When secured and supplemental taxes remain unpaid at the end of the fiscal year (June 30th), they become tax-defaulted. Tax-defaulted properties transfer to the redemption tax roll where they are assigned a sale ID, and begin to accrue penalties (interest) as provided by law. The defaulted taxes accrue an additional 1 1/2 percent of penalty each month (18 percent per annum) until the balance is paid in full. In addition, a $15.00 redemption fee attaches to the defaulted amount(s).
Property that remains in tax-defaulted status for five or more years will become subject to the tax collector's power to sell. Once subject to power to sell, the property may be sold at public auction or otherwise conveyed to new ownership.
The power to sell status may be avoided by initiating and maintaining an installment plan within the first five years of default, or by completely redeeming the property through payment of all unpaid amounts together with penalties and fees prescribed by law, before subject property is sold.
The right of redemption survives the property becoming subject to the power to sell, but terminates at the close of business on the last business day before the actual sale of the property by the tax collector.
Property tax defaulted is a serious matter. Should you have questions regarding a specific parcel, please dial 925-957-5280 for further information.