Home Publications Guides, Manuals, and Reference Materials County Tax Collectors' Reference Manual (2012) Chapter 2000 Unsecured Tax Collections 2200-2205 Delinquent Payment Processing: General Information

2200-2205 Delinquent Payment Processing: General Information

2200. EFFECTIVE DATES AND TIMES
Taxes on the unsecured roll as of July 31 are delinquent taxes, if unpaid, at 5 p.m. or the close of business, whichever is later, on August 31 and are thereafter subject to a delinquent penalty of ten percent (Rev. & Tax. Code §2922(a)).

Taxes added to the roll after July 31 are delinquent if unpaid at 5 p.m. or the close of business, whichever is later, on the last day of the month succeeding the month in which they were added to the roll.

2201. DELINQUENT PENALTY
Effective July 1, 1982, the delinquent penalty is ten percent.

Taxes on the unsecured roll as of July 31 are delinquent, if unpaid, at 5 p.m. or the close of business, whichever is later, on August 31 and are thereafter subject to a delinquent penalty of ten percent (Rev. & Tax. Code §2922(a)).

Taxes added to the unsecured roll after July 31 are delinquent if unpaid, and subject to a penalty of ten percent, at 5 p.m. or the close of business, whichever is later, on the last day of the month succeeding the month of enrollment.

It is incorrect to say that the delinquent penalty attaches at 5 p.m. on the next business day when August 31 falls on a weekend or a holiday. The delinquent penalty always attaches on August 31 (or on the last day of a particular month).

However, the penalty is not applied in cases where the last day of the month falls on a weekend or a holiday and the tax collector receives payment before 5 p.m. or the close of business, whichever is later, on the next business day.

NOTE: The following chart shows the delinquent penalty rates for historical periods.

On or before September 30, 1965	8%
Between October 1, 1965; and June 30, 1982	6%
On or after July 1, 1982	10%

This penalty does not attach to unpaid taxes already carrying a delinquent penalty transferred from the secured roll or the supplemental roll. Such taxes are subject only to the additional penalties and costs as prescribed in Revenue and Taxation Code sections 2922(d) and (e), which shall attach beginning July 1 and on the first day of each month thereafter (Rev. & Tax. Code §2922(c), (e)).

2202. ADDITIONAL PENALTY
Effective July 1, 1982, if taxes on the roll remain unpaid at 5 p.m. or the close of business, whichever is later, on the last day of the second succeeding calendar month after delinquency, they become subject to an additional penalty of one and one-half percent per month, together with any actual costs of collection incurred by the county up to the time the delinquency is paid (Rev. & Tax. Code §§2922(c), (d)).

This additional penalty attaches on the first day of each month thereafter until payment is made or a court judgment is entered, whichever occurs first.

EXAMPLE: A ten-percent penalty applied after 5 p.m., November 30. An additional one and one-half percent penalty attaches on February 1, March 1, etc.

If delinquent taxes transferred from the secured and supplemental rolls at the time of tax-defaulting carry a delinquent penalty from the secured roll, they are subject to the additional penalty beginning July 1 and on the first day of each month thereafter.

If the last day of a month falls on Saturday, Sunday, or a legal holiday, the additional penalty shall not attach if the tax collector receives payment in full by 5 p.m. or the close of business, whichever is later, 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 (Rev. & Tax. Code §2922).

NOTE: Following is the schedule of various additional penalties.

2203. PENALTIES ON ADJUSTED OR "LATE" TAX BILLS
When a late, amended, or corrected tax bill is issued, the penalty imposed for delinquent taxes does not apply if payment is made within 30 days from the date the tax bill is mailed or electronically transmitted (Rev. & Tax. Code §2610.5). This 30-day period applies to bills issued with fewer than 30 days remaining prior to the delinquency date or issued after the delinquency date has passed (M-1144).

EXAMPLE: If taxes are enrolled as of July 31, an adjusted tax bill for unsecured property mailed on August 15 must be paid as of September 14, to cancel the delinquent penalty attaching on August 31. Do not count the date of mailing.

2204. ASSESSMENT REDUCED BY APPEALS BOARD DECISION 
Revenue and Taxation Code section 2922.5 deals exclusively with unpaid unsecured taxes where an assessment appeals hearing has reduced the disputed assessment.

Revenue and Taxation Code section 2922.5 is tied to Revenue and Taxation Code section 4985. Applicable portions of Revenue and Taxation Code section 4985 allow cancellation of any penalty, cost, interest, or fee attaching because of an error caused by the tax collector, auditor, or assessor if payment of the corrected amount is made within 30 days from the date the roll or abstract is corrected.

Interest at the rate of one percent per month is calculated from the delinquent date established in Revenue and Taxation Code section 2922 (normally August 31) to the date of correction. In addition, the delinquent penalty attaches to the reduced assessment 31 days after the roll or abstract is corrected. An additional penalty of one and one-half percent per month is added when no payment is made by 5 pm or the close of business, whichever is later, on the last day of the second succeeding month after the delinquent penalty attaches.

2205. INFORMATION NEEDED FOR ENFORCEMENT OF LIEN
Upon the request of the tax collector, the assessor shall disclose and provide to the tax collector the information used in preparation of that portion of the unsecured roll for which the taxes thereon are delinquent. The tax collector shall certify to the assessor that he/she needs the information requested for the enforcement of the assessee's tax lien in collecting those delinquent taxes.

Information requested by the tax collector may include Social Security numbers, and the assessor shall recover from the tax collector his/her actual and reasonable costs for providing the information. The tax collector shall add the costs to the assessee's delinquent tax lien and collect those costs subject to subdivision (e) of Revenue and Taxation Code section 2922 (Rev. & Tax. Code §408(c)).