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8000-8003 General Overview: General Information

8000. HISTORICAL BACKGROUND
The tax sale process, which is designed to satisfy delinquent property taxes through sale of tax-defaulted property, evolved between 1850 and 1895.

Between 1910 and 1984, tax-defaulted property was routinely conveyed to the State of California by a tax deed.  County tax collectors, acting on the State Controller's behalf, conducted sales of tax-deeded property.  Upon a sale's completion, a deed conveying title from the State to the purchaser was drawn by the tax collector and recorded.

Current practice allows the title to remain with the assessee or his/her successor in interest while the property is subject to the tax collector's power of sale.  The assessee's ownership terminates upon completion of the sale by the tax collector and payment of the purchase amount.

8001. REVENUE AND TAXATION PROVISIONS
Two chapters in Part 6 of Division 1 of the Revenue and Taxation Code provide for the sale of tax-defaulted property by the tax collector.  These chapters are commonly referred to as Chapter 7 and Chapter 8.  Chapter 7 encompasses sales by public auction or sealed bid.  Chapter 8 encompasses sales by agreement between public entities or eligible nonprofit corporations and the board of supervisors.

8002. OFFICERS AUTHORIZED TO SELL TAX-DEFAULTED PROPERTY
The tax collector has the authority to sell tax-defaulted property that is subject to the power of sale (Rev. & Tax. Code §3691). Written approval of the board of supervisors (Rev. & Tax. Code §3694) is required to sell property at public auction (Rev. & Tax. Code §3692) or by sealed bid (Rev. & Tax. Code §3692(d)) to the highest bidder at the time and place fixed for sale (Rev. & Tax. Code §3706).  Approval of the board of supervisors (Rev. & Tax. Code §§3791.4, 3794.3) and authorization by the State Controller is required to complete sales to public agencies or nonprofit organizations (Rev. & Tax. Code §3795).

8003. SALE SCHEDULING PROVISIONS
The tax collector is required to attempt to sell tax-defaulted property at either public auction or sealed bid sale within four years after the property becomes subject to sale, unless, by other provisions of law, the property is not subject to sale (Rev. & Tax. Code §3692(a)).

If no acceptable bids are received at the sale, the tax collector, with prior approval from the board of supervisors, may re-offer the parcel at the same sale or the next sale with a reduced minimum bid amount (Rev. & Tax. Code §3698.5(c)).

If it is the tax collector's intent to re-offer unsold parcels at another sale within 90 days of a previous sale, the Notice to the Board of Supervisors and the Notice of Intended Sale of Tax-Defaulted Property shall indicate that any parcel remaining unsold may be reoffered within a 90-day period and any new parties of interest shall be notified (Rev. & Tax. Code §3692(e)).

If no bids are received, an attempt must be made to sell the property at intervals of no more than six years, until it is sold (Rev. & Tax. Code §3692).