Property tax: tax-defaulted property.

Existing property tax 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. Under existing law, when tax-defaulted property is sold, the deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale, with specified exceptions including an exception for specified easements. This bill would provide that easements of any kind, including prescriptive easements, are included within those specified exceptions to the conveyance of title free of encumbrances. Existing law provides that a proceeding based on alleged invalidity or irregularity of any proceedings instituted in a sale of tax-defaulted property can only be commenced within one year after the date of execution of the tax collector's deed. Existing law authorizes the board of supervisors to rescind the sale of property sold by tax deed by the tax collector, as provided, when it is determined that the property should not have been sold. This bill would for sales completed on or after January 1, 2012, instead require any person wishing to have a tax deed sold by the tax collector rescinded due to alleged invalidity or irregularity of any proceeding to first petition the board of supervisors, as provided, to have the tax sale rescinded before the proceeding described above can be commenced in a court, and would require the court proceeding to be commenced within one year of the date the board of supervisors determines that the sale of property sold by a tax deed should not be rescinded. By imposing new duties upon county officials with respect to tax-defaulted property, this bill would impose a state-mandated local program. 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.