AB 1110, as introduced, Ting. Property taxation: redemption deficiency.
Under existing property tax law, unpaid property taxes are declared delinquent and subject to penalties and costs, and, if the taxes remain unpaid, the property is declared tax-defaulted and subject to sale. Existing law authorizes the tax collector to provide notification of the tax-defaulted status of the property to the property owner, as specified, and authorizes the property to be redeemed until the right of redemption is terminated. Existing law requires the tax collector to issue a certification of redemption when tax-defaulted property is redeemed, as specified. Existing law authorizes a tax collector, if that tax collector has erroneously computed the amount necessary to redeem a parcel of property as to which a redemption certificate has been issued and that error resulted in an underpayment of the amount required to redeem the property, to collect the amount of the redemption deficiency if the tax collector sends notice of, or a bill for, the underpayment, as specified. Existing law requires the redemption deficiency to be collected, as provided, if payment of the redemption deficiency is not made by the property owner within 30 days following the mailing of the notice or bill.
This bill would instead extend the time available to make a redemption deficiency from 30 days to 45 days following the mailing of the notice or bill.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 4115 of the Revenue and Taxation Code
2 is amended to read:
If payment of the redemption deficiency is not made
4withinbegin delete 30end deletebegin insert 45end insert days following the mailing of the notice or bill
5required by Section 4114, the deficiency shall be transferred to
6the secured roll prepared or being prepared for the assessment year
7in which such notice or bill is mailed to the assessee, and shall
8thereafter be treated and collected like other taxes on such roll;
9provided, however, that ifbegin delete prior toend deletebegin insert beforeend insert the date of
transfer to
10the secured roll, with the date of entry specified thereon, the real
11property on which such redemption deficiency constitutes a lien
12has been transferred or conveyed to a bona fide purchaser for value
13or becomes subject to a bona fide encumbrance for value, such
14redemption deficiency shall not create, impose or constitute a lien
15on such real property but shall be transferred to the unsecured roll
16in the name of the assessee at the time the original insufficient
17payment was made and shall thereafter be treated and collected
18like other taxes on said roll.
19The entry on the roll shall be followed with “Deficiency in
20Redemption of Parcel Number ____ on __________,begin delete 19 _end deletebegin insert 20_end insert.”
21The foregoing entry may be made on a document separate from
22the roll if reference is made on the
roll to the document wherein
23the entry is made. The delinquent tax abstract from which the
24redemption deficiency is transferred may, at the option of the
25county, serve as the separate document.
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