State Codes and Statutes

Statutes > California > Rtc > 4701-4717

REVENUE AND TAXATION CODE
SECTION 4701-4717



4701.  (a) The Legislature hereby finds and declares that it is the
purpose of this chapter to provide an alternative procedure for the
distribution of property tax levies on the secured roll made by
counties on their own behalf or as the tax-levying and tax-collecting
agency for other political subdivisions. The Legislature further
finds and declares that the object of this alternative procedure is
to simplify the tax-levying and tax-apportioning process and to
increase flexibility in the use of available cash resources.
   (b) For purposes of this chapter only, the term "secured roll" may
include the supplemental property tax roll as described in Chapter
3.5 (commencing with Section 75) of Part 0.5 of Division 1.




4702.  (a) The procedure authorized by this chapter may be placed in
effect in any county by resolution of the board of supervisors of
that county adopted not later than July 15th of the fiscal year for
which it is to first apply and shall thereafter remain in effect
unless the board orders its discontinuance or unless, prior to the
commencement of any subsequent fiscal year, the board receives a
petition for its discontinuance joined in by resolutions duly adopted
by the governing boards of not less than two-thirds of the
participating revenue districts in the county, in which event the
board shall order discontinuance of the procedure effective at the
commencement of the subsequent fiscal year.
   (b) Notwithstanding subdivision (a), for the 1993-94 and 1994-95
fiscal years only, the procedure authorized by this chapter may be
placed in effect in any county by resolution of the board of
supervisors of that county adopted not later than October 15 of the
relevant fiscal year, and shall remain in effect unless otherwise
discontinued in accordance with the provisions of this chapter.



4702.5.  In any county electing to follow the procedure authorized
by this chapter the board of supervisors by resolution as specified
in Section 4702 may extend, or discontinue, these procedures to
assessments that are entered on the secured tax roll for the current
year.
   Upon adoption, assessments shall be apportioned in the same manner
that taxes are apportioned under this chapter.



4702.7.  In any county electing to follow the procedure authorized
by this chapter, the board of supervisors, by resolution adopted in
accordance with Section 4702, after holding a public hearing on the
matter, may discontinue those procedures with respect to any tax
levying agency or assessment levying agency in the county if the rate
of secured tax delinquency in that agency in any year exceeds 3
percent of the total of all taxes and assessments levied on the
secured rolls in that agency.



4703.  In each county that elects to adopt the procedure authorized
by this chapter there is hereby created a tax losses reserve fund.
   (a) The tax losses reserve fund shall be used exclusively, as
hereinafter provided, to cover losses that may occur in the amount of
tax liens as a result of special sales of tax-defaulted property.
Whenever in any year the amount of the tax losses reserve fund has
reached an amount equivalent to 1 percent of the total of all taxes
and assessments levied on the secured roll for that year for
participating entities in the county, the amounts hereinafter
authorized to be credited to that fund may, for the remainder of that
year, be credited to the county general fund.
   (b) The auditor and treasurer shall keep apportioned tax resources
accounts in a manner that the balance of amounts apportioned to
funds on an accrual basis shall be known by both officers. In
addition, the auditor shall keep secured taxes receivable accounts in
a manner as to establish accountability for the amounts receivable
on the secured tax rolls. Secured tax rolls, as used in this chapter,
include delinquent rolls prescribed by Section 2627.



4703.2.  (a) In any county electing to follow the procedure
authorized by this chapter, the board of supervisors may, by October
31 of any fiscal year, on the recommendation of the county auditor,
adopt a resolution electing to be governed by this section rather
than the provisions of Section 4703. Upon adoption, a copy of this
resolution shall be filed with the county auditor, the county
treasurer, and the county tax collector. Except as otherwise provided
in this subdivision, this election shall remain in effect each
fiscal year unless the board of supervisors adopts another resolution
by October 31 of a fiscal year electing to be governed instead by
Section 4703. For the 1993-94 fiscal year only, the election to be
governed by this section rather than Section 4703 may be made no
later than January 15, 1994. For the 1994-95 fiscal year only, an
election to be governed by this section rather than Section 4703 may
be rescinded, upon the recommendation of the county auditor, by a
resolution electing governance under Section 4703 that is adopted by
the board of supervisors on any date during that fiscal year.
   (b) In each county that elects to adopt the procedure authorized
by this chapter and elects to be governed by this section rather than
Section 4703 there shall be created a tax losses reserve fund.
   (c) The tax losses reserve fund shall be used exclusively, as
hereinafter provided, to cover losses that may occur in the amount of
tax liens as a result of special sales of tax-defaulted property. In
a county electing to be subject to this section rather than Section
4703, the tax losses reserve fund shall be maintained at not less
than 25 percent of the total delinquent secured taxes and assessments
for participating entities in the county as calculated at the end of
the fiscal year. At the end of the fiscal year, amounts in the tax
losses reserve fund that are in excess of 25 percent of the total
delinquent secured taxes and assessments for participating entities
in the county may be credited to the county general fund.
   (d) The auditor and treasurer shall keep apportioned tax resources
accounts in such a manner that the balance of amounts apportioned to
funds on an accrual basis shall be known by both officers. In
addition, the auditor shall keep secured taxes receivable accounts in
such a manner as to establish accountability for the amounts
receivable on the secured tax rolls. Secured tax rolls as used in
this chapter include delinquent rolls prescribed by Section 2627.



4703.3.  Notwithstanding any other provision of law, general,
special, or local, if Orange County sells or assigns obligations
arising out of delinquent assessments or taxes on the secured roll to
a joint powers agency pursuant to Section 26220.5 of the Government
Code, the Orange County Board of Supervisors may elect to transfer
its tax losses reserve fund to the joint powers agency. The tax
losses reserve fund shall be maintained by the joint powers agency
according to Section 4703 or 4703.2, whichever is applicable, except
that the tax losses reserve fund may both be used to cover losses
that may occur in the amount of tax liens as a result of special
sales of tax-defaulted property and, subject to agreements with
bondholders, be pledged as a reserve for bonds issued by the joint
powers agency to purchase the obligations arising out of delinquent
assessments or taxes on the secured roll.



4704.  In order to facilitate tax accounting in connection with the
procedure authorized by this chapter each county which adopts the
procedure shall enter tax-defaulted property on the rolls in the name
of the assessee and extend taxes thereon in the name of the
assessee. The amount so extended shall be used in the determination
of the cost to redeem that property. If valuations of tax-defaulted
property entered on the roll under the provisions of this section
exceed 1 percent of the total, the valuations shall not be included
by the county auditor in any statement of equalized assessed
valuations which he or she may be required to make as the basis for
the determination of a bond debt limitation.



4705.  (a) Upon completion of the tax roll as prescribed by Section
2152, the county auditor shall determine the total amount of taxes
actually extended thereon for each fund for which a tax levy has been
included. The amount so determined for each fund shall forthwith be
apportioned to the credit of those funds on the accounts of the
county auditor and county treasurer and the total thereof shall be
entered on the apportioned tax resources accounts of both officers.
   (b) Assessments entered on the secured tax roll shall be
apportioned in the same manner if the board of supervisors has
extended these procedures to assessments under Section 4702.5.
   (c) Upon completion of the tax roll the auditor shall record the
total amount due on the secured taxes receivable accounts.
   (d) The board of supervisors shall provide which moneys in the
county treasury, including but not limited to those credited to the
tax losses reserve, shall be available to be drawn on to the extent
of the amount of uncollected taxes credited to each fund for which a
tax levy has been included, and those moneys may thereafter be drawn
against in an amount not to exceed the amount of uncollected taxes
credited to each fund for which a tax levy has been included in the
same manner as if the amount credited had been collected. To the
extent that moneys are so expended for a fund in advance of receipt
of tax revenue therefor, the tax revenue may not be expended upon
receipt. Moneys in the amount credited to the tax losses reserve, as
well as tax revenues actually received for funds to the extent moneys
have been expended therefor in advance of receipt, shall be
available in the county treasury for payment for the same purposes
and in the same amounts as the money advance was available prior to
being advanced; provided however, that if the moneys so advanced were
derived from the proceeds of the sale of bonds, including notes,
certificates of participation, or other instruments evidencing
indebtedness, authorized pursuant to subdivision (e) or otherwise
permitted by law, or the investment of those amounts, then tax
revenues actually received, including delinquent penalties, shall be
used for the repayment of the bonds or the replenishment of any
reserve fund for these bonds, or both.
   (e) Any county that has elected to adopt the procedure authorized
by this chapter is hereby authorized, in addition to any other
financing permitted by law, to fund the procedure by the issuance of
bonds payable from any delinquent taxes, assessments, and delinquent
penalties in accordance with Chapter 6.6 (commencing with Section
54773) of Part 1 of Division 2 of Title 5 of the Government Code.
Once the procedure authorized by this chapter is adopted, the
obligation of the county to fund the procedure is an obligation
imposed by law.



4706.  Upon completion of the computation of delinquent penalties on
unpaid first installments as prescribed by Section 2617 of this code
the auditor shall record the additional amount due on the secured
taxes receivable accounts. The auditor shall similarly record the
accountability for delinquent penalties and costs computed and
entered on unpaid second installments as prescribed by Section 2627
of this code.



4707.  Should any tax or assessment which was apportioned at the
time of levy be changed by correction, cancellation or refund
authorized by Part 9 of Division 1 of this code, a pro rata
adjustment for the amount of such change shall be made in each of the
funds to which apportionment previously has been made. The total pro
rata adjustments of amounts previously apportioned shall be entered
on the apportioned tax resources accounts of the auditor and the
treasurer. The total amount of the changes shall be entered on the
secured taxes receivable accounts of the auditor.



4708.  Amounts received on the secured tax roll for the current year
shall be distributed on the accounts of the auditor and treasurer as
follows:
   (a) Any amounts levied but not apportioned to funds in the manner
authorized by this chapter shall be distributed to the funds for
which levied as prescribed in Chapter 1a of this part.
   (b) Any amounts which were apportioned to funds at the time of the
levy in the manner authorized by this chapter shall be distributed
to the apportioned tax resources accounts.
   (c) Amounts collected as costs shall be distributed to the county
general fund.
   (d) Amounts collected as delinquent penalties shall be distributed
to the tax losses reserve fund.
   The auditor shall record the total secured tax roll collections on
his secured taxes receivable accounts.



4709.  Upon completion of the delinquent roll as prescribed by
Section 2627, the auditor shall verify the total thereof against his
or her accounts. The auditor shall similarly verify against his or
her accounts the total of the list of tax-defaulted property
furnished him or her after the declaration date by the tax collector
as prescribed by Section 3442.
   The auditor shall adjust the secured taxes receivable accounts for
the total amount of any adjustments on the secured tax rolls for
delinquent penalties and costs which are no longer receivable as of
the sale date under Section 4102.



4710.  After apportionment to the state of the amounts prescribed by
Section 4656.5, amounts received for the redemption of tax-defaulted
property shall be distributed as follows:
   (a) Any amounts levied but not apportioned to funds at the time of
levy in the manner authorized by this chapter and any redemption
penalties collected on those amounts shall be distributed to funds as
prescribed in Chapter 1c (commencing with Section 4656), except that
assessments not apportioned previously shall be distributed to the
funds for which levied.
   (b) Any amounts which were apportioned to funds at the time of the
levy in the manner authorized by this chapter shall be distributed
to the apportioned tax resources accounts. The pro rata of redemption
penalties or interest collected on any amounts levied but not
apportioned to funds at the time of levy shall be distributed to the
respective funds and the balance of redemption penalties or interest
together with delinquency penalties shall be apportioned to the tax
losses reserve fund.
   (c) Amounts collected as costs shall be distributed to a
restricted county fund to be allocated only for the following
purposes:
   (1) Updating and improving information with respect to delinquent
taxes.
   (2) Redemption systems.
   (3) Monthly settlements with the auditor pursuant to Section 4108.
   (4) The collection of taxes by the tax collector.
   The total amount collected on the secured tax roll shall be
entered on the secured taxes receivable accounts.



4711.  The proceeds of the sale of tax-defaulted property deposited
in the delinquent tax sale trust fund shall be distributed as
provided in Chapter 1.3 (commencing with Section 4671). However, the
taxes and assessments which constitute the amounts required to redeem
the tax-defaulted property shall, for the purposes of this chapter,
be distributed as follows:
   (a) The amount available for distribution shall be prorated on the
basis of those taxes and assessments between apportioned levies and
unapportioned levies.
   (b) The pro rata share for unapportioned levies shall be prorated
between the amount of tax levies and the amount of assessment levies.
The pro rata share for unapportioned tax levies shall be distributed
to funds on the basis prescribed in Chapter 1.3 (commencing with
Section 4671). The pro rata share for unapportioned assessment levies
shall be distributed to the assessment funds on the basis prescribed
in subdivision (a) of Section 4710.
   (c) The pro rata share for apportioned levies shall be distributed
to the tax losses reserve fund.
   The amount canceled by the sale shall be entered on the secured
taxes receivable accounts. Any canceled amounts which were
apportioned at the time of levy in the manner authorized by this
chapter shall be entered on the apportioned tax resources accounts,
and this cancellation shall be borne by the tax losses reserve fund.



4713.  In any county electing to follow the procedure authorized by
this chapter the tax collector and auditor, or either of them, upon
approval of the county treasurer, may determine by analysis of the
abstract of delinquencies the amounts included therein by the
original tax and assessment levies for each fund, and, on the basis
of such determination, the treasurer and auditor may forthwith enter
the total tax levy on the apportioned tax resources accounts and
apportion to each fund for which taxes were levied 95 percent of the
fund amounts so determined. The remaining 5 percent of the tax
amounts shall be apportioned to the tax losses reserve fund. These
apportionments shall constitute a full liquidation of the share of
each fund in the liens for delinquent taxes appearing on the abstract
list and any amounts thereafter received through redemption or sale
of the property shall be apportioned in the manner prescribed by
Sections 4708, 4710, and 4711 for years in which the procedure
authorized by this chapter has been in effect.




4713.5.  In any county electing under both Sections 4702 and 4702.5
to follow the procedures authorized by this chapter the tax collector
and auditor, or either of them, upon the approval of the county
treasurer may apportion assessment levies in the same manner that
Section 4713 provides for tax levies except that each fund for which
assessments were levied shall be apportioned 100 percent of the
assessment levies so determined. Such apportionments shall constitute
a full liquidation of the share of each fund in the liens for
delinquent assessments appearing on the abstract list and any amounts
thereafter received through redemption, sale or rental of the
property shall be apportioned in the manner prescribed by Sections
4708, 4710, 4711 and 4712 for years in which the procedure authorized
by this chapter has been in effect.



4714.  Taxing agencies for which the county levies and collects
taxes but for which the county treasury is not the legal depositary
may be limited in their withdrawals from the county treasury to
amounts proportionate with actual tax collections by the county
within their taxing areas.



4715.  This chapter shall have no application to tax levies made by
counties on behalf of public districts for which the county treasury
is not the legal depositary unless agreed to by a resolution of the
governing board of the public district and the board of supervisors
of the county, adopted in accordance with Section 4702 for the fiscal
year in which this procedure is to apply to that public district.




4716.  There shall, notwithstanding any other provision of this
chapter, be distributed to each fund not less than the amount which
must under the Constitution be distributed thereto.



4717.  If a tax payment which is insufficient to cover the amount of
taxes due and payable is received by the tax collector of a county
that has elected to follow the procedure authorized by this chapter,
the tax collector shall place the tax payment in a trust fund and
immediately notify the taxpayer of the deficiency.
   In the case of a deficiency in the payment of secured taxes, the
taxpayer may pay the balance due until the date on which the property
becomes tax defaulted by operation of law. If payment of the balance
due is not received on or before that date, the insufficient payment
shall be returned to the taxpayer, and shall become tax defaulted in
the usual manner as provided in this code.
   In the case of a deficiency in the payment of unsecured taxes, the
taxpayer may pay the balance due within six months after the date of
the insufficient payment. If payment of the balance due is not made
within that time, the tax collector or other officer collecting
unsecured taxes shall credit the amount of the insufficient payment
on the unsecured roll.
   If payment of the balance due is made within the time specified in
this section, any delinquent penalty which attaches by operation of
law shall be computed only upon the additional amount required to
bring the payment to a nondelinquent status.
   The county auditor shall make the necessary adjustments in the tax
rolls and in the tax and penalty charges.
   The tax collector may accept payments which are within ten dollars
($10) of the tax due as payment in full. The auditor or controller
shall prescribe methods for accounting and adjusting their accounts
in this matter.
   The provisions of this section shall become effective in any
county when authorized by resolution adopted by majority vote of the
board of supervisors of the county.

State Codes and Statutes

Statutes > California > Rtc > 4701-4717

REVENUE AND TAXATION CODE
SECTION 4701-4717



4701.  (a) The Legislature hereby finds and declares that it is the
purpose of this chapter to provide an alternative procedure for the
distribution of property tax levies on the secured roll made by
counties on their own behalf or as the tax-levying and tax-collecting
agency for other political subdivisions. The Legislature further
finds and declares that the object of this alternative procedure is
to simplify the tax-levying and tax-apportioning process and to
increase flexibility in the use of available cash resources.
   (b) For purposes of this chapter only, the term "secured roll" may
include the supplemental property tax roll as described in Chapter
3.5 (commencing with Section 75) of Part 0.5 of Division 1.




4702.  (a) The procedure authorized by this chapter may be placed in
effect in any county by resolution of the board of supervisors of
that county adopted not later than July 15th of the fiscal year for
which it is to first apply and shall thereafter remain in effect
unless the board orders its discontinuance or unless, prior to the
commencement of any subsequent fiscal year, the board receives a
petition for its discontinuance joined in by resolutions duly adopted
by the governing boards of not less than two-thirds of the
participating revenue districts in the county, in which event the
board shall order discontinuance of the procedure effective at the
commencement of the subsequent fiscal year.
   (b) Notwithstanding subdivision (a), for the 1993-94 and 1994-95
fiscal years only, the procedure authorized by this chapter may be
placed in effect in any county by resolution of the board of
supervisors of that county adopted not later than October 15 of the
relevant fiscal year, and shall remain in effect unless otherwise
discontinued in accordance with the provisions of this chapter.



4702.5.  In any county electing to follow the procedure authorized
by this chapter the board of supervisors by resolution as specified
in Section 4702 may extend, or discontinue, these procedures to
assessments that are entered on the secured tax roll for the current
year.
   Upon adoption, assessments shall be apportioned in the same manner
that taxes are apportioned under this chapter.



4702.7.  In any county electing to follow the procedure authorized
by this chapter, the board of supervisors, by resolution adopted in
accordance with Section 4702, after holding a public hearing on the
matter, may discontinue those procedures with respect to any tax
levying agency or assessment levying agency in the county if the rate
of secured tax delinquency in that agency in any year exceeds 3
percent of the total of all taxes and assessments levied on the
secured rolls in that agency.



4703.  In each county that elects to adopt the procedure authorized
by this chapter there is hereby created a tax losses reserve fund.
   (a) The tax losses reserve fund shall be used exclusively, as
hereinafter provided, to cover losses that may occur in the amount of
tax liens as a result of special sales of tax-defaulted property.
Whenever in any year the amount of the tax losses reserve fund has
reached an amount equivalent to 1 percent of the total of all taxes
and assessments levied on the secured roll for that year for
participating entities in the county, the amounts hereinafter
authorized to be credited to that fund may, for the remainder of that
year, be credited to the county general fund.
   (b) The auditor and treasurer shall keep apportioned tax resources
accounts in a manner that the balance of amounts apportioned to
funds on an accrual basis shall be known by both officers. In
addition, the auditor shall keep secured taxes receivable accounts in
a manner as to establish accountability for the amounts receivable
on the secured tax rolls. Secured tax rolls, as used in this chapter,
include delinquent rolls prescribed by Section 2627.



4703.2.  (a) In any county electing to follow the procedure
authorized by this chapter, the board of supervisors may, by October
31 of any fiscal year, on the recommendation of the county auditor,
adopt a resolution electing to be governed by this section rather
than the provisions of Section 4703. Upon adoption, a copy of this
resolution shall be filed with the county auditor, the county
treasurer, and the county tax collector. Except as otherwise provided
in this subdivision, this election shall remain in effect each
fiscal year unless the board of supervisors adopts another resolution
by October 31 of a fiscal year electing to be governed instead by
Section 4703. For the 1993-94 fiscal year only, the election to be
governed by this section rather than Section 4703 may be made no
later than January 15, 1994. For the 1994-95 fiscal year only, an
election to be governed by this section rather than Section 4703 may
be rescinded, upon the recommendation of the county auditor, by a
resolution electing governance under Section 4703 that is adopted by
the board of supervisors on any date during that fiscal year.
   (b) In each county that elects to adopt the procedure authorized
by this chapter and elects to be governed by this section rather than
Section 4703 there shall be created a tax losses reserve fund.
   (c) The tax losses reserve fund shall be used exclusively, as
hereinafter provided, to cover losses that may occur in the amount of
tax liens as a result of special sales of tax-defaulted property. In
a county electing to be subject to this section rather than Section
4703, the tax losses reserve fund shall be maintained at not less
than 25 percent of the total delinquent secured taxes and assessments
for participating entities in the county as calculated at the end of
the fiscal year. At the end of the fiscal year, amounts in the tax
losses reserve fund that are in excess of 25 percent of the total
delinquent secured taxes and assessments for participating entities
in the county may be credited to the county general fund.
   (d) The auditor and treasurer shall keep apportioned tax resources
accounts in such a manner that the balance of amounts apportioned to
funds on an accrual basis shall be known by both officers. In
addition, the auditor shall keep secured taxes receivable accounts in
such a manner as to establish accountability for the amounts
receivable on the secured tax rolls. Secured tax rolls as used in
this chapter include delinquent rolls prescribed by Section 2627.



4703.3.  Notwithstanding any other provision of law, general,
special, or local, if Orange County sells or assigns obligations
arising out of delinquent assessments or taxes on the secured roll to
a joint powers agency pursuant to Section 26220.5 of the Government
Code, the Orange County Board of Supervisors may elect to transfer
its tax losses reserve fund to the joint powers agency. The tax
losses reserve fund shall be maintained by the joint powers agency
according to Section 4703 or 4703.2, whichever is applicable, except
that the tax losses reserve fund may both be used to cover losses
that may occur in the amount of tax liens as a result of special
sales of tax-defaulted property and, subject to agreements with
bondholders, be pledged as a reserve for bonds issued by the joint
powers agency to purchase the obligations arising out of delinquent
assessments or taxes on the secured roll.



4704.  In order to facilitate tax accounting in connection with the
procedure authorized by this chapter each county which adopts the
procedure shall enter tax-defaulted property on the rolls in the name
of the assessee and extend taxes thereon in the name of the
assessee. The amount so extended shall be used in the determination
of the cost to redeem that property. If valuations of tax-defaulted
property entered on the roll under the provisions of this section
exceed 1 percent of the total, the valuations shall not be included
by the county auditor in any statement of equalized assessed
valuations which he or she may be required to make as the basis for
the determination of a bond debt limitation.



4705.  (a) Upon completion of the tax roll as prescribed by Section
2152, the county auditor shall determine the total amount of taxes
actually extended thereon for each fund for which a tax levy has been
included. The amount so determined for each fund shall forthwith be
apportioned to the credit of those funds on the accounts of the
county auditor and county treasurer and the total thereof shall be
entered on the apportioned tax resources accounts of both officers.
   (b) Assessments entered on the secured tax roll shall be
apportioned in the same manner if the board of supervisors has
extended these procedures to assessments under Section 4702.5.
   (c) Upon completion of the tax roll the auditor shall record the
total amount due on the secured taxes receivable accounts.
   (d) The board of supervisors shall provide which moneys in the
county treasury, including but not limited to those credited to the
tax losses reserve, shall be available to be drawn on to the extent
of the amount of uncollected taxes credited to each fund for which a
tax levy has been included, and those moneys may thereafter be drawn
against in an amount not to exceed the amount of uncollected taxes
credited to each fund for which a tax levy has been included in the
same manner as if the amount credited had been collected. To the
extent that moneys are so expended for a fund in advance of receipt
of tax revenue therefor, the tax revenue may not be expended upon
receipt. Moneys in the amount credited to the tax losses reserve, as
well as tax revenues actually received for funds to the extent moneys
have been expended therefor in advance of receipt, shall be
available in the county treasury for payment for the same purposes
and in the same amounts as the money advance was available prior to
being advanced; provided however, that if the moneys so advanced were
derived from the proceeds of the sale of bonds, including notes,
certificates of participation, or other instruments evidencing
indebtedness, authorized pursuant to subdivision (e) or otherwise
permitted by law, or the investment of those amounts, then tax
revenues actually received, including delinquent penalties, shall be
used for the repayment of the bonds or the replenishment of any
reserve fund for these bonds, or both.
   (e) Any county that has elected to adopt the procedure authorized
by this chapter is hereby authorized, in addition to any other
financing permitted by law, to fund the procedure by the issuance of
bonds payable from any delinquent taxes, assessments, and delinquent
penalties in accordance with Chapter 6.6 (commencing with Section
54773) of Part 1 of Division 2 of Title 5 of the Government Code.
Once the procedure authorized by this chapter is adopted, the
obligation of the county to fund the procedure is an obligation
imposed by law.



4706.  Upon completion of the computation of delinquent penalties on
unpaid first installments as prescribed by Section 2617 of this code
the auditor shall record the additional amount due on the secured
taxes receivable accounts. The auditor shall similarly record the
accountability for delinquent penalties and costs computed and
entered on unpaid second installments as prescribed by Section 2627
of this code.



4707.  Should any tax or assessment which was apportioned at the
time of levy be changed by correction, cancellation or refund
authorized by Part 9 of Division 1 of this code, a pro rata
adjustment for the amount of such change shall be made in each of the
funds to which apportionment previously has been made. The total pro
rata adjustments of amounts previously apportioned shall be entered
on the apportioned tax resources accounts of the auditor and the
treasurer. The total amount of the changes shall be entered on the
secured taxes receivable accounts of the auditor.



4708.  Amounts received on the secured tax roll for the current year
shall be distributed on the accounts of the auditor and treasurer as
follows:
   (a) Any amounts levied but not apportioned to funds in the manner
authorized by this chapter shall be distributed to the funds for
which levied as prescribed in Chapter 1a of this part.
   (b) Any amounts which were apportioned to funds at the time of the
levy in the manner authorized by this chapter shall be distributed
to the apportioned tax resources accounts.
   (c) Amounts collected as costs shall be distributed to the county
general fund.
   (d) Amounts collected as delinquent penalties shall be distributed
to the tax losses reserve fund.
   The auditor shall record the total secured tax roll collections on
his secured taxes receivable accounts.



4709.  Upon completion of the delinquent roll as prescribed by
Section 2627, the auditor shall verify the total thereof against his
or her accounts. The auditor shall similarly verify against his or
her accounts the total of the list of tax-defaulted property
furnished him or her after the declaration date by the tax collector
as prescribed by Section 3442.
   The auditor shall adjust the secured taxes receivable accounts for
the total amount of any adjustments on the secured tax rolls for
delinquent penalties and costs which are no longer receivable as of
the sale date under Section 4102.



4710.  After apportionment to the state of the amounts prescribed by
Section 4656.5, amounts received for the redemption of tax-defaulted
property shall be distributed as follows:
   (a) Any amounts levied but not apportioned to funds at the time of
levy in the manner authorized by this chapter and any redemption
penalties collected on those amounts shall be distributed to funds as
prescribed in Chapter 1c (commencing with Section 4656), except that
assessments not apportioned previously shall be distributed to the
funds for which levied.
   (b) Any amounts which were apportioned to funds at the time of the
levy in the manner authorized by this chapter shall be distributed
to the apportioned tax resources accounts. The pro rata of redemption
penalties or interest collected on any amounts levied but not
apportioned to funds at the time of levy shall be distributed to the
respective funds and the balance of redemption penalties or interest
together with delinquency penalties shall be apportioned to the tax
losses reserve fund.
   (c) Amounts collected as costs shall be distributed to a
restricted county fund to be allocated only for the following
purposes:
   (1) Updating and improving information with respect to delinquent
taxes.
   (2) Redemption systems.
   (3) Monthly settlements with the auditor pursuant to Section 4108.
   (4) The collection of taxes by the tax collector.
   The total amount collected on the secured tax roll shall be
entered on the secured taxes receivable accounts.



4711.  The proceeds of the sale of tax-defaulted property deposited
in the delinquent tax sale trust fund shall be distributed as
provided in Chapter 1.3 (commencing with Section 4671). However, the
taxes and assessments which constitute the amounts required to redeem
the tax-defaulted property shall, for the purposes of this chapter,
be distributed as follows:
   (a) The amount available for distribution shall be prorated on the
basis of those taxes and assessments between apportioned levies and
unapportioned levies.
   (b) The pro rata share for unapportioned levies shall be prorated
between the amount of tax levies and the amount of assessment levies.
The pro rata share for unapportioned tax levies shall be distributed
to funds on the basis prescribed in Chapter 1.3 (commencing with
Section 4671). The pro rata share for unapportioned assessment levies
shall be distributed to the assessment funds on the basis prescribed
in subdivision (a) of Section 4710.
   (c) The pro rata share for apportioned levies shall be distributed
to the tax losses reserve fund.
   The amount canceled by the sale shall be entered on the secured
taxes receivable accounts. Any canceled amounts which were
apportioned at the time of levy in the manner authorized by this
chapter shall be entered on the apportioned tax resources accounts,
and this cancellation shall be borne by the tax losses reserve fund.



4713.  In any county electing to follow the procedure authorized by
this chapter the tax collector and auditor, or either of them, upon
approval of the county treasurer, may determine by analysis of the
abstract of delinquencies the amounts included therein by the
original tax and assessment levies for each fund, and, on the basis
of such determination, the treasurer and auditor may forthwith enter
the total tax levy on the apportioned tax resources accounts and
apportion to each fund for which taxes were levied 95 percent of the
fund amounts so determined. The remaining 5 percent of the tax
amounts shall be apportioned to the tax losses reserve fund. These
apportionments shall constitute a full liquidation of the share of
each fund in the liens for delinquent taxes appearing on the abstract
list and any amounts thereafter received through redemption or sale
of the property shall be apportioned in the manner prescribed by
Sections 4708, 4710, and 4711 for years in which the procedure
authorized by this chapter has been in effect.




4713.5.  In any county electing under both Sections 4702 and 4702.5
to follow the procedures authorized by this chapter the tax collector
and auditor, or either of them, upon the approval of the county
treasurer may apportion assessment levies in the same manner that
Section 4713 provides for tax levies except that each fund for which
assessments were levied shall be apportioned 100 percent of the
assessment levies so determined. Such apportionments shall constitute
a full liquidation of the share of each fund in the liens for
delinquent assessments appearing on the abstract list and any amounts
thereafter received through redemption, sale or rental of the
property shall be apportioned in the manner prescribed by Sections
4708, 4710, 4711 and 4712 for years in which the procedure authorized
by this chapter has been in effect.



4714.  Taxing agencies for which the county levies and collects
taxes but for which the county treasury is not the legal depositary
may be limited in their withdrawals from the county treasury to
amounts proportionate with actual tax collections by the county
within their taxing areas.



4715.  This chapter shall have no application to tax levies made by
counties on behalf of public districts for which the county treasury
is not the legal depositary unless agreed to by a resolution of the
governing board of the public district and the board of supervisors
of the county, adopted in accordance with Section 4702 for the fiscal
year in which this procedure is to apply to that public district.




4716.  There shall, notwithstanding any other provision of this
chapter, be distributed to each fund not less than the amount which
must under the Constitution be distributed thereto.



4717.  If a tax payment which is insufficient to cover the amount of
taxes due and payable is received by the tax collector of a county
that has elected to follow the procedure authorized by this chapter,
the tax collector shall place the tax payment in a trust fund and
immediately notify the taxpayer of the deficiency.
   In the case of a deficiency in the payment of secured taxes, the
taxpayer may pay the balance due until the date on which the property
becomes tax defaulted by operation of law. If payment of the balance
due is not received on or before that date, the insufficient payment
shall be returned to the taxpayer, and shall become tax defaulted in
the usual manner as provided in this code.
   In the case of a deficiency in the payment of unsecured taxes, the
taxpayer may pay the balance due within six months after the date of
the insufficient payment. If payment of the balance due is not made
within that time, the tax collector or other officer collecting
unsecured taxes shall credit the amount of the insufficient payment
on the unsecured roll.
   If payment of the balance due is made within the time specified in
this section, any delinquent penalty which attaches by operation of
law shall be computed only upon the additional amount required to
bring the payment to a nondelinquent status.
   The county auditor shall make the necessary adjustments in the tax
rolls and in the tax and penalty charges.
   The tax collector may accept payments which are within ten dollars
($10) of the tax due as payment in full. The auditor or controller
shall prescribe methods for accounting and adjusting their accounts
in this matter.
   The provisions of this section shall become effective in any
county when authorized by resolution adopted by majority vote of the
board of supervisors of the county.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Rtc > 4701-4717

REVENUE AND TAXATION CODE
SECTION 4701-4717



4701.  (a) The Legislature hereby finds and declares that it is the
purpose of this chapter to provide an alternative procedure for the
distribution of property tax levies on the secured roll made by
counties on their own behalf or as the tax-levying and tax-collecting
agency for other political subdivisions. The Legislature further
finds and declares that the object of this alternative procedure is
to simplify the tax-levying and tax-apportioning process and to
increase flexibility in the use of available cash resources.
   (b) For purposes of this chapter only, the term "secured roll" may
include the supplemental property tax roll as described in Chapter
3.5 (commencing with Section 75) of Part 0.5 of Division 1.




4702.  (a) The procedure authorized by this chapter may be placed in
effect in any county by resolution of the board of supervisors of
that county adopted not later than July 15th of the fiscal year for
which it is to first apply and shall thereafter remain in effect
unless the board orders its discontinuance or unless, prior to the
commencement of any subsequent fiscal year, the board receives a
petition for its discontinuance joined in by resolutions duly adopted
by the governing boards of not less than two-thirds of the
participating revenue districts in the county, in which event the
board shall order discontinuance of the procedure effective at the
commencement of the subsequent fiscal year.
   (b) Notwithstanding subdivision (a), for the 1993-94 and 1994-95
fiscal years only, the procedure authorized by this chapter may be
placed in effect in any county by resolution of the board of
supervisors of that county adopted not later than October 15 of the
relevant fiscal year, and shall remain in effect unless otherwise
discontinued in accordance with the provisions of this chapter.



4702.5.  In any county electing to follow the procedure authorized
by this chapter the board of supervisors by resolution as specified
in Section 4702 may extend, or discontinue, these procedures to
assessments that are entered on the secured tax roll for the current
year.
   Upon adoption, assessments shall be apportioned in the same manner
that taxes are apportioned under this chapter.



4702.7.  In any county electing to follow the procedure authorized
by this chapter, the board of supervisors, by resolution adopted in
accordance with Section 4702, after holding a public hearing on the
matter, may discontinue those procedures with respect to any tax
levying agency or assessment levying agency in the county if the rate
of secured tax delinquency in that agency in any year exceeds 3
percent of the total of all taxes and assessments levied on the
secured rolls in that agency.



4703.  In each county that elects to adopt the procedure authorized
by this chapter there is hereby created a tax losses reserve fund.
   (a) The tax losses reserve fund shall be used exclusively, as
hereinafter provided, to cover losses that may occur in the amount of
tax liens as a result of special sales of tax-defaulted property.
Whenever in any year the amount of the tax losses reserve fund has
reached an amount equivalent to 1 percent of the total of all taxes
and assessments levied on the secured roll for that year for
participating entities in the county, the amounts hereinafter
authorized to be credited to that fund may, for the remainder of that
year, be credited to the county general fund.
   (b) The auditor and treasurer shall keep apportioned tax resources
accounts in a manner that the balance of amounts apportioned to
funds on an accrual basis shall be known by both officers. In
addition, the auditor shall keep secured taxes receivable accounts in
a manner as to establish accountability for the amounts receivable
on the secured tax rolls. Secured tax rolls, as used in this chapter,
include delinquent rolls prescribed by Section 2627.



4703.2.  (a) In any county electing to follow the procedure
authorized by this chapter, the board of supervisors may, by October
31 of any fiscal year, on the recommendation of the county auditor,
adopt a resolution electing to be governed by this section rather
than the provisions of Section 4703. Upon adoption, a copy of this
resolution shall be filed with the county auditor, the county
treasurer, and the county tax collector. Except as otherwise provided
in this subdivision, this election shall remain in effect each
fiscal year unless the board of supervisors adopts another resolution
by October 31 of a fiscal year electing to be governed instead by
Section 4703. For the 1993-94 fiscal year only, the election to be
governed by this section rather than Section 4703 may be made no
later than January 15, 1994. For the 1994-95 fiscal year only, an
election to be governed by this section rather than Section 4703 may
be rescinded, upon the recommendation of the county auditor, by a
resolution electing governance under Section 4703 that is adopted by
the board of supervisors on any date during that fiscal year.
   (b) In each county that elects to adopt the procedure authorized
by this chapter and elects to be governed by this section rather than
Section 4703 there shall be created a tax losses reserve fund.
   (c) The tax losses reserve fund shall be used exclusively, as
hereinafter provided, to cover losses that may occur in the amount of
tax liens as a result of special sales of tax-defaulted property. In
a county electing to be subject to this section rather than Section
4703, the tax losses reserve fund shall be maintained at not less
than 25 percent of the total delinquent secured taxes and assessments
for participating entities in the county as calculated at the end of
the fiscal year. At the end of the fiscal year, amounts in the tax
losses reserve fund that are in excess of 25 percent of the total
delinquent secured taxes and assessments for participating entities
in the county may be credited to the county general fund.
   (d) The auditor and treasurer shall keep apportioned tax resources
accounts in such a manner that the balance of amounts apportioned to
funds on an accrual basis shall be known by both officers. In
addition, the auditor shall keep secured taxes receivable accounts in
such a manner as to establish accountability for the amounts
receivable on the secured tax rolls. Secured tax rolls as used in
this chapter include delinquent rolls prescribed by Section 2627.



4703.3.  Notwithstanding any other provision of law, general,
special, or local, if Orange County sells or assigns obligations
arising out of delinquent assessments or taxes on the secured roll to
a joint powers agency pursuant to Section 26220.5 of the Government
Code, the Orange County Board of Supervisors may elect to transfer
its tax losses reserve fund to the joint powers agency. The tax
losses reserve fund shall be maintained by the joint powers agency
according to Section 4703 or 4703.2, whichever is applicable, except
that the tax losses reserve fund may both be used to cover losses
that may occur in the amount of tax liens as a result of special
sales of tax-defaulted property and, subject to agreements with
bondholders, be pledged as a reserve for bonds issued by the joint
powers agency to purchase the obligations arising out of delinquent
assessments or taxes on the secured roll.



4704.  In order to facilitate tax accounting in connection with the
procedure authorized by this chapter each county which adopts the
procedure shall enter tax-defaulted property on the rolls in the name
of the assessee and extend taxes thereon in the name of the
assessee. The amount so extended shall be used in the determination
of the cost to redeem that property. If valuations of tax-defaulted
property entered on the roll under the provisions of this section
exceed 1 percent of the total, the valuations shall not be included
by the county auditor in any statement of equalized assessed
valuations which he or she may be required to make as the basis for
the determination of a bond debt limitation.



4705.  (a) Upon completion of the tax roll as prescribed by Section
2152, the county auditor shall determine the total amount of taxes
actually extended thereon for each fund for which a tax levy has been
included. The amount so determined for each fund shall forthwith be
apportioned to the credit of those funds on the accounts of the
county auditor and county treasurer and the total thereof shall be
entered on the apportioned tax resources accounts of both officers.
   (b) Assessments entered on the secured tax roll shall be
apportioned in the same manner if the board of supervisors has
extended these procedures to assessments under Section 4702.5.
   (c) Upon completion of the tax roll the auditor shall record the
total amount due on the secured taxes receivable accounts.
   (d) The board of supervisors shall provide which moneys in the
county treasury, including but not limited to those credited to the
tax losses reserve, shall be available to be drawn on to the extent
of the amount of uncollected taxes credited to each fund for which a
tax levy has been included, and those moneys may thereafter be drawn
against in an amount not to exceed the amount of uncollected taxes
credited to each fund for which a tax levy has been included in the
same manner as if the amount credited had been collected. To the
extent that moneys are so expended for a fund in advance of receipt
of tax revenue therefor, the tax revenue may not be expended upon
receipt. Moneys in the amount credited to the tax losses reserve, as
well as tax revenues actually received for funds to the extent moneys
have been expended therefor in advance of receipt, shall be
available in the county treasury for payment for the same purposes
and in the same amounts as the money advance was available prior to
being advanced; provided however, that if the moneys so advanced were
derived from the proceeds of the sale of bonds, including notes,
certificates of participation, or other instruments evidencing
indebtedness, authorized pursuant to subdivision (e) or otherwise
permitted by law, or the investment of those amounts, then tax
revenues actually received, including delinquent penalties, shall be
used for the repayment of the bonds or the replenishment of any
reserve fund for these bonds, or both.
   (e) Any county that has elected to adopt the procedure authorized
by this chapter is hereby authorized, in addition to any other
financing permitted by law, to fund the procedure by the issuance of
bonds payable from any delinquent taxes, assessments, and delinquent
penalties in accordance with Chapter 6.6 (commencing with Section
54773) of Part 1 of Division 2 of Title 5 of the Government Code.
Once the procedure authorized by this chapter is adopted, the
obligation of the county to fund the procedure is an obligation
imposed by law.



4706.  Upon completion of the computation of delinquent penalties on
unpaid first installments as prescribed by Section 2617 of this code
the auditor shall record the additional amount due on the secured
taxes receivable accounts. The auditor shall similarly record the
accountability for delinquent penalties and costs computed and
entered on unpaid second installments as prescribed by Section 2627
of this code.



4707.  Should any tax or assessment which was apportioned at the
time of levy be changed by correction, cancellation or refund
authorized by Part 9 of Division 1 of this code, a pro rata
adjustment for the amount of such change shall be made in each of the
funds to which apportionment previously has been made. The total pro
rata adjustments of amounts previously apportioned shall be entered
on the apportioned tax resources accounts of the auditor and the
treasurer. The total amount of the changes shall be entered on the
secured taxes receivable accounts of the auditor.



4708.  Amounts received on the secured tax roll for the current year
shall be distributed on the accounts of the auditor and treasurer as
follows:
   (a) Any amounts levied but not apportioned to funds in the manner
authorized by this chapter shall be distributed to the funds for
which levied as prescribed in Chapter 1a of this part.
   (b) Any amounts which were apportioned to funds at the time of the
levy in the manner authorized by this chapter shall be distributed
to the apportioned tax resources accounts.
   (c) Amounts collected as costs shall be distributed to the county
general fund.
   (d) Amounts collected as delinquent penalties shall be distributed
to the tax losses reserve fund.
   The auditor shall record the total secured tax roll collections on
his secured taxes receivable accounts.



4709.  Upon completion of the delinquent roll as prescribed by
Section 2627, the auditor shall verify the total thereof against his
or her accounts. The auditor shall similarly verify against his or
her accounts the total of the list of tax-defaulted property
furnished him or her after the declaration date by the tax collector
as prescribed by Section 3442.
   The auditor shall adjust the secured taxes receivable accounts for
the total amount of any adjustments on the secured tax rolls for
delinquent penalties and costs which are no longer receivable as of
the sale date under Section 4102.



4710.  After apportionment to the state of the amounts prescribed by
Section 4656.5, amounts received for the redemption of tax-defaulted
property shall be distributed as follows:
   (a) Any amounts levied but not apportioned to funds at the time of
levy in the manner authorized by this chapter and any redemption
penalties collected on those amounts shall be distributed to funds as
prescribed in Chapter 1c (commencing with Section 4656), except that
assessments not apportioned previously shall be distributed to the
funds for which levied.
   (b) Any amounts which were apportioned to funds at the time of the
levy in the manner authorized by this chapter shall be distributed
to the apportioned tax resources accounts. The pro rata of redemption
penalties or interest collected on any amounts levied but not
apportioned to funds at the time of levy shall be distributed to the
respective funds and the balance of redemption penalties or interest
together with delinquency penalties shall be apportioned to the tax
losses reserve fund.
   (c) Amounts collected as costs shall be distributed to a
restricted county fund to be allocated only for the following
purposes:
   (1) Updating and improving information with respect to delinquent
taxes.
   (2) Redemption systems.
   (3) Monthly settlements with the auditor pursuant to Section 4108.
   (4) The collection of taxes by the tax collector.
   The total amount collected on the secured tax roll shall be
entered on the secured taxes receivable accounts.



4711.  The proceeds of the sale of tax-defaulted property deposited
in the delinquent tax sale trust fund shall be distributed as
provided in Chapter 1.3 (commencing with Section 4671). However, the
taxes and assessments which constitute the amounts required to redeem
the tax-defaulted property shall, for the purposes of this chapter,
be distributed as follows:
   (a) The amount available for distribution shall be prorated on the
basis of those taxes and assessments between apportioned levies and
unapportioned levies.
   (b) The pro rata share for unapportioned levies shall be prorated
between the amount of tax levies and the amount of assessment levies.
The pro rata share for unapportioned tax levies shall be distributed
to funds on the basis prescribed in Chapter 1.3 (commencing with
Section 4671). The pro rata share for unapportioned assessment levies
shall be distributed to the assessment funds on the basis prescribed
in subdivision (a) of Section 4710.
   (c) The pro rata share for apportioned levies shall be distributed
to the tax losses reserve fund.
   The amount canceled by the sale shall be entered on the secured
taxes receivable accounts. Any canceled amounts which were
apportioned at the time of levy in the manner authorized by this
chapter shall be entered on the apportioned tax resources accounts,
and this cancellation shall be borne by the tax losses reserve fund.



4713.  In any county electing to follow the procedure authorized by
this chapter the tax collector and auditor, or either of them, upon
approval of the county treasurer, may determine by analysis of the
abstract of delinquencies the amounts included therein by the
original tax and assessment levies for each fund, and, on the basis
of such determination, the treasurer and auditor may forthwith enter
the total tax levy on the apportioned tax resources accounts and
apportion to each fund for which taxes were levied 95 percent of the
fund amounts so determined. The remaining 5 percent of the tax
amounts shall be apportioned to the tax losses reserve fund. These
apportionments shall constitute a full liquidation of the share of
each fund in the liens for delinquent taxes appearing on the abstract
list and any amounts thereafter received through redemption or sale
of the property shall be apportioned in the manner prescribed by
Sections 4708, 4710, and 4711 for years in which the procedure
authorized by this chapter has been in effect.




4713.5.  In any county electing under both Sections 4702 and 4702.5
to follow the procedures authorized by this chapter the tax collector
and auditor, or either of them, upon the approval of the county
treasurer may apportion assessment levies in the same manner that
Section 4713 provides for tax levies except that each fund for which
assessments were levied shall be apportioned 100 percent of the
assessment levies so determined. Such apportionments shall constitute
a full liquidation of the share of each fund in the liens for
delinquent assessments appearing on the abstract list and any amounts
thereafter received through redemption, sale or rental of the
property shall be apportioned in the manner prescribed by Sections
4708, 4710, 4711 and 4712 for years in which the procedure authorized
by this chapter has been in effect.



4714.  Taxing agencies for which the county levies and collects
taxes but for which the county treasury is not the legal depositary
may be limited in their withdrawals from the county treasury to
amounts proportionate with actual tax collections by the county
within their taxing areas.



4715.  This chapter shall have no application to tax levies made by
counties on behalf of public districts for which the county treasury
is not the legal depositary unless agreed to by a resolution of the
governing board of the public district and the board of supervisors
of the county, adopted in accordance with Section 4702 for the fiscal
year in which this procedure is to apply to that public district.




4716.  There shall, notwithstanding any other provision of this
chapter, be distributed to each fund not less than the amount which
must under the Constitution be distributed thereto.



4717.  If a tax payment which is insufficient to cover the amount of
taxes due and payable is received by the tax collector of a county
that has elected to follow the procedure authorized by this chapter,
the tax collector shall place the tax payment in a trust fund and
immediately notify the taxpayer of the deficiency.
   In the case of a deficiency in the payment of secured taxes, the
taxpayer may pay the balance due until the date on which the property
becomes tax defaulted by operation of law. If payment of the balance
due is not received on or before that date, the insufficient payment
shall be returned to the taxpayer, and shall become tax defaulted in
the usual manner as provided in this code.
   In the case of a deficiency in the payment of unsecured taxes, the
taxpayer may pay the balance due within six months after the date of
the insufficient payment. If payment of the balance due is not made
within that time, the tax collector or other officer collecting
unsecured taxes shall credit the amount of the insufficient payment
on the unsecured roll.
   If payment of the balance due is made within the time specified in
this section, any delinquent penalty which attaches by operation of
law shall be computed only upon the additional amount required to
bring the payment to a nondelinquent status.
   The county auditor shall make the necessary adjustments in the tax
rolls and in the tax and penalty charges.
   The tax collector may accept payments which are within ten dollars
($10) of the tax due as payment in full. The auditor or controller
shall prescribe methods for accounting and adjusting their accounts
in this matter.
   The provisions of this section shall become effective in any
county when authorized by resolution adopted by majority vote of the
board of supervisors of the county.