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HomeMy WebLinkAboutMINUTES - 03172009 - C.77RECOMMENDATION(S): AUTHORIZE the Tax Collector, or designee, to accept partial payments of defaulted taxes as provided in Revenue and Taxation Code section 4143. FISCAL IMPACT: It is anticipated that the acceptance of partial payments of defaulted taxes under Revenue and Taxation Code section 4143 will generate a small increase in revenue. The amount of receipts that will be generated depends on the number of taxpayers who make a partial payment of such taxes pursuant to this section. BACKGROUND: The Tax Collector currently is able to accept partial payments of defaulted taxes on a payment installment plan as provided in Revenue and Taxation Code section 4143 et seq. The taxpayer is required to make a payment of at least 20 percent of the defaulted amount each year for five consecutive years under such an installment plan, in addition to current taxes. Some taxpayers, such as those possibly facing bankruptcy, cannot afford to make a 20 percent payment of their defaulted taxes or are unable to commit to make a 20 percent payment of their defaulted amount APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 03/17/2009 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Russell Watts, 957-2801 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: March 17, 2009 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: Celicia Nelson, Deputy cc: C.77 To:Board of Supervisors From:William J. Pollacek, Treasurer-Tax Collector Date:March 17, 2009 Contra Costa County Subject:Treasurer-Tax Collector BACKGROUND: (CONT'D) for five consecutive years. Revenue and Taxation Code section 4143 allows the Tax Collector, with the approval of the Board of Supervisors, to accept partial payments of defaulted taxes in any amount (e.g. less than 20% of the defaulted amount and/or without an installment plan). Pursuant to this section, the Tax Collector applies such partial payments first to all penalties, interest and costs with the balance being applied to the defaulted taxes. The difference between the amount paid by the taxpayer and the amount due is treated as a delinquent tax in the same manner as any other defaulted tax under the Revenue and Taxation Code. Authorizing the Tax Collector to accept partial payments of defaulted taxes under Revenue and Taxation Code section 4143 will allow the Tax Collector to maximize the County's recovery of such taxes. It does not allow the Tax Collector to reduce the amount of the defaulted taxes owed, only to accept the payments that are less than the full amount owed without implementing a payment installment plan. CONSEQUENCE OF NEGATIVE ACTION: If the Tax Collector is not authorized to accept partial payments of defaulted taxes pursuant to the Revenue and Taxation Code section 4143, the County may lose revenue from taxpayers who are unable to make a full payment of defaulted taxes or are unable to make payments under a payment installment plan, but who could make a partial payment.