Property tax postponement.
SB151 also proposes to update procedural aspects concerning property tax postponements, including a revision that would require the county recorder to notify both the county tax collector and the county assessor of lien actions concerning postponed property taxes. Additionally, it mandates that any payments applied to the reduction of tax obligations be allocated first to interest, then to the principal, and lastly to any administrative fees. This structure aims to clarify financial responsibilities while benefiting taxpayers seeking to postpone their property taxes.
Senate Bill 151, introduced by Senator Nguyen, proposes various amendments to the existing Property Tax Postponement Law in California. The bill's primary focus is to amend how the property tax postponement program operates, particularly for seniors and disabled citizens. Among its key provisions, the bill eliminates the requirement that the Controller transfer excess funds from the Senior Citizens and Disabled Citizens Property Tax Postponement Fund to the General Fund when the fund's balance exceeds $15 million. This change allows for greater flexibility in funding the postponement program and aims to ensure its long-term viability by maintaining adequate resources.
An urgency clause within the bill indicates its immediate effectiveness upon passage, suggesting that revisions aimed at improving the property tax postponement program are paramount to addressing current fiscal challenges faced by California's senior and disabled populations.
One notable point of contention includes the exclusion of residences subject to Property Assessed Clean Energy (PACE) bonds from the postponement program. Critics argue that this exclusion could adversely affect property owners who choose to finance energy-efficient improvements through such bonds. Furthermore, the bill imposes certain duties on local officials regarding the administration of the property tax postponement program, which, depending on interpretations, may require state reimbursement for associated costs—this aspect raises discussions about financial burdens on local agencies.