Fee and Tax Waiver Program

Transcription

1 Fee and Tax Waiver Program Local Government Programs and Services Division BETTY T. YEE California State Controller

2 Objectives This presentation will Discuss program background. Review steps for TTC process. Review how SCO s legal department has defined certain ambiguous terms. End in question & answer. 2

3 Background Assembly Bill 587 (AB587) Chaptered September 21, Effective January 1, December 31, HCD emergency regulations effective January 23, Affected code sections Amended Civil Code Amended Health and Safety Code , , and Added Health and Safety Code Added Revenue and Taxation Code 5832, 3 section 7, 8, and 9.

4 Problem 4

5 Solution How it helps Allow owners to waive certain fees/taxes in order to obtain registration/title. Why it matters Allow mobilehome owners to gain legal title. Allow permitted repairs to their homes Have the ability to sell their homes legally if desired. Stability, and safety. 5

6 The California Department of Housing Community and Development (HCD) Where does it all begin? 6

7 HCD Outreach Mobile Offices Perris Riverside Mecca Sunnyvale Calexico Lancaster San Jose Fresno registeryourmobilehomeca.org 7

8 HCD s Eligibility Requirements Manufactured Home/Mobilehome must be registered or previously registered within California. Currently not the registered owner on record. Applicant has not previously filed for relief. Any lien pursuant to Government Code has been satisfied (Property Tax Postponement). Applicant provides all documentation showing ownership and date of acquisition. 8

9 Fee and Tax Waiver Program Flow Applicant submits Fee and Tax Waiver Transfer Application Package to HCD HCD processes application without a tax clearance certificate. Applicant is recorded on the record as a conditional owner. HCD issues a Conditional Certificate of Title Applicant receives a Conditional Certificate of Title Applicant presents Conditional Certificate of Title to County Applicant receives a Tax Liability Certificate County issues Tax Liability Certificate County will charge taxes pursuant to Revenue and Taxation Code 5832(f). Applicant pays taxes due. 9

10 Fee and Tax Waiver Program Flow Applicant submits the Conditional Certificate of Title and Tax Liability Certificate to HCD HCD processes application. Applicant is recorded on the record as a registered owner. HCD issues a certificate of title and registration card Applicant is now the registered owner on record. 10

11 Date of Sale 11

12 7 Steps For Tax Collectors The application process for the program is a multi-step process between HCD and the county tax collector. There are 7 primary steps for tax collectors. 12

13 Step 1: Conditional Transfer of Title When a manufactured or mobilehome owner presents a Conditional Transfer of Title, either: Applicant pays taxes reasonably owed and a Tax Liability Certificate is issued. Or, There are no delinquent taxes and a Tax Clearance Certificate is issued. 13

14 Reasonably Owed Defined Starting from the date of sale on the Conditional Transfer of Title Taxes attributable to the 2016 calendar year 2nd inst. 15/16 FY and 1st inst. 16/17 FY No penalties or interest If no taxes fall into the 2016 calendar year, no taxes are owed. 14

15 What Can Be Collected? 2016 calendar year taxes: 2nd 15/16 FY and 1st 16/17 FY Special assessments: Sewer, fire, abatement, delinquent charges that are assessed for services received, etc. Normal fees/charges: Mailing costs, recording fees, release of lien fees, cost of posting notices, etc. 15

16 What Can Not Be Collected? Do not Collect: Past and future taxes outside of the 2016 calendar year (2 nd inst. 15/16 FY and 1 st inst.16/17 FY). Any penalties or interest. 16

17 Step 2: Determine Tax Liability Applicant(s) Liable for taxes reasonably owed. 2 nd inst. 15/16 FY and 1 st inst. 16/17 FY. No penalties or interest. Prior Assessee(s) Liable for all taxes prior to date of sale to the applicant. 17

18 Step 3: Determine Taxes to be Cancelled All taxes, other than those reasonably owed are to be cancelled. Be Aware: All taxes on Mobilehomes transferred after January 1, 2017 are to be cancelled from the date of sale to the date the Tax Liability Certificate is issued. 18

19 Step 4: Applicant Pays and Certificate is Issued Taxes owed and paid = Tax Liability Certificate. No taxes owed = Tax Clearance Certificate. Prepared the certificate in triplicate. Inform the applicant on what to do next. 19

20 Next Payment Due The applicant becomes immediately responsible for property taxes upon issuance of a Tax Clearance or Liability Certificate. For example: If a Tax Liability Certificate is issued on January 1, 2018 the applicant will be responsible for all taxes incurred from January 1, 2018 going forward. 20

21 Step 5: Notify the Assessor California Department of Tax and Fee Administration Letter to the Assessors 21

22 Step 6: Ownership and Title The applicant should now be listed as the owner of record for all property tax purposes. Upon receipt of all required information, HCD will transfer title to the applicant. 22

23 Step 7: Bi-Weekly HCD Report HCD will release a bi-weekly report showing all transfer of titles. Cross-check applicants who have been issued a Tax Clearance or Liability Certificate against the HCD report to ensure applicant follow through. 23

24 Review of Steps 1. Conditional transfer of title. 2. Tax collector determines the applicant s and former assessees tax liability. 3. Determine tax liability to be paid. 4. Applicant pays and certificate is issued. 5. Notify the assessor. 6. Ownership and title. 7. Review HCD bi-weekly report. 24

25 Resources County Tax Collectors' Reference Manual Chapter 10000: Mobilehomes. Tax Clearance and Liability Certificates are available in the Forms and Figures sections on the SCO website as Forms SCO and SCO SCO Fee and Tax Waiver Program Frequently Asked Questions located: Info/AB587_FAQ_2017.pdf HCD information 25

26 Contact Information Jennifer Montecinos, PTSU Supervisor State Controller's Office HCD 26