Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2016
 

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


Chapter 5. Payment of Postponed Property Taxes*

* 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.

Article 1. Payments and Liens

16180. Amount of money available to pay postponed property taxes. [Repealed by Stats. 2014, Ch. 703 (AB 2231) effective September 28, 2014.]

16180. Senior Citizens and Disabled Citizens Property Tax Postponement Fund.(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 the Senior Citizens and Disabled Citizens Property Tax Postponement Law (Chapter 2 (commencing with Section 20581) of Part 10.5 of Division 2 of the Revenue and Taxation Code).

(b) The Controller shall do both 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 each year thereafter, transfer any moneys in the fund in excess of fifteen million dollars ($15,000,000) to the General Fund.

(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.

(d) Any funds remaining upon the effective date of this section in an impound account formerly provided for pursuant to this chapter, shall be transferred to the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.

History.—Added by Stats. 2014, Ch. 703 (SB 2231) in effect September 28, 2014.

16181. Controller to maintain records of all properties. (a) The Controller shall maintain a record of all properties against which a notice of lien for postponed property taxes has been recorded. The record shall include, but not be limited to, the names of each claimant, a description of the real property against which the lien is recorded, the identification number of the notice of lien assigned by the Controller, and the amount of the lien.

(b) Upon written request of any person or entity, or the agent of either, having a legal or equitable interest in real property that is subject to a lien for postponed taxes, the Controller shall within 10 working days following receipt of the request issue a written statement showing the amount of the obligation secured by the lien as of the date of the statement and any other information as will reasonably enable the person or entity, or the agent of either, to determine the amount to be paid the Controller in order to obtain a certificate of release or discharge of the lien for postponed taxes.

(c) The Controller shall adopt regulations necessary to implement the provisions of this chapter and may establish a reasonable fee, not to exceed thirty dollars ($30), for the provision of the statement of lien status provided for herein.

History.—Stats. 1978, Ch. 43, in effect March 16, 1978, designated existing unnumbered paragraphs as subdivisions (a) through (c). In addition, in the first sentence of subdivision (b) added the phrase "within 10 working days following receipt of such request". In subdivision (c) deleted the word "shall" and replaced it by the word "may". Stats. 1983,Ch. 1051, in effect January 1, 1984, added subdivision (b); relettered former subdivisions (b) and (c) as (c) and (d), respectively; and added "or a mobilehome" after "real property" in subdivision (c). Stats. 1984, Ch. 1342, in effect September 26, 1984, deleted "or permit for transport" after "title" in subdivision (b); substituted "the" for "such" in subdivisions (a) and (c). Stats. 2014, Ch. 703 (AB 2231), in effect September 28, 2014, deleted former subdivision (b) which required the Controller to maintain a record of all properties against which HCD had been notified to withhold a transfer of title; relettered former subdivision (c) as (b) and deleted "or a mobilehome" after "real property", substituted "that" for "which" before "is subject" , substituted "the" for "such" after "date of", and substituted "any" for "such" after "statement and" in the first sentence therein; relettered former subdivision (d) as (c) and substituted "thirty dollars ($30)" for "ten dollars ($10)" after "to exceed" in the first sentence therein.

16181.5. Possessory interests as real property. For purposes of this chapter, "real property" shall include possessory interests in real property for which property taxes have been postponed pursuant to the provisions of Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code.

History.—Added by Stats. 1978, Ch. 576, in effect August 31, 1978.

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16182. Lien on real property for which taxes have been postponed.(a) All sums paid by the Controller under the provisions of this chapter, together with interest thereon, shall be secured by a lien in favor of the State of California when funds are transferred to the county by the Controller upon the real property for which property taxes have been postponed . In the case of a residential dwelling which is part of a larger parcel taxed as a unit, such as a duplex, farm, or multipurpose or multidwelling building, the lien shall be against the entire tax parcel.

(b) In the case of real property:

(1) The lien shall be evidenced by a notice of lien for postponed property taxes executed by the Controller, or the authorized delegate of the Controller, and shall secure all sums paid or owing pursuant to this chapter, including amounts paid subsequent to the initial payment of postponed taxes on the real property described in the notice of lien.

(2) The notice of lien may bear the facsimile signature of the Controller. Each signature shall be that of the person who shall be in the office at the time of execution of the notice of lien; provided, however, that such notice of lien shall be valid and binding notwithstanding any such person having ceased to hold the office of Controller before the date of recordation.

(3) The form and contents of the notice of lien for postponed property taxes shall be prescribed by the Controller and shall include, but not be limited to, the following:

(A) The names of all record owners of the real property for which the Controller has advanced funds for the payment of real property taxes.

(B) A description of the real property for which real property taxes have been paid.

(C) The identification number of the notice of lien which has been assigned the lien by the Controller.

(4) Within 14 business days of the transfer of funds and the notice of lien to the county by the Controller, the notice of lien shall be recorded in the office of the county recorder for the county in which the real property subject to the lien is located.

(5) The recorded notice of lien shall be indexed in the Grantor Index to the names of all record owners of the real property and in the Grantee Index to the Controller of the State of California.

(6) After the notice of lien has been duly recorded and indexed, it shall be returned by the county recorder to the office of the Controller. The recorder shall provide the county tax collector with a copy of the notice of lien which has been recorded by the Controller.

(7) From the time of recordation of a notice of lien for postponed property taxes, a lien shall attach to the real property described therein and shall have the priority of a judgment lien for all amounts secured thereby, except that the lien shall remain in effect until it is released by the Controller in the manner prescribed by Section 16186.

(c) In the case of mobilehome loans established prior to February 20, 2009, all of the following shall apply:

(1) The lien shall be evidenced by a notice of lien for postponed property taxes excused by the Controller, or the authorized delegate of the Controller, and shall secure all sums paid owing pursuant to this chapter.

(2) From the time that the Department of Housing and Community Development receives the notice of lien from the Controller, the department shall impose a moratorium on any other amendments to the permanent title record of the mobilehome unit until released by the Controller in the manner prescribed by Section 16186, or an authorization for the amendments is given by the Controller in writing.

(3) From the time of filing a notice of lien, a lien shall attach to the mobilehome for which eligibility for the postponement of property taxes has been granted.

History.—Stats. 1978, Ch. 43, in effect March 16, 1978, designated unnumbered paragraphs as subdivisions (a) through (h). Also in subdivision (a) added the second sentence. Also in subdivision (h) between the words "have the" and "priority of" deleted the words "force, effect, and". Stats. 1983, Ch. 1051, in effect January 1, 1984, added "or a mobilehome" after "real property" and "or both" after "postponed" in the first sentence of subdivision (a); added "In the case of real property:" after "(b)", added "(1)" before "The lien", and substituted "(2)" for "(c)", "(3)" for "(d)", and "(A)" for "(1)", "(B)" for "(2)", "(c)" for "(3)" in subsection (3), "(4)" for "(e)", "(5)" for "(f)", "(6)" for "(g)" and "(7)" for "(h)" in newly reorganized subdivision (b); and added subdivisions (c) and (d).Stats. 1984, Ch. 1342, in effect September 26, 1984, deleted "such" before "signature" in the second sentence of subsection (2) of subdivision (b), added "either of the following occurs;" after "until" in subsection (7), thereof, and substituted "(A) It is released" for "(i) Released", deleted ", or" after "16186", and substituted "(B)" for "(ii)" therein; substituted "notice of lien" for "statement of lien" throughout subdivision (c), deleted "immediately" after "shall" and deleted "and current registration card" after "record" in subsection 5 thereof, substituted "an acknowledgement . . . record." for "A copy of the amended registration card" after "with" in subsection (6) thereof, and substituted "impose a moratorium . . . interest in the mobilehome," for "not do any of the following" after "shall", and substituted "or an authorization for the amendments is given by the Controller in writing" for former subparagraphs (A), (B), and (C) after "16186" in subsection (7) thereof; and substituted "notice of lien" for "statement of lien" after "filing a" in the first sentence and deleted the former second sentence of subdivision (d). Amended by Stats. 2004, Ch. 227 (SB 1102), in effect August 16, 2004. Stats. 2014, Ch. 703 (AB 2231), in effect September 28, 2014, added "when funds are transferred to the county by the Controller" after "of California" and deleted "or a mobilehome" after "real property", and deleted ", or both" after "been postponed" in the first sentence of subdivision (a); added "Within 14 business days of the transfer of funds and the notice of lien to the county by the Controller," before "the notice" in the first sentence of paragraph (4) of subdivision (b); substituted "it is released by the Controller in the manner prescribed by Section 16186" for "either of the following occurs: (A) It is released by the Controller in the manner prescribed by Section 16186. (B) The foreclosure or sale of an obligation secured by a lien which is senior in priority to the State of California." after "effect until"; substituted "mobilehome loans established prior to Februrary 20, 2009, all of the following shall apply:" for "mobilehomes" after "case of" in the first sentence of subdivision (c), substituted "excused" for "executed" after "property taxes" and deleted "or" after "sums paid" in the first sentence of paragraph (1) and deleted former paragraphs (2), (3), (4), (5), and (6) which related to the lien process for mobilehomes, renumbered former paragraph (7) as paragraph (2) and substituted "unit" for "for purposes of transferring any ownership interest or transferring or creating any security interest in the mobilehome," after "the mobilehome" in the first sentence therein, and designated former subdivision (d) as paragraph (3) thereto; and deleted former subdivision (e) which allowed property tax postponement on mobilehomes to be optional.

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16183. Interest. (a) (1) 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, 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) 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 certificate of eligibility is countersigned by 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).

16184. Reduction of obligation. The Controller shall reduce the amount of the obligation secured by the lien against the real property by the amount of any payments received for that purpose and by notification of any amounts paid by the Franchise Tax Board pursuant to Section 20564 or by any amounts authorized pursuant to subdivision (f) of Section 20621 of the Revenue and Taxation Code. The Controller shall also increase the amount of the obligation secured by the lien by the amount of any subsequent payments made pursuant to Section 16180 with respect to the real property and to reflect the accumulation of interest. All such increases and decreases shall be entered in the record described in Section 16181.

History.—Stats. 1980, Ch. 925, in effect September 18, 1980, substituted "any" for "notification by the Franchise Tax Board of" after "or by" in the first sentence. Stats. 1983, Ch. 1051, in effect January 1, 1984, added "or mobilehome" after "real property" in the first sentence.Stats. 2014, Ch. 703 (AB 2231), in effect September 28, 2014, deleted "or mobilehome" after "real property" in the first sentence and substituted "the" for "such" after "secured by" in the second sentence.

16185. Subordination of lien. [Repealed by Stats. 2014, Ch. 703 (AB 2231), effective September 28, 2014.]

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16186. Payment of postponed tax liability. (a) If at any time the amount of the obligation secured by the lien for postponed property taxes is paid in full or otherwise discharged, the Controller, or the authorized delegate of the Controller, shall in the case of real property:

(1) Execute and cause to be recorded in the office of the county recorder of the county wherein the real property described in the lien is located, a release of the lien conclusively evidencing the satisfaction of all amounts secured by the lien. The cost of recording the release of the lien shall be added to and become part of the obligation secured by the lien being released.

(2) Direct the tax collector to remove from the secured roll, the information required to be entered thereon by paragraph (1) of subdivision (a) of Section 2514 of the Revenue and Taxation Code with respect to the property described in the lien.

(3) Direct the assessor to remove from the assessment records applicable to the property described in the lien, the information required to be entered on such records by Section 2515 of the Revenue and Taxation Code.

(b) If at any time the amount of the obligation secured by the lien for postponed property taxes is paid in full or otherwise discharged, the Controller, or the authorized delegate of the Controller, shall, in the case of mobilehome loans established prior to February 20, 2009:

(1) Direct the tax collector to remove from the secured roll the information required to be entered thereon by paragraph (1) of subdivision (a) of Section 2514 of the Revenue and Taxation Code.

(2) Transmit a Release of Lien to the owner of the mobilehome or the owner's heirs or assigns. The owner, or the owner's heirs or assigns, shall transmit the Release of Lien, and a fee of six dollars ($6), to the Department of Housing and Community Development. Upon receipt of the Release of Lien and the fee, the department shall terminate the restriction on the permanent title record as provided in Section 16182.

History.—Stats. 1983, Ch. 1051, in effect January 1, 1984, added "In the case of real property:" after "(a)", added "(1)" before "Execute", and substituted "2" for "b" and "c" for "3" in newly reorganized subsection (a); and added subsection (b). Stats. 1984, Ch. 1342, in effect September 26, 1984, substituted "permanent title record . . . 16182." for "transfer of ownership and issue amended title and registration certificates" after "restriction on the" in the third sentence of subsection (b)(2). Stats. 2014, Ch. 703 (AB 2231), in effect September 28, 2014, designated the former first paragraph as the first paragraph of subdivision (a) and substituted "If at any time…prior to February 20, 2009;" for "In the case of a mobilehome:" in the first paragraph of subdivision (b) and substituted 'in' for "by" after "as provided" in the third sentence of paragraph (2) thereto.

16186.5. Refund of overpayment of postponed tax liability. In the event that a payment which is made to satisfy an obligation secured by a lien for postponed property taxes exceeds the amount owing to the state, the Controller may refund the overpayment to the party entitled thereto. The Controller shall pay those refunds out of the amount appropriated by Section 16100, or any appropriation in lieu thereof.

History.—Added by Stats. 1982, Ch. 1465, in effect January 1, 1983.

16187. Foreclosure of lien. (a) In the event of a judicial foreclosure of any lien provided by Section 16182, notice shall be given the Controller, in such manner as the Controller may prescribe, not less than 60 days prior to the sale upon judicial or nonjudicial foreclosure of any lien senior in priority to the lien provided by Section 16182, unless the Controller is named and served as a defendant in a judicial proceeding for foreclosure.

(b) In the event of a nonjudicial foreclosure of any lien senior in priority to the lien provided by Section 16182, notice shall be given to the Controller, pursuant to Section 2924b of the Civil Code. However, when the notice of lien for postponed property taxes is recorded subsequent to the recordation of a notice of default, the Controller shall be given notice of sale not less than 25 days prior to such sale provided that the lien for postponed property taxes is recorded more than 30 days before such sale.

In the event of a failure to give the notice required by this section, the lien established by Section 16182 shall not be affected by the foreclosure or sale of any such senior lien.

History.—Stats. 1978, Ch. 43, in effect March 16, 1978, deleted "senior in priority to the lien" after "any lien" in the first sentence of subdivision (a).

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Article 2. Delinquency

16190. Due date. All amounts owing pursuant to Article 1 (commencing with Section 16180) of this chapter shall become due if any of the following occurs:

(a) The claimant, who is either the sole owner or sole possessory interestholder of the residential dwelling, as defined in Section 20583 or Section 20640 of the Revenue and Taxation Code, or a coowner or copossessory interestholder with a person other than a spouse or other individual eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of such code, ceases to occupy the premises as his residential dwelling, dies, or sells, conveys, or disposes of the property, or allows any tax or special assessment on the premises described in Section 20583 of such code to become delinquent. If the sole owner or possessory interestholder claimant dies and his or her surviving spouse inherits the premises and continues to own and occupy it as his or her principal place of residence, then the lien amount does not become due and payable unless taxes or special assessments described in the preceding sentence become delinquent, or such surviving spouse dies, or sells, conveys, or disposes of the interest in the property.

(b) The claimant, who is a coowner or copossessory interestholder of the residential dwelling, as defined in Section 20583 or Section 20640.2 of the Revenue and Taxation Code, with a spouse or another individual eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of such code, dies, and the surviving spouse or other surviving eligible individual allows any tax or special assessment on the premises described in Section 20583 of such code to become delinquent or such surviving spouse or other individual ceases to occupy the premises as a residential dwelling, dies, or conveys, or disposes of the interest in the property.

(c) The failure of the claimant to perform those acts the claimant is required to perform where such performance is secured, or will be secured in the event of nonperformance, by a lien which is senior to that of the lien provided by Section 16182.

(d) Postponement was erroneously allowed because eligibility requirements were not met.

(e) The claimant is refinancing the residential dwelling.

(f) The claimant has elected to participate in a reverse mortgage program for the residential dwelling.

History.—Stats. 1978, Ch. 43, in effect March 16, 1978, added "either" after "is", added "or a co-owner . . . of such code" after "Code,", and added the balance of the sentence after "of the property" in the first sentence, and added the second sentence to subsection (a). Stats. 1978, Ch. 576, in effect August 31, 1978, added "or sole possessory interest holder" after "owner", added "or section 20640" after "20583", substituted "2" for "3" after "Chapter", added "or Chapter 3.5 (commencing with Section 20640)" after "20581)", and deleted "subparagraph (a) of paragraph (4) of subsection (b) of" after "described in" in the first sentence, and added "or possessory interest holder" after "owner", and added "the interest in" after "disposes of" in the second sentence of subsection (a); and added "or co-possessory interest holder" after "co-owner", added "or Section 20640.2" after "20583", substituted "2" for "3" after "Chapter", added "or Chapter 3.5 (commencing with Section 20640)" after "20581)", deleted "subparagraph (a) of paragraph (4) of subsection (b) of" after "described in", and added "the interest in" after "disposes of" in subsection (b). Stats. 1983,Ch. 1051, in effect January 1, 1984, added ", Chapter 3.3 (commencing with Section 20639)" before "or chapter 3.5" in the first sentences in subsections (a) and (b). Stats. 2014, Ch. 703 (AB 2231), in effect September 28, 2014, substituted "interestholder" for "interest holder" throughout and added subdivisions (e) and (f).

16191. Postponement of amounts due. The amounts paid pursuant to Section 16180 shall continue to draw interest but amounts owing pursuant to Article 1 (commencing with Section 16180) of this chapter shall not become due and payable if any of the following occurs:

(a) The claimant continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but ceases to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.

(b) The surviving spouse of a claimant continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but is ineligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, or elects not to postpone such taxes, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.

(c) The surviving individual otherwise eligible to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code continues to own and occupy or hold the possessory interest and occupy the premises as a residential dwelling, but elects not to postpone the property taxes pursuant to such chapter, and does not allow any tax or assessment against the premises, as described in Section 20583 of such code, to become delinquent.

History.—Stats. 1978, Ch. 576, in effect August 31, 1978, added "or hold the possessory interest and occupy the premises as" after "occupy", substituted "2" for "3" after "Chapter", added "or Chapter 3.5 (commencing with Section 20640)" after "20581)", and deleted "subparagraph (a) of paragraph (4) of subdivision (b) of" after "described in" in subsections (a), (b), and (c). Stats. 1983, Ch. 1051, in effect January 1, 1984, added ", Chapter 3.3 (commencing with Section 20639)" before "or Chapter 3.5" in subsections (a), (b), and (c).

16192. Election to postpone taxes. If, at any time, a person meeting the requirements of subdivision (a) or (c) of Section 16191 elects, or any surviving spouse described in subdivision (b) of such section becomes eligible, or otherwise elects, to postpone property taxes pursuant to Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code, payments made pursuant to Section 16180 shall be added to the amount of the lien existing against the residential dwelling.

History.—Stats. 1978, Ch. 576, in effect August 31, 1978, substituted "2" for "3" after "Chapter", and added "or Chapter 3.5 (commencing with Section 20640)" after "20581)". Stats. 1983, Ch. 1051, in effect January 1, 1984, added ", Chapter 3.3 (commencing with Section 20639)" before "or Chapter 3.5".

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Article 3. Enforcement and Foreclosure

16200. Actions by Controller to protect state's interest. In the event that the Controller receives the notice described in Section 16187 of this code or Section 3375 of the Revenue and Taxation Code, the Controller may take any of the following actions which will best serve the interests of the state:

(a) Notify by United States mail the tax collector or other party that such notice has been received and that the Controller must be given at least 20 days prior notice of the date that the property will be sold at auction. If the Controller elects to proceed under this subdivision, the Controller may use funds appropriated by Section 16100 to bid on the property at the auction up to the amount secured by the state's lien on the property and any lien on such property having priority over the state's lien. All additional amounts paid pursuant to this subdivision shall be added to the amount secured by the lien on such property provided for in Article 1 (commencing with Section 16180) of this chapter.

(b) Acknowledge by United States mail that the notice required by Section 16187 of this code or Section 3375 of the Revenue and Taxation Code has been received.

History.—Stats. 1980, Ch. 925, in effect September 18, 1980, substituted "20 days" for "15 days" before "prior notice" in the first sentence of subdivision (b). Stats. 2014, Ch. 703 (AB 2231), in effect September 28, 2014, deleted former subdivision (a) relating to payments for liens, and relettered former subdivisions (b) and (c) as subdivisions (a) and (b), respectively.

16201. Additional actions available to Controller. If the Controller, by reason of the notice described in Section 3375 of the Revenue and Taxation Code or by reason of information from any other source, determines that all amounts owing under Article 1 (commencing with Section 16180) of this chapter have become due and payable pursuant to Section 16190, the Controller may, in addition to the options provided in Section 16200, take any of the following actions which will best serve the interest of the state:

(a) The Controller may demand payment of such amount from any person liable therefor.

(b) If the Controller has reasonable cause to believe that sale of the property will not satisfy the amount secured by the state's lien, the Controller may file a claim against the estate of any decedent whose property is liable for such amount or the Controller may request the Attorney General to bring an action under Section 2931c of the Civil Code to recover the amount of the state's lien.

(c) The Controller may direct the Department of General Services to sell such property pursuant to Chapter 4.5 (commencing with Section 14735) of Part 5.5 of Division 3 of this title, or, if applicable, Division 9 (commencing with Section 9101) of the Commercial Code.

History.—Stats. 1980, Ch. 925, in effect September 18, 1980, added "in addition to the options provided in Section 16200" after "may" in the first sentence. Stats. 1983, Ch. 1051, in effect January 1, 1984, added "or, if applicable, Division 9 (commencing with Section 9109) of the Commercial Code" after "title" in subsection (c). Stats. 1999, Ch. 991 (SB 45), in effect January 1, 2000, operative July 1, 2001, substituted "9101" for "9109" after "Section" in the first sentence of subdivision (c).

Note.—Section 75 of Stats. 1999, Ch. 991 (SB 45) provided that the provisions of this act shall become operative July 1, 2001.

16202. Additional actions available to Controller. Notwithstanding any other provision of law, in the event that the state acquires an interest in real property pursuant to subdivision (b) of Section 16200, the Controller may, in addition to the options provided in Section 16201, take any other action with respect to that real property interest as will best serve the interest of the state. These actions may include, but shall not be limited to, the sale, lease, or retention of any interest so acquired. The Controller may contract with licensed real estate brokers, maintenance and repair contractors, security contractors, appraisers, property managers, insurance brokers, and any other experts or specialists as may be necessary to protect or preserve the state's interest in that property. The Controller may pay the costs incurred pursuant to those contracts out of the amount appropriated by Section 16100, or from any appropriation in lieu thereof.

The sale of those interests may be made on the basis of conventional financing arrangements including the securing of payment through the use of promissory notes, deeds of trust, and other accepted methods of deferred payment.

History.—Added by Stats. 1983, Ch. 407, in effect January 1, 1984.

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Article 4. Impound Accounts

16210. Payment by reason of condemnation. In the event that the amount secured by the state's lien provided for in Article 1 (commencing with Section 16180) is paid by reason of the sale or condemnation of the property on which the lien attaches, the funds so received shall be placed in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.

History.—Stats. 1978, Ch. 43, in effect March 16, 1978, added "sale or" after "reason of the" and substituted "6 months" for "18 months" in the first sentence, and added the second sentence. Stats. 1982, Ch. 454, in effect January 1, 1983, deleted "of this chapter" before "is paid" and substituted "six" for "6" before "months" in the first sentence. Stats. 2014, Ch. 703 (AB 2231), in effect September 28, 2014, substituted "the Senior Citizens and Disabled Citizens Property Tax Postponement Fund" for "an impound account for a period of six months" after "placed in" in the first sentence and deleted the former second sentence which provided that the Controller release the state’s lien pursuant to Government Code Section 16186.

16211. Rights of claimant to purchase new dwelling. The claimant under Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), or Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code whose residential dwelling was sold or condemned shall not draw upon the amount in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.

History.—Stats. 1978, Ch. 43, in effect March 16, 1978, substituted "sold or condemned" for "subject to condemnation" and added "new" before "lien" in the first paragraph, and added "new" before "lien" in the first sentence of the second paragraph. Stats. 1982, Ch. 454, in effect January 1, 1983, substituted "Chapter 2" for "Chapter 3" after "under" in the first paragraph, and substituted "the" for "such" after "subordinate" and "that" for "such" after "recordation of" in the first sentence, and substituted "The" for "Such" at the beginning of the second sentence of the second paragraph. Stats. 1983, Ch. 1051, in effect January 1, 1984, added ", Chapter 3 . . . Section 20640)" before "of Part 10.5" in the first paragraph, and added "In the case of real property" before "the Controller" in the first sentence of the second paragraph. Stats. 2014, Ch. 703 (AB 2231), in effect September 28, 2014, deleted "Chapter 3.3 (commencing with Section 20639,)" after "Section 20639)" and substituted "shall not draw upon the amount in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund" for "may draw upon the amount in the account to purchase a new residential dwelling, and the amount so drawn shall be secured by a new lien against the new residential dwelling from the time the Controller records the new lien against the new residential dwelling as provided for under Section 16182" after "or condemned" in the first sentence and deleted the former second sentence which provided that "In the case of real property, the Controller shall subordinate the new lien to the lien of the note and deed of trust of the purchase money obligations used in the acquisition of the new residential dwelling, provided the claimant has an equity of at least 20 percent of the full value of the property, as required by paragraph (1) of subdivision (b) of Section 20583 of the Revenue and Taxation Code, prior to recordation of that subordination. The lien shall have priority over all subsequent liens, except as provided in Section 2192.1 of the Revenue and Taxation Code."

16211.5. Rights of claimant to purchase new dwelling. (a) In the event that the real property securing the state's lien provided for in Article 1 (commencing with Section 16180) is the residential dwelling of a claimant under Chapter 2 (commencing with Section 20581) of Part 10.5 of Division 2 of the Revenue and Taxation Code and is voluntarily sold, the funds derived from the voluntary sale of the residential dwelling shall be placed in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund. At that time, the Controller shall release the state's lien in the manner prescribed by Section 16186.

(b) The claimant under Chapter 2 (commencing with Section 20581) of Part 10.5 of Division 2 of the Revenue and Taxation Code whose residential dwelling was voluntarily sold shall not draw upon the amount in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.

The Controller shall subordinate such new lien to the note and deed of trust of the purchase money obligations used in the acquisition of the new residential dwelling, provided the claimant has an equity of at least 20 percent of the full value of the property, as required by paragraph (1) of subdivision (b) of Section 20583 of the Revenue and Taxation Code, prior to recordation of such subordination. Such lien shall have priority over all subsequent liens, except as provided in Section 2192.1 of the Revenue and Taxation Code.

History.—Added by Stats. 1978, Ch. 43, in effect March 16, 1978. Stats. 1982, Ch. 497, in effect January 1, 1983, operative July 1, 1983, substituted "is the residential dwelling . . . is voluntarily sold" for "of this chapter is subject to a prior recorded homestead pursuant to Title 5 of Part 4 of Division 2 of the Civil Code" before "the funds", substituted "the residential dwelling" for "such homesteaded real property" before "shall", and substituted "six months" for "6 months notwithstanding Section 1265a of the Civil Code" in the first sentence of subdivision (a), and deleted "homesteaded" after "whose" in the first sentence of subdivision (b). Stats. 2014, Ch. 703 (AB 2231), in effect September 28, 2014, substituted "in the Senior and Disabled Citizens Property Tax Postponement Fund" for "an impound account for six months" after "placed in" in the first sentence and substituted "At that time" for "In connection with the establishment of such account" before ", the Controller" in the second sentence of subdivision (a); substituted "shall not draw upon the amount in the Senior and Disabled Citizen Property Tax Postponement Fund" for "may draw upon the amount in the account to purchase a new residential dwelling, and the amount so drawn shall be secured by a new lien against the new residential dwelling from the time the Controller records the new lien against the new residential dwelling as provided for under Section 16182" after "voluntarily sold" and deleted the second paragraph therein which provided that "The Controller shall subordinate such new lien to the note and deed of trust of the purchase money obligations used in the acquisition of the new residential dwelling, provided the claimant has an equity of at least 20 percent of the full value of the property, as required by paragraph (1) of subdivision (b) of Section 20583 of the Revenue and Taxation Code, prior to recordation of such subordination. Such lien shall have priority over all subsequent liens, except as provided in Section 2192.1 of the Revenue and Taxation Code."

16212. Treatment of drawn amount. [Repealed by Stats. 2014, Ch. 703 (AB 2231), effective September 28, 2014.]

16213. Transfer to general fund. [Repealed by Stats. 2014, Ch. 703 (AB 2231), effective September 28, 2014.]

16214. Moneys continually appropriated to Controller. [Repealed by Stats. 2014, Ch. 703 (AB 2231), effective September 28, 2014.]

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