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5120-5126 Processing Procedures and Requirements: Fee Structure and Schedule

5120. GENERAL INFORMATION
The Legislature has increased the redemption fee amount several times over the years. Because of the Teralta Land and Water Co. decision (M-5111), the tax collector must keep track of the redemption fee appropriate to the year in which a property was tax-defaulted.

No fee is charged on any assessed value of possessory interests, personal property, or improvements contained within an assessment. See M-5141 for further discussion.

Neither is a fee charged for special assessments unless the real property has been separately tax-defaulted for unpaid special assessment.

NOTE: The redemption fee automatically becomes part of the redemption amount at the moment the property becomes tax-defaulted and is not to be confused with redemption penalties, which do not attach until July 1 succeeding the date of default., Only one redemption fee can be charged per property, regardless of the number of assessments placed on the abstract.

5121. PROPERTY TAX-DEFAULTED PRIOR TO JUNE 13, 1969
A redemption fee (sometimes referred to as a "state fee") of $1.50 is charged for the redemption of each separately valued parcel of real property tax-defaulted on or after June 13,1947, and prior to June 13, 1969 (Rev. & Tax. Code §4102(d)).

5122. PROPERTY TAX-DEFAULTED JUNE 13, 1969 – DECEMBER 31, 1978
A redemption fee of $2 is charged for the redemption of each separately valued parcel of real property tax-defaulted on or after June 13, 1969, and before January 1, 1979 (Rev. & Tax. Code §4102(d)).

5123. PROPERTY TAX-DEFAULTED JANUARY 1, 1979 – DECEMBER 31, 1983
A redemption fee of $5 is charged for the redemption of each separately valued parcel of real property tax-defaulted on or after January 1, 1979, and before January 1, 1984 (Rev. & Tax. Code §4102(d)).

5124. PROPERTY TAX-DEFAULTED ON AND AFTER JANUARY 1, 1984
A redemption fee of $15 is charged for the redemption of each separately valued parcel of real property tax-defaulted on or after January 1, 1984 (Rev. & Tax. Code §4102(d)).

5125. OBTAINING NAMES & ADDRESSES OF PARTIES OF INTEREST & MAILING NOTICE
When tax-defaulted property subject to the power to sell is redeemed, the tax collector must charge a fee to reimburse the county for the cost of obtaining the names and last known addresses of parties of interest as defined in Revenue and Taxation Code section 4675. This fee is to be added and collected at the time of redemption only if a Notice of Power to Sell Tax-Defaulted Property has been recorded (M-5400). Government Code section 54985 permits a county board of supervisors to either increase or decrease the amount of fees and charges imposed by law (Rev. & Tax. Code §4112).

5126. TERMINATION OF RIGHT TO REDEEM
"Tax-defaulted property may be redeemed until the right of redemption is terminated" (Rev. & Tax. Code §4101).

The right of redemption terminates:

1) At the close of business on the last business day prior to the date a Chapter 7 sale begins (Rev. & Tax. Code §3707); or

2) When an agreement of sale with a taxing agency, a revenue district, or a nonprofit organization becomes effective (Rev. & Tax. Code §3803). The effective date is no sooner than 5:01 pm on the 21st day after the first publication of the notice of agreement (Rev. & Tax. Code §3802).

NOTE: Notwithstanding any other provision of law, any remittance sent by mail for redemption of tax-defaulted property must be received in the tax collector's office prior to the close of business on the last business day before the sale (Rev. & Tax. Code §§3706, 3707(b)). The right of redemption revives if the property is not sold (Rev. & Tax. Code §3707(d)).