Part 8COLLECTION OF ASSESSMENTS

Section § 8680

Explanation

This law explains how unpaid assessments, which are essentially fees that haven't been paid on time, are paid off over time through annual payments. These payments match the schedule and amounts needed to pay off bonds as they mature or become due for early payment. Each year's amount due, plus interest, is paid the same way and time as city property taxes. If payments are late, they generally incur the same penalties as property taxes, unless the city decides on different penalties in advance.

Specifically, the city can impose a 2% monthly penalty on overdue payments. This penalty starts right after the installment is late and continues to increase by 2% each month until all is paid. This penalty replaces any other penalties. The city treasurer or another appointed party collects these penalties, which go into a fund specifically for paying off these bonds.

(a)CA Streets and Highways Code § 8680(a) The unpaid assessments shall be payable in annual installments corresponding in number and proportionate amount to the number of installments and principal amounts of bonds maturing or becoming subject to mandatory prior redemption in each year pursuant to Section 8650.1. An annual proportion of each assessment shall be payable in each fiscal year preceding the date of maturity or mandatory prior redemption date of each of the bonds which have been issued, sufficient to pay the bonds when due. The annual proportion of each assessment coming due in any year, together with the annual interest on the assessment, shall be payable in the same manner and at the same time and in the same installments as the general taxes of the city on real property are payable, and the assessment installments and the annual interest on the assessment shall be payable and become delinquent at the same times and in the same proportionate amounts and, except as provided in subdivision (b), shall bear the same proportionate penalties and interest after delinquency as do the general taxes on real property of the city.
(b)CA Streets and Highways Code § 8680(b) The legislative body may provide, in the resolution of intention to do the work, that a penalty of 2 percent per month of the total amount of the delinquent installment shall be added to the delinquent installment after the close of business on the delinquency date and an additional penalty of 2 percent of the amount of the delinquency shall be added at the beginning of business on the 10th day of each succeeding month until that delinquent installment and all penalties thereon are fully paid. This penalty shall be in lieu of all other penalties assessed by other provisions of law. The treasurer or the designated paying agent shall collect the penalties with, and as a part of, the delinquent installments, or the legislative body may designate another official and another method of collection. All penalties collected shall be deposited in the redemption fund.
unpaid assessments annual installments bonds maturity mandatory redemption city property taxes delinquent penalties interest on assessment monthly penalty redemption fund property tax penalties resolution of intention treasurer collection paying agent installment delinquency redemption date
(Amended by Stats. 1990, Ch. 446, Sec. 14.)

Section § 8681

Explanation

Interest starts accumulating on unpaid assessments from the date the contractor's statement is filed or another specified date, like when the bonds are issued, depending on the applicable law. This interest is calculated annually based on the rate stated in the securing bonds and is collected up until the following September 2nd. The interest applies continually, even if some payments have been made earlier in the year.

Interest on all unpaid assessments shall begin to run from the date of filing of the contractor’s statement, or as otherwise provided in the law pursuant to which the assessment was levied, or from the date of the bonds if the assessment was levied under the Municipal Improvement Act of 1913 or other law, and shall be computed at the rate specified in the bonds secured by the assessments. For each year interest shall be computed and collected up to the next second day of September succeeding, no deduction being made by reason of any installment of the assessment being due or paid prior thereto in such year.
unpaid assessments interest contractor's statement filing assessment bonds Municipal Improvement Act of 1913 interest rate calculation annual interest collection September 2nd interest assessment installment payments interest accumulation date secured by bonds assessment levying laws contractor statement date assessment interest rules law-specified interest date bond issuance date
(Amended by Stats. 1993, Ch. 194, Sec. 14. Effective January 1, 1994.)

Section § 8682

Explanation

This law outlines the process for handling unpaid assessments that are used to secure bonds. First, a copy of the order about the unpaid assessments must be filed with the auditor, who keeps records of the installments of principal and interest due each year. The auditor notes these installments on the tax assessment roll for each affected property.

Additionally, the auditor can include up to a 5% fee on these installments to cover collection costs, although this amount can't exceed $8 per property per installment unless the landowner consents. These fees help cover administrative and collection expenses the city incurs. There are limitations on what the city can charge landowners for collection.

Finally, for assessment districts created before 1988, the collection costs are limited to what was allowed under the statute before 1986 amendments.

(a)CA Streets and Highways Code § 8682(a) A copy of the order of the legislative body determining the assessments remaining unpaid and upon the security of which bonds are issued shall be filed in the office of the auditor. The auditor shall keep a record in his or her office showing the several installments of principal and interest on the assessments which are to be collected in each year during the term of the bonds. The auditor shall annually enter in his or her assessment roll on which taxes will next become due, opposite each lot or parcel of land affected in a space marked “public improvement assessment,” or by other suitable designation, the several installments of the assessment coming due during the fiscal year covered by the assessment roll, including in each case the interest due on the total unpaid assessments.
(b)CA Streets and Highways Code § 8682(b) The auditor shall also add a maximum of 5 percent of the amount of the installments and of the interest so entered, not to exceed the city treasurer’s estimate of the expenses of collection, and in any case not to exceed eight dollars ($8) per lot or parcel per installment, except with the landowner’s written consent. The expenses of collection shall include necessary administrative expenses of the city incurred in providing the auditor with current information regarding the ownership or division of the affected lots or parcels of land to ensure the proper entry by the auditor in his or her assessment roll of the several installments of the assessment coming due during the fiscal year covered by the assessment roll and the timely collection of the installments. The percentages, and the amount represented by the installments, when collected shall belong to the city and shall cover the expenses and compensation of the city treasurer incurred in the collection of the assessments, and of the interest and penalties added on to the assessments. No other percentage or amount shall be claimed by the legislative body for the collections.
(c)CA Streets and Highways Code § 8682(c) In the case of an assessment district created prior to January 1, 1988, the amount of collection costs which may be collected pursuant to this section may be the amount which could have been collected pursuant to this section as it read prior to being amended by Chapter 874 of the Statutes of 1986.
unpaid assessments bond security auditor's record installments collection costs public improvement assessment assessment roll administrative expenses city treasurer fiscal year collections collection fee limits landowner consent pre-1988 districts assessment district interest on unpaid assessments
(Amended by Stats. 1990, Ch. 446, Sec. 15.)

Section § 8682.1

Explanation

This law explains how a city can manage the expenses related to the registration of bonds. Every year, additional costs associated with bond registration are added to the property tax bill for each lot or parcel of land. These costs may include fees paid to agents who handle bond tasks like registration, transfer, and payments. If the city does these tasks themselves, the costs can include city employee salaries and other related expenses.

Alternatively, the city can decide to calculate and include the total estimated expenses for the entire bond term in the initial bond assessment and use a special fund to cover these costs annually. Any leftover money in this fund is handled according to another specific law once the bonds are paid off.

(a)CA Streets and Highways Code § 8682.1(a) In addition to the amounts set forth in Section 8682, the auditor shall further annually enter in the assessment roll on which taxes will next become due, opposite each lot or parcel of land affected, in the manner set forth in Section 8682, each lot’s or parcel’s pro rata share of the annual expenses of the city in connection with the registration of the bonds under the system of registration authorized by Chapter 1.5 (commencing with Section 5050) of Division 6 of Title 1 of the Government Code, as determined by the legislative body. The expenses shall include the amount or estimated amount necessary to pay the fees and charges coming due during the fiscal year covered by the assessment roll of corporate or other authenticating agents, transfer agents, registrars, paying agents, agents engaged to assist in complying with federal arbitrage requirements, or other agents of the city. If the city performs any transfer, registration, authentication, payment, or other function described in this section, the expenses shall include a pro rata amount of the salaries of the city employees involved in the performance of the functions and all other costs incurred by the city in connection with the functions.
(b)CA Streets and Highways Code § 8682.1(b) Alternatively, the legislative body may elect to include in the assessment, and in the amount of the bonds, the estimated aggregate total of the expenses throughout the term of the bonds and to pay the annual amounts of the expenses from the fund created. Any amount remaining in the fund upon the retirement of the bonds shall be disposed of as provided in Section 8783.
bond registration expenses property tax roll pro rata share city expenses bond system registration assessment roll fiscal year fees authenticating agents transfer agents paying agents federal arbitrage compliance city employee salaries expense fund retirement of bonds annual property assessment
(Amended by Stats. 1989, Ch. 104, Sec. 18.)

Section § 8683

Explanation

If a city (not a county) has proceedings where the county collects assessments, the county auditor must give the city a detailed report within 90 days after payments are late. This report should list how much was collected, including any interest, fines, and the portions kept for expenses, and identify delinquent properties and how long they have been behind.

If the legislative body conducting the proceedings is not a county and collections of assessments are made by county officials, the county auditor shall, within 90 days after each installment becomes delinquent, render to the city a detailed report showing the amounts of the installments, interest, penalties, and percentages so collected on each proceeding and from what property collected, identifying any properties which are delinquent and the amount and length of time in arrears, and also giving a statement of the percentages retained for the expenses of making such collections.
county auditor responsibilities delinquent assessments report city proceedings collection of assessments interest and penalties on assessments detailed collections report property arrears identification installment delinquencies county collections report percentage retention for expenses assessment collection process reporting to city arrears duration county-city collaboration installment payments tracking
(Amended by Stats. 1986, Ch. 874, Sec. 10. Effective September 17, 1986.)

Section § 8684

Explanation

This section gives taxpayers the right to pay their assessments, including interest and penalties, under protest, just like they can with general city taxes. However, they must include a written protest when making such a payment.

Taxpayers shall have the same right to pay assessments together with interest, and any penalties thereon, under protest as they have to pay general city taxes under protest, but their written protest must accompany each such payment.
taxpayer rights pay under protest assessments interest penalties written protest general city taxes protest procedures tax protest requirements payment of assessments interest on assessments penalty payment tax protest process municipal tax procedures objections to tax payments
(Added by Stats. 1941, Ch. 79.)

Section § 8685

Explanation

If a piece of land has an assessment fee but isn't listed separately in the tax records, the auditor must add a description of the land on the tax roll. They should also include the owner's name if known, or list them as 'unknown owners' if not, and record the correct amount due.

If any lot or parcel of land affected by any assessment is not separately assessed on the tax roll so that the installment of the assessment to be collected can be conveniently entered thereon, then the auditor shall enter on the roll a description of the lot or parcel affected, with the name of the owners if known, but otherwise the owners may be described as “unknown owners,” and extend the proper installment opposite the same.
land assessment tax roll property description unknown owners assessment installment auditor responsibilities land tax entry parcel description property tax records lot affected installment collection assessment convenience owner identification
(Added by Stats. 1941, Ch. 79.)

Section § 8686

Explanation

This law allows a city's legislative body to collect interest early if there won't be enough money to pay the interest when it's due. If they decide to do this, the interest can be added to the taxes collected in the previous year instead of the year it was originally scheduled for.

If it appears to the legislative body that, according to the dates when taxes are collected in the city, there will be an insufficient amount on hand to pay the interest when due, according to the method of collection provided by the preceding provisions of this division, the legislative body may direct that such interest or some portion of it be collected in the year preceding that in which the same would otherwise be collected, and thereupon such interest or portion thereof shall be extended on the rolls for such preceding year and be due and collected therein.
early tax collection insufficient funds interest payment tax rolls city taxes legislative body decision interest collection pre-collection of interest financial planning due interest tax collection timing
(Added by Stats. 1941, Ch. 79.)

Section § 8688

Explanation

If you own property and owe money on an assessment, you can pay either all or part of it using the bond associated with that assessment instead of cash.

The bond will be counted at its full value, including any interest up to the payment date. Once you use the bond for payment, the treasurer will cancel it and update the payment records with the auditor and tax collector accordingly.

Any interested owner shall have the right to tender to the treasurer in payment or part payment of any installment of the assessment or interest or penalties thereon which may be due or payable, any bond secured thereby, the bond to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender. The treasurer shall thereupon cancel the bond and shall cause proper credit therefor to be entered on the records of the assessment, in the office of the auditor and tax collector.
property owner payment bond payment assessment installment treasurer accrued interest payment with bonds interest calculations penalty payment bond cancellation payment records tax collector auditor bond at par
(Amended by Stats. 1993, Ch. 194, Sec. 15. Effective January 1, 1994.)

Section § 8689

Explanation

If you have a lease or a similar interest in property within the Bass Lake Improvement District in Madera County, you can pay the entire property tax assessment, or just part of it, even if you don't fully own the land. The tax collector can accept these payments and will keep a record of them.

When you make a partial payment on the property tax, there may be an extra fee to cover administrative costs. This fee goes into the general fund of the treasury.

Within the Bass Lake Improvement District in Madera County, a person who has an interest in any land in the improvement district less than a fee interest, such as a leaseholder or subleaseholder, may pay, and the tax collector may accept payment for the entire assessment or any installment thereon, including the assessment on the fee interest. When the tax collector accepts such payment on a portion or part of a parcel, the tax collector shall record such information as required to identify such payment, and the tax collector may add to such assessment a fee as required to pay any additional costs incurred for accepting such payment on a portion of the parcel assessed. The tax collector shall deposit all such fees in the general fund of the treasury.
Bass Lake Improvement District Madera County land interest payment property tax assessment leaseholder subleaseholder tax collector partial payment recording payment administrative fee general fund land parcel fee interest installment payment tax assessment payment
(Added by Stats. 1977, Ch. 833.)