Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2011
 

Revenue and Taxation Code

Property Taxation

Part 0.5. Implementation of Article XIII A of the California Constitution

Chapter 3.5. Change in Ownership and New Construction After the Lien Date

Article 6. Collection of Supplemental Taxes*

Section 75.54

75.54. Effect of lien. (a) Taxes on the supplemental roll become a lien against the real property on the date of the change in ownership or completion of new construction unless by other provisions of law the taxes are not a lien on real property.

(b) With respect to taxes that are not a lien on real property that have become delinquent on the supplemental roll, the tax collector may use the procedures applicable to the collection of delinquent taxes on the unsecured roll for collection of the tax. If taxes that are not a lien on real property remain unpaid at the time set for declaration of tax default, following a delinquency in the payment of the second installment of the taxes, the taxes and any penalties and costs thereon shall be transferred to the unsecured roll for collection.

(c) Notwithstanding subdivision (a), in the event there is a subsequent change in ownership following an initial change in ownership or completion of new construction, that occurs before the mailing of the supplemental tax billing attributable to the initial change in ownership or completion of new construction, then the lien for supplemental taxes is extinguished and that portion of the supplemental assessment attributable to the assessee from the date of the initial change in ownership or completion of new construction to the date of the subsequent change in ownership shall be entered on the unsecured roll or on the supplemental roll as an unsecured assessment in the name of the person who would have been the assessee if the additional change in ownership had not occurred, and thereafter that portion of the tax shall be treated and collected like other taxes on the unsecured roll. The remaining portion of the supplemental tax attributable to the initial change in ownership becomes a lien against the real property on the date of the subsequent change in ownership which lien shall also secure any increase or decrease in supplemental taxes resulting from the determination of the new base year value required to be made following the subsequent change in ownership.

(d) In lieu of determining, as provided in subdivision (c), the portion of the supplemental assessment attributable to the person who would have been the assessee if the additional change in ownership had not occurred, a county may elect to compute that portion of the supplemental assessment attributable to the assessee from the first day of the month following the date of the initial change in ownership or completion of new construction to the date of the subsequent change in ownership.

History.—Stats. 1983, Ch. 1102, in effect September 27, 1983, added "supplemental" after "entered on the " in the second sentence. Stats. 1984, Ch. 946, in effect September 10, 1984, added "(a)" before "Taxes"; added "unless by other provisions . . . property." after "construction"; deleted the former second sentence of subdivision (a) which provided that "if there is another change in ownership before the supplemental billing is made, the supplemental assessment shall be entered on the supplemental unsecured roll in the name of the person who would have been the assessee if the additional changes in ownership had not occurred, and thereafter shall be treated and collected like other taxes on the unsecured roll."; and added subdivisions (b) and (c). Stats. 1986, Ch. 1457, effective January 1, 1987, added subdivision (d). Stats. 1990, Ch. 992, in effect January 1, 1991, substituted "declaration of tax default" for "sale to the state" after "set for" in the second sentence of subdivision (b).

Note.—See note following Section 75.

* Article 6 Heading was amended by Stats. 1984, Ch. 946, in effect September 10, 1984.