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5100-5104 Processing Procedures and Requirements: General Information

5100. CALCULATION ELEMENTS
Application for redemption is made to the tax collector, who then prepares the amount necessary to redeem (Rev. & Tax. Code §4105.1). The tax collector then determines whether the abstract has prior years' delinquencies for the property under other parcel numbers. This condition could arise when segregation occurs due to changes in tax-rate areas.

The redemption amount provided to the applicant must be as accurate as possible.  Note Attorney General's Opinion 1-2-75, which draws the following conclusions:

1) When the tax collector furnishes an erroneous estimate of the amount necessary to redeem and title is subsequently transferred to a bona fide purchaser who relied upon the erroneous estimate, payment of the estimated amount and the issuance of a certificate of redemption renders the tax default or the recorded Notice of Power to Sell null and void; and, 

2) Where the innocent parties have changed their position in a material way due to their reliance on the tax collector's figures, issuance of the certificate of redemption may not be refused by the tax collector if a mistake is found after title has passed to an innocent third person (see annotation in Property Taxes Law Guide, State Board of Equalization, following Rev. & Tax. Code §4105.2).

Use of a cross-reference system linking present and former assessor's parcel numbers should minimize errors similar to those discussed in this section.  See M-5511 for collection of redemption deficiencies resulting from errors in computing the amount to redeem.

NOTE:  Revenue and Taxation Code sections 4114-4116, in effect since 1979, provide a means by which some erroneously computed redemption amounts can be rectified, even though redemption certificates have been issued.  See M-5511 and M-5512.

5101. BANKRUPTCY
Redemption amount estimates prepared by a tax collector at the request of a trustee in bankruptcy or pursuant to an order of a bankruptcy court must include all penalties due under the provisions of the Revenue and Taxation Code. No authority is given the tax collector to prepare the estimate in any other manner (Attorney General Opinion 3-5-43).

The tax collector may not accept any lesser amount (the redemption estimate plus penalties, costs, and fee) unless so ordered by either the referee in bankruptcy or a federal court of competent jurisdiction.

Claims for secured taxes or assessments should, as a matter of course, be filed with the referee in bankruptcy on a form approved or furnished by the bankruptcy court (with a copy served on the trustee in bankruptcy) to secure payment of any real property tax lien. The proof of claim does not have to be verified, although it must be in writing. This is a matter of good practice because, if a claim is not filed, the county might lose certain priorities to the assets available.

5102. REDEMPTION AMOUNT
The amount necessary to redeem (Rev. & Tax. Code §4102) is the sum of the following:

1) The total amount of all prior-year defaulted taxes (M-5103 and M-5104);

2) Delinquent penalties and costs (M-5110);

3) Redemption penalties (M-5111 - M-5112);

4) Redemption fee (M-5120 - M-5124);

5) If the property being redeemed has become subject to the power to sell, a recording fee for processing the Rescission of Notice of Power to Sell, plus a fee for obtaining the names and addresses of parties of interest, in accordance with Revenue and Taxation Code section 4675, and mailing notices, as required by Revenue and Taxation Code section 3701. (See M-5400 for a discussion of the Rescission of Notice of Power to Sell and M-5125 regarding the parties-of-interest fee.)  This fee applies immediately as property becomes subject to the power to sell and may be collected whether or not a parties-of-interest search has been conducted with respect to the property; 

6) If tax-defaulted property is redeemed prior to the proposed sale but after the county has incurred notice or publication costs in connection with a notice of intended sale, as required by Revenue and Taxation Code section 3702, a fee in the amount reasonably necessary to reimburse the county for those costs (Rev. & Tax. Code §4112(b));

7) If the tax-defaulted property is redeemed within 90 days of the proposed sale, $150 (Rev. & Tax. Code §4112(a)(3)); and

8) Actual and reasonable costs to reimburse the county for making personal contact, if any, as established pursuant to the requirements of Chapter 12.5 (commencing with §54985) of Part 1 of Division 2 of Title 5 of the Government Code (Rev. & Tax. Code §3704.7).

If any credits are due, they must be deducted from the total redemption amount (M-5012 and M-5170 - 5171).

The amount to redeem does not include local fees and charges added to the tax bill pursuant to Government Code section 54988.

NOTE:  When the last day of any month falls on a weekend or a holiday, redemption penalties attach after close of business on the next business day (Rev. & Tax. Code §§3437, 4103(b)).

5103. AMOUNT OF DEFAULTED TAXES DEFINED
The amount of defaulted taxes, as defined in Revenue and Taxation Code section 123, is the sum of:

1) Taxes that were a lien on the real estate at the time of the declaration of default; and

2) All other unpaid taxes of every description (including special assessments, annual installments of assessments, etc.) that are liens against the property for the year of the declaration of default and for each subsequent year, whether assessed or unassessed.

5104. PROPERTY NOT ON THE CURRENT ROLL
When the property is not on the current roll, the tax collector may require the redemptioner to pay the current taxes, penalties, and costs in addition to the amount necessary to redeem. The tax collector shall base his/her computation of the amount of these taxes on the valuation furnished by the assessor (Rev. & Tax. Code §4104(b)).