Home Publications Guides, Manuals, and Reference Materials County Tax Collectors' Reference Manual (2012) Chapter 8000 Sale of Tax-Defaulted Property 8260-8262 Sealed Bid: Post-Notification of Sale Circumstances,

8260-8262 Sealed Bid: Post-Notification of Sale Circumstances,

8260. OBJECTION TO SALE BY TAXING AGENCY
If, before the date of sale, a taxing agency files with the tax collector an objection, the lien of the agency’s taxes or assessments or any rights it may have to the property are not affected by the sale. The property may be sold subject to the taxing agency's liens (Rev. & Tax. Code §3695). Please note the following.

1) A city may not object to a sale unless the objection is accompanied by an application to purchase the property at a price not less than the minimum bid. An option to purchase is not acceptable (Rev. & Tax. Code §3695).

2) A taxing agency may not file a blanket objection to proposed sales but must take action in relation to each sale (Attorney General Opinions 1-23-40, 4-9-40). 

3) An eligible nonprofit organization (see M-8345 for definition) may also file a written objection to the sale (Rev. & Tax. Code §3695.5). Certified copies of the organization’s resolution objecting to the sale may be required as a condition of the agreement, along with a certified copy of the organization’s articles of incorporation and its application to purchase the property under Chapter 8 at a price equal to that approved by the board of supervisors.

NOTE: See M-8131 and M-8132 regarding the withdrawal of property from sale upon objection by taxing agencies or nonprofit organizations.

8261. CONSENT TO SALE BY TAXING AGENCY
If the taxing agency does not file an objection to the sale before the date of the sale, its liens are cancelled by the sale and it is entitled to its proper share of the proceeds deposited in the delinquent tax sale trust fund (Rev. & Tax. Code §3695).

8262. IRS REDEMPTION RIGHTS
When a property on which the IRS holds a tax lien is sold by sealed bid, the United States has the right of redemption for 120 days from the date of such sale or for the period allowable for redemption under local law, whichever is longer (Rev. & Tax. Code §§3712(g), 7425(d); 26 USCS, Internal Revenue Code).

The amount to be paid by the IRS to the successful bidder is the actual amount paid for the property by the bidder, plus interest at six percent per annum from the date of sale, plus the expenses of sale that exceed any income received from the property (Treasury Regulation 26 CFR §301.7425-3) (7-8-2008).

NOTE: Addresses of the Internal Revenue Service can be found in the Appendix.