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6110-6118 Declaration Process: Ineligible Property

6110. GENERAL INFORMATION
The classes of property listed in M-6111 - M-6118 should not be tax-defaulted.

6111. GAS AND OIL LEASEHOLD ESTATES 
Leasehold estates for the production of gas, petroleum, and other hydrocarbon substances, although assessed on the secured roll, are not to be tax-defaulted for taxes or published in the delinquent list (Rev. & Tax. Code §107).

If the taxes remain unpaid at the time set for tax-default, the taxes and the accrued penalties and costs should be transferred to the current unsecured roll for collection (Rev. & Tax. Code §2189.5).

Written demands upon the lessee are often helpful in enforcing payment of a delinquent account.

Taxes on personal property and improvements located upon or appurtenant to leasehold estates may be secured by such leasehold estates (Rev. & Tax. Code §2189.5). If the taxes are not paid on the leasehold estate, it is subject to seizure and sale in the same manner as provided for the seizure and sale of unsecured property by Revenue and Taxation Code sections 2951-2962, inclusive (Rev. & Tax. Code §§107, 2189.5; Picchi v. Montgomery, 261 Cal. App. 2d 246).

Legal counsel's assistance should be requested if seizure and sale becomes necessary. Refer to M-2310 et seq. and M-9900 et seq. for restrictions imposed upon the sale of seized property.

NOTE: The assessment of "oil, gas, and mineral rights," also identified as "mineral rights," "OG&M," etc., are not to be confused with the assessment of leasehold estates. Mineral rights constitute an interest in the fee title of the property, are subject to assessment on the secured roll as real property, and may be tax-defaulted in the event of a delinquency.

6112. PERSONAL PROPERTY AND POSSESSORY INTERESTS
Personal property, separately owned improvements, and possessory interests are not to be separately tax-defaulted (Rev. & Tax. Code §§107, 3436; Picchi v. Montgomery, 261 Cal. App. 2d 246).

The taxes and penalties on personal property or improvements that are a lien on land on the secured roll are to be included in the amount due for the real estate upon which they are a lien (Rev. & Tax. Code §§2188, 2188.1, 2188.2, 2189, 2189.3). The taxes and penalties on possessory interests and on improvements assessed pursuant to Revenue and Taxation Code section 2188.2, which become a lien on land pursuant to Revenue and Taxation Code section 2190.2, are to be included in the amount due for the real estate upon which they are a lien.

Separately valued parcels contained within a single assessment, and against which taxes, penalties and costs are individually extended, cannot be combined into a single tax-default (Gottstein v. Kelly, 206 Cal. 742).

If tax-defaulted property and property that is not tax delinquent have been combined into one assessment and separate tax bills were not issued pursuant to Revenue and Taxation Code section 2612.5 (M-1140), the assessment must be segregated. The tax-defaulted portion is not subject to a second tax-default, as noted above.

6113. PROPERTY PREVIOUSLY TAX-DEFAULTED
Property already tax-defaulted may not be subsequently tax-defaulted (Rev. & Tax. Code §§3351, 3436), unless first redeemed (Rev. & Tax. Code §4101) or unless the tax-default is canceled or held void (Rev. & Tax. Code §3444).

6114. UNENFORCEABLE TAX LIEN
Property should not be tax-defaulted if collection of the delinquent tax cannot be enforced due to errors in description, assessment, equalization, levy, or other proceeding (Rev. & Tax. Code §3438).

See M-1521 for procedure. Also see M-6301.

6115. WATER SYSTEM IMPROVEMENTS
Improvements that constitute component parts of a water distribution system and that are not a lien on the land on which they are located should neither be tax-defaulted nor published in the delinquent list. If taxes remain unpaid when any installment of taxes has become delinquent on the secured roll, the tax collector may use the same collection procedure as for delinquent taxes on the unsecured roll.

Taxes remaining unpaid at the time set for such tax-default, together with penalties and costs accrued while on the secured roll, shall be transferred to the current unsecured roll (Rev. & Tax. Code §2189.6).

6116. TRANSFER OF ERRONEOUS PAYMENT
When a payment incorrectly credited to a particular property after a guaranty of title has been issued is corrected, the "unintended" property shall not be tax-defaulted. The accrued taxes, penalties and costs are transferred from the secured to the unsecured roll. The person who owned the "unintended" property just prior to the issuance of a guaranty or certificate of title becomes personally liable for the payment (Rev. & Tax. Code §4911.1).

6117. STREETS ASSESSED TO SUBDIVIDERS
Strips, lots, or parcels identified on either a filed or a recorded subdivision map, record of survey map, etc., as streets or roads dedicated to public use are tax-exempt if they are (Const., Art. XIII, §1):

1) Accepted by the board of supervisors, or

2) Accepted through prescription, i.e., long-continued public use.

An assessment of a public road can be canceled as illegal (Gaspard v. Edwin M. LeBaron, Inc. 107 Cal. App. 2d 356). Any such assessments discovered by the tax collector should be brought to the assessor's attention.

6118. NATIVE AMERICAN ALLOTMENTS (OR HOMESTEADS)
Pursuant to federal statutes of 1875, 1884, and 1887, the provisions of the Homestead Act of 1862 were made available to eligible Native Americans. Following issuance of a trust patent, the land was not subject to alienation, encumbrance, or taxation for certain restricted periods: 1875 - 5 years, 1884 - 25 years, and 1887 - 25 years (except for any presidential extensions granted). Upon expiration of the restrictive period, the Native American entryman was entitled to a fee patent, after which the land became subject to taxation.

Unless a Native American received a fee patent following termination of the restrictive period prescribed by the specific act in force when application was made, the property would not be subject to assessment. Any assessment made of trust patent land is subject to cancellation under Revenue and Taxation Code sections 4986(a)(2) and 4992.

By executive order, many trust patents have been extended indefinitely. The Department of the Interior, Bureau of Indian Affairs, may be contacted whenever a question of trust status exists.