PLEASE NOTE: ACCORDING TO CALIFORNIA STATE REVENUE AND TAXATION CODE, FAILURE TO RECEIVE A TAX BILL DOES NOT RELIEVE THE RESPONSIBILITY FOR PAYMENT, NOR CONSTITUTE CAUSE FOR CANCELLATION OF PENALTY OR OTHER CHARGES IF THE BILL BECOMES DELINQUENT!

General

Payment Methods and Location

Current Year Secured Property taxes

Secured Supplemental

Delinquent Secured Property

Unsecured Taxes

Payment Plan Arrangements

General

What are the duties of the TAX COLLECTOR?

I am the new owner of the property, why does the tax bill have the previous owner’s name and when will I get a bill with my name?

I sold my property earlier this year but I received the property tax bill in my name. What do I need to do to update your records?

What are the direct levies on my tax bill?

What is judicial foreclosure?

Payment Methods and Location

Can I pay my taxes by CREDIT CARD?

I recently paid my taxes. Why are they not showing as paid on your web site?

Can I pay by Checking or Savings account?

Is there a fee for paying my property taxes online?

I paid my property taxes online but made a mistake while entering my ACH information. I only realized it after I hit the Submit button and got a payment confirmation number. How do I correct my ACH information after it has been submitted ?

Current Year Secured Property taxes

What are Secured taxes?

I received a SECURED TAX BILL for a home (or property) I no longer own. Do I still have to pay the taxes?

I recently purchased a house and received my property tax bill, but I also received two supplemental tax bills. What's going on?

My tax bill was mailed to the wrong address and I never received it. If I pay you immediately, will you remove the penalties?

When will you waive penalties?

I recently purchased a home in Orange County. When will I receive a tax bill?

I recently refinanced my house and I am not sure whether my new lender will pay my property taxes. What should I do?

How may I obtain a copy of the current year Secured Property Tax bill?

How may I obtain a duplicate copy of a current year Secured Property Tax bill which includes the property address and assessee names?

How may I obtain a copy of Previous Year tax bills?

The total assessed value of my property seems high. How can I get this reduced?

I have questions on the Assessed Value of my property and the Exemptions I may be entitled to. Who do I call?

What can I deduct for my real estate taxes on the tax return?

Where can I get more details to thoroughly understand the real estate tax deduction?

When does the new reporting of itemizing deductible and non deductible begin?

Secured Supplemental

What are SUPPLEMENTAL taxes?

When will I receive a Supplemental Tax Bill?

How do Supplemental Tax Bills work?

I recently purchased a house and received my property tax bill, but I also received two supplemental tax bills. What's going on?

Delinquent Secured Property

What is a DEFAULTED TAX BILL?

I have Delinquent taxes for prior years. Where can I find this information on your web site?

What happens if I’m paying my secured property taxes after June 30^th?

What else happens if I do not pay my current year property taxes on time?

Can I arrange a Payment Plan for the unpaid secured property taxes?

Will my credit be affected if I can’t pay my Property Taxes?

What should I do if I can’t afford to make any payments right now?

Unsecured Taxes

What are Unsecured taxes?

My bill says that it is based on ownership of “the property” on January 1st but I don’t own the property so why am I being taxed?

My tax bill was mailed to the wrong address and I never received it. If I pay you immediately, will you remove the penalties

My business was sold in January and I still received a tax bill. Why do I have to pay taxes on a business I no longer own?

The Tax Collector placed a lien on my name which appears on my credit report. How do I get it changed?

My business is being billed by Orange County and another County and I would like to know why?

The value of my business property is over-assessed by the Assessor's office. May I pay taxes on the estimated worth of my business property while I work with the Assessor to correct the over-assessment?

Payment Plan Arrangements

What types of Payment Plans are available to me for unpaid secured property taxes?

When can I start a 5 Pay Plan?

What is required to start a 5 Pay Plan?

How do I get an application?

Will I get monthly statements or bills on my 5 Pay Plan?

Can I pay on my 5 Pay Plan more than once per year?

Do I have to pay with a certified check, money order or cash each year?

Can I pay off my 5 Pay Plan before the fifth year?

Is it necessary to keep paying my current year taxes while I’m on a 5 Pay Plan?

What will cause my 5 Pay Plan to “default”?

What happens if my 5 Pay Plan “defaults”?

What is required to restart a 5 Pay Plan?

What happens if the 5 Pay Plan defaulted and five years has surpassed the earliest delinquent date?

What types of payment plans are available to me for unsecured property taxes?

What is required to start a Four Year Payment Plan?

What is required to maintain a Four Year Payment Plan?

Will I be notified when a payment is due?

If I cannot pay the full amount of taxes due, may I pay one delinquent year separately from other years?

What payment option is available to me for delinquent taxes?

How do I open an installment plan of redemption?

When may I open an Installment plan?

How often will I be required to make installment payments?

Do my installment payments cover my current annual taxes?

If I default on an Installment Plan of Redemption, may I open another one?

What is the advantage of paying my prior year delinquent taxes on the Installment Payment Plan?

Q. What are the duties of the TAX COLLECTOR?

A. The Tax Collector collects all property taxes pursuant to California Revenue and Taxation Code Section 2602. This represents approximately $4.3 billion for the County, Schools, Cities and Special Districts. For additional information, see the County of Orange Treasurer-Tax Collector Business Plan on our web page.

Q. I am the new owner of the property, why does the tax bill have the previous owner’s name and when will I get a bill with my name?

A. By law, the tax bill is issued to the owner of the property as of lien date January 1st each year. If you purchased the property on or after January 1st, the prior owner’s name and value will appear until the following year. You may receive a Supplemental tax bill with your name, reflecting the change in value if the purchase price is greater than the previously assessed value. Prior to the mailing of the supplemental tax bill, the Office of the Assessor will mail a supplemental notice indicating the value change from the previous owner’s assessed value or the change in value from new construction. This can take up to a year from the purchase date.

Q. I sold my property earlier this year but I received the property tax bill in my name. What do I need to do to update your records?

A. By law, the tax bill is issued to the owner of the property as of lien date January 1st each year. If you sold the property on or after January 1st, you may still receive the tax bill in your name. If you no longer own the property and the taxes were paid through escrow, then you can disregard the bill. If you know the new owner of the property you may forward the bill to them. The new owner should contact our office and request a duplicate bill or retrieve a copy of the bill from our website. The ownership information will be updated by the Assessor’s office through their normal business updates.

Q. What are the direct levies on my tax bill?

A. Direct levies are direct charges against property which are included in the total amount of your tax bill but which are not ad valorem taxes based on the Assessor's valuation. Direct levies are levied on the tax bill on behalf of the District and are not levied by the Assessor's or Tax Collector’s Office. To dispute a special assessment levied against your property, you will need to contact the levying district directly. The contact names and telephone numbers of the Districts are listed on your secured property tax bill. You may have a Mello-Roos special tax, a 1915 Improvement Bond Act special assessment or a direct special assessment designated as “SPL ASMNT USER FEES” on your tax bill. If direct special assessments have been included on your tax bill, the name of the assessment and the dollar amount of the assessment will be shown on the face of your tax bill. Some special assessments are subject to the accelerated judicial foreclosure process.

Q. What is judicial foreclosure?

A. Annual property tax bills and a minimal number of supplemental and addenda tax bills include special assessments that are bonded debt that subjects properties to accelerated judicial foreclosure by the district that placed the assessment on the tax bill. When a tax bill that includes a foreclosable assessment is unpaid on the last business day of June, the district that initiated the assessment may record a notice of intent to foreclose on the property.

Q. Can I pay my property taxes by CREDIT CARD?

A. Yes! We accept American Express, Discover Card, MasterCard and Visa whether you want to pay your taxes in person, over the phone or via the internet. Please note a 2.5% convenience fee will apply. To pay by phone, call (714) 834-3411 or click on this link to pay online.

Q. I recently paid my taxes. Why are they not showing as paid on your web site?

A. Payments, corrections and other adjustments take 2-3 business days before they are reflected on the web site. All online payments are time and date stamped; as long as your payment confirmation date is before the delinquent date, your taxes will be considered timely.

Q. Can I pay by checking or savings account?

A. Yes you may pay online through your checking or savings account without being charged a convenience fee. When you pay by "ACH Debit" (also known as automatic debit, direct debit or electronic debit) you authorize us to automatically debit the amount from your checking or savings account. To pay this way, follow our website link "Pay/Review Your Property Taxes", enter your parcel number and select the tax bill you want to pay. Click on the link to "PAY BY CHECKING/SAVINGS ACCOUNT" Enter all the required information for your account and Submit. Wait until you receive a payment confirmation number. Please remember to print this page or write down the payment confirmation number for reference. If you do not receive a confirmation number, please call our office immediately!

Q. Is there a fee for paying my property taxes online?

A. If you choose to pay your taxes online through your checking or savings account by ACH Debit, there is no fee charged. If you choose to pay by credit card, there is a 2.5% convenience fee charged in addition to the property tax amount you paid. This convenience fee is collected by the Credit Card associations, not by the Treasurer-Tax Collector nor the County of Orange.

Q. I paid my property taxes online but made a mistake while entering my ACH information. I only realized it after I hit the Submit button and got a payment confirmation number. How do I correct my ACH information after it has been submitted?

A. Once you realize that you mistyped any of the ACH information you submitted, it is important to update it right away with the correct information. Corrections can only be made on the same day the erroneous information was submitted. In other words, if you miskeyed your account number when you tried to pay online today, you may still change it by retrieving your parcel again from the search screen, and keying in the correct information when you get to the ACH screen. When you re-submit the transaction, the browser will return a confirmation page with the same confirmation number that you initially have. However, if you try to correct and submit your information the next day or thereafter, a new payment record will be generated and your payment may be duplicated. Important: Corrections can only be made on same-day transactions for payments made by ACH. Approved credit card transactions cannot be corrected by submitting a new one.

Q. What are SECURED taxes?

A. SECURED taxes are real estate taxes. These taxes are a lien on a real property.

Q. I received a SECURED TAX BILL for a home (or property) I no longer own. Do I still have to pay the taxes?

A. If sold or transferred the home or property during the year, you should forward the bill to the new owner. Otherwise, you may note "sold to" with the new owner's name on the envelope and return it to the Tax Collector's office. The new owner is responsible for paying secured property taxes.

Q. I recently purchased a house and received my property tax bill, but I also received two supplemental tax bills. What's going on?

A.The first year of owning a new home can be confusing because of the government cycle for assessing property and sending out tax bills. Property tax bills are sent every September or October and are based on the property's assessed value on January 1st of that year. The first installment payment is due no later than December 10th, and the second installment payment is due no later than April 10th.

Supplemental tax bills are sent out separately from the regular bills and cover the difference between the previous owner's assessed value and the new purchase price. Because the County operates on a July-June fiscal year, some people will receive more than one supplemental tax bills depending on when the property was purchased or new construction was completed.

For example, if you bought your house on August 31st for $500,000 and the house was previously assessed for $200,000, the regular tax bill will be based on the previous owner's lower value as of January 1st. The seller should have paid part of the taxes (from July 1 to Aug 31) covering their ownership period up until escrow closed. A supplemental tax bill, usually sent three to six months after the purchase,will cover taxes for the additional $300,000 in value for the current fiscal year.

If you bought your house on May 31st, your tax bill would straddle two fiscal years. You would receive a supplemental tax bill for the pro-rated difference in value between April 1st and June 30th, and a second bill for the period July 1st to June 30th of the following year.

PLEASE NOTE: If your taxes are impounded by your mortgage company, the supplemental taxes are generally not covered and the taxpayer must pay them separately! Please call our office if you have any questions.

This is how secured property taxes are handled under Proposition 13 for the taxes incurred during transitions between sellers and buyers. Property taxes under Prop. 13 are based on 1% of the purchase price of your home. The bills may be higher than 1% due to special assessments in your taxing district for sanitation, water districts, vector control, bond issuances and Mello-Roos charges.

Q. My tax bill was mailed to the wrong address and I never received it. If I pay my taxes immediately, will you remove the penalties?

A. Pursuant to the Revenue and Taxation Code Section 2610.5, failure to receive a tax bill does not relieve the taxpayer of responsibility for payment, nor does it constitute cause for cancellation or waiver of penalties or costs should the bill become delinquent.

Q. When will you waive a penalty?

A. California Revenue and Taxation code 4985 allows for cancellation of penalties, costs or other charges associated with a tax delinquency if failure to make timely payment is due to “reasonable cause and circumstances beyond the taxpayer’s control.” We understand that sometimes mail does go astray, sometimes credit card transactions fail to transfer, and sometimes electronic checks fail to be processed. In these cases we require valid documentation which provides evidence that your payment was made timely. In essence, it’s a judgment call of the Tax Collector’s office, and we require supporting documentation that would satisfy a Grand Jury investigation!

Of course, you may disagree with the Tax Collector’s decision. If you would like to appeal that decision, you may submit a “Claim for Refund” to the Clerk of the Board of Supervisors available at https://ptms.ocgov.com/eClaimForRefund/CFRWebFormInstructions.aspx. If your claim is also denied, you may then litigate the matter in Superior Court.

What is NOT “beyond the taxpayer’s control”?

A. An example would be placing the tax payment into a US Postal Service drop box on the due date and the payment is subsequently postmarked with the next day’s postmark date. If you wait until the last day to mail your payment, please make sure you witness the postal employee hand-stamping the postmark on your mailing envelope. Otherwise, if we receive payment with a postmark after the due date it will be considered late and penalties will apply.

Other examples of unacceptable reasons include but are not limited to:

you were confused about when property taxes were due
you recently experienced financial hardship and could not pay on time
you always pay your taxes on time
you were on vacation and forgot to pay
The mailman didn’t come...

What IS “beyond the taxpayer’s control”?

An example would be a medical emergency involving YOU on the last day to pay the taxes. Or, the death of an immediate family member occurs on the last day to pay the taxes. Or, theft of mail within the U.S. Postal Service’s control. And yes, we require documented proof to substantiate these claims!

Each request must stand on its own merit. The key is that the Tax Collector’s office must be convinced beyond doubt that the late payment was beyond the taxpayer’s control.

Q. I recently purchased a home in Orange County. When will I receive a tax bill?

A. The Treasurer-Tax Collector mails secured tax bills once each year in either September or October. If you have not received your property tax bill by the end of October, please call our office at (714) 834-3411 to request a duplicate tax bill or visit our website at www.ttc.ocgov.com and a copy of your current bill will be available through the link "Pay/Review Your Property Taxes".

Q. I recently refinanced my house and I am not sure whether my new lender will pay my property taxes. What should I do?

A. Please contact your new lender for this information or call our office. If you are not sure, we recommend that you pay the property taxes yourself to avoid late penalties. Duplicate payments will be refunded within 6 weeks of receipt.

Q. How may I obtain a copy of the current year Secured Property Tax bill?

A. To view and print a copy of the current year secured property tax bill, select the following link http://bos.ocgov.com/octaxbill/. Please note property addresses and assessee names are not displayed on this version for privacy purposes in compliance with California Government Code section 6254.21.

Q. How may I obtain a duplicate copy of a current year Secured Property Tax bill which includes the property address and assessee names?

A. To request a duplicate copy of a current year Secured Property Tax bill, please send an e-mail to ttcinfo@ttc.ocgov.com and include “Duplicate Tax Bill Request” in the subject line. The email should include the parcel number (APN) you are requesting and the name and mailing address you would like it to be sent.

Q. How may I obtain a copy of Previous Year tax bills?

A. To view and print a copy of the previous year tax bills, select the following link http://bos.ocgov.com/octaxbill/. Please note that previous year tax bills will display the amounts due at the time the tax bill was originally issued. Any subsequent corrections or adjustments will not be included. If a payment deadline was missed, the amount due will be different then that which is reflected on the bill copy. Please note that property addresses and assessee names are not displayed on this version for privacy purposes in compliance with California Government Code section 6254.21,

Q. The total value shown for my property on your web page seems high. How can I get this reduced?

A. You should direct your questions concerning property valuation to the County Assessor's Office at (714) 834-2727 or go to www.oc.ca.gov/assessor.

Q. I have a question on the assessed value of my property and the exemptions I may be entitled to. Who do I call?

A. For general information on assessed values and exemptions, you may go to the Assessor Department website at www.oc.ca.gov/assessor, or you may call the Assessor at (714)834-2941. For specific information on exemptions, call: Homeowners' Exemptions at (714)834-3821, Veterans' Exemptions at (714)834-7689, Institutional Exemptions at (714)834-2779.

Q. What can I deduct for my real estate taxes on the tax return?

The deductible items are generally, only the amount based on the assessed value of the property is deductible. The deductible amount is identified on your Secured tax bill as the assessed valued multiplied by an associated tax rate percentage. To view a bill sample, click Here.
The Non Deductible – These are amounts that are not based on the assessed value of the property and include special assessments, Mello- Roos, direct levies and fees. These charges are listed on the Secured tax bill below Your Tax Distribution section under the category of “SPL ASMNT USER FEES’.

For specific deductible details, contact a certified tax preparer or visit the California Franchise Tax Board at: https://www.ftb.ca.gov/individuals/Real_Estate_Tax_Deduction/index.shtml.

Q. Where can I get more details to thoroughly understand the real estate tax deduction?

A. For the exact details you may contact a certified tax preparer or visit the California Franchise Tax Board at: https://www.ftb.ca.gov/individuals/Real_Estate_Tax_Deduction/index.shtml.

Q. When does the new reporting of itemizing deductible and non deductible begin?

A. This method takes effect with your 2012 California tax return and will cover the property taxes paid during the calendar year of 2011. For copies of your current and previous year’s tax bills, click http://bos.ocgov.com/octaxbill.

Q. What are SUPPLEMENTAL taxes?

A. SUPPLEMENTAL taxes are levied on property as it exists on the date of the change in ownership or completion of new construction in accordance with Article XIII A of the California Constitution Supplemental taxes represent the additional taxes due for an increase in the assessed value resulting from an ownership change or new construction . If you purchased the property for less than the previously assessed value, you may receive a supplemental tax refund.

Q. When will I receive a Supplemental Tax Bill?

A. Changes in ownership or new construction will prompt a Supplemental tax bill. Mailings of supplemental bills are only done a few times per year so don’t be concerned if you haven’t received one.

Q. How do Supplemental Tax Bills work?

A. Supplemental tax bills are prorated from the date of the transfer or completion of new construction to the end of the tax year (June 30). If the supplemental assessment is a positive amount, the County Auditor-Controller will calculate and prorate the supplemental property tax from the date the event occurred, through the end of the fiscal year (June 30). The Tax Collector will mail supplemental tax bill(s) within a few weeks. If the supplemental assessment is a negative amount, a refund may be generated for a portion of the taxes that have already been paid. The County Auditor-Controller will review your payment status, and if you are entitled to a refund, a check will be mailed a few weeks after the tax bills are mailed.

Q. What is a DEFAULTED TAX BILL?

A. Current year Secured Property Tax bill is considered “Defaulted” if not paid by 5:00 p.m. on June 30^th of the fiscal year in which it is due.

Q. I have Delinquent taxes for prior years. Where can I find this information on your web site?

A. Our web site provides comprehensive information on all taxes. You should be able to find Prior Year Delinquent tax information when you key in your parcel number. You may also key in your Address, Tax Collector Reference No., Tax Year, Assessment No., Tax Lien No., Watercraft or Aircraft Registration Nos. for Unsecured tax information.

Q.What happens if I’m paying my secured property taxes after June 30th?

A. After June 30th, a $15.00 Redemption Fee is added and an additional 1.5% penalty is calculated on the base amount and added at the beginning of each month until the delinquency is paid in full.

Q. What else happens if I do not pay my current year property taxes on time?

A. Properties become subject to the Tax Collector’s Power to Sell at 12:01 a.m. on July 1, after five or more years have elapsed since the property became delinquent.

Q. Can I arrange a Payment Plan for the unpaid secured property taxes?

A. Payment plans are only available on secured property tax bills once they’ve fallen into the category of “Prior Year”, in other words after the end of our fiscal year, June 30th.

Q. Will my credit be affected if I can’t pay my Property Taxes?

A. The Tax Collector’s office files a “Power to Sell” after July 1 of the fifth year since taxes defaulted. The Tax Collector’s office files no other documents until that time.

Q. What should I do if I can’t afford to make any payments right now?

A. Once your taxes become delinquent, you may start a 5 Pay Plan for your delinquent taxes as long as your taxes are not subject to the Power to Sell. You must wait until after July 1 to start a payment plan. (Payment plans are not available for current year taxes.)

Q. What are UNSECURED taxes?

A. UNSECURED taxes cover all business and personal property, such as aircraft, mobile homes and boats. These taxes are a lien on the assessed owner of the property.

Q. My bill says that it is based on ownership of “the property” on January 1st but I don’t own the property so why am I being taxed?

A. The Unsecured tax bill is for the business personal property which includes tangible property owned, claimed, possessed or controlled in the conduct of a business, profession or trade. Business personal property includes, but is not limited to:

Machinery
Equipment
Furniture
Fax Machines
Photocopiers
Computers
Telephones
Desks and Chairs
Bookcases
Supplies

Q. My business was sold in January and I still received a tax bill. Why do I have to pay taxes on a business I no longer own?

A. The tax liability (lien) date is January 1 at 12:01 a.m. This date determines the liability for the current year (July 1 to June 30). In this instance, the tax bill would have been issued in your business name and the liability is your responsibility. A recommendation is for the sale agreement to provide that the purchaser pays an estimated tax at the time of business transfer.

Q. The Tax Collector placed a lien on my name, which appears on my credit report. How do I get it changed?

A. A lien is placed against the individual for delinquent unpaid taxes. In order to clear the delinquency, all taxes, costs, and penalties must be paid. Upon payment in full, the Treasurer-Tax Collector's office advises the County Recorder's office of the payment. This information is then obtained by the credit bureaus and they update their records to show that the lien had been satisfied. Taxpayers must be aware that neither the Treasurer-Tax Collector nor the County Recorder are responsible for clearing up delinquencies with credit agencies.

Q. My business is being billed by Orange County and another County and I would like to know why?

A. In this situation, the Treasurer-Tax Collector's office must refer you to the County Assessor's office. The County Assessor is the only Department that can determine tax liability. If you were not in business in Orange County on January 1 (lien date), then you may want to provide the Assessor some type of proof, such as a copy of the tax bill from the other county, cancellation of a lease agreement and/or the closing electric or telephone bill. You can reach the Assessor's office at (714) 834-2727 or view the Assessor's website at http://www.oc.ca.gov/assessor.

Q. The value of my business property is over-assessed by the Assessor's office. May I pay taxes on the estimated worth of my business property while I work with the Assessor to correct the over-assessment?

A. The Revenue and Taxation Code requires you to pay the full amount of the current tax bill. You will receive a refund with interest (if interest is greater than $10.00) upon a correction issued by the Assessor's office.

Q. What types of Payment Plans are available to me for unpaid secured property taxes?

A. The only payment plan available is the 5 Pay Plan. The 5 Pay Plan allows you to payoff your delinquent taxes in yearly installments up to five years.
With a 5 Pay Plan you make yearly payments of 20% or more of the original delinquency plus accrued interest at the rate of 1.5% per month on the unpaid balance. Payments must be made no later than April 10th of each succeeding year.

Q. When can I start a 5 Pay Plan?

A. Payment plans are only available for Prior Year unpaid taxes; therefore the earliest you can start a 5 Pay Plan is after July 1 of the year in which your taxes become delinquent.

Q. What is required to start a 5 Pay Plan?

A. To start a 5 Pay Plan for delinquent taxes, you must complete an application and make an initial payment of 20% or more of the redemption amount (total taxes which includes penalties, fees and interest) plus a set up fee of $25.00. This initial payment must in the form of a certified check, money order or cash. (Please do not mail cash if you are starting the payment plan by mail).

Note: Please call our office at (714)834-3411 to find out the minimum amount required to start the plan.

Q. How do I get an application?

A. You may download an application from our website at: http://egov.ocgov.com/vgnfiles/ocgov/TTC/doc/5%20Pay%20Plan%20Application%20Form%20(English).pdf
You may also request an application by phone to be mailed to you or drop by our office to pick one up. (See office hours and location under “General Information”).

Q. Will I get monthly statements or bills on my 5 Pay Plan?

A. No. Statements are only sent out annually in March to remind you of the April 10 deadline. Please call our office at any time during business hours to get payment or payoff amounts.

Q. Can I pay on my 5 Pay Plan more than once per year?

A. Yes, you can pay more than once a year: however, each payment must be 20% or more of the original defaulted amount plus accrued interest at the rate of 1.5% per month on the unpaid balance.

Q. Do I have to pay with a certified check, money order or cash each year?

A. No, you only need to pay your initial payment with a certified check, money order or cash. Subsequent payments can be made in any form including personal checks or on-line at http://bos.ocgov.com/octaxbill.

Q. Can I pay off my 5 Pay Plan before the fifth year?

A. Yes. A payoff can be made at any time. There are no pre-payment penalties.

Q. Is it necessary to keep paying my current year taxes while I’m on a 5 Pay Plan?

A. Yes. Non payment of your current year taxes by April 10 each year will result in “defaulting” the plan.

Q. What will cause my 5 Pay Plan to “default”?

A. Non payment of your current year taxes OR non payment of the minimum 20% payment on the plan by April 10 each year will “default” the plan.

Q. What happens if my 5 Pay Plan “defaults”?

A. You can restart the 5 Pay Plan as long as the earliest delinquent date has not surpassed five years. 5 Pay Plans can not be established or restarted if the taxes become subject to the Tax Collector’s Power to Sell.

Q. What is required to restart a 5 Pay Plan?

A. To restart the plan, you must complete another application and provide an initial payment of 20% or more of the delinquent amount plus a set up fee of $25.00. The initial payment to restart the plan must be in the form of a certified check, money order or cash.

Q. What happens if the 5 Pay Plan defaulted and five years has surpassed the earliest delinquent date?

A. Your property will become subject to the Tax Collector’s Power to Sell. In order to avoid the sale of the property, you will have to pay all delinquent taxes in full, including penalties and accrued interest. A 5 Pay Plan will no longer be an option.

Q. What types of payment plans are available to me for unsecured property taxes?

A. California Revenue and Taxation Code Section 4837.5 allows taxes due on escape assessments for prior fiscal years to be paid over a four-year period at the option of the assessee if the dollar amount owed for each assessment on the plan is over $500.00 and a written request for unsecured taxes, the written request for installment payment shall be filed with the tax collector prior to the date on which those taxes become delinquent.

If an escape or underassessment was due, in whole or in part, to the error, omission, or other fault of the assessee, interest at the rate of .75% per month (9% per annum) shall be added to the outstanding balance starting with the month following the date of the deadline for filing the written request. Participation in the payment plan will not stop a lien(s) from being filed.

Q. What is required to start a Four Year Payment Plan?

A. To initiate a four year payment plan, you must do the following:
1. Pay at least 20% of the total taxes due plus a processing fee of $48.00 per assessment prior to the deadline for filing the written request.
2. Pay at least 20% of the original amount due in each succeeding year plus a $9.00 per assessment maintenance fee by August 31st each year. Any amount paid in excess of the 20% payment will be considered a pre-payment of the next installment due and applied as such.
3. Complete and sign the Four Year Payment Plan Agreement and mail to our office on or before the deadline to file a written request.

Q. What is required to maintain a Four Year Payment Plan?

A. To remain in good standing on the installment plan, you must pay the installment amounts in full by the due date, plus applicable interest and an annual maintenance fee of $9.00. In addition, all property taxes must be kept current during the time the plan is in effect. The plan will be terminated should any other property taxes become delinquent or if the property changes ownership. Upon termination, all penalties will revert back to the original delinquent date and the total bill will become due and payable.

Q. Will I be notified when a payment is due?

A. Reminder notices may be sent as a courtesy. If you do not receive a notice, please contact our office or visit our website at http://bos.ocgov.com/octaxbill for the amounts due and any current year taxes outstanding. Failure to receive a reminder notice does not provide a basis for delayed payment, waiver of interest or penalties or reinstatement of a defaulted payment plan.

Q. If I cannot pay the full amount of taxes due, may I pay one delinquent year separately from other years?

A. No, once taxes become delinquent they may not be paid separately. When the redemption amount is calculated, the total outstanding taxes due for all delinquent years are combined and assigned a Tax Default Number (TDN).

Q. What payment option is available to me for delinquent taxes?

A. If you are unable to pay the full redemption amount (i.e., unpaid taxes for all delinquent years plus penalties, costs and other charges), you may open an Installment Plan of Redemption. This allows you to make payments on your delinquent taxes over a five-year period beginning with the date you open the installment account.

Q. How do I open an installment plan of redemption?

A. To open an installment plan, you must:
1. Download a copy of our 5 Year Installment Plan of Redemption Form
2. Make an initial payment of at least 20% of the redemption amount due plus a start up fee of $25.00. Payment must be in the form of certified funds i.e. cashier’s check or money order only.

Q. When may I open an Installment plan?

A. You may open an installment plan after the date on which the property has become tax defaulted (June 30th of the applicable fiscal year). You may not initiate a plan if taxes have been delinquent for five or more years at which time the property becomes subject to the Tax Collector’s Power to Sell.

Q. How often will I be required to make installment payments?

A. Under the installment plan you are required to make at least one payment each year for five years, in addition to paying each year’s annual secured property taxes. By April 10th of each year (or the corresponding last payment date for annual secured property taxes) you must pay at least 20% of the outstanding property taxes due (redemption amount) plus penalties and interest accruing at the rate of 1-1/2% per month on the unpaid balance. If you fail to make any installment payment or fail to pay your current year’s taxes or any supplemental taxes due on or before April 10th (or the corresponding last payment date for annual secured property taxes) each year, then your account will default. You can, however, pay the total unpaid balance plus accrued interest any time before the fifth and final payment is due.

Q. Do my installment payments cover my current annual taxes?

A. No. Your installment payments NEVER include your current year’s taxes. All current year taxes must be paid separately and must be paid by April 10th of each year (or the corresponding last payment date for annual secured property taxes).

Q. If I default on an Installment Plan of Redemption, may I open another one?

A. If your first account defaults for any reason you may open another account on or after July 1st of the following fiscal year. You may NEVER reopen an installment account during the fiscal year in which the property becomes subject to the power of sale. When a subsequent installment account is opened, the redemption amount is re-computed as though no previous payments had been paid. This means you will be charged the 1-1/2% monthly penalty on the original unpaid taxes as though no Installment Plan had ever been started.

Each time you open an account, you have five years to pay the full redemption amount due. However, it is to your advantage to keep an installment account current in order to reduce the amount on which the additional penalty is calculated. You must pay the start –up fee each time you open an Installment Plan and pay at least 20% of the outstanding property taxes due (redemption amount) plus penalties and interest which have accrued at the rate of 1-1/2% per month on the unpaid balance. Any previous payments will be credited after the initial 20% due is calculated and applied to the re-computed redemption amount.

Q. What is the advantage of paying my prior year delinquent taxes on the Installment Payment Plan?

A. As long as the Installment Payment Plan is in good standing, you will have five years to pay the delinquency without worry that the property will become subject to the Tax Collector’s Power to Sell and have the property sold at public auction. It is important to note that if your prior year tax bill includes special assessments for the repayment of debt service obligations under the Improvement Bond Act of 1915 of the Streets and Highways code, and/or special taxes for payment of debt service on bonds issued pursuant to Mello-Roos Community Facilities Act of 1982 (CFD’s), the installment payment account will not prevent or delay foreclosure action on behalf of the bondholder pursuant to Section 53356.1 (a) of the Government Code.

Frequently Asked Questions

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