Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2016
Revenue and Taxation Code
Part 8. Distribution
CHAPTER 1.3. Distribution of Proceeds From Sale of Tax-Deeded Property
(a) An amount of the proceeds up to but no greater than the amount required, at the time of sale, to redeem the property from tax default, the outstanding balance of any property tax postponement loan, and the sale to any taxing agency entitled to share in the proceeds shall be distributed as follows:
(1) A pro rata share shall be distributed to each assessment fund in an amount bearing the same proportion as the assessment due each fund bears to the total amount of taxes and assessments necessary to redeem the property at the time of sale.
(2) After distributing the proceeds according to paragraph (1), a pro rata share be distributed under this section shall be distributed to each tax fund in an amount bearing the same proportion to the balance remaining as the tax rate for each fund bears to the total tax rate applicable to the property for the fiscal year preceding that in which the property was sold.
(3) The remaining balance of the proceeds to be distributed under this section after distributing the proceeds according to paragraphs (1) and (2) shall be distributed to the state controller for the outstanding balance of any property tax postponement loan.
(b) After satisfaction of the amounts specified in subdivision (a), an amount of the proceeds necessary to satisfy current taxes and assessments and applicable penalties and costs thereon for the fiscal year in which the tax sale is held shall be distributed as provided in Chapter 1a (commencing with Section 4653) of this part. Current taxes and assessments referred to herein include taxes and assessments which would have been levied on the property if the property were not tax-deeded to any taxing agency and remains subject to sale by, or redemption from, the taxing agency.
(c) For purposes of this section, the "outstanding balance of any property tax postponement loan" is the sum of the following:
(1) The tax payments made by the State Controllerís office on behalf of the claimant in the Property Tax Postponement Program.
(2) Accrued interest pursuant to Section 16183 of the Government Code, subject to Sections 20644 and 20644.5.
(3) Other associated fees and penalties as deemed appropriate by law.
(4) Less any payments already made on the property tax postponement loan.
History.—Added by Stats. 1976, Ch. 113, p. 176, in effect January 1, 1977. Stats. 1985, Ch. 316, effective January 1, 1986, deleted "by the state" after "time of sale" and substituted "tax default" for "the sale to the state" after "property from" in subsection (a), deleted "by the state" after "sale" in (1) thereof, and deleted "by the state" after "sold" in (2) thereof, and deleted "to the state or" after "deeded", deleted "other" after "any" and added "and remains . . . taxing agency" after "agency" in the second sentence of subsection (b). Stats. 1990, Ch. 126, in effect June 11, 1990, added a comma after "4672.1" in the first paragraph and added the third sentence to subsection (b). Stats. 1990, Ch. 992, in effect January 1, 1991, added "for the fiscal year . . . is held" after "thereon" in the first sentence of subsection (b). Stats. 1991, Ch. 532, in effect January 1, 1992, deleted the former third sentence of subdivision (b) which provided that "In the case of sales completed between March 1 and July 1, 'current taxes and assessments' shall include amounts representing tax liens disencumbered by the tax sale.". Stats. 2014, Ch. 703 (AB 2231), in effect September 28, 2014, added ", the outstanding balance of any property tax postponement loan," after "tax default" in the first sentence of the first paragraph of subdivision (a), substituted "After distributing the proceeds according to paragraph (1), a pro rata share" for "The remaining balance of the proceeds to be distributed under this section" before "shall be" in the first sentence of paragraph (2), and added paragraph (3) thereto; and added subdivision (c).