Home Publications Guides, Manuals, and Reference Materials County Tax Collectors' Reference Manual (2012) Chapter 6000 Tax-Defaulted Property 6000 General Overview: General Information

6000 General Overview: General Information

6000. PURPOSE AND EFFECT
Annually, at 12:01 a.m. on July 1, the taxes, assessments, penalties, and costs on real property (except property that is currently in tax-default or is a possessory interest) that have not been paid shall be, by operation of law, declared in default (Rev. & Tax. Code §3436). The property on which the taxes, assessments, penalties, and costs are in default becomes "tax-defaulted" property (Rev. & Tax. Code §126). The declaration starts a five-year period leading to the property becoming subject to the tax collector's power to sell; in the case of nonresidential commercial property, the period is three years.

NOTE: The county may pass an ordinance or resolution to opt out of the three-year power to sell provisions.

During this period and beyond, and until the property is sold by public auction, sealed bid, or a Chapter 8 Agreement Sale, the right of redemption continues. Title to the property remains vested in the owner. However, by reason of the declaration, the county acquires an enforceable right to restrain activities perceived as injurious to the property's value and, hence, to the security of its tax lien.

NOTE: If the notice required by Revenue and Taxation Code section 3351 is not published, or if the first publication is not published by the statutory deadline of June 8, then all of the property that would have become tax-defaulted by operation of law will continue to be tax-delinquent until the next July 1 at 12:01 a.m., at which time they will become tax-defaulted, provided that the publication requirements are met.