Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2011
 

Revenue and Taxation Code

Property Taxation

Part 1. General Provisions

Chapter 1. Construction

Section 123

123. "Amount of defaulted taxes." "Amount of defaulted taxes" on property means the sum of the following amounts:

(a) The amount of taxes which were a lien on the real estate at the time of the declaration of default.

(b) All other unpaid taxes of every description which were a lien on the property for the year of declaration of default and for each year since the declaration of default, as shown on the delinquent rolls for which the time of the declaration of default is past, or, if the property was not assessed for any year, which would be shown on such delinquent roll if it had been assessed in that year; except that the unpaid taxes which would be shown on such delinquent roll if the property had been assessed in any such year shall not be paid if the property was not assessed for any year because of having been acquired by the State or other public agency other than by tax deed. The amount of taxes for any year not assessed shall be based on the valuation required to be made by the assessor on redemption of unassessed property.

History.—Stats. 1945, p. 1059, in effect September 15, 1945, added last clause of first sentence of (b), relative to property acquired by public agencies. Stats. 1953, p. 2100, in effect September 9, 1953, substituted "roll" or "rolls" for "list" or "lists," respectively, wherever such words appear. Stats. 1984, Ch. 988, in effect September 11, 1984, substituted "defaulted" for "sold" before "taxes," and deleted "which has been sold to the state" after "property" in the first sentence; substituted "declaration of default" for "sale" after "the" in subsection (a); and substituted "declaration of default" for "sale" after "year of", "since the", and "time of the" in the first sentence of subsection (b).

Note.—Section 74 of Stats. 1984, Ch. 988 provided . . . (a) Whenever there has been a sale to the state or a deed to the State under the provisions of Division 1 (commencing with Section 101) of the Revenue and Taxation Code on or prior to the effective date of this act, and the right to redeem the property subject to the sale or deed has not been terminated, the sale or deed to the state shall be canceled as of the effective date of this act. Any such property sold to the state shall be deemed "tax-defaulted" property as of the date of its sale to the state. Any such property deeded to the state shall be deemed "tax-defaulted" property as of the date of its sale to the state and shall be subject to a power of sale for nonpayment of taxes. Simultaneously with the cancellation of any tax deed to the state, the lien for delinquent taxes on the real property shall revive. That lien shall have priority over all other liens on the real property, regardless of the time of creation.

(b) For purposes of subdivision (a), the tax collector, for and on behalf of the state, shall execute and record with the county recorder of the county in which the property is located a release of equity or quitclaim of the property, in the form prescribed by the Controller. The release shall be acknowledged by the county clerk, without charge. Parties of interest in the property, prior to the issuance of the tax deed to the state shall acquire by the cancellation of the tax deed the same right or interests they had prior to the issuance of the tax deed, as if the tax deed were never issued. That right or interest shall be subject to the lien for taxes. Sec. 75 provided no payment by state to local governments because of this act.

Construction.—The "amount of sold taxes" includes an amount representing a tax for each year subsequent to the deed to the State as well as before, notwithstanding the fact that the property is not assessed while the State is the owner. Andreson Co. v. Los Angeles County, 55 Cal.App. 585, construing former Political code Section 3817.

Construction—constitutionality.—This section and Section 4102 require one who has purchased delinquent property from a reclamation district to pay, as a condition to redemption, an amount equivalent to taxes on the property during the period it was owned by the district. As so construed these provisions are valid. Sutter-Yuba Investment Co. v. Waste, 21 Cal.2d 781.