Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2017
Government Code Provisions
Provisions Relating to Property Tax Relief
DIVISION 4. FISCAL AFFAIRS
PART 1. FUNDS FOR SUBVENTIONS
Chapter 5. Payment of Postponed Property Taxes*
Article 1. Payments and Liens
(1)Beginning July 1, 2016, the rate of interest shall be 7 percent per annum.
(2) 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.
(3) 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 an electronic funds transfer 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.
History.—Stats. 1978, Ch. 43, in effect March 16, 1978, added the words "not compounded" to subdivision (a). Also designated the last sentence of subdivision (b) as subdivision (c) and added subdivision (d). Stats. 1983, Ch. 323, in effect July 21, 1983, operative July 1, 1983, substituted "a rate (not compounded), determined as follows:" for "an annual rate of 7 percent, not compounded." after "interest at" in the first sentence of subdivision (a) and added subsections (1), (2), and (3) thereto; deleted "of this section" after "subdivision (a)" in the first sentence of subdivision (b); added subdivision (e); and made grammatical changes throughout the section. Stats. 1983, Ch. 1051, in effect January 1, 1984, substituted "that" for "such" after "until" in the first sentence of subdivision (b); and added "20639.9" after "20630.5" and substituted "shall" for "will" before "apply" in subdivision (e). Stats. 2014, Ch. 703 (AB 2231), in effect September 28, 2014, substituted "Beginning July 1, 2016," for "For the period ending June 30, 1984," before "the rate" in the first sentence of paragraph (1) and added ", until June 30, 2016" after "succeeding year" in the second sentence of paragraph (2) of subdivision (a). Stats. 2015, Ch. 391 (SB 801), in effect January 1, 2016, deleted the paragraph designation "(1)" in the first sentence of the first paragraph of subdivision (a), and added "For loans made prior to June 30, 2016," before "the" in the first sentence of paragraph (3) thereof; and substituted "an electronic funds transfer is made by the Controller to" for "a certificate of eligibility is countersigned by" after "the time" in the first sentence of subdivision (d).
* Chapter 6 was enacted by Stats. 1977, Ch. 1242, in effect October 1, 1977, and was renumbered as Chapter 5 by Stats. 1982, Ch. 454, in effect January 1, 1983.