REDEMPTION
Frequently Asked Questions
Delinquent Taxes
1) What happens if I fail to pay my property taxes on time?
If you do not pay the first installment of your annual tax bill at the
Tax Collector's Office by 5 p.m. on December 10 (if it falls on a weekend
or holiday, taxes are not delinquent until 5 p.m. the next business day.),
or payment is not postmarked by that time and date, then that installment
becomes delinquent, and a 10% delinquent penalty is incurred. If you fail
to pay the second installment at the Tax Collector's Office by 5 p.m. on
April 10 (if it falls on a weekend or holiday, taxes are not delinquent
until 5 p.m. the next business day.), or payment is not postmarked by that
time and date, it becomes delinquent, and a 10% penalty on the unpaid
taxes as well as an administrative charge of $10 are added. Likewise, if
you fail to pay any supplemental tax bill installment by the applicable
delinquency date, the same penalties and charges accrue as for delinquent
annual taxes.
If there are ANY unpaid taxes as of 5 p.m. on June 30, then the
property becomes tax defaulted. (If June 30 falls on a weekend or holiday,
taxes must be paid by 5 p.m. of the next business day.) Once the property
has become tax defaulted, a State redemption fee of $15 is added and
interest begins to accrue at the rate of 1 1/2% per month of the unpaid
base amount of taxes. This monthly interest is added on the first day of
each month (or the following business day if the first day of the month
falls on a weekend or holiday).
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2) What happens if I fail to pay my defaulted taxes?
Your taxes can remain unpaid for a maximum of five years following
their tax default, at which time your property becomes subject to the
power of sale. This means that your property will be sold at a public
auction or acquired by a public agency if you do not pay the taxes before
the date on which the property is offered for sale or acquisition.
3) What is the amount required to redeem tax-defaulted property?
The amount needed to redeem tax-defaulted property in full is the sum
of the following:
- The total amount of unpaid
taxes for all delinquent years.
- A 10% penalty on every unpaid
installment.
- A $10 cost for each unpaid 2nd
installment.
- Monthly interest of 1 1/2% of
the unpaid taxes as of the accrued date.
- A $15 State Redemption Fee.
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4) How do I obtain an estimate of the amount required to redeem my
property?
To obtain an estimate of the amount required to redeem your property,
you should contact the office of the Tax Collector by calling (209)
468-2133.
When making your request, you will need to provide the Fee Parcel,
which you can find on your tax bill, or the address of the property. Also,
be sure to specify the date on which you wish to redeem so that the
penalty can be calculated properly.
5) Can I redeem one defaulted year separately from other years?
No, one year's defaulted taxes may not be redeemed separately from
other years' defaulted taxes. When the redemption amount is calculated,
the total taxes owed for all defaulted years are combined together.
6) What happens if I cannot pay the full redemption amount?
If you are unable to pay the full redemption amount (i.e., unpaid taxes
for all defaulted years plus penalties and charges), you may start a
payment plan of redemption. This plan allows you to make payments on your
defaulted taxes over a five-year period beginning the date you make the
first payment on the payment plan.
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7) How do I start payment plan of redemption?
To start a payment plan, you must:
- Make an initial payment of at
least 20% of the redemption amount; and
- Pay your current year's taxes.
If you start a payment plan between July 1 and the following April 10,
the current year's taxes and any supplemental taxes must be paid by April
10 or the payment plan will default. To start a payment plan between April
11 and June 30, the current year's taxes (plus any penalties and charges)
must first be paid in full.
8) When may I start a payment plan?
You can start a payment plan after the date on which the property has
become tax defaulted (June 30) and within five years of that date.
On the fifth year, your property becomes subject to the power of
sale.
If you wish detailed information about a payment plan of redemption,
contact the Tax Collector's Office at (209) 468-2133.
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9) How often will I be required to make payments on the payment plan?
Under the payment plan you are required to make one payment each year
for five years, in addition to paying each year's annual taxes. By each
April 10 you must make one payment of 20% or more of the redemption
amount, PLUS interest, which accrues at the rate of 1 1/2% per month on
the unpaid balance once the account has been started. If you fail to make
the payment or fail to pay your current year's taxes or any supplemental
taxes on or before April 10 of each year, then your payment plan will
default.
You can, however, pay the total unpaid balance plus accrued interest
any time before the fifth and final payment is due.
10) Do my payment plan payments cover my current annual taxes?
No. Your installment payments NEVER include your current year's taxes,
which must be paid separately.
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11) If my first payment plan defaults, may I start a second plan?
If your first payment plan defaults either because of your failure to
make at least one payment between July 1 and April 10, or because of your
failure to pay your current year's taxes in full by April 10, you may
start another payment plan. However, the second payment plan may not be
started until July 1 of the following fiscal year. You may NEVER restart a
payment plan in the same calendar year that the property becomes subject
to the power of sale.
If you default a second time, you may start a third payment plan.
If you default a third time, you may start a fourth payment plan.
If you default a fourth time, you may start a fifth payment plan.
No further payment plans can start if the payment plan defaults for the
fifth time. Your property will
then become subject to the power of sale the following June 30. In that
case, your property will be sold at a public auction or acquired by a
public agency if you do not pay the full redemption amount before the date
on which the property is offered for sale or acquisition.
Each time you start a payment plan, you have five years to pay the full
redemption amount. However, it is to your advantage not to default on a
payment plan, since there is an additional penalty. When a second or third
payment plan is started, the redemption amount is computed as though no
previous payments had been made. This means you will be charged the 1 1/2%
monthly penalty on the unpaid taxes as though none of those taxes had been
paid. However, as soon as the first payment on the second or third payment
plant has been made, you will be given credit for any previous payments.
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