Installment Payment Plan Information
| Q. |
If I cannot pay the full redemption amount, may I pay one delinquent year separately from other years?
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| A. |
No, one year’s delinquent taxes may not be redeemed separately
from other years’ delinquent taxes. When the redemption amount is calculated, the
total taxes owed for all delinquent years are combined.
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| Q. |
What other payment option is available to me? |
| A. |
If you are unable to pay the full redemption amount (i.e., unpaid
taxes for all delinquent years plus penalties, costs and other charges), you may open 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.
It is important to note that if your prior year tax bill includes
special assessments for the repayment of debt service obligations under the
Improvement
Bond Act of 1915 of the Streets and Highways code, and/or special taxes for payment of
debt service on bonds issued pursuant to
Mello-Roos Community Facilities Act of
1982 (CFD’s), the installment payment account will not prevent or delay
foreclosure action on behalf of the bondholder pursuant to Section 53356.1 (a) of the
Government Code.
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| Q. |
How do I open an installment plan of redemption? |
| A. |
To open an installment payment plan, you must:
1. Make an initial payment of at least 20% of the redemption amount.
2. Pay your current year’s taxes including any supplemental or escaped assessments
which may be due. You must pay any applicable penalties and cost which were added after
the delinquent dates.
3. Pay the start-up fee.
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| Q. |
When may I open an installment plan? |
| A. |
You can open an installment account after the date which the property has become tax defaulted
(June 30) and within five years of that date (at which time your property becomes subject to the power of sale).
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| Q. |
How often will I be required to make installment payments? |
| A. |
Under the installment plan you are required to make one payment each
year for five years, in addition to paying each year’s annual taxes. By each April 10
you must make one payment of 20% or more of the redemption amount, plus interest
(which accrues at the rate of 1-1/2 % per month on the unpaid balance once the account has
been opened), and pay an annual maintenance fee. 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, then your account will default. You can,
however, pay the total unpaid balance plus accrued interest any time before the fifth and
final payment is due.
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| Q. |
Do my installment payments cover my current annual taxes? |
| A. |
No. Your installment payments NEVER include your current year’s taxes, which must be paid separately.
|
| Q. |
If my first installment account defaults, may I open a second account? |
| A. |
If your first account 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 open another
account. However, the second account may not be opened until July 1 of the following
fiscal year. You many NEVER reopen an installment account in the fiscal year that property
becomes subject to the power of sale.
Each time you open an account, you have five years to pay the full redemption
amount. However, it is to your advantage not to default on an installment
account, since there is an additional penalty. When a subsequent installment
account is opened, the redemption amount is re-computed as though no previous
payments had been paid. This means you will be charged the 1½% monthly penalty on the original unpaid taxes as
though no Installment Plan had been started. You will be given credit for any previous
payments against the re-computed redemption amount. You must pay the start-up fee
each time you open an Installment Plan.
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| Q. |
What is the advantage of paying my prior year delinquent taxes on the Installment Payment Plan? |
| A. |
As long as the Installment Payment Plan is in good standing, you will have five years to pay the delinquency without worry that the property will
become subject to the Tax Collector’s Power to Sell and you will lose the property at
public auction.
However, as discussed previously, if your tax bill includes special
assessments for the repayment of debt service obligations under the
Improvement
Bond Act of 1915 of the Streets and Highways code, and/or special taxes for
payment of debt service on bonds issued pursuant to
Mello-Roos Community Facilities Act of
1982 (CFD’s), the installment payment account will not prevent or delay
foreclosure action on behalf of the bondholder pursuant to Section 53356.1 (a) of the
Government Code.
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| Q. |
Are there fees involved in the Installment Payment Plan? |
| A. |
There is an initial set-up fee and an annual maintenance fee. No. 654.7,
effective July 9, 2002, Ordinance allows the Treasurer-Tax Collector to collect an
Installment Payment Plan start-up fee and an annual maintenance fee. Please click here
for the
current fee schedule.
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Click here for the Application and Agreement for
Installment Payment Plan.
Back to Property Tax Information
Last modified on 6/23/2011 7:34 AM.
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