Property tax: tax-defaulted property: excess proceeds from sale.

Existing 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. Existing law requires the proceeds from the sale of tax-defaulted property to be deposited in the delinquent tax sale trust fund, and requires the proceeds in the fund to be distributed to the state, to the county for reimbursement of specified costs relating to the sale of the tax-defaulted property, and among taxing agencies, as provided. Existing law requires any proceeds remaining in the delinquent tax sale trust fund after distribution of the proceeds to be retained in the fund subject to being claimed by parties of interest, as provided. Existing law requires, at the expiration of one year following the recordation of the tax deed to the purchaser, that any excess proceeds not claimed be distributed among taxing agencies, as provided. This bill would eliminate the requirement that any excess proceeds not claimed be distributed among taxing agencies, and would instead authorize any excess proceeds to be transferred to the county general fund at the expiration of a specified time period. Existing law authorizes any party of interest to file with the county a claim for the excess proceeds from the sale of tax-defaulted property, as specified, at any time prior to the expiration of one year following the recordation of the tax collector's deed to the purchaser. Existing law prohibits the excess proceeds from being distributed to the parties of interest, as specified, sooner than one year following the recordation of the tax collector's deed to the purchaser. This bill would prohibit the distribution of any excess proceeds to the parties of interest as described above if the board of supervisors has been petitioned to rescind the tax sale, as specified, and would instead require the excess proceeds to be distributed no sooner than one year following the date the board of supervisors determines the tax sale should not be rescinded, and only if the person who petitioned the board of supervisors has not commenced a proceeding in court, as specified. If a proceeding has been commenced in a court, this bill would prohibit any excess proceeds from being distributed until final court order has been issued. By changing the manner in which excess proceeds from the sale of tax-defaulted are distributed by local county officials to parties of interest, 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.