CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 863Introduced by Committee on Revenue and Taxation (Senators McNerney (Chair), Ashby, Grayson, Umberg, and Valladares)March 19, 2025 An act to amend Sections 2512 and 3706 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 863, as introduced, Committee on Revenue and Taxation. Real property taxation: tax administration.(1) Existing property tax law specifies the date on which a remittance to a taxing agency is deemed to be received depending on the method of delivery, as provided, including for items mailed with an official postmark.This bill would provide that if the remittance deposited in the United States mail does not contain an official postmark, the remittance shall be credited against any amount due as of the date the remittance is received.(2) Existing property tax law authorizes a tax collector to sell property that has become tax defaulted, as provided, and has not been redeemed. Existing law requires the tax collector to sell the property at a public auction to the highest bidder and prohibits the tax collector from accepting an offer less than the minimum price approved, as provided, except that the tax collector may reduce the minimum price if there has been a partial redemption or partial cancellation, as specified.This bill would also authorize a tax collector to reduce the minimum price where the minimum necessary to redeem is decreased due to the removal or reduction of defaulted taxes resulting from the removal or reduction of a special assessment or a direct charge against the property.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 2512 of the Revenue and Taxation Code is amended to read:2512. (a) If a remittance to cover a payment required by law to be made to a taxing agency prior to a specified date and hour is (a) deposited in the United States mail in a sealed envelope, properly addressed with the required postage prepaid, or (b) deposited for shipment with an independent delivery service that is an Internal Revenue Service designated delivery service or has been approved by the tax collector, in a sealed envelope or package, properly addressed with the required fee prepaid, delivery of which shall not be later than 5 p.m. on the next business day after the effective delinquent date, the remittance shall be deemed received on the date shown by the post office cancellation mark stamped upon the envelope containing the remittance, or 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 remittance, or on the date it was mailed if proof satisfactory to the tax collector establishes that the mailing occurred on an earlier date. If remittance to cover a payment is deposited in the United States mail and does not contain an official postmark, the date of credit shall be the date received by the county treasurer-tax collector. The taxing agency is not required to accept a payment actually received in the mail if it is received more than 30 days after the date and time set by law for the payment.(b) If a remittance to cover a payment, required by law to be made to a taxing agency prior to a specified date and hour, is made by an electronic payment option, such as wire transfer, telephoned credit card, or electronic Internet internet means, the remittance shall be deemed received on the date the transaction was completed by the taxpayer, if the remittance was made on the taxing agencys authorized Internet Web site internet website or via the taxing agencys authorized telephone number. Proof of completion of the transaction in the form of a confirmation number or other convincing evidence shall be presented by the taxpayer to the satisfaction of the tax collector. This subdivision does not apply to payments by electronic fund transfer as provided in Sections 2503.1 and 2503.2.(c) This section does not, for purposes of applying subdivision (a) of Section 3707, apply to a remittance sent by mail, by independent delivery service, or by electronic payment option for the redemption of tax-defaulted property.SEC. 2. Section 3706 of the Revenue and Taxation Code is amended to read:3706. If the property is not redeemed before the close of business on the last business day prior to the date of the sale of the property, the tax collector shall sell the property at public auction to the highest bidder at the time and place fixed.In the case of a sale at public auction, no bid shall be accepted for a sum less than the minimum price approved in the resolution of the board of supervisors; provided, however, the tax collector may reduce such the minimum price when under any of the following circumstances:(a) If a partial redemption has been made under Chapter 2, 2 (commencing with Section 4131) of Part 7, 7 of Division 1 of this code, or when 1.(b) If a partial cancellation has been made under Chapter 4, 4 (commencing with Section 4985) of Part 9, 9 of Division 1 of this code, 1 after such that price was fixed, by not more than the ratio that the delinquency on the portion so redeemed or canceled bears to the delinquency upon the whole.(c) If the total amount necessary to redeem is decreased due to the removal or reduction of default taxes resulting from the removal or reduction of a special assessment or a direct charge against the property.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 863Introduced by Committee on Revenue and Taxation (Senators McNerney (Chair), Ashby, Grayson, Umberg, and Valladares)March 19, 2025 An act to amend Sections 2512 and 3706 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 863, as introduced, Committee on Revenue and Taxation. Real property taxation: tax administration.(1) Existing property tax law specifies the date on which a remittance to a taxing agency is deemed to be received depending on the method of delivery, as provided, including for items mailed with an official postmark.This bill would provide that if the remittance deposited in the United States mail does not contain an official postmark, the remittance shall be credited against any amount due as of the date the remittance is received.(2) Existing property tax law authorizes a tax collector to sell property that has become tax defaulted, as provided, and has not been redeemed. Existing law requires the tax collector to sell the property at a public auction to the highest bidder and prohibits the tax collector from accepting an offer less than the minimum price approved, as provided, except that the tax collector may reduce the minimum price if there has been a partial redemption or partial cancellation, as specified.This bill would also authorize a tax collector to reduce the minimum price where the minimum necessary to redeem is decreased due to the removal or reduction of defaulted taxes resulting from the removal or reduction of a special assessment or a direct charge against the property.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 863
Introduced by Committee on Revenue and Taxation (Senators McNerney (Chair), Ashby, Grayson, Umberg, and Valladares)March 19, 2025
Introduced by Committee on Revenue and Taxation (Senators McNerney (Chair), Ashby, Grayson, Umberg, and Valladares)
March 19, 2025
An act to amend Sections 2512 and 3706 of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 863, as introduced, Committee on Revenue and Taxation. Real property taxation: tax administration.
(1) Existing property tax law specifies the date on which a remittance to a taxing agency is deemed to be received depending on the method of delivery, as provided, including for items mailed with an official postmark.This bill would provide that if the remittance deposited in the United States mail does not contain an official postmark, the remittance shall be credited against any amount due as of the date the remittance is received.(2) Existing property tax law authorizes a tax collector to sell property that has become tax defaulted, as provided, and has not been redeemed. Existing law requires the tax collector to sell the property at a public auction to the highest bidder and prohibits the tax collector from accepting an offer less than the minimum price approved, as provided, except that the tax collector may reduce the minimum price if there has been a partial redemption or partial cancellation, as specified.This bill would also authorize a tax collector to reduce the minimum price where the minimum necessary to redeem is decreased due to the removal or reduction of defaulted taxes resulting from the removal or reduction of a special assessment or a direct charge against the property.
(1) Existing property tax law specifies the date on which a remittance to a taxing agency is deemed to be received depending on the method of delivery, as provided, including for items mailed with an official postmark.
This bill would provide that if the remittance deposited in the United States mail does not contain an official postmark, the remittance shall be credited against any amount due as of the date the remittance is received.
(2) Existing property tax law authorizes a tax collector to sell property that has become tax defaulted, as provided, and has not been redeemed. Existing law requires the tax collector to sell the property at a public auction to the highest bidder and prohibits the tax collector from accepting an offer less than the minimum price approved, as provided, except that the tax collector may reduce the minimum price if there has been a partial redemption or partial cancellation, as specified.
This bill would also authorize a tax collector to reduce the minimum price where the minimum necessary to redeem is decreased due to the removal or reduction of defaulted taxes resulting from the removal or reduction of a special assessment or a direct charge against the property.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 2512 of the Revenue and Taxation Code is amended to read:2512. (a) If a remittance to cover a payment required by law to be made to a taxing agency prior to a specified date and hour is (a) deposited in the United States mail in a sealed envelope, properly addressed with the required postage prepaid, or (b) deposited for shipment with an independent delivery service that is an Internal Revenue Service designated delivery service or has been approved by the tax collector, in a sealed envelope or package, properly addressed with the required fee prepaid, delivery of which shall not be later than 5 p.m. on the next business day after the effective delinquent date, the remittance shall be deemed received on the date shown by the post office cancellation mark stamped upon the envelope containing the remittance, or 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 remittance, or on the date it was mailed if proof satisfactory to the tax collector establishes that the mailing occurred on an earlier date. If remittance to cover a payment is deposited in the United States mail and does not contain an official postmark, the date of credit shall be the date received by the county treasurer-tax collector. The taxing agency is not required to accept a payment actually received in the mail if it is received more than 30 days after the date and time set by law for the payment.(b) If a remittance to cover a payment, required by law to be made to a taxing agency prior to a specified date and hour, is made by an electronic payment option, such as wire transfer, telephoned credit card, or electronic Internet internet means, the remittance shall be deemed received on the date the transaction was completed by the taxpayer, if the remittance was made on the taxing agencys authorized Internet Web site internet website or via the taxing agencys authorized telephone number. Proof of completion of the transaction in the form of a confirmation number or other convincing evidence shall be presented by the taxpayer to the satisfaction of the tax collector. This subdivision does not apply to payments by electronic fund transfer as provided in Sections 2503.1 and 2503.2.(c) This section does not, for purposes of applying subdivision (a) of Section 3707, apply to a remittance sent by mail, by independent delivery service, or by electronic payment option for the redemption of tax-defaulted property.SEC. 2. Section 3706 of the Revenue and Taxation Code is amended to read:3706. If the property is not redeemed before the close of business on the last business day prior to the date of the sale of the property, the tax collector shall sell the property at public auction to the highest bidder at the time and place fixed.In the case of a sale at public auction, no bid shall be accepted for a sum less than the minimum price approved in the resolution of the board of supervisors; provided, however, the tax collector may reduce such the minimum price when under any of the following circumstances:(a) If a partial redemption has been made under Chapter 2, 2 (commencing with Section 4131) of Part 7, 7 of Division 1 of this code, or when 1.(b) If a partial cancellation has been made under Chapter 4, 4 (commencing with Section 4985) of Part 9, 9 of Division 1 of this code, 1 after such that price was fixed, by not more than the ratio that the delinquency on the portion so redeemed or canceled bears to the delinquency upon the whole.(c) If the total amount necessary to redeem is decreased due to the removal or reduction of default taxes resulting from the removal or reduction of a special assessment or a direct charge against the property.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 2512 of the Revenue and Taxation Code is amended to read:2512. (a) If a remittance to cover a payment required by law to be made to a taxing agency prior to a specified date and hour is (a) deposited in the United States mail in a sealed envelope, properly addressed with the required postage prepaid, or (b) deposited for shipment with an independent delivery service that is an Internal Revenue Service designated delivery service or has been approved by the tax collector, in a sealed envelope or package, properly addressed with the required fee prepaid, delivery of which shall not be later than 5 p.m. on the next business day after the effective delinquent date, the remittance shall be deemed received on the date shown by the post office cancellation mark stamped upon the envelope containing the remittance, or 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 remittance, or on the date it was mailed if proof satisfactory to the tax collector establishes that the mailing occurred on an earlier date. If remittance to cover a payment is deposited in the United States mail and does not contain an official postmark, the date of credit shall be the date received by the county treasurer-tax collector. The taxing agency is not required to accept a payment actually received in the mail if it is received more than 30 days after the date and time set by law for the payment.(b) If a remittance to cover a payment, required by law to be made to a taxing agency prior to a specified date and hour, is made by an electronic payment option, such as wire transfer, telephoned credit card, or electronic Internet internet means, the remittance shall be deemed received on the date the transaction was completed by the taxpayer, if the remittance was made on the taxing agencys authorized Internet Web site internet website or via the taxing agencys authorized telephone number. Proof of completion of the transaction in the form of a confirmation number or other convincing evidence shall be presented by the taxpayer to the satisfaction of the tax collector. This subdivision does not apply to payments by electronic fund transfer as provided in Sections 2503.1 and 2503.2.(c) This section does not, for purposes of applying subdivision (a) of Section 3707, apply to a remittance sent by mail, by independent delivery service, or by electronic payment option for the redemption of tax-defaulted property.
SECTION 1. Section 2512 of the Revenue and Taxation Code is amended to read:
### SECTION 1.
2512. (a) If a remittance to cover a payment required by law to be made to a taxing agency prior to a specified date and hour is (a) deposited in the United States mail in a sealed envelope, properly addressed with the required postage prepaid, or (b) deposited for shipment with an independent delivery service that is an Internal Revenue Service designated delivery service or has been approved by the tax collector, in a sealed envelope or package, properly addressed with the required fee prepaid, delivery of which shall not be later than 5 p.m. on the next business day after the effective delinquent date, the remittance shall be deemed received on the date shown by the post office cancellation mark stamped upon the envelope containing the remittance, or 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 remittance, or on the date it was mailed if proof satisfactory to the tax collector establishes that the mailing occurred on an earlier date. If remittance to cover a payment is deposited in the United States mail and does not contain an official postmark, the date of credit shall be the date received by the county treasurer-tax collector. The taxing agency is not required to accept a payment actually received in the mail if it is received more than 30 days after the date and time set by law for the payment.(b) If a remittance to cover a payment, required by law to be made to a taxing agency prior to a specified date and hour, is made by an electronic payment option, such as wire transfer, telephoned credit card, or electronic Internet internet means, the remittance shall be deemed received on the date the transaction was completed by the taxpayer, if the remittance was made on the taxing agencys authorized Internet Web site internet website or via the taxing agencys authorized telephone number. Proof of completion of the transaction in the form of a confirmation number or other convincing evidence shall be presented by the taxpayer to the satisfaction of the tax collector. This subdivision does not apply to payments by electronic fund transfer as provided in Sections 2503.1 and 2503.2.(c) This section does not, for purposes of applying subdivision (a) of Section 3707, apply to a remittance sent by mail, by independent delivery service, or by electronic payment option for the redemption of tax-defaulted property.
2512. (a) If a remittance to cover a payment required by law to be made to a taxing agency prior to a specified date and hour is (a) deposited in the United States mail in a sealed envelope, properly addressed with the required postage prepaid, or (b) deposited for shipment with an independent delivery service that is an Internal Revenue Service designated delivery service or has been approved by the tax collector, in a sealed envelope or package, properly addressed with the required fee prepaid, delivery of which shall not be later than 5 p.m. on the next business day after the effective delinquent date, the remittance shall be deemed received on the date shown by the post office cancellation mark stamped upon the envelope containing the remittance, or 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 remittance, or on the date it was mailed if proof satisfactory to the tax collector establishes that the mailing occurred on an earlier date. If remittance to cover a payment is deposited in the United States mail and does not contain an official postmark, the date of credit shall be the date received by the county treasurer-tax collector. The taxing agency is not required to accept a payment actually received in the mail if it is received more than 30 days after the date and time set by law for the payment.(b) If a remittance to cover a payment, required by law to be made to a taxing agency prior to a specified date and hour, is made by an electronic payment option, such as wire transfer, telephoned credit card, or electronic Internet internet means, the remittance shall be deemed received on the date the transaction was completed by the taxpayer, if the remittance was made on the taxing agencys authorized Internet Web site internet website or via the taxing agencys authorized telephone number. Proof of completion of the transaction in the form of a confirmation number or other convincing evidence shall be presented by the taxpayer to the satisfaction of the tax collector. This subdivision does not apply to payments by electronic fund transfer as provided in Sections 2503.1 and 2503.2.(c) This section does not, for purposes of applying subdivision (a) of Section 3707, apply to a remittance sent by mail, by independent delivery service, or by electronic payment option for the redemption of tax-defaulted property.
2512. (a) If a remittance to cover a payment required by law to be made to a taxing agency prior to a specified date and hour is (a) deposited in the United States mail in a sealed envelope, properly addressed with the required postage prepaid, or (b) deposited for shipment with an independent delivery service that is an Internal Revenue Service designated delivery service or has been approved by the tax collector, in a sealed envelope or package, properly addressed with the required fee prepaid, delivery of which shall not be later than 5 p.m. on the next business day after the effective delinquent date, the remittance shall be deemed received on the date shown by the post office cancellation mark stamped upon the envelope containing the remittance, or 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 remittance, or on the date it was mailed if proof satisfactory to the tax collector establishes that the mailing occurred on an earlier date. If remittance to cover a payment is deposited in the United States mail and does not contain an official postmark, the date of credit shall be the date received by the county treasurer-tax collector. The taxing agency is not required to accept a payment actually received in the mail if it is received more than 30 days after the date and time set by law for the payment.(b) If a remittance to cover a payment, required by law to be made to a taxing agency prior to a specified date and hour, is made by an electronic payment option, such as wire transfer, telephoned credit card, or electronic Internet internet means, the remittance shall be deemed received on the date the transaction was completed by the taxpayer, if the remittance was made on the taxing agencys authorized Internet Web site internet website or via the taxing agencys authorized telephone number. Proof of completion of the transaction in the form of a confirmation number or other convincing evidence shall be presented by the taxpayer to the satisfaction of the tax collector. This subdivision does not apply to payments by electronic fund transfer as provided in Sections 2503.1 and 2503.2.(c) This section does not, for purposes of applying subdivision (a) of Section 3707, apply to a remittance sent by mail, by independent delivery service, or by electronic payment option for the redemption of tax-defaulted property.
2512. (a) If a remittance to cover a payment required by law to be made to a taxing agency prior to a specified date and hour is (a) deposited in the United States mail in a sealed envelope, properly addressed with the required postage prepaid, or (b) deposited for shipment with an independent delivery service that is an Internal Revenue Service designated delivery service or has been approved by the tax collector, in a sealed envelope or package, properly addressed with the required fee prepaid, delivery of which shall not be later than 5 p.m. on the next business day after the effective delinquent date, the remittance shall be deemed received on the date shown by the post office cancellation mark stamped upon the envelope containing the remittance, or 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 remittance, or on the date it was mailed if proof satisfactory to the tax collector establishes that the mailing occurred on an earlier date. If remittance to cover a payment is deposited in the United States mail and does not contain an official postmark, the date of credit shall be the date received by the county treasurer-tax collector. The taxing agency is not required to accept a payment actually received in the mail if it is received more than 30 days after the date and time set by law for the payment.
(b) If a remittance to cover a payment, required by law to be made to a taxing agency prior to a specified date and hour, is made by an electronic payment option, such as wire transfer, telephoned credit card, or electronic Internet internet means, the remittance shall be deemed received on the date the transaction was completed by the taxpayer, if the remittance was made on the taxing agencys authorized Internet Web site internet website or via the taxing agencys authorized telephone number. Proof of completion of the transaction in the form of a confirmation number or other convincing evidence shall be presented by the taxpayer to the satisfaction of the tax collector. This subdivision does not apply to payments by electronic fund transfer as provided in Sections 2503.1 and 2503.2.
(c) This section does not, for purposes of applying subdivision (a) of Section 3707, apply to a remittance sent by mail, by independent delivery service, or by electronic payment option for the redemption of tax-defaulted property.
SEC. 2. Section 3706 of the Revenue and Taxation Code is amended to read:3706. If the property is not redeemed before the close of business on the last business day prior to the date of the sale of the property, the tax collector shall sell the property at public auction to the highest bidder at the time and place fixed.In the case of a sale at public auction, no bid shall be accepted for a sum less than the minimum price approved in the resolution of the board of supervisors; provided, however, the tax collector may reduce such the minimum price when under any of the following circumstances:(a) If a partial redemption has been made under Chapter 2, 2 (commencing with Section 4131) of Part 7, 7 of Division 1 of this code, or when 1.(b) If a partial cancellation has been made under Chapter 4, 4 (commencing with Section 4985) of Part 9, 9 of Division 1 of this code, 1 after such that price was fixed, by not more than the ratio that the delinquency on the portion so redeemed or canceled bears to the delinquency upon the whole.(c) If the total amount necessary to redeem is decreased due to the removal or reduction of default taxes resulting from the removal or reduction of a special assessment or a direct charge against the property.
SEC. 2. Section 3706 of the Revenue and Taxation Code is amended to read:
### SEC. 2.
3706. If the property is not redeemed before the close of business on the last business day prior to the date of the sale of the property, the tax collector shall sell the property at public auction to the highest bidder at the time and place fixed.In the case of a sale at public auction, no bid shall be accepted for a sum less than the minimum price approved in the resolution of the board of supervisors; provided, however, the tax collector may reduce such the minimum price when under any of the following circumstances:(a) If a partial redemption has been made under Chapter 2, 2 (commencing with Section 4131) of Part 7, 7 of Division 1 of this code, or when 1.(b) If a partial cancellation has been made under Chapter 4, 4 (commencing with Section 4985) of Part 9, 9 of Division 1 of this code, 1 after such that price was fixed, by not more than the ratio that the delinquency on the portion so redeemed or canceled bears to the delinquency upon the whole.(c) If the total amount necessary to redeem is decreased due to the removal or reduction of default taxes resulting from the removal or reduction of a special assessment or a direct charge against the property.
3706. If the property is not redeemed before the close of business on the last business day prior to the date of the sale of the property, the tax collector shall sell the property at public auction to the highest bidder at the time and place fixed.In the case of a sale at public auction, no bid shall be accepted for a sum less than the minimum price approved in the resolution of the board of supervisors; provided, however, the tax collector may reduce such the minimum price when under any of the following circumstances:(a) If a partial redemption has been made under Chapter 2, 2 (commencing with Section 4131) of Part 7, 7 of Division 1 of this code, or when 1.(b) If a partial cancellation has been made under Chapter 4, 4 (commencing with Section 4985) of Part 9, 9 of Division 1 of this code, 1 after such that price was fixed, by not more than the ratio that the delinquency on the portion so redeemed or canceled bears to the delinquency upon the whole.(c) If the total amount necessary to redeem is decreased due to the removal or reduction of default taxes resulting from the removal or reduction of a special assessment or a direct charge against the property.
3706. If the property is not redeemed before the close of business on the last business day prior to the date of the sale of the property, the tax collector shall sell the property at public auction to the highest bidder at the time and place fixed.In the case of a sale at public auction, no bid shall be accepted for a sum less than the minimum price approved in the resolution of the board of supervisors; provided, however, the tax collector may reduce such the minimum price when under any of the following circumstances:(a) If a partial redemption has been made under Chapter 2, 2 (commencing with Section 4131) of Part 7, 7 of Division 1 of this code, or when 1.(b) If a partial cancellation has been made under Chapter 4, 4 (commencing with Section 4985) of Part 9, 9 of Division 1 of this code, 1 after such that price was fixed, by not more than the ratio that the delinquency on the portion so redeemed or canceled bears to the delinquency upon the whole.(c) If the total amount necessary to redeem is decreased due to the removal or reduction of default taxes resulting from the removal or reduction of a special assessment or a direct charge against the property.
3706. If the property is not redeemed before the close of business on the last business day prior to the date of the sale of the property, the tax collector shall sell the property at public auction to the highest bidder at the time and place fixed.
In the case of a sale at public auction, no bid shall be accepted for a sum less than the minimum price approved in the resolution of the board of supervisors; provided, however, the tax collector may reduce such the minimum price when under any of the following circumstances:
(a) If a partial redemption has been made under Chapter 2, 2 (commencing with Section 4131) of Part 7, 7 of Division 1 of this code, or when 1.
(b) If a partial cancellation has been made under Chapter 4, 4 (commencing with Section 4985) of Part 9, 9 of Division 1 of this code, 1 after such that price was fixed, by not more than the ratio that the delinquency on the portion so redeemed or canceled bears to the delinquency upon the whole.
(c) If the total amount necessary to redeem is decreased due to the removal or reduction of default taxes resulting from the removal or reduction of a special assessment or a direct charge against the property.