Program Description

The Property Tax Postponement Program allows eligible homeowners to postpone payment of part or all of the property taxes on their residence. To participate in this program, the homeowner must complete the claim form and submit it to the State Controller's Office. A claim form must be filed each year the individual desires to have their property taxes postponed. Upon approval of the claim, the State Controller's Office will mail Certificates of Eligibility to the homeowner. The homeowner must mail or take the Certificates of Eligibility to the county tax collector's office to postpone the property taxes due.

To secure the postponed amount, the State Controller's Office records a lien against the property. Interest is charged on the postponed taxes on a simple interest basis. The postponed amount and interest are not due until: (1) the homeowner moves from the qualified property; (2) the homeowner sells or conveys title to the home; (3) the homeowner dies and does not have a spouse, or registered domestic partner, or other qualified individual who continues to reside in the home; or (4) future property taxes or other senior liens are allowed to become delinquent. However, the homeowner may pay all or part of the obligation before it becomes due.

You may qualify for additional assistance. The Homeowner Assistance Program is a separate program administered by the Franchise Tax Board (FTB). If you qualify, you may participate in both the Homeowner Assistance Program and the Property Tax Postponement Programs. The State Controller's Office encourages you to participate in the Homeowner's Assistance Program, because any assistance you receive is used to reduce the amount of the obligation secured by the property tax postponement lien.

To obtain a Homeowner Assistance claim form (FTB9000), contact FTB at (800) 868-4171. The annual filing period for the Homeowner Assistance Program is from July 1st, through October 15th.

• Eligibility Requirements
  • Age, Blindness, or Disability
  • Occupancy
  • Income
  • Equity
• Property Tax Bill
• Delinquent Taxes
• Cooperative Housing Corporation
• Leasehold (Possessory) Interest
• Life Estate
• Interest Rate on Postponed Taxes
• Homeowner Assistance Program
• Account Transfer to New Residence
• Subordination Provisions
• Account Statement
• Payments

Eligibility Requirements

• To be eligible for property tax postponement, you must meet each of the following requirements.

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Age, Blindness, or Disability

• You must be either 62 years of age or older as of December 31, 2008, or be blind or disabled at the time of application. All other recorded owners (except spouse, registered domestic partner, and direct-line relatives) must also meet this requirement. If you are disabled, your disability must be expected to last for a continuous period of at least 12 months or longer.

  Direct-line relatives are defined as (a) parents, children, or grandchildren of the claimant and/or the claimant’s spouse, and (b) the spouses of the relatives named in (a).

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Occupancy

• You must have owned and occupied the property as your principal place of residence as of December 31, 2007 and continuously since then. All other recorded owners (except spouse, registered domestic partner, and direct-line relatives) must also meet this requirement.

  You are still eligible for postponement if: (1) you are temporarily confined to a hospital or medical institution for medical reasons; (2) the property was the principal place of residence immediately prior to confinement; and (3) the residence is not rented.

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Income

• To be eligible for the program your total household income must be $35,500 or less for calendar year 2007. Household income is the total income received by all persons (except minors, full-time students, and renters) who resided in the home during 2007.

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Equity

• You and all other owners must have a combined 20% equity interest in the home at the time of application. The application cannot be approved if the total amount of liens, deeds of trust, mortgages, or other encumbrances against the home exceeds 80% of its fair market value as determined by the State Controller.

  Reverse Mortgages generally result in a decrease to the equity over the life of the mortgage, and can result in zero equity at some point. The Property Tax Postponement (PTP) loan will not be made unless the State's interest in repayment is adequately protected. If you have a reverse mortgage, you must provide additional documentation. See Required Documentation.

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Property Tax Bill

• You must submit a copy of your most recent secured property tax bill. Tax bills are mailed by the county tax collector on or before November 1 of each year.

  EXCEPTION: If you are a tenant-stockholder in a cooperative housing corporation, you are not required to submit a copy of the property tax bill. See Cooperative Housing Corporation for more information.

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Delinquent Taxes

• In some instances delinquent taxes are eligible for postponement. The property taxes must have become delinquent after the homeowner became 62 years of age, or blind, or disabled.

  If you are 62 or older and owe delinquent taxes for prior years, you must pay the county tax collector for all taxes that became delinquent prior to your 62nd birthday. If you are blind or disabled and owe delinquent taxes for prior years, you must pay the county tax collector for all taxes that became delinquent prior to the time you became disabled or blind. If you own a mobile home or floating home, you must first pay all prior-year delinquent taxes before using the Certificates of Eligibility to pay the current year's taxes.

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Mobilehome or Floating Home

• A mobilehome or floating home must be on the secured property tax roll of the county in which it is situated. You must obtain the written consent of all registered and legal owners and all junior lien holders. Also, you must submit a copy of your certificate of title issued by the State Department of Housing and Community Development. As mentioned above, prior-year delinquent taxes are not eligible for postponement. If you own a mobilehome or floating home and meet the program eligibility requirements, the State Controller's Office will mail you a security agreement for your signature. After the State Controller's Office receives the signed security agreement, Certificates of Eligibility will be issued to you.

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Cooperative Housing Corporation

• Tenant-stockholders own shares in a cooperative housing corporation, which entitles them to occupy for dwelling purposes a house or apartment in a building owned by the corporation. If you are a tenant-stockholder and meet the program eligibility requirements, the State Controller's Office will mail you a Notice of Election to Postpone and a Recognition Agreement. These forms must be completed and executed by you and an officer of the housing corporation. You must then return the forms to the State Controller's Office along with a statement signed by the officer of the housing corporation that indicates the amount of your proportionate share of the property taxes. Upon approval of the Notice of Election to Postpone, the State Controller's Office will issue warrants to you, in the amount you have elected to postpone. The cooperative housing corporation must allow the stock certificates to be rendered to the State Controller's Office as collateral for the postponement of property taxes.

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Leasehold (Possessory) Interest

• A leasehold (possessory) interest property is land in California that an individual does not own but has the right to possess and occupy. If you have a leasehold interest, it must be for a period of no less than 45 years from the time you first filed for postponement. You must submit a copy of the recorded lease agreement and policy of title insurance. If you meet the eligibility requirements, the State Controller's Office will mail you a Notice of Election to Postpone. This form must be completed and executed along with: (a) an assignment of the remaining term of the leasehold interest; and (b) additional security in the form of a deed of trust. Fee owners and leasehold parties of interest are required to sign consent forms. Upon approval of the Notice of Election to Postpone, the State Controller's Office will issue Certificates of Eligibility to you.

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Life Estate or Contract of Sale

• A life estate entitles a person to a lifetime residence on real property owned by another person. A contract of sale is an agreement for the purchase of property in which the title remains in the seller's name until the completion of the contract. If your residence is based on a life estate or is under a contract of sale, you must have written consent to postpone property taxes. The consent must be given by the remainderman, i.e., the person(s) who will own the property when you die, or by the person(s) who holds title to the property under the contract of sale. You must include all consent documents with the postponement application when you file it with the State Controller's Office. Upon approval of the postponement application, the State Controller's Office will issue Certificates of Eligibility to you.

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Interest Rate on Postponed Taxes

• Interest is computed monthly on postponed amounts on a simple interest basis (the annual interest rate divided by 12). Interest continues to accrue on the postponement account until all postponed taxes plus interest are repaid to the State. The interest rate is set in July of each year based on the annual yield of the State's Pooled Money Investment Account and applies only to that particular year's postponed taxes.

  The following table shows the annual interest rates since 1977-78.

Fiscal Year	Rate
1977-78 - 1983-84	7% per annum
1984-85 - 1986-87	10% per annum
1987-88 - 1988-89	7% per annum
1989-90 - 1991-92	9% per annum
1992-93	6% per annum
1993-94 - 2000-01	5% per annum
2001-02	6% per annum
2002-03 - 2003-04	3% per annum
2004-05 - 2005-06	2% per annum
2006-07	4% per annum
2007-08	5% per annum
2008-09	5% per annum

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Homeowner Assistance Program

• The Homeowner Assistance Program is a separate program administered by the Franchise Tax Board (FTB). If you qualify, you may participate in both the Homeowner Assistance and the Property Tax Postponement programs. The Controller's Office encourages you to participate in the Homeowner's Assistance Program, because any assistance you receive is used to reduce the amount of the obligation secured by the property tax postponement lien.

  To obtain a Homeowner Assistance claim form (FTB9000), contact FTB at (800) 852-5711 or (800) 868-4171. The annual filing period for the Homeowner Assistance Program is from July 1st, through October 15th.

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Account Transfer to New Residence

• If you pay your postponement account in full and purchase a new residence, you may be eligible to reborrow the amount you repaid to the State. To reborrow the repaid amount, you must submit an application of transfer within six months after you paid the postponement account. Call the State Controller’s Office to request an application. If your application is approved, the State Controller's Office will send you a refund and record a new lien against your new residence.

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Subordination Provisions

• If you refinance your home or obtain a new loan against the property on which you have postponed taxes, it may not be necessary to pay the postponement lien. The State Controller’s Office may subordinate the postponement lien to the new loan if it determines that subordination is appropriate. However, your lender must agree to the subordination. If you do not wish to pay off the postponement lien, have your lender contact the State Controller's Office for further instructions.

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Account Statement

• The State Controller's Office provides you with an account statement each year showing the postponement balance. However, you may obtain an account statement at any time by calling (800) 952–5661 or (916) 327–5587, writing to the State Controller's Office at the address:

  John Chiang
  State Controller
  Division of Accounting and Reporting / Property Tax Postponement Program
  P. O. Box 942850
  Sacramento, CA 94250-5880

  or e-mail your request to Postponement@sco.ca.gov.

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Payments

• You may make full or partial payments on your account before the obligation becomes due. All payments received are applied first toward accumulated interest and then toward the outstanding principal balance (postponed tax amount).

  Make your check or money order payable to the California State Treasurer, and mail it to the following address:

  John Chiang
  State Controller
  Division of Accounting and Reporting / Property Tax Postponement Program
  P. O. Box 942850
  Sacramento, CA 94250-5880

  Please include your Social Security number on the check or money order, and on any accompanying documents, to ensure proper credit.

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