Property tax: tax-defaulted property sales: sales to public agencies.

Senator Seyarto's proposal to modify California's tax-defaulted property sales process would establish new prerequisites before counties can transfer these properties to public agencies and other authorized buyers. The legislation adds specific conditions that must be met prior to offering tax-defaulted properties for sale.

Under the proposed changes, tax-defaulted properties could only be sold if they meet one of several criteria: previous listing in a public auction, an assessed value of $10,000 or less, or completion of a licensed appraisal with the sale price matching or exceeding the appraised value. The bill also permits sales when the price equals or surpasses a calculated value based on the current assessment plus 5% per year since the base year assessment, though this option excludes properties with structures or occupied mobile homes. Additionally, property owners could authorize sales through written consent.

These new requirements would modify the existing framework that allows county tax collectors to sell eligible tax-defaulted properties to any buyer after three to five years of default, regardless of liens or claims. The current system permits sales to government entities, revenue districts, redevelopment agencies, and approved nonprofit organizations, with proceeds covering unpaid taxes, assessments, penalties and costs. County tax collectors would need to verify that at least one of the new conditions is satisfied before proceeding with these specialized sales.