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<ns0:Id>20250AB__270599INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Dixon</ns0:AuthorText>
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<ns0:Name>Dixon</ns0:Name>
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<ns0:Title> An act to amend Section 4675 of, and to add Section 4675.2 to, the Revenue and Taxation Code, relating to taxation. </ns0:Title>
<ns0:RelatingClause>taxation</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Property taxation: tax-defaulted property sales: excess proceeds claims.</ns0:Subject>
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<html:p>Under existing property tax law, if unpaid property taxes are declared delinquent and the taxes remain unpaid, the property is declared tax-defaulted and subject to sale, as provided, if not redeemed by the owner within a certain amount of time. Existing property tax law authorizes any party of interest in property that is sold as a tax-defaulted property to file a claim with the county for the excess proceeds, as described.</html:p>
<html:p> Existing law requires a person who acts on behalf of, or in place of, any party of interest with respect to filing a claim for any excess proceeds to submit proof with the claim of certain disclosures, including that the party of interest has been advised of their right to file a claim for the excess proceeds on their own behalf directly with the county at no cost.</html:p>
<html:p>This bill would
delete the above-described requirement and would, instead, authorize any party of interest to enter into an agreement with any person or entity to act on behalf of the party of interest with respect to filing a claim for any excess proceeds. The bill would condition the validity of an agreement entered as described above on certain conditions, including that the agreement clearly advises the party of interest of their right to file a claim for the excess proceeds on their own behalf directly with the county at no cost. The bill would limit the provision above to agreements entered into on or after January 1, 2027.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 4675 of the
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is amended to read:
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<ns0:Num>4675.</ns0:Num>
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(a)
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(1)
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Any party of interest in the property may file with the county a claim for the excess proceeds, in proportion to that person’s interest held with others of equal priority in the property at the time of sale, at any time prior to the expiration of one year following the recordation of the tax collector’s deed to the purchaser.
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<html:p>
(2)
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The claim shall be postmarked on or before the one-year expiration date to be considered timely. The claim shall be deposited in the United States mail in a sealed envelope, properly addressed with the required postage, or deposited for shipment, with an independent delivery service that is an Internal Revenue Service designated delivery service or that has been approved by the tax collector, in a sealed
envelope or package, properly addressed with the required fee prepaid. The claim shall be deemed received on the date shown by the post office cancellation mark stamped upon the envelope containing the claim, or on the independent delivery service shipment date shown on the packing slip or air bill attached to the outside of the envelope or package containing the claim. If a claim deposited in the United States mail does not contain an official postmark, the date of filing shall be the date received by the county treasurer-tax collector’s office.
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<html:p>
(b)
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After the property has been sold, a party of interest in the property at the time of the sale may assign their right to claim the excess proceeds only by a dated, written instrument that explicitly states that the right to claim the excess proceeds is being assigned, and only after each party to the proposed assignment has disclosed to each other party to the proposed assignment all facts of which
that party is aware relating to the value of the right that is being assigned. Any attempted assignment that does not comply with these requirements shall have no effect. This subdivision applies only with respect to assignments on or after the effective date of this subdivision.
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<html:p>
(c)
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Any party of interest may enter into an agreement with any person or entity to act on behalf of the party of interest with respect to filing a claim for any excess proceeds. The agreement shall be subject to the provisions of Section 4675.2.
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<html:p>
(d)
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The claims shall contain any information and proof deemed necessary by the board of supervisors to establish the claimant’s rights to all or any portion of the excess proceeds.
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<html:p>
(e)
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(1)
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Except as provided in paragraph (2), no sooner than one year following the recordation of the tax collector’s deed to the purchaser, and if the excess proceeds have been claimed by any party of interest as provided herein, the excess proceeds shall be distributed on order of the board of supervisors to the parties of interest who have claimed the excess proceeds in the order of priority set
forth in subdivisions (a) and (b). For the purposes of this article, parties of interest and their order of priority are:
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<html:p>
(A)
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First, lienholders of record prior to the recordation of the tax deed to the purchaser in the order of their priority.
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(B)
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Second, any person with title of record to all or any portion of the property prior to the recordation of the tax deed to the purchaser.
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(2)
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(A)
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Notwithstanding paragraph (1), if the board of supervisors has been petitioned to rescind the tax sale pursuant to Section 3731, any excess proceeds shall not be distributed to the parties of interest as provided by paragraph (1) sooner than one year following the date the board of supervisors determines the tax sale should not be rescinded, and only if the person who petitioned the board of supervisors
pursuant to Section 3731 has not commenced a proceeding in court pursuant to Section 3725.
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(B)
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If a proceeding has been commenced in a court pursuant to Section 3725, any excess proceeds shall not be distributed to the parties of interest as provided by paragraph (1) until a final court order is issued.
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(f)
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In the event that a person with title of record is deceased at the time of the distribution of the excess proceeds, the heirs may submit an affidavit pursuant to Chapter 3 (commencing with Section 13100) of Part 1 of Division 8 of the Probate Code, to support their claim for excess proceeds.
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(g)
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Any action or proceeding to review the decision of the board of supervisors, or the county officer to whom the board delegated authority pursuant to Section 4675.1, to accept or deny the claim shall be commenced within 90
days after the date of that decision of the board of supervisors or the county officer.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 4675.2 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:Num>4675.2.</ns0:Num>
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(a)
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An agreement to locate, deliver, or recover excess proceeds, or assist in the filing of an excess proceeds claim, pursuant to subdivision (c) of Section 4675 is valid only if it meets all of the following conditions:
</html:p>
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(1)
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The agreement is in writing and includes a disclosure of all of the following:
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(A)
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The assessor’s parcel number and situs, if available, of the property the sale of which generated the excess proceeds.
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(B)
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That the excess proceeds are currently in the county’s delinquent tax sale trust fund.
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(C)
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The phone number and address which the
party of interest may use to file the claim for excess proceeds.
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(2)
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The agreement is signed by the party of interest after receipt of the disclosure described in paragraph (1).
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(3)
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The agreement clearly advises the party of interest of their right to file a claim for the excess proceeds on their own behalf directly with the county at no cost.
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<html:p>
(4)
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The agreement does not require the party of interest to pay a fee or other compensation prior to approval of the claim and payment of the excess proceeds to the party of interest.
</html:p>
<html:p>
(5)
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The agreed-upon fee or compensation to be paid by the party of interest is not in excess of 10 percent of the amount of excess proceeds awarded to the party of interest.
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<html:p>
(b)
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This section shall not be construed to prevent an owner from asserting, at any time, that an agreement to file a claim for excess proceeds is based upon an excessive or unjust consideration.
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(c)
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This section shall apply only to an agreement entered into on or after January 1, 2027.
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