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SB-964 Property tax: tax-defaulted property sales.(2023-2024)

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Date Published: 04/25/2024 09:00 PM
SB964:v96#DOCUMENT

Amended  IN  Senate  April 25, 2024
Amended  IN  Senate  April 16, 2024
Amended  IN  Senate  March 05, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 964


Introduced by Senator Seyarto

January 23, 2024


An act to add Section 3777 to the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


SB 964, as amended, Seyarto. Property tax: tax-defaulted property sales.
Existing law generally authorizes a county tax collector to sell tax-defaulted property 5 years or more, or 3 years or more, as applicable, after that property has become tax defaulted, to any person, regardless of any prior or existing lien on, claim to, or interest in, the property, as specified. Existing law also generally authorizes the sale to certain entities of a property that has been tax defaulted for 5 years or more, or 3 years or more, as applicable, in an applicable county, including by authorizing the state, county, any revenue district the taxes of which on the property are collected by county officers, or a redevelopment agency created pursuant to the California Community Redevelopment Law, to purchase the property or any part thereof, as prescribed. Existing law also authorizes a nonprofit organization to purchase, with the approval of the board of supervisors of the county in which it is located, a residential or vacant property that has been tax-defaulted tax defaulted for 5 years or more, or 3 years or more if the property is subject to a nuisance abatement lien, as prescribed. Existing law requires the sales price of a property sold pursuant to the provisions described or referenced above to include certain amounts, including all defaulted taxes and assessments and all associated penalties and costs.
This bill would prohibit authorize a property or property interest from being to be offered for sale under the provisions described above authorizing a sale to certain entities if that property or property interest that has not been offered for sale under the provisions described above authorizing a sale to any person unless if the State Board of Equalization conducts a property valuation that shows that the property or property interest is worth less than the amount of the defaulted debt, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 3777 is added to the Revenue and Taxation Code, immediately following Section 3776, to read:

3777.
 (a) Property or a property interest shall not may be offered for sale under the provisions of this chapter if that property or property interest that has not been offered for sale under the provisions of Chapter 7 (commencing with Section 3691) unless if the State Board of Equalization conducts a property valuation that shows that the property or property interest is worth less than the amount of the defaulted debt.
(b) (1) A taxing authority intending to offer to sell property or a property interest under the provisions of this chapter in compliance with subdivision (a) shall notify the State Board of Equalization of that intent.
(2) Within 45 days of receiving a notification pursuant to paragraph (1), the State Board of Equalization shall provide the taxing authority with a valuation of the property or property interest.
(c) When considering whether to approve a sale of property or a property interest offered for sale under the provisions of this chapter without being offered for sale under the provisions of Chapter 7 (commencing with Section 3691), the Controller shall determine whether the State Board of Equalization property valuation shows that the property or property interest is worth less than the amount of the defaulted debt.