Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2010
Revenue and Taxation Code
Part 5. Collection of Taxes
CHAPTER 1. Medium of Payment
2503.2. Acceptance of electronic funds transfers. (a) The tax collector for any city, county, or city and county may, in his or her discretion, accept electronic funds transfers in payment for a purchase at a tax sale, of any tax, assessment, or on a redemption.
(b) The tax collector for any city, county, or city and county may, in his or her discretion, require any taxpayer, or any paying agent of a taxpayer or taxpayers, who makes an aggregate payment of fifty thousand dollars ($50,000) or more on the two most recent regular installments on the secured roll or on the one installment of the most recent unsecured tax roll, to make subsequent payments by electronic funds transfer.
(c) Any taxpayer or paying agent making payment by electronic funds transfer shall provide any supporting documentation and electronic information as requested by the tax collector. An electronic funds transfer made pursuant to this section shall be made to the bank account designated by the tax collector.
(d) Any costs incurred by the tax collector as a result of the acceptance of electronic funds transfers pursuant to this section shall be considered administrative costs of tax collection, except that if for any reason the electronic funds transfer is not completed, those costs shall be recovered as provided in subdivision (g).
(e) The acceptance of an electronic funds transfer shall constitute payment of a tax, assessment, or redemption as of the date of acceptance when, but not before, the transfer has been completed. An electronic funds transfer is completed by acceptance by the bank designated by the tax collector of the payment specified by the originator's payment order.
(f) If an electronic funds transfer is not accepted for any reason, any record of payment entered on any official record indicating the acceptance of that transfer shall be canceled, and the tax or assessment shall be a lien as if no payment has been attempted. When a cancellation of a record of payment is made, the canceling officer shall record the cancellation on the record that contained the notation of payment, and immediately shall cause a written notice of cancellation to be sent to the person attempting the electronic funds transfer.
(g) Upon notice of nonacceptance of an electronic funds transfer, the tax collector may charge the person who attempted the electronic funds transfer a fee not to exceed the costs of processing the transfer, providing notice of nonacceptance to that person, and making required cancellations on the tax roll. The amount of any fee charged pursuant to this subdivision shall be set by the governing body of the relevant city, county, or city and county, and may be added to the tax bill and collected in the same manner as costs recovered pursuant to Section 2621.
History.—Added by Stats. 1991, Ch. 532, in effect January 1, 1992. Stats. 1992, Ch. 1027, in effect January 1, 1993, operative on the later of July 1, 1993, or the date the Controller approves the standards specified in Section 2 of the act, deleted "or treasurer" after "tax collector" in the first sentence, and deleted the former second sentence in subdivision (a) which provided, "An electronic fund transfer pursuant to this section shall be made to the county's bank account designated by the tax collector."; added subdivisions (b) and (c); relettered former subdivisions (b), (c), (d), and (e) as (d), (e), (f), and (g), respectively; substituted "this section" for "subdivision (a)" after "pursuant to", and substituted "(g)" for "(e)" after "subdivision" in subdivision (d); and substituted "any" for "the" after "The amount of", added "charged pursuant to this subdivision" after "any fee", and substituted "governing body . . . and county" for "board of supervisors pursuant to Section 54986 of the Government Code" in the second sentence of subdivision (g). Stats. 1995, Ch. 527, in effect January 1, 1996, added "or on the one . . . tax roll," after "secured roll" in subdivision (b). Stats. 1996, Ch. 124, in effect January 1, 1997, substituted "electronic funds" for "electronic fund" throughout the section; and substituted "that contained the notation of payment, and immediately shall" for "which contained the notation of payment, and shall immediately" after "on the record" in the second sentence of subdivision (f). Stats. 1997, Ch. 546(SB 1107), in effect January 1, 1998, substituted "fifty" for "one hundred" after "payment of" and substituted "($50,000)" for "($100,000)" after "thousand dollars" in the first sentence of subdivision (b). Amended by Stats. 2004, Ch. 194 (SB 1832), in effect January 1, 2005.
Note.—Section 2 of Stats. 1992, Ch. 1027, provided that it is the intent of the Legislature in enacting this act that county tax collectors establish programs for the payment of taxes and assessments, or on a redemption in excess of designated amounts, through electronic fund transfers, in order to implement efficient and effective procedures for the collection of tax revenues. It is the further intent of the Legislature that in implementing this act the county tax collectors work in conjunction with the Controller to establish uniform standards for state and local governmental entities for the electronic media transmission and transferal of funds and information.