Bill Text: CA AB3288 | 2023-2024 | Regular Session | Enrolled
Bill Title: Property taxation: tax-defaulted property sales: objections and excess proceeds.
Spectrum: Committee Bill
Status: (Enrolled) 2024-06-26 - Enrolled measure version corrected. [AB3288 Detail]
Download: California-2023-AB3288-Enrolled.html
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Enrolled
June 25, 2024 |
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Passed
IN
Senate
June 20, 2024 |
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Passed
IN
Assembly
April 29, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 3288
| Introduced by Committee on Revenue and Taxation |
March 19, 2024 |
An act to amend Sections 3695 and 4675 of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 3288, Committee on Revenue and Taxation.
Property taxation: tax-defaulted property sales: objections and excess proceeds.
(1) Under existing property tax law, if unpaid property taxes are declared delinquent and the taxes remain unpaid, the property is declared tax-defaulted and subject to sale, as provided, if not redeemed by the owner within a certain amount of time. Existing property tax law requires the tax collector to transmit a notice of intended sale containing specified information to the board of supervisors in order to make any sale of tax-defaulted properties pursuant to specified provisions. Under existing property tax law, the tax collector is required to publish the notice of intended sale, as described. Existing property tax law provides that the taxing agency has consented to the sale if the taxing agency’s governing body does not, before the date of the sale, file with the tax collector and the board of supervisors certified copies of a resolution objecting to the sale,
as described.
This bill would instead require the governing body of any taxing agency to file the resolution objecting to the sale before the date of first publication of notice of intended sale pursuant to the above-described publication requirement. The bill would make conforming changes.
(2) Existing property tax law authorizes any party of interest in property that is sold as a tax-defaulted property to file a claim with the county for the excess proceeds, as described. Existing property tax law requires the claim to be postmarked on or before the one-year expiration date to be considered timely.
This bill would additionally require that the claim be either deposited in the United States mail in a sealed envelope or deposited for shipment with an independent delivery service in a sealed envelope or package, as specified. Under the bill, a claim would be
deemed received on the date shown by the post office cancellation mark stamped upon the envelope containing the claim, or on 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 claim. Under the bill, if a claim deposited in the United States mail does not contain an official postmark, the date of filing would be the date received by the county treasurer-tax collector’s office.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 3695 of the Revenue and Taxation Code is amended to read:3695.
(a) If the governing body of any taxing agency does not, before the date of the first publication of notice of intended sale pursuant to Sections 3702 and 3703, file with the tax collector and the board of supervisors certified copies of a resolution adopted by the governing body objecting to the sale, the taxing agency has consented to the sale. If the taxing agency consents to the sale the lien of its taxes or assessments and any rights which it may have to the property as a result of these taxes or assessments are canceled by a sale under this chapter and it is entitled to its proper share of the proceeds deposited in the delinquent tax sale trust fund. If the taxing agency does object to the sale, the lien of its taxes or assessments or any rights which the taxing agency may have to the property are not affected by a sale under this chapter. Provided, however, that any taxing agency that is also a revenue district may not object to a sale unless it files with this objection an executed proposed agreement under Chapter 8 of this part to purchase the property, but not including an option to purchase, at a price not less than the minimum bid.(b) If a taxing agency that is not also a revenue district objects to the sale and, before the date of the first publication of notice of intended sale pursuant to Sections 3702 and 3703, applies in writing to the board of supervisors to purchase the property under Chapter 8 of this part at a price equal to that approved by the board of supervisors, or upon a pro rata division of the proceeds of a sale as may be provided under Chapter 8, the tax collector shall not proceed with the sale.
SEC. 2.
Section 4675 of the Revenue and Taxation Code is amended to read:4675.
(a) (1) Any party of interest in the property may file with the county a claim for the excess proceeds, in proportion to that person’s 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.(2) The claim shall be postmarked on or
before the one-year expiration date to be considered timely. The claim shall be deposited in the United States mail in a sealed envelope, properly addressed with the required postage, or deposited for shipment, with an independent delivery service that is an Internal Revenue Service designated delivery service or that has been approved by the tax collector, in a sealed envelope or package, properly addressed with the required fee prepaid. The claim shall be deemed received on the date shown by the post office cancellation mark stamped upon the envelope containing the claim, or on 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 claim. If a claim deposited in the United States mail does not contain an official postmark, the date of filing shall be the date received by the county treasurer-t ax collector’s office.
(b) After the property has been sold, a party of interest in the property at the time of the sale may assign their 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 that party 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 subdivision applies only with respect to assignments on or after the effective date of this subdivision.
(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 their right to file a claim for the excess proceeds on their 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, or the county officer to whom the board delegated authority pursuant to Section 4675.1, to accept or deny the claim shall be commenced within 90 days after the date of that decision of the board of
supervisors or the county officer.
