Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2017

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

Chapter 5. Special Types of Property

Article 1. Generally

Section 983

983. Property in legal custody. Property in litigation in possession of a county treasurer, court, county clerk, or receiver shall be assessed to the officer in possession, and the taxes shall be paid under the direction of the court.

Funds in litigation.—Money placed in a bank as special deposits pursuant to court orders and stipulations of the parties to await the outcome of the litigation is subject to assessment for taxation as money in litigation in possession of a "receiver." Spring Valley Water Co. v. San Francisco, 246 U.S. 391.

The amount of an award paid by the city to the county treasurer for the benefit of a property owner in a condemnation proceeding is not a solvent credit of the property owner for purposes of taxation, but is to be assessed to the county treasurer under the provisions of this section, and no deduction is allowable on account of debts owed by the property owner. Bessolo v. City of Los Angeles, 176 Cal. 597.

When money deposited with the county treasurer pursuant to a court order is assessed to one of the parties to pending litigation instead of to the treasurer, the assessment is void, and in the following year the money is properly assessed as property which has escaped assessment. City of San Luis Obispo v. Pettit, 87 Cal. 499.

Under this section the court is authorized to ascertain the amount of taxes to be paid on funds and solvent credits in the hands of the receiver, and to order that the tax be paid by the receiver. City of Los Angeles v. Los Angeles City Water Co., 137 Cal. 699.

Tangible personal property.—Jewelry which was left by the owner in Los Angeles County when he changed his residence to Ventura County and was impounded with the clerk of Los Angeles County in a divorce action was properly taxed by that county while in the possession of the clerk as required by this section even though the owner did not consent to the impounding. Howard v. City of Los Angeles, 143 Cal.App.2d 195.

Levy of attachment.—An airplane under a levy of attachment by the county sheriff before and on the tax lien date was not property "in litigation" and was not assessable to the sheriff. United States Overseas Airline v. Alameda County, 235 Cal.App.2d 348.