SECTIONS 20581-20586 - California Statutes

REVENUE AND TAXATION CODE

SECTION 20581-20586

20581. This chapter shall be known and may be cited as the "Senior
Citizens and Disabled Citizens Property Tax Postponement Law."

20582. Unless the context otherwise requires, the definitions given
in Chapter 1 (commencing with Section 20501) of this part and in
this article shall govern the construction of this chapter.

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 mobilehomes 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. In the case of a mobilehome not assessed as real property that
is located on land owned by the claimant, "residential dwelling"
includes the land on which the mobilehome is situated and so much of
the land surrounding it as reasonably necessary for use of the
mobilehome as a home.
(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 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
mobilehome shall be deemed to be the owner of the mobilehome.
(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) Any residential dwelling in which the owners do not have an
equity of 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 and where
the Controller determines that the state's interest is adequately
protected. The 20-percent equity requirement shall be met at the time
the claimant or authorized agent files an initial postponement claim
and tenders to the tax collector the initial certificate of
eligibility described in Sections 20602, 20639.6, and 20640.6.
(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).
(f) Notwithstanding subdivision (c) of Section 20584, houseboats
and floating homes, as defined by Section 20583.1, on which property
taxes are delinquent at the time the application for postponement
under this chapter is made, shall not be eligible for postponement.

20583.1. For purposes of Section 20583, "residential dwelling"
includes houseboats and floating homes.

20584. (a) "Property taxes" means all ad valorem property taxes,
special assessments, 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, or other charges
or user fees appearing on the tax bill of any chartered city which
levies and collects its own property taxes.
(b) Whenever a residential dwelling is an integral part of a
larger tax unit, such as a duplex, farm or a multipurpose building,
"property taxes" shall be the percentage of the total property taxes
as the value of the residential dwelling is of the value of the total
tax unit.
(c) "Property taxes" includes any property taxes that become
delinquent after the claimant was 62 years of age or after the
claimant became blind or disabled as defined in Section 12050 of the
Welfare and Institutions Code.

20585. Postponement shall not be allowed under this chapter or
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 either of the following amounts:
(a) For the 1976 calendar year or for any approved fiscal year
commencing within that calendar year, household income shall not
exceed twenty thousand dollars ($20,000).
(b) For all subsequent calendar years and approved fiscal years,
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 an amount determined as follows:
(1) On or before March 1 of each year, the California Department
of Industrial Relations shall transmit to the Controller 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.
(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).
(3) In 1978, the Franchise Tax Board shall multiply twenty
thousand dollars ($20,000) by the inflation adjustment factor to
determine the maximum allowable gross household income for the 1977
calendar year and for approved fiscal years commencing within that
calendar year. In 1979 and subsequent calendar years through and
including 1983, the Controller shall multiply the maximum allowable
household income determined for the preceding calendar year by the
inflation adjustment factor to determine the maximum allowable
household income for the applicable calendar year and approved fiscal
years commencing within that calendar year. In determining the
maximum allowable household income pursuant to this section, the
Controller shall round that amount to the nearest hundred dollar
amount.
(c) For calendar year 1984 and subsequent calendar years and for
approved fiscal years commencing within those years, postponement
shall not be allowed under this chapter, Chapter 3 (commencing with
Section 20626), Chapter 3.3 (commencing with Section 20639), or
Chapter 3.5 (commencing with Section 20640), if household income
exceeds an amount determined as follows:
(1) For claimants who filed and qualified in the calendar year
1983 and for whom postponement has been allowed for each subsequent
calendar year up to and including the calendar year 2007, thirty-four
thousand dollars ($34,000). For these same claimants, for the
calendar year 2008 or for any approved fiscal year commencing within
that calendar year, household income shall not exceed thirty-five
thousand five hundred dollars ($35,500).
(2) For all other claimants, for calendar years up to and
including 2006, household income shall not exceed twenty-four
thousand dollars ($24,000). For these same claimants, for the 2007
calendar year or for any approved fiscal year commencing within that
calendar year, household income shall not exceed thirty-one thousand
five hundred dollars ($31,500). For these same claimants, for the
2008 calendar year or for any approved fiscal year commencing within
that calendar year, household income shall not exceed thirty-five
thousand five hundred dollars ($35,500).
(3) (A) For all claimants for the calendar year 2009 or for any
approved fiscal year commencing within that calendar year,
postponement shall not be allowed under this chapter, Chapter 3
(commencing with Section 20626), Chapter 3.3 (commencing with Section
20639), or Chapter 3.5 (commencing with Section 20640), if household
income exceeds thirty-nine thousand dollars ($39,000).
(B) For the 2010 calendar year and each subsequent calendar year,
and for any approved fiscal year commencing within that calendar
year, the household income amount specified in subparagraph (A) shall
be adjusted for inflation, in accordance with an inflation factor
determined pursuant to paragraphs (1) and (2) of subdivision (b).

20586. For the purposes of 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), only one claimant per household each year shall be
entitled to postponement. When two or more individuals in a household
are qualified as claimants, they may determine who the claimant
shall be. Such decision is irrevocable. If the individuals are unable
to agree, the matter shall be determined by the Controller and his
decision shall be final.