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4240-4241 Recurring Transactions: Miscellaneous

4240. RETURNED CHECKS
If negotiable paper is returned unpaid by the bank on which it is drawn, the record of payment on the abstract must be canceled (Rev. & Tax. Code §§2509, 2510). If the abstract has been transferred to the inactive file, it must be returned to the active file and the control accounts adjusted.

Notice of cancellation should be sent as soon as possible to the person tendering the dishonored paper (Rev. & Tax. Code §2510).

After the return to the depositing county officer of any unpaid negotiable paper, the tax collector may charge the person who attempted such payment a fee not to exceed the cost of making the required notifications to the person, processing the returned unpaid negotiable paper, and making the required cancellations on the tax roll. The fee amount shall be set by the board of supervisors and shall be subject to the fee review procedures required by Government Code section 54986. The fee may be added to the tax bill and collected in the same manner as costs recovered under Revenue and Taxation Code section 2621 (Rev. & Tax. Code §2509.1).

4241. NOTICE TO STATE CONTROLLER
This section was deleted on January 1, 1999.