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2130-2139 Billing and Payment Processing: Special Circumstances

2130. TAX BILLS AND NOTICES RETURNED DUE TO INCORRECT ADDRESSES
The following records may be researched to obtain a correct address:

1) County tax collector's records;

2) Telephone books;

3) Secretary of State's office;

4) FAA records;

5) County recorder's records;

6) Expired change-of-address records;

7) County clerk’s records;

8) Prior-year tax payment records; and

9) DMV records.

2131. RETURNED CHECKS
Acceptance constitutes payment as of the date of acceptance only when it is duly paid (Rev. & Tax. Code §2506). The tax collector shall cancel on his/her records any indication of payment when negotiable paper, for any reason, is not paid and shall immediately send a notice of cancellation to the person who attempted payment. The tax lien continues as though no attempt at payment had been made (Rev. & Tax. Code §§2509-2510).

Government Code section 6157 provides that, if any personal check is returned to the payee public agency without payment, for any reason, the public agency may impose a reasonable charge for the returned check, not to exceed the actual costs incurred by the agency, and may prescribe a different method of payment for that payment and future payments by the person.

Civil Code section 1719 provides that, if a check is returned and the person or entity who wrote the check refuses to honor it within 30 days following a written demand, the person or entity shall be liable to the county for (in addition to the amount owed) damages of three times the amount of the check, but in no case less than $100 or more than $1,500. The written demand must be sent by certified mail to the payor. If the payor has not satisfied the amount owed within 30 days of the mailed notice, an action may be brought in small claims court or in any other appropriate court.

2132. DUPLICATE PAYMENTS
"Duplicate payment" is defined as a submitted payment that is identical in every respect to the original.

If there are other unpaid bills on the same property, the funds can be applied to the open bills (Rev. & Tax. Code §2635.5).

Duplicate payments of taxes, made either before or after delinquency, may be refunded by either the tax collector or the auditor within four years after payment. See M-1601 and M-2150.

2133. RETURN OF REPLICATED OR DUPLICATE PAYMENT
A replicated payment is a payment submitted by, or on behalf of, a taxpayer that is indicated for application to a specific tax or tax installment that has already been paid, whether or not the prior payment and the replicated payment are in the same amount (Rev. & Tax. Code §2780.5).

The law requires a county, whenever possible, to return a replicated payment to the tendering party within 60 days of the date the payment becomes final. Payment is "final" when the original payment is not subject to chargeback, dishonor, or reversal (Rev. & Tax. Code §2781).

Counties that manually process payments usually can verify duplicates and return one payment within a few days or weeks.

Counties that use check-processing machines ordinarily must refund replicated amounts, and they must pay interest on any amounts not returned to the tendering parties within 60 days of becoming final (Rev. & Tax. Code §2782). Replicated payments returned after 60 days must include interest at the rate provided in Revenue and Taxation Code section 5151, if that interest is ten dollars or more. The interest is calculated at the greater of 3% per annum or the county pool apportioned rate and applies from the 60th day after the replicated payment becomes final to the date the replicated payment is returned to the tendering party (Rev. & Tax. Code §2783).

A tax collector is not prohibited from exercising reasonable judgment in applying a payment if the payor returns the wrong payment stub or does not indicate the intended application for the payment (Rev. & Tax. Code §2783).

NOTE: The payment submitted must be clearly indicated as applicable only to a specific tax or tax installment. Usually such payment is accompanied by a letter or installment stub indicating the payor's intent to pay a particular tax or installment. In a case where no intent is expressed and an installment or a tax on another property owned by that person has not been paid, the tax collector may apply payment to the remaining installment or other tax without incurring interest penalties if subsequent data indicate that payment should not have been so applied (Rev. & Tax. Code §2635.5).

2134. PARTIAL PAYMENTS
With approval from the board of supervisors, the tax collector may accept partial payments. If partial payments are accepted, the amount accepted is distributed rather than held in trust; only the balance is subject to additional penalties. Accepted partial payments are first applied to delinquency charges, then to the actual tax (Rev. & Tax. Code §2927.6).

Notwithstanding any other provision of law, in the case of a deficiency of payment of taxes due and payable pursuant to the provisions of Chapter 4 of Part 5 (Collections on the Unsecured Roll) of the Revenue and Taxation Code, the tax collector, with the approval of the board of supervisors, may accept such partial payment from the taxpayer. The difference between the amount paid and the amount due shall be treated as a delinquent tax in the same manner as any other delinquent tax (Rev. & Tax. Code §2927.6) and (M-1240).

An exception is made for counties operating under Chapter 3 of Part 8 of the Revenue and Taxation Code, Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (Rev. & Tax. Code §§4701-4717). This method is known as the "Teeter Plan."

2135. CASH DIFFERENCE FUND
The cash difference fund (Rev. & Tax. Code §2611.5) may be used when discrepancies are ten dollars or less.

2136. OVERAGE FUND
When an amount paid to the county on any tax, assessment, penalty, cost, or interest exceeds the amount due and the excess does not exceed ten dollars ($10), the excess amount may be deposited into the overage account. If the excess amount is not so deposited, it shall be refunded to the person making the deposit.

2137. EXCESS AMOUNTS OVER $10
If the amount tendered exceeds the amount of taxes due by an amount greater than ten dollars ($10), the tax collector may:

1) Apply the overpayment to any delinquent taxes owing on the same property, as long as the taxpayer remains liable for the payment of the delinquent tax (Rev. & Tax. Code §2635.5); or

2) Refund the excess payment without the necessity of submitting a claim to the board of supervisors (Rev. & Tax. Code §5097.2). It is advisable to deposit the excess in a trust fund until the check is honored by the bank.

2138. PAYMENTS UNDER PROTEST 
Revenue and Taxation Code sections 5140-5149.5 describe the procedures by which a taxpayer may recover secured and unsecured taxes (see M-2170 - M-2172 for procedures and M-1246 for assessment protest procedures).

2139. SUIT FOR RECOVERY
The person who paid the tax, the person's guardian, the executor of the person’s will, or the administrator of the person's estate may bring an action only in the superior court, but not in the small claims division of the superior court, to recover the taxes (Rev. & Tax. Code §5140).

This action must be commenced within six months from and after the date that the board of supervisors or its designate rejects a claim for refund in whole or in part (Rev. & Tax. Code §5141). The board of supervisors may delegate the authority to the tax collector or another official.

To file a claim with the board of supervisors, the tax must be paid in full within four years of the date of the claim. The postmark governs the date of the claim (Rev. & Tax. Code §5097.2).

NOTE: Actions brought under Revenue and Taxation Code section 5148 (disputes involving state-assessed property) are excluded from any action commenced under Revenue and Taxation Code section 5149. Such actions may be brought by public agencies under Revenue and Taxation Code section 5161.