America's Property Tax Advisor

California Can Cancel Property Tax Penalties

BY SCOTT DONALD, IRVINE, AUGUST 2021

A new law gives California local officials authority to cancel property tax penalties in relation to hardships suffered from the COVID-19 lockdown.

 

Senate Bill 219 amends the Revenue and Taxation Code to allow penalties and other delinquency charges to be cancelled by the auditor or tax collector if the failure to make a payment was due to hardship arising from a shelter-in-place order.

 

A shelter-in-place order must meet all of the following criteria:

 

1.

 

The order is issued by the Governor or the local health officer of the city or county in which the property owner resides.

2.

 

The order is enforceable under Section 101029 or 120295 of the Health and Safety Code.

3.

 

The order requires all persons to remain in their place of residence, except for essential activities.

 

Under the new law, the principal payment for the amount of tax due must be paid no later than June 30 of the fourth fiscal year following the fiscal year in which the tax became delinquent.