Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Revenue and Taxation Code

Property Taxation

Part 7. Redemption

CHAPTER 1. Redemption Generally

Section 4103

4103. Redemption penalties. (a) Redemption penalties are the sum of the following:

(1) Beginning July 1st of the year of the declaration of tax default, on the declared amount of defaulted taxes at the rate of 1½ percent a month to the time of redemption. If the last day of any month falls on a Saturday, Sunday, or legal holiday, the additional penalty of 1½ percent shall attach after the close of business on next business day.

(2) Beginning July 1st of each subsequent year, on the unpaid taxes for which the property would have been declared in default if there had not been a previous declaration, 1½ percent a month to the time of redemption. If the last day of any month falls on Saturday, Sunday, or a legal holiday, the additional penalty of 1½ percent shall attach after 5 p.m. on the next business day. If the board of supervisors, by adoption of an ordinance or resolution, closes the county's offices for business prior to the time of delinquency on the "next business day" or for that whole day, that day shall be considered a legal holiday for purposes of this section.

(b) For purposes of an administrative hearing or any claim in a bankruptcy preceding pertaining to the property being redeemed, the assessment of penalties determined pursuant to subdivision (a) with respect to the redemption of that property constitutes the assessment of interest.

History.—Stats. 1968, p. 847, in effect November 13, 1968, operative July 1, 1969, and applicable to penalties imposed on and after that date, deleted from subsections (a) and (b) provisions which reduced the penalties to one-half of 1 percent a month after the first year. Stats. 1976, Ch. 828, p. 1896, in effect January 1, 1977, added the second sentence to subsection (b). Stats. 1981, Ch. 366, in effect January 1, 1982, increased the penalties from 1 percent to 1½ percent. Stats. 1984, Ch. 988, in effect September 11, 1984, substituted "the declaration of tax default" for "sale to the state," and substituted "declared amount of defaulted taxes" for "amount of sold taxes" in subdivision (a); and substituted "declared in default" for "sold to the state," and substituted "declaration" for "sale" in subdivision (b). Stats. 1992, Ch. 523, in effect January 1, 1993, substituted "rate of" for "time of sale," after "the", added the second sentence to subdivision (a). Stats. 1994, Ch. 705, in effect January 1, 1995, added the third sentence in subdivision (b). Stats. 1996, Ch. 800, in effect January 1, 1997, added subdivision letter designation (a); renumbered former subdivisions (a) and (b) as paragraphs (1) and (2) of new subdivision (a), respectively; and added subdivision (b).

Note.—See note following Section 2194.

Construction.—The section applies both to the initial computation and to recomputation after default. Johnston v.Sanchez, 121 Cal.App.3d 368.

Redemption penalties not part of the tax.—Redemption penalties are charges for the exercise of the privilege of redeeming tax-sold property and are not a part of the tax obligation to be secured by a lien on the real property, or on the fund deposited by the United States as estimated compensation in connection with the taking of the property under its right of eminent domain. Weston Investment Company v. State of California, 31 Cal.2d 390.