Governor Newsom Announces Executive Order N-61-20
May 6, 2020
To acknowledge the many taxpayers who have suffered financial hardship as a result of COVID-19 and were unable to pay their property taxes when due, Governor Newsom announced today Executive Order N-61-20. This Order suspends until May 6, 2021, certain provisions of the California Revenue and Taxation code that require the Tax Collector to impose late-payment penalties, costs and interest and orders the Tax Collector to cancel such penalties, costs and interests for specific delinquent property taxes when the following conditions are satisfied:
- the property is either residential real property occupied by the owner or real property owned and operated by the taxpayer who qualifies as a small business;*
- the taxes owed on the property in question were not delinquent prior to March 4, 2020;
- the taxpayer files the penalty cancellation request as prescribed by the tax collector; and
- the taxpayer sufficiently demonstrates the economic hardship or inability to make timely payment was due to the COVID-19 pandemic or the related health orders.
Tax payments under an installment plan are not considered delinquent if, on or before March 4, 2020, all payments required by the plan were made.
The penalty relief does not apply to any property for which taxes are paid through an impound account.
*Please refer to Small Business Administration’s Regulations, Code of Federal Regulations, Title 13, section 121.201 to determine whether you qualify as a "small business."