Local Government Programs and Services Division Property Tax Postponement Lindsey Ross, Manager BETTY T. YEE California State Controller California Cash Management
PROPERTY TAX POSTPONEMENT PROGRAM OVERVIEW
Property Tax Postponement The State Controller s Office (SCO) administers the Property Tax Postponement (PTP) Program. This self-funded program allows eligible homeowners to postpone payment of property taxes on a primary residence. The PTP Program returned in 2016 after being suspended by the Legislature in 2009 and the first filing period for the 2016-17 fiscal year concluded on February 10, 2017.
PTP Program Overview Eligibility To qualify, applicants must prove: Senior (at least 62), or blind, or disabled Own and occupy the property as principal place of residence At least 40% equity in the property Total household income does not exceed $35,500 and no reverse mortgage on the property Residence is not a mobile/floating home
PTP Program Overview Approved Applicants SCO makes payments for current-year property taxes on behalf of approved applicants directly to the county. Payments are sent via EFT or Warrant, and include the total amount of taxes requested for postponement. Approved accounts accrue simple interest at a rate of 7% per annum. A lien is recorded against the property until accounts are paid in full.
PTP Program Overview Collection Triggers No longer principal residence Claimant dies (and no approved surviving spouse) Sells or transfers title to property Defaults on a senior lien Refinances Obtains a reverse mortgage SCO learns the postponement was granted in error
PTP Program Overview Funding The program is designed to be self-funded through collections of existing accounts. The fund supports postponements and the costs of administering the program. For 2016-17, SCO had $13 million to spend on new postponements. We spent just under $2.5 million in 2016-17, the remainder will roll over to next year.
2016-17 YEAR IN REVIEW
2016-17 Year At a Glance Status Number of Applications Dollar Amount Paid 812 $2,303,960.84 Refunds 51 $73,746.79 Denied 417 $1,418,661.25 Withdrawn Applications 34 $100,272.21 Received after February 12 10 th Total Applications Received 1,275
2016-17 PTP Program Statistics TOTAL APPLICATIONS RECEIVED 1,275 Received After Feb 10 1% Withdrawn 2% Approved 64% Approved 812 Denied 417 Withdrawn 34 Received After Feb 10 12 Denied 33%
2016-17 PTP Program Statistics APPLICATIONS RECEIVED BY AREA Total Applications 1,275 Area I 324 Area II 79 Area III 182 Area IV 86 Area V 604 Area V - Southern 47% Area I - Bay Area 26% Area II - Central 6% Area III - Mother Lode 14% Approval Rate Area I 68% Area II 63% Area III 57% Area IV 73% Area V 62% Area IV - Northern 7%
AREA I I BAY AREA TOTAL Total APPLICATIONS: Applications: 324 324 San Mateo 6% San Francisco 4% Santa Cruz 8% Napa 1% Santa Clara 11% Monterey 3% Solano 6% Marin 8% Sonoma 10% Alameda 15% Contra Costa 28% Alameda 49 Contra Costa 90 Marin 27 Monterey 10 Napa 5 San Francisco 12 San Mateo 20 Santa Clara 37 Santa Cruz 25 Solano 18 Sonoma 31
AREA II CENTRAL Total Applications: 79 Fresno 26 Kings 2 Madera 12 Tulare 19% Fresno 33% Mariposa 4 Merced 5 Stanislaus 15 Tulare 15 Stanislaus 19% Mono 0 San Benito 0 Merced 6% Mariposa 5% Madera 15% Kings 3%
AREA III MOTHER LODE Total Applications: 182 Tuolumne 2% Sutter 2% Yolo 1% Yuba 6% Amador 2% Calaveras 4% El Dorado 7% Colusa 2% Amador 4 San Joaquin 10% Lake 7% Sacramento 63 Calaveras 8 Colusa 3 Nevada 6% San Joaquin 19 Sutter 4 El Dorado 12 Tuolumne 4 Lake 13 Nevada 11 Placer 29 Sacramento 35% Placer 16% Yolo 2 Yuba 10 Alpine 0
AREA IV NORTHERN AREA Total Applications: 86 Sierra 1% Plumas 1% Shasta 21% Modoc 4% Siskiyou 16% Tehama 1% Trinity 1% Humboldt 12% Lassen Mendocino 5% 9% Butte 23% Del Norte 6% Butte 20 Del Norte 5 Humboldt 10 Lassen 4 Mendocino 8 Modoc 3 Plumas 1 Shasta 18 Sierra 1 Siskiyou 14 Tehama 1 Trinity 1 Glenn 0
AREA V SOUTHERN Total Applications: 604 Imperial 2 Kern 22 Los Angeles 268 Orange 50 Orange 8% Riverside 14% San Bernardino 11% Riverside 85 San Bernardino 69 San Diego 71 San Luis Obispo 10 San Diego 12% Santa Barbara 11 Ventura 16 Inyo 0 Los Angeles 44% San Luis Obispo 2% Santa Barbara 2% Kern 4% Ventura 3%
2016-17 PTP Program Statistics 100% Area I Approval Rate 68% 90% 80% 70% 60% 50% 63% 77% 67% 70% 80% 65% 73% 80% 71% 68% 40% 30% 20% 10% 0% 33% 44%
2016-17 PTP Program Statistics 100% 90% Area II Approval Rate 63% 100% 80% 70% 60% 62% 75% 73% 67% 63% 50% 40% 30% 42% 20% 10% 0% 0% Fresno 16/26 Kings 0/2 Madera 5/12 Mariposa 3/4 Merced 5/5 Stanislaus 11/15 Tulare 10/15 Overall Approval Rate
2016-17 PTP Program Statistics 100% 90% Area III Approval Rate 57% 100% 80% 70% 60% 75% 67% 83% 69% 64% 69% 75% 50% 40% 30% 50% 52% 40% 57% 20% 26% 25% 10% 0%
2016-17 PTP Program Statistics Area IV Approval Rate 73% 100% 90% 100% 100% 100% 100% 100% 80% 70% 60% 70% 75% 67% 67% 79% 73% 50% 40% 50% 30% 20% 10% 0% 0%
2016-17 PTP Program Statistics 100% 90% 100% Area V Approval Rate 62% 80% 70% 60% 50% 59% 58% 64% 68% 65% 62% 80% 64% 62% 40% 30% 44% 20% 10% 0%
2016-17 PTP Program Statistics 1400 Age (All Applicants) 1200 1000 800 600 1275 400 200 0 182 39 53 42 57 Under 62 62 63 64 65 66-69 70-79 80-89 90+ Total Applicants 206 408 233 49
2016-17 PTP Program Statistics Typical Approved Applicant Age 72 Household Income $18,285 Equity 84% Current Market Value $418,967 Postponement Amount $2,838
2016-17 PTP Program Statistics Typical Approved Applicant By Area Age Household Income Equity Current Market Value Postponement Amount AREA I 73 $18,791 85% $565,395 $3,332 AREA II 71 $15,564 83% $186,140 $1,557 AREA III 72 $19,456 84% $257,656 $2,213 AREA IV 70 $16,567 85% $221,487 $1,637 AREA V 72 $18,295 84% $441,145 $3,093
2016-17 PTP Program Statistics 450 Total Denied Applications 400 350 300 250 200 417 150 100 50 0 3 4 80 87 48 11 35 130 16 1 2
2016-17 PTP Program Statistics 90 Income Denials 80 70 60 50 40 80 30 20 10 26 31 0 $35,501 $40,000 $41,000 $50,000 4 6 3 1 4 5 $51,000 $60,000 $61,000 $70,000 $71,000 $80,000 $81,000 $90,000 $91,000 $100,000 $100,000+ Total Income Denials
2016-17 PTP Program Statistics 100 Equity Denials 90 80 70 60 50 40 87 30 20 10 0 12 10 17 Negative Equity 0-10 Percent 11-20 Percent 21-30 Percent 31-39 Percent Total Equity Denials 21 27
2016-17 PTP Program Statistics 1400 Incomplete Applications (Overall) 1200 1000 800 600 1275 400 200 672 498 0 Missing Information Letters Sent Out Missing Information Received Total Applicants
2016-17 PTP Program Statistics 1400 Applicants with Defaulted Taxes 1200 1000 800 600 1275 400 812 200 0 181 Total Applicants Defaulted Taxes Total 115 Approved Applicants
2016-17 Filing Period in Review Applications processed in first-come, first-served order by postmark date. Average processing time for final determination was 6-8 weeks. Typical correspondence with applicant included, acknowledgement letter, missing information letter, phone call(s), approval/denial letter, and payment confirmation letter.
2016-17 Filing Period in Review Reports and payments were sent to counties once a month via Electronic Funds Transfer (EFT) or Warrant beginning December 2016. Counties canceled any delinquent penalties, costs, fees, and interest accrued if an approved applicant filed timely with SCO. SCO recorded Notices of Lien against all approved accounts.
2016-17 COUNTY SURVEY RESULTS
2016-17 Survey Results Status Reports Provide on a monthly basis. Report is in excel so columns can be sorted to fit your needs. The report is a snapshot in time.
2016-17 Survey Results Remittance Advice Will continue to be a text file in the same format, provided 2-3 days before the EFT is issued. Email correspondence will include total EFT amount and all other information. Will include more information on partial payments.
2016-17 Survey Results Additional Information Requested from SCO Updated information on law or program changes Annual Trainings/Webinars Additional outreach and/or materials Status updates on available funding Working with California Assessor s Association on dissemination of PTP information Outreach conducted by other counties
LOOKING AHEAD
Annual Program Timeline July Month Program Function Determine dollar amount available for postponements in upcoming filing period July- August August September October 1 February 10 November June June SCO reconciliation with county tax collectors and assessors County trainings and release County Guide Application Release Filing Period Payments to County Tax Collectors Year in Review: SCO provides statistics and any updates, counties provide feedback
What s Next? County reconciliation with tax collectors and assessors June/July. Updated County Guide and webinar training in August. New applications will be distributed late August/early September. Payments to counties will begin in November.
Outreach 2016-17 Outreach included: Provided information and materials to: California State Library Congress of California Seniors Legislative Member Services California Alliance for Retired Americans California Department of Aging California Department of Veterans Affairs Department of Business Oversight California Department of Community Services and Development California Association of County Veterans Service Officers AARP SCO sent letters to all existing PTP claimants Mailed applications to approximately 1,200 individuals in September 2016 Information and Flyers on SCO Website Tax Collectors included notice on the tax bills Various County Outreach 2017-18 Outreach will include the above as well as additional outreach to Meals on Wheels, County Health and Human Services Departments and/or Senior and Adult Services Divisions, California Senior Legislature, California Association of Area Agencies on Aging, and participating in various disability/senior-oriented events.
Contact Information Property Tax Postponement 800-952-5661 (Option 4: Counties) postponement@sco.ca.gov Charlene Castañeda PTP Specialist ccastaneda@sco.ca.gov (916) 322-7331 Lindsey Ross PTP Manager lross@sco.ca.gov (916) 322-3881 Natalie Sidarous Chief, Bureau of Tax Admin. nsidarous@sco.ca.gov (916) 322-7453 California Cash Management BETTY T. YEE California State Controller