Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2017

Revenue and Taxation Code

Property Taxation

Part 6. Tax Sales

CHAPTER 7. Sale to Private Parties After Deed To State

Section 3706

3706. Sale. If the property is not redeemed before the close of business on the last business day prior to the date of the sale of the property, the tax collector shall sell the property at public auction to the highest bidder at the time and place fixed.

In the case of a sale at public auction no bid shall be accepted for a sum less than the minimum price approved in the resolution of the board of supervisors; provided, however, the tax collector may reduce such minimum price when a partial redemption has been made under Chapter 2, Part 7, Division 1 of this code, or when a partial cancellation has been made under Chapter 4, Part 9, Division 1 of this code, after such price was fixed, by not more than the ratio that the delinquency on the portion so redeemed or canceled bears to the delinquency upon the whole.

History.—Stats. 1941, p. 3099, in effect September 13, 1941, made second paragraph applicable to sales on application and eliminated provision that the minimum price at such sales may not be less than the amount offered by the applicant. Stats. 1945, p. 2194, in effect September 15, 1945, revised first paragraph to require redemption before first bid instead of before sale, and added provision for reduction of minimum price after a partial redemption. Stats. 1947, p. 2026, in effect September 19, 1947, revised second paragraph adding "plus the amount of one dollar ($1)," and provision for reduction of the minimum price after partial cancellation. Stats. 1951, p. 1761, in effect September 22, 1951, deleted "plus the amount of one dollar ($1)" from computation of minimum acceptable bid. Stats. 1986, Ch. 1420, effective January 1, 1987, substituted "close of business on the last business day prior to the date of the sale of the" for "first bid is received on such" after "the" in the first paragraph; and deleted "whether on application of a prospective purchaser, or without any application from a prospective purchaser," after "public auction" in the second paragraph.

Bankruptcy.—When real property is sold to the State for nonpayment of property taxes prior to the filing of a bankruptcy petition, and, after the filing, neither the debtor nor the bankruptcy trustee takes any action to redeem the property, set aside the conveyance to the State, or interfere in any way with the tax sale proceeding, a third party grantee of the property has no standing to object to the tax sale as a violation of the automatic stay. Campbell v. Lauigan, 202 Cal.App.3d 651.