid by the claimant, be paid
out of the amount appropriated by Section 16100 of the Government
Code and shall be added to and become part of the obligation secured
by the lien provided by Section 16182 of the Government Code.
(d) The Controller shall mail to claimant for due execution the
appropriate security instrument for claimant's form of lease,
including the consent to assignment required by Section 20640.5(b).
20640.5. (a) The Controller may require as security for the
postponement of property taxes pursuant to this chapter any of the
following:
1. An assignment to the State of California of the remaining term
of the claimant's possessory interest.
2. A security interest in any improvement owned or leased by
claimant located on the land which is subject to the possessory
interest.
3. Any other additional security interest, created and perfected
with respect to the rights of third persons in the manner provided by
law for such type of security interest, which the Controller deems
necessary to protect the interest of the state with regard to the
repayment of postponed amounts by the claimant or a deceased claimant'
s estate.
(b) On the form supplied by the Controller, the claimant shall
obtain the written consent of any coholder of the possessory interest
and of the grantor of the possessory interest to the assignment by
claimant of the remaining term of claimant's possessory interest. The
consent shall be in such form and contain such provisions as the
Controller shall prescribe, and shall provide for written notice by
the grantor of the possessory interest to the Controller of the
occurrence of a default by the claimant under the terms of the
instrument creating the possessory interest, a coholder or a prior
recorded possessory interest holder which would result in the
termination or diminution of claimant's interest.
The term "grantor of the possessory interest," as used in this
section shall be deemed to include the fee owner of the real property
subject to the possessory interest and the holders of all prior
recorded unterminated possessory interests.
20640.6. (a) Upon receipt of the information described in Section
20640.4 and Section 20640.5, the State Controller shall determine
whether the state's interest would be adequately protected if
postponement is granted, and if so, shall issue to the claimant a
certificate of eligibility containing the name of claimant, address
of the residential dwelling on which the claimant has applied for
property tax postponement, and any other information and in the form
as the State Controller shall prescribe. In the event that the
residential dwelling is located in a chartered city which levies and
collects its own taxes, the Controller shall issue a duplicate
certificate of eligibility to pay all or any part of property taxes
appearing on the city's tax bill.
(b) The Controller shall cause to be recorded with the county
recorder of the county in which the real property is located, a copy
of any instrument creating a security interest, which shall include
applicable consent forms, in favor of the state. The instrument shall
contain a legal description of the real property subject to the
possessory interest; and, if the legal description of the possessory
interest describes an area less than the entire property ownership,
the notice or document shall also contain a reference to the record
of the acquisition instrument to the entire parcel from which the
possessory interest was created. The priority of the security
interest shall be as of the date of recordation.
(c) The Controller shall prescribe the form of certificates of
eligibility to pay all delinquent taxes and assessments authorized by
this chapter.
Upon or accompanying each certificate shall be a brief statement
explaining that (1) those taxpayers whose property taxes are paid by
a lender via an impound, trust or other similar account should enter
the total amount of each installment on the certificates and mail the
certificates to the tax collector and (2) those taxpayers will
receive a refund check from the county or city in the amount they
entered on the certificate, within 30 days following the date on
which the installment is paid by the lender or the certificate of
eligibility is received by the tax collector, whichever is later.
(d) When a certificate of eligibility has been signed by the
claimant, his or her spouse, or authorized agent and countersigned by
the person authorized to collect property taxes or assessments for
the local agency, the certificate shall constitute a written promise
on the part of the State of California to pay the sum of money
specified therein and the signed and countersigned certificate shall
be deemed a negotiable instrument for the sole purpose of the payment
of property taxes owing in the name of the claimant or his or her
spouse for purposes of all laws of this state.
(e) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.
(f) The Controller shall issue certificates of eligibility at such
times as the Controller determines will best implement the purpose
of this chapter.
(g) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency may obtain a duplicate copy of the certificate as a
replacement. (Under conditions as may be prescribed by the
Controller, a duplicate copy shall be deemed as having been filed
with the local agency as of the date a claimant requests issuance of
a duplicate copy.)
20640.7. The Controller shall prescribe the manner in which a
claimant eligible under this chapter, who for any reason is
incapacitated, may appoint his or her spouse or an authorized agent,
or have any such person appointed for such claimant, for all purposes
of claiming and using certificates of eligibility for the
postponement of property taxes.
20640.8. The claim for postponement shall be filed after May 15 of
the calendar year in which the fiscal year for which postponement is
claimed begins, and on or before December 10 of such fiscal year. If
December 10th falls on Saturday, Sunday or a legal holiday, the date
is extended to the next business day.
20640.9. Each claimant applying for postponement under this chapter
shall file a claim under penalty of perjury with the Controller on a
form supplied by the Controller. The claim shall contain:
(a) Evidence acceptable to the Controller that the person was a
"senior citizen claimant."
(b) A statement showing the household income for the period set
forth in Section 20503.
(c) A statement describing the residential dwelling in such manner
as 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) Other information required by the State Controller to
establish eligibility.
20640.10. The Controller shall maintain a record of all persons who
have received postponement amounts pursuant to this chapter. Such
record shall include the name and address of the claimant, the name
and address of the fee title owner of the real property, the name and
address of any other party whose consent to the assignment is
required by this chapter, and any other information deemed necessary
by the Controller for administration purposes.
20640.11. All amounts postponed pursuant to this chapter shall be
due if any of the following occurs:
(a) The claimant ceases to occupy the residential dwelling as the
principal place of residence, sells or otherwise disposes of his
possessory interest, or the possessory interest agreement expires by
its terms.
(b) The claimant dies. However, if the surviving spouse or another
person eligible to postpone pursuant to this chapter continues to
occupy the residential dwelling, then the postponed amounts shall not
be due unless such person dies, or ceases to occupy the residential
dwelling.
(c) The failure of the claimant, the fee title owner, or any owner
of a prior recorded possessory interest to perform those acts
required by a security interest holder which is senior to the state's
security interest for postponed amounts.
(d) Postponement was erroneously allowed because eligibility
requirements were not met.
20640.12. If the Controller determines that amounts postponed under
this chapter have become due and payable, the Controller may take
any or all of the following actions:
(a) Demand payment of such amount from the claimant, the estate of
any decedent claimant, or any person who was a cotenant with the
claimant pursuant to the possessory interest agreement.
(b) Direct the Department of General Services to sell any property
pledged by the claimant as security for postponement.
(c) Request the Attorney General to bring an action to recover
amounts postponed under this chapter by the claimant.
(d) Utilize any or all of the enforcement and foreclosure
provisions set forth in Article 3, Chapter 6 of Part 1 of Division 4
of Title 2 of the Government Code.
