What will happen if I fail to pay my property taxes on time?
If you do not pay the first installment of your tax bill at the Auditor-Controller/ Treasurer-Tax Collector’s Office by 5 p.m. on December 10, or payment is not postmark cancelled by that date, that installment becomes delinquent and a 10% delinquent penalty is assessed. If you fail to pay the second installment at Auditor-Controller/Treasurer-Tax Collector’s Office by 5 p.m. on April 10, or payment is not postmark cancelled by that date, it becomes delinquent and a 10% penalty on the unpaid tax as well as a charge of $10.00 is added. If you fail to pay any supplemental tax installment by the applicable date, the same penalties and charges accrue as for delinquent annual taxes.
If there are ANY unpaid taxes as of 5 p.m. on June 30, the property becomes tax defaulted ( if June 30 falls on a weekend or holiday, taxes must be paid by 5 p.m. of the preceding business day or the property tax will become tax-defaulted at 5:01 p.m.). Once the property has become tax defaulted, a redemption fee of $15.00 and additional penalties begin to accrue at the rate of 1½% per month of the unpaid taxes. This monthly penalty is affixed at 5 p.m. on the last day of each month (or the following business day if the last day of the month falls on the weekend or holiday).
What happens if I fail to pay my delinquent taxes?
Your taxes can remain unpaid for a maximum five years following tax default, at which time your property becomes subject to the Tax Collector’s power of sale. This means that your property will be offered for sale at a public auction or that it may be acquired by a public agency if you do not pay the taxes on the last day before the date on which the property is offered for sale or acquisition.
* If either December 10 to April 10 falls on weekend or holiday, taxes are not delinquent until next business day.
What is the amount required to redeem tax-defaulted property?
The amount needed to redeem tax-defaulted property in full is the sum of the following:
- The total amount of unpaid taxes for all delinquent years
- A 10% penalty on every unpaid installment
- A $10.00 charge for each second installment delinquency
- Monthly penalties of 1½% of the unpaid tax.
- A redemption fee of $15.00
- Plus additional fees and cost if property has become Tax Collector’s Power to Sale.
Can I redeem one delinquent year separately from other years?
No. One year’s delinquent taxes may not be redeemed separately from other year’s delinquent taxes. When the redemption amount is calculated, the total taxes owed for all delinquent years are combined together.
What happens if I cannot pay the full redemption amount?
If you are unable to pay the full redemption amount, you may request an installment plan of redemption. This plan allows you to make payments on your delinquent taxes over a five-year period beginning the date you open the installment account.
How do I start an installment plan of redemption?
To start an installment plan you must:
- Make an initial payment of at least 20% of the redemption amount;
- Pay a $95.00 installment setup fee; and
- Pay your current year’s taxes.
If you open an installment plan of redemption between July 1 and the following April 10, the current year’s taxes and any supplemental taxes must be paid by April 10 or the account will default. To open an installment plan of redemption between April 11 and June 30, the current year’s taxes, plus any applicable penalties and charges, must first be paid in full. While an installment plan of redemption is in good standing (all required payments are made), the property may not become subject to the Tax Collector’s power of sale.
When may I open an installment plan account?
You can open an installment plan of redemption after the date on which the property has become tax defaulted (June 30) and within five years of that date. After the five-year period you may not start an installment plan of redemption, as your property will be subject to the Tax Collector’s power of sale.
If you wish to start an installment plan of redemption or you need additional information please contact the Tax Collection Division of the Auditor-Controller/Treasurer-Tax Collector’s office at (559) 600-3482.
How often will I be required to make installment payments?
Under the installment plan of redemption, you are required to make one payment each fiscal year for five years, in addition to payment of each year’s annual taxes as well as any supplemental tax in existence. By April 10 of each year, you must make one payment of 20% or more of the redemption amount, plus interest (which accrues at the rate of 1½% per month on the unpaid balance once the account has been opened). If you fail to make any installment payment or fail to pay your current year’s taxes or any supplemental taxes on or before April 10 of each year, your installment plan will default. This means the penalty will be recalculated as if no previous payments had been made on an installment plan of redemption.
You may, however, pay the total unpaid balance plus accrued interest any time before the fifth and final payment is due.
Do my installment payments cover my current annual taxes?
No. Your installment payments NEVER include your current year’s taxes, which must be paid separately by April 10th of each year.
If my first installment plan of redemption defaults, may I start a second installment plan?
If your first installment plan or redemption defaults either because of your failure to make at least one installment payment between July 1 and April 10, or because of your failure to pay your current year’s taxes in full by April 10, you may start, in most cases, another installment plan of redemption. Another installment plan however, may not be opened until July 1 of the following fiscal year. You may never reopen an installment plan of redemption in the same calendar year that the property becomes subject to the Tax Collector’s power of sale. A defaulted postponement plan may not be reinstated in or after the 5th year.
It is to your advantage not to default on an installment plan of redemption since there are additional penalties. When a second or subsequent installment plan is opened, the redemption amount is computed as though no previous payments had been made. As soon as the first payment on the second or subsequent account has been made you will be given credit for any previous payments.