BILL NUMBER: AB 2257 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 5, 2014
INTRODUCED BY Assembly Member Cooley
FEBRUARY 21, 2014
An act to amend Sections 4674, 4675, and 4676
4674 and 4675 of the Revenue and Taxation Code, relating
to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2257, as amended, Cooley. Property tax: tax-defaulted property:
excess proceeds from sale.
(1) Existing
Existing law generally authorizes a county tax
collector to sell tax-defaulted property 5 years or more, or 3 years
or more, as applicable, after that property has become tax defaulted.
Existing law requires the proceeds from the sale of tax-defaulted
property to be deposited in the delinquent tax sale trust fund, and
requires the proceeds in the fund to be distributed to the state, to
the county for reimbursement of specified costs relating to the sale
of the tax-defaulted property, and among taxing agencies, as
provided. Existing law requires any proceeds remaining in the
delinquent tax sale trust fund after distribution of the proceeds to
be retained in the fund subject to being claimed by parties of
interest, as provided. Existing law requires, at the expiration of
one year following the recordation of the tax deed to the purchaser,
that any excess proceeds not claimed be distributed among taxing
agencies, as provided.
This bill would eliminate the requirement that any excess proceeds
not claimed be distributed among taxing agencies, and would instead
authorize any excess proceeds to be transferred to the county general
fund at the expiration of a specified time period.
(2) Existing
Existing law authorizes any party of interest to file
with the county a claim for the excess proceeds from the sale of
tax-defaulted property, as specified, at any time prior to the
expiration of one year following the recordation of the tax collector'
s deed to the purchaser. Existing law prohibits the excess proceeds
from being distributed to the parties of interest, as specified,
sooner than one year following the recordation of the tax collector's
deed to the purchaser.
This bill would prohibit the distribution of any excess proceeds
to the parties of interest as described above if the board of
supervisors has been petitioned to rescind the tax sale, as
specified, and would instead require the excess proceeds to be
distributed no sooner than one year following the date the board of
supervisors determines the tax sale should not be rescinded, and only
if the person who petitioned the board of supervisors has not
commenced a proceeding in court, as specified. If a proceeding has
been commenced in a court, this bill would prohibit any excess
proceeds from being distributed until final court order has been
issued.
By changing the manner in which excess proceeds from the sale of
tax-defaulted are distributed by local county officials to parties of
interest, this bill would impose a state-mandated local program
(3) Existing law requires the county, when excess proceeds from
the sale of tax-defaulted property exceed $150, to provide notice of
the right to claim the excess proceeds by mailing a written notice to
the last known mailing address of parties of interest, as defined.
Existing law requires the county, if the last known address of a
party of interest cannot be obtained, to publish the notice in a
newspaper, as specified, except when the cost to publish is equal to
or greater than the amount of the excess proceeds.
This bill would revise the exception to the newspaper publication
of notice requirement.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 4674 of the Revenue and Taxation Code is
amended to read:
4674. Any excess in the proceeds deposited in the delinquent tax
sale trust fund remaining after satisfaction of the amounts
distributed under Sections 4672, 4672.1, 4672.2, 4673, and 4673.1
shall be retained in the fund on account of, and may be claimed by
parties of interest in the property as provided in, Section 4675. At
the expiration of the period specified in subdivision (e) of Section
4675, any excess proceeds not claimed under Section 4675 may be
transferred to the county general fund.
SEC. 2. Section 4675 of the Revenue and Taxation Code is amended
to read:
4675. (a) Any party of interest in the property may file with the
county a claim for the excess proceeds, in proportion to his or her
interest held with others of equal priority in the property at the
time of sale, at any time prior to the expiration of one year
following the recordation of the tax collector's deed to the
purchaser.
(b) After the property has been sold, a party of interest in the
property at the time of the sale may assign his or her right to claim
the excess proceeds only by a dated, written instrument that
explicitly states that the right to claim the excess proceeds is
being assigned, and only after each party to the proposed assignment
has disclosed to each other party to the proposed assignment all
facts of which he or she is aware relating to the value of the right
that is being assigned. Any attempted assignment that does not comply
with these requirements shall have no effect. This paragraph shall
apply only with respect to assignments on or after the effective date
of this paragraph.
(c) Any person or entity who in any way acts on behalf of, or in
place of, any party of interest with respect to filing a claim for
any excess proceeds shall submit proof with the claim that the amount
and source of excess proceeds have been disclosed to the party of
interest and that the party of interest has been advised of his or
her right to file a claim for the excess proceeds on his or her own
behalf directly with the county at no cost.
(d) The claims shall contain any information and proof deemed
necessary by the board of supervisors to establish the claimant's
rights to all or any portion of the excess proceeds.
(e) (1) Except as provided in paragraph (2), no sooner than one
year following the recordation of the tax collector's deed to the
purchaser, and if the excess proceeds have been claimed by any party
of interest as provided herein, the excess proceeds shall be
distributed on order of the board of supervisors to the parties of
interest who have claimed the excess proceeds in the order of
priority set forth in subdivisions (a) and (b). For the purposes of
this article, parties of interest and their order of priority are:
(A) First, lienholders of record prior to the recordation of the
tax deed to the purchaser in the order of their priority.
(B) Second, any person with title of record to all or any portion
of the property prior to the recordation of the tax deed to the
purchaser.
(2) (A) Notwithstanding paragraph (1), if the board of supervisors
has been petitioned to rescind the tax sale pursuant to Section
3731, any excess proceeds shall not be distributed to the parties of
interest as provided by paragraph (1) sooner than one year following
the date the board of supervisors determines the tax sale should not
be rescinded, and only if the person who petitioned the board of
supervisors pursuant to Section 3731 has not commenced a proceeding
in court pursuant to Section 3725.
(B) If a proceeding has been commenced in a court pursuant to
Section 3725, any excess proceeds shall not be distributed to the
parties of interest as provided by paragraph (1) until a final court
order is issued.
(f) In the event that a person with title of record is deceased at
the time of the distribution of the excess proceeds, the heirs may
submit an affidavit pursuant to Chapter 3 (commencing with Section
13100) of Part 1 of Division 8 of the Probate Code, to support their
claim for excess proceeds.
(g) Any action or proceeding to review the decision of the board
of supervisors shall be commenced within 90 days after the date of
that decision of the board of supervisors.
SEC. 3. Section 4676 of the Revenue and
Taxation Code is amended to read:
4676. (a) When excess proceeds from the sale of tax-defaulted
property exceed one hundred fifty dollars ($150), the county shall
provide notice of the right to claim the excess proceeds, as provided
in this section.
(b) No later than 90 days after the sale of the property, the
county shall mail written notice of the right to claim excess
proceeds to the last known mailing address of parties of interest, as
defined in Section 4675. The county shall make a reasonable effort
to obtain the name and last known mailing address of parties of
interest.
(c) If the last known address of a party of interest cannot be
obtained, the county shall publish notice of the right to claim
excess proceeds in a newspaper of general circulation in the county.
Publication is not required if the cost to publish is greater than
the amount of the excess proceeds or eliminates any excess proceeds
available for distribution. The notice shall be published once a week
for three successive weeks and shall commence no later than 90 days
after the sale of the property.
(d) The cost of obtaining the name and last known mailing address
of parties of interest and of mailing or publishing the notices
required under this section shall be deducted from the excess
proceeds and shall be distributed to the county general fund.
SEC. 4. SEC. 3. If the Commission on
State Mandates determines that this act contains costs mandated by
the state, reimbursement to local agencies and school districts for
those costs shall be made pursuant to Part 7 (commencing with Section
17500) of Division 4 of Title 2 of the Government Code.