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3200-3204 Delinquent Payment Processing: General Information

3200. TAX-DEFAULT
Delinquent supplemental assessments are declared to be in default at the same time as property on the secured roll (Rev. & Tax. Code §75.53). The second installment must be delinquent for a property to be in default. If the second installment of supplemental tax becomes delinquent at 5 pm on June 30, that supplemental billing cannot cause the property to be declared defaulted until the end of the following fiscal year.

3201. TAXES NOT A LIEN ON REAL PROPERTY
Properties not subject to default (manufactured homes, possessory interests, etc.) must not be declared tax-defaulted. Instead, once the first installment of a supplemental bill for such an assessment becomes delinquent, the tax collector is authorized to employ procedures applicable to collection of taxes on the unsecured roll (Rev. & Tax. Code §75.54(b)). These procedures, all of which are discussed in Chapter 2000, include:

1) Certificate of lien (Rev. & Tax. Code §§2191.3-2191.6) and M-2340

2) Seizure and sale (Rev. & Tax. Code §§2951-2957) and M-2400

3) Suit for taxes (Rev. & Tax. Code §§3002-3006) and M-2320

4) Summary judgment (Rev. & Tax. Code §§3101-3107) and M-2340

If such taxes, including the second installment, remain unpaid on the date when secured taxes are declared to be in default (normally, June 30), they must be transferred, along with penalties and costs, to the unsecured roll (Rev. & Tax. Code §75.54(b)). Once transferred to the unsecured roll, these amounts are subject, beginning July 1, to an additional penalty of one and one-half percent per month, which attaches on the first day of each month (Rev. & Tax. Code §2922).

Although Revenue and Taxation Code section 75.54(b) states that the delinquencies are transferred to the unsecured roll, the common interpretation is that they transfer to the unsecured abstract. This follows the treatment given unsecured assessments that are billed on the secured roll, such as mobilehomes and some possessory interests.

3202. ABSTRACT PREPARATION
Supplemental assessment statutes provide guidance only in how tax-default applies; procedures for updating the abstract are absent. The law governing preparation of abstracts requires that abstract lists be updated yearly after the declaration of tax default (Rev. & Tax. Code §4373). Properties not already defaulted but on which the second installment of supplemental tax becomes delinquent June 30 are not immediately noted on the abstract. The law specifically requires a year's delay in tax-defaulting such parcels (Rev. & Tax. Code §75.53).

A delinquency in supplemental tax leads to a default of the entire property, even though "regular" taxes have been paid. Likewise, payment of the supplemental tax does not affect the result of nonpayment of regular-roll taxes.

If a parcel is already on the abstract, supplemental tax delinquency does not create another default. The total delinquent amount (including penalties and cost) is added to the abstract after June 30.

NOTE: Only one redemption fee per property can be charged, regardless of the number of assessments resulting in abstract records.

3203. REDEMPTION
Once defaulted, supplemental taxes are subject to the same redemption provisions as other property taxes. Redemption by installments (Rev. & Tax. Code §§4186-4226) and M-5200 et seq. and payment of escape assessments by installments (Rev. & Tax. Code §4837.5) and M-1741 are affected by delinquency of a supplemental tax.

3204. EFFECT ON INSTALLMENT PLANS
Installment plans are not defaulted by delinquencies occurring before April 10, as long as such delinquent taxes are paid before 5 pm on April 10. If second installment taxes of a supplemental assessment become delinquent on April 30 or May 31, any installment plan in effect for that parcel does not default if the installment is paid as of June 30 (Rev. & Tax. Code §§4219, 4220). See M-5233.