BILL NUMBER: SB 823 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Revenue and Taxation (Senators Wolk
(Chair), Alquist, Ashburn, Florez, Runner, Walters, and Wiggins)
MARCH 10, 2009
An act to amend Sections 2512, 2781, 2782, 3731, 3791.4, and
3793.1 of, and to amend and renumber Section 4839.2 of, the Revenue
and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 823, as introduced, Committee on Revenue and Taxation. Property
taxation.
(1) Existing property tax law provides that a remittance to a
taxing agency is deemed to be received, if made by an electronic
payment, as specified, on the date the transaction was completed by
the taxpayer.
This bill would require this remittance to be made, in order to be
deemed received on the date the transaction was completed by the
taxpayer, on the taxing agency's authorized Internet Web site or via
the taxing agency's authorized telephone number.
(2) Existing law requires a county to return a replicated tax
payment to the tendering party within 60 days following the receipt
of the replicated payment. If that replicated payment is not returned
to the tendering party within 60 days following the receipt of the
replicated payment, the county is required to pay interest at a
specified rate, for the period beginning 60 days after the county
receives the replicated payment to the date the replicated payment is
returned to the tendering party.
This bill would instead require a county to return a replicated
payment to the tendering party within 60 days of the date the payment
becomes final. This bill would also require the interest to be
computed for the period beginning 60 days after the replicated
payment becomes final to the date the replicated payment is returned
to the tendering party.
(3) Existing law authorizes the board of supervisors, when it is
determined that a tax deed to a purchaser of property sold by the tax
collector should not have been sold, to rescind the sale with the
written consent of the county legal adviser and the purchaser of the
property.
This bill would authorize the successor in interest of the
purchaser of the property to provide written consent to rescind the
sale of the property. This bill would authorize the board of
supervisors, if the written consent of the purchaser of the property
or a successor in interest is not obtained, to rescind the sale of
the property, if a hearing is scheduled before the board of
supervisors and a notice containing specified information is sent to
the purchaser of the property or a successor in interest. This bill
would provide that the purchaser or a successor in interest is
entitled to a refund of the amount paid as the purchase price plus
interest at the county pool apportioned rate, as provided, after
rescission of the tax deed is recorded.
(4) Existing property tax law authorizes a nonprofit organization,
with the approval or permission of either the board of supervisors
or that board's designee, to purchase certain property that has been
tax defaulted, as specified, and to purchase the property by way of
installment payments. Existing law authorizes the tax collector, with
the approval of either the board of supervisors or that board's
designee, to offer certain property for sale at a minimum price that
the tax collector deems appropriate.
This bill would eliminate the board designee's authorization to
approve the purchase of tax defaulted property by a nonprofit
organization, or to permit the purchase of the property by way of
installment payments. This bill would also eliminate the board
designee's authorization to approve the tax collector's sale of
certain property at a minimum price that the tax collector deems
appropriate.
(5) Existing law requires the board of supervisors, upon receipt
of a specified notice regarding a proposed sale of tax-defaulted
property, to either approve or disapprove the proposed sale by
resolution, and to transmit a certified copy of the resolution to the
tax collector, as specified.
This bill would make a technical, nonsubstantive change to that
provision.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2512 of the Revenue and Taxation Code is
amended to read:
2512. (a) If a remittance to cover a payment required by law to
be made to a taxing agency prior to a specified date and hour is (a)
deposited in the United States mail in a sealed envelope, properly
addressed with the required postage prepaid, or (b) deposited for
shipment with an independent delivery service that is an Internal
Revenue Service designated delivery service or has been approved by
the tax collector, in a sealed envelope or package, properly
addressed with the required fee prepaid, delivery of which shall not
be later than 5 p.m. on the next business day after the effective
delinquent date, the remittance shall be deemed received on the date
shown by the post office cancellation mark stamped upon the envelope
containing the remittance, or the independent delivery service
shipment date shown on the packing slip or air bill attached to the
outside of the envelope or package containing the remittance, or on
the date it was mailed if proof satisfactory to the tax collector
establishes that the mailing occurred on an earlier date. The taxing
agency is not required to accept a payment actually received in the
mail if it is received more than 30 days after the date and time set
by law for the payment.
(b) If a remittance to cover a payment, required by law to be made
to a taxing agency prior to a specified date and hour, is made by an
electronic payment option, such as wire transfer, telephoned credit
card, or electronic Internet means, the remittance shall be deemed
received on the date the transaction was completed by the taxpayer
, if the remittance was made on the taxing agency's authorized
Internet Web site or via the taxing agency's authorized
telephone number . Proof of completion of the transaction in
the form of a confirmation number or other convincing evidence shall
be presented by the taxpayer to the satisfaction of the tax
collector. This subdivision does not apply to payments by electronic
fund transfer as provided in Sections 2503.1 and 2503.2.
(c) This section does not, for purposes of applying subdivision
(a) of Section 3707, apply to a remittance sent by mail, by
independent delivery service, or by electronic payment option for the
redemption of tax-defaulted property.
SEC. 2. Section 2781 of the Revenue and Taxation Code is amended
to read:
2781. If a taxpayer or agent for the taxpayer submits a payment
indicated for application to a specific tax or tax installment and
that tax or tax installment already has been paid, the county shall
return the replicated payment to the tendering party within 60 days
of the date the payment becomes final. For purposes of this
section, "final" means the original payment that is not subject to
chargeback, dishonor, or reversal . However, when a replicated
payment is made of any tax or tax installment paid by a certificate
of eligibility pursuant to Section 2514, the amount of the replicated
payment shall be paid to the person shown on the certificate.
SEC. 3. Section 2782 of the Revenue and Taxation Code is amended
to read:
2782. If a replicated tax payment is not returned to the
tendering party within 60 days of becoming final, as
provided in this chapter, the county shall, in addition to returning
the replicated payment as soon as practicable, pay the tendering
party interest, if that interest is ten dollars ($10) or more, on the
amount of replicated payment at the rate provided in Section 5151.
The interest shall be computed for the period beginning 60 days after
the county receives the replicated payment
becomes final to the date the replicated payment is returned to
the tendering party.
SEC. 4. Section 3731 of the Revenue and Taxation Code is amended
to read:
3731. (a) When a tax deed to a purchaser of property sold by the
tax collector pursuant to this part is recorded and it is determined
that the property should not have been sold, the sale may be
rescinded by the board of supervisors with the written consent of the
county legal adviser and the purchaser of the property or a
successor in interest in the property, except a bona fide purchaser
for value, under any of the following circumstances:
(1) The property has not been transferred or conveyed by the
purchaser at the tax sale to a bona fide purchaser for value.
(2) The property has not become subject to a bona fide encumbrance
for value subsequent to the recordation of the tax deed.
(b) When the sale of tax-defaulted property is rescinded pursuant
to subdivision (a), the purchaser is entitled to a refund of the
amount paid as the purchase price after the purchaser executes a
recision of the tax deed. The recision shall also be executed by the
county tax collector. The signatures of the purchaser and the county
tax collector
(b) If the written consent of the purchaser of the property or a
successor in interest is not obtained pursuant to subdivision (a),
the sale may be rescinded by the board of supervisors pursuant to the
circumstances specified in subdivision (a), if both of the following
conditions are met:
(1) Notwithstanding Section 3731.1, a hearing is scheduled before
the board of supervisors.
(2) (A) A notification is provided to the purchaser of the
property or a successor in interest that contains all of the
following information:
(i) The date, time, and place of the hearing.
(ii) A description of the property that was sold.
(iii) The reason for rescinding the sale of the property.
(iv) A statement that a refund will be issued to the purchaser of
the property or the successor in interest, if applicable, for the
purchase amount of the property plus interest at the county pool
apportioned rate as specified in Section 5151 from the date of the
purchase of the property.
(B) The tax collector shall send the notice, not less than 45 days
prior to the date of the hearing, to the purchaser of the property
or a successor in interest by certified mail with return receipt
requested. The notice shall be sent to the last known mailing address
of the purchaser of the property or a successor in interest.
(c) When the sale of tax-defaulted property is rescinded pursuant
to this section, the purchaser or a successor in interest is entitled
to a refund of the amount paid as the purchase price plus interest
at the county pool apportioned rate as specified in Section 5151 from
the date of the purchase of the property after rescission of the tax
deed is recorded.
(d) The rescission shall be executed by
the county tax collector and, if rescinded pursuant to subdivision
(a), also by the purchaser or a successor in interest. The signature
of both the county tax collector and the purchaser or a successor in
interest shall be acknowledged by the county clerk, without
charge, and the county tax collector shall then record the
recision rescission with the county recorder,
without charge. When the recision rescission
is recorded, the tax deed becomes null and void as though never
issued and all provisions of law relating to tax-defaulted property
shall apply to the property.
(c)
(e) The holder of a tax certificate who received all or
any part of the amount paid by the purchaser or a successor in
interest shall not be obligated to make any refund or repayment
of any amount to the purchaser, the delinquent taxpayer, the county,
or any other person. The tax collector may use amounts on deposit in
the Tax Certificate Redemption Fund to make the refund, but only to
the extent those amounts were paid to the holder of the applicable
tax certificate.
(f) Subdivision (b) shall apply to sales that are completed on or
after January 1, 2010.
SEC. 5. Section 3791.4 of the Revenue and Taxation Code is amended
to read:
3791.4. (a) When residential or vacant property has been tax
defaulted for five years or more, or three years or more after the
property has become tax-defaulted tax
defaulted and is subject to a nuisance abatement lien, that
property may, with the approval of either the
board of supervisors of the county in which it is located or
that board's designee , be purchased pursuant to this
chapter by a nonprofit organization, provided that:
(1) In the case of residential property, the nonprofit
organization shall rehabilitate and sell or rent to, or otherwise use
the property to serve, low-income persons.
(2) In the case of vacant property, the nonprofit organization
shall construct residential dwellings on the property and sell or
rent the property to low-income persons, otherwise use the property
to serve low-income persons, or dedicate the vacant property to
public use.
(b) The terms and conditions of any conveyance to a nonprofit
corporation pursuant to this section shall be specified in the deed
or other instrument of conveyance.
SEC. 6. Section 3793.1 of the Revenue and Taxation Code is amended
to read:
3793.1. (a) The sales price of any property sold under this
article shall include, at a minimum, the amounts of all of the
following:
(1) All defaulted taxes and assessments, and all associated
penalties and costs.
(2) Redemption penalties and fees incurred through the month of
the sale.
(3) All costs of the sale.
(b) If the property or property interests have been offered for
sale under the provisions of Chapter 7 (commencing with Section 3691)
at least once and no acceptable bids therefor have been received,
the tax collector may, in his or her discretion and with the approval
of the board of supervisors or that board's designee
, offer that property or those interests at a minimum price
that the tax collector deems appropriate.
(c) The board of supervisors , or its designee,
may permit a nonprofit organization to purchase property or property
interests by way of installment payments.
SEC. 7. Section 4839.2 of the Revenue and Taxation Code is amended
and renumbered to read:
4839.2. 3699. On receipt of the
notice described in Section 3698, the board of supervisors shall by
resolution either approve or disapprove the proposed sale and shall
transmit a certified copy of the resolution to the tax collector
within five days after its action. Failure to adopt or to transmit
the resolution within the prescribed times shall not affect the
validity of a sale approved by a board of supervisors.