Property taxation: revenue allocations: tax-defaulted property sales.

(1) Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue to local jurisdictions in accordance with specified formulas and procedures, and generally provides that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction's portion of the annual tax increment, as defined. Existing property tax law also requires that, for purposes of determining property tax revenue allocations in each county for the 1992–93 and 1993–94 fiscal years, the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. Existing property tax law requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for allocation to school districts, community college districts, and the county office of education. Existing property tax law requires the county auditor to decrease, for the fiscal adjustment period, as defined, the amount of ad valorem property tax revenue allocated to a county's Educational Revenue Augmentation Fund by the countywide adjustment amount, as defined, and requires the auditor to instead allocate this amount to the Sales and Use Tax Compensation Fund in the county. Existing property tax law defines "fiscal adjustment period" for these purposes as the period beginning with the 2004–05 fiscal year and continuing through the later of the fiscal year in which the Director of Finance notifies the State Board of Equalization, as described, or the fiscal year in which an additional countywide adjustment amount, as described, is determined. Existing property tax law also defines, except as provided, "countywide adjustment amount" to mean the combined total revenue loss of the county and each city in the county that is annually estimated by the Director of Finance, based upon the actual amount of sales and use tax revenues transmitted, as described, in that county in the prior fiscal year and any projected growth on that amount for the current fiscal year as determined by the State Board of Equalization and as prescribed. This bill would instead change the references above to the State Board of Equalization to the California Department of Tax and Fee Administration. (2) Existing property tax law requires the county tax collector to collect all property taxes. Existing property tax law provides that all taxes on personal property and one-half the taxes on real property, as described, are due and payable on November 1, and provides that the other half of the taxes on real property are due and payable on February 1. Under existing property law, the 2nd half of taxes on real property, if unpaid, are delinquent at 5 p.m., or the close of business, whichever is later, on April 10. Under existing property tax law, after the 2nd installment of taxes on the secured roll is delinquent, the tax collector is required to collect a cost of $10 for preparing the delinquent tax records and giving notice of delinquency, as described. Existing law also sets forth an alternate procedure for collecting both personal and real property taxes in equal installments and also requires, if the 2nd installment of taxes on the secured roll is delinquent, the tax collector to collect a cost of $10 for preparing the delinquent tax records and giving notice of delinquency, as described. This bill would instead require, under both procedures, the tax collector to collect up to $55, but no more than the actual cost, for preparing the delinquent tax records and giving notice of delinquency, as described. (3) 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 sets forth procedures for the tax collector to sell tax-defaulted property, including by using, in certain circumstances, sealed bid sale procedures in which the property is sold to the highest eligible bidder or by public auction to the highest bidder. This bill, until January 1, 2029, would authorize, under the sealed bid or public auction sale procedures, the tax collector to offer, if the highest bidder does not consummate the sale of nonresidential commercial property within the time period determined by the tax collector, the property to the next highest bidder at their bid price. Additionally, if a sale occurs at a public auction for specified parcels of property and the sale is unconsummated, the bill, until January 1, 2029, would authorize the tax collector to offer that property for sale to the next highest bidder at their price if the next public auction for that parcel of property occurs more than one year after the date of that first auction and the highest bidder does not consummate that subsequent sale within the time period determined by the tax collector. (4) Existing property tax law requires the tax collector to transmit a certain notice 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, upon providing notice, the tax collector is required to forward a copy of the notice to specified entities and requires the notice to be mailed or delivered at least 30 days before the first publication or posting of the notice of intended sale. This bill would additionally authorize the notice to be sent electronically. (5) 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, 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. Existing property tax law requires any action or proceeding to review the decision of the board of supervisors on the claim to be commenced within 90 days after the date of that decision of the board of supervisors. Existing law also permits the board of supervisors to authorize, by resolution, any county officers to perform on its behalf any act required or authorized to be performed by the board relating to excess proceeds claims. This bill would clarify the timeframe in which to bring an action or proceeding in response to a decision on an excess proceeds claim applies to decisions by a county officer authorized to perform actions in relation to those claims.