BILL NUMBER: AB 902	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 18, 2011
	PASSED THE ASSEMBLY  MAY 12, 2011

INTRODUCED BY   Assembly Member Alejo

                        FEBRUARY 17, 2011

   An act to amend Sections 3704.7, 4112, 4672.2, and 4672.3 of the
Revenue and Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 902, Alejo. Taxation: property tax delinquency and sales.
    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 if not redeemed by the owner within a certain amount
of time.
   Existing law requires a tax collector, in the case of the proposed
tax sale of property that is the primary residence of the last known
assessee, to make a reasonable effort to contact the owner-occupant
of the property to be sold, as specified, and requires that the costs
incurred by the tax collector in attempting to make contact, not to
exceed $100, be added to the required amount for redemption of the
property.
   This bill would remove the $100 limitation described above, and
would instead require the actual and reasonable costs incurred by the
tax collector in attempting to make contact to be established by the
board of supervisors, as specified.
   Existing law requires the tax collector, when tax-defaulted
property subject to a recorded notice is redeemed, to collect certain
fees including, among others, a fee of $35 to reimburse the county
for its costs of obtaining the names and last known mailing addresses
of, and for mailing specified notices to, parties of interest, in
addition to the amount required to redeem the tax-defaulted property.
Existing law authorizes the tax collector, if the tax-defaulted
property is redeemed prior to the proposed sale, but after the county
has incurred costs to publish the notice of intended sale in a
newspaper, as provided, to collect a fee to reimburse the tax
collector for those costs.
   This bill would remove the $35 limitation described above, and
would instead require the tax collector to collect a fee to reimburse
the county for its actual and reasonable costs incurred in obtaining
the information of, and for mailing the notices to, parties of
interest. This bill would also authorize the tax collector to collect
a fee to reimburse the tax collector for the costs of publishing a
notice of agreement in a newspaper, as provided, under the
circumstances described above. This bill would require the amount of
any fee collected by the tax collector when tax-defaulted property
subject to a recorded notice is redeemed to be established by the
board of supervisors of a county, as provided.
   Existing law requires the price at which certain tax-defaulted
property may be offered for sale to be the total amount necessary to
redeem the property, plus costs, and prescribes the manner of
distribution of proceeds from the sale of tax-defaulted property,
including, among others, a distribution to the county general fund,
not to exceed $35, to reimburse the county for the cost of giving of
a specified notice, and a distribution to the tax collector, not to
exceed $100, to reimburse the county for the costs of a personal
contact, as specified.
   The bill would remove the $35 limitation described above, and
would instead require any fee collected to reimburse the county for
its actual and reasonable costs incurred in giving notice to be
distributed to the county general fund. This bill would also remove
the $100 limitation described above, and would instead require a
distribution to the tax collector equal to the total amount of the
actual and reasonable costs incurred by the tax collector in
conducting the personal contact.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 3704.7 of the Revenue and Taxation Code is
amended to read:
   3704.7.  (a) In the case of a property that is the primary
residence of the last known assessee, as indicated by either a valid
homeowner's exemption on file with the county assessor in the name of
the last known assessee, or the fact that the mailing address for
the last tax bill is the same address as the property, the tax
collector or his or her agent shall, in addition to any other notice
required by this chapter, make a reasonable effort to contact in
person, not more than 120 days or less than 10 days prior to the date
of the sale, the owner-occupant of that property. In the course of
the personal contact, the tax collector, or his or her agent, shall
inform the owner-occupant of the following:
   (1) That the property, if not redeemed, shall be offered for sale
at a public auction.
   (2) His or her redemption rights pursuant to Part 7 (commencing
with Section 4101).
   (b) If the personal contact described in subdivision (a) is not
made after reasonable efforts, the tax collector or his or her agent
shall attempt to serve written notice, no less than five days prior
to the date of the sale, with respect to the fact of the sale and the
requirement that the tax collector be contacted immediately with
respect to redemption of the property.
   (c) The amount of the actual and reasonable costs incurred by the
tax collector, or his or her agent, or both, in complying with the
requirements of subdivisions (a) and (b), as established pursuant to
the requirements of Chapter 12.5 (commencing with Section 54985) of
Part 1 of Division 2 of Title 5 of the Government Code, shall be
added to the required amount for redemption of the property.
   (d) No transfer of title shall be invalidated by reason of failure
to comply with the requirements of this section.
  SEC. 2.  Section 4112 of the Revenue and Taxation Code is amended
to read:
   4112.  (a) When tax-defaulted property subject to the notice
recorded under Section 3691.4 is redeemed, the tax collector shall
collect all of the following, in addition to the amount required to
redeem:
   (1) A fee to reimburse the county for its actual and reasonable
costs incurred in obtaining the names and last known mailing
addresses of, and for mailing notices required by Sections 3701 and
3799 to, parties of interest as defined by Section 4675, which shall
be distributed to the county general fund.
   (2) A fee in the amount required by Section 27361.3 of the
Government Code that shall be distributed to the county recorder for
the cost of recordation of a rescission of the notice, as required by
subdivision (c).
   (3) A fee of one hundred fifty dollars ($150) if redemption is
within 90 days of the proposed date for the tax sale of the redeemed
property. In the case of unsold tax-defaulted properties remaining on
the abstract after the tax sale, the fee shall become a part of the
redemption amount and collectible whenever the property is redeemed.
The fee shall be distributed to the county general fund to reimburse
the county for costs incurred by the county in preparing to conduct
that sale.
   (4) The amount described in subdivision (c) of Section 3704.7 to
reimburse the county for the cost of a personal contact required by
that section.
   (b) Notwithstanding subdivision (a), if the tax-defaulted property
is redeemed prior to the proposed sale, but after the county has
incurred notice or publication costs pursuant to Section 3702 or 3798
in connection with a notice of intended sale, a fee in an amount
reasonably necessary to reimburse the tax collector for those costs
may be collected.
   (c) When tax-defaulted property subject to the notice recorded
under Section 3691.4 is redeemed, the notice becomes null and void
and the tax collector shall execute and record with the county
recorder a rescission of the notice in the form prescribed by the
Controller. The rescission shall be acknowledged by the county clerk,
without charge.
   (d) The amount of any fee imposed under paragraph (1) of
subdivision (a) or subdivision (b) shall be established by the board
of supervisors of the county and shall be subject to the requirements
of Chapter 12.5 (commencing with Section 54985) of Part 1 of
Division 2 of Title 5 of the Government Code.
  SEC. 3.  Section 4672.2 of the Revenue and Taxation Code is amended
to read:
   4672.2.  There shall be distributed to the county general fund any
fee collected to reimburse the county for its actual and reasonable
costs incurred in giving notice pursuant to Sections 3701 and 3799
for all or any portion of each separately valued parcel of real
property subject to a power of sale pursuant to Section 3691 and sold
to private parties or to taxing agencies. The notice fee for
property sold shall be paid from the total amount to be distributed
after satisfaction of the amounts specified in Sections 4672 and
4672.1. If the amount is insufficient, the notice fee shall be
reduced accordingly.
  SEC. 4.  Section 4672.3 of the Revenue and Taxation Code is amended
to read:
   4672.3.  (a) To reimburse the county for the costs of a personal
contact, there shall be distributed to the tax collector a sum equal
to the total amount of the actual and reasonable costs incurred by
the tax collector in conducting the personal contact pursuant to
Section 3704.7, for all or any portion of each separately valued
parcel of real property subject to a power of sale and sold to
private parties or a taxing agency.
   (b) The amount of the costs shall be paid from the total amount to
be distributed from the sold property, after satisfaction of the
amount specified in Section 4672. If, after satisfaction of the
amount specified in Section 4672, there is insufficient funds to pay
the costs specified in subdivision (a), the costs shall be reduced
accordingly.