Property taxation: tax-defaulted property sales: minimum price.

Under existing property tax law, taxes, assessments, penalties, and costs on real property, except as specified, become default by operation of law on July 1 at 12:01 a.m. Five years or more, or 3 years or more in the case of nonresidential commercial property, after the property has become tax defaulted, existing property tax law requires the tax collector to attempt to sell all or any portion of tax-defaulted property that has not been redeemed, as provided. Existing property tax law requires that the minimum price of tax-defaulted property at a tax sale generally be an amount not less than the total amount necessary to redeem, plus costs and the outstanding balance of any property tax postponement loan, determined as specified. If the property or property interests do not receive an acceptable bid at this minimum price, existing property tax law authorizes the tax collector, in his or her discretion and with the approval of the board of supervisors, to offer that same property or those interests at the same or next scheduled sale at a minimum price that the tax collector deems appropriate, as specified. This bill would prohibit the current owner of tax-defaulted property subject to sale from purchasing that property, directly or indirectly, below the minimum price determined as described above. The bill would prohibit a transfer of a deed to the purchaser if the property is purchased, directly or indirectly, by the current owner for lower than the minimum price determined as described above. By imposing new duties on local tax collectors with respect to sales of tax-defaulted property, the 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 the statutory provisions noted above.