COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

DATE:

January 12, 2004

BOARD MEETING DATE:

January 27, 2004

TO:

Honorable Board of Supervisors

FROM:

County Counsel

SUBJECT:

Jack Wilson Claim for Property Tax Refund (APN 080-040-070)

Recommendation

Deny the claim for refund of property taxes in the amount of $443.66 paid for the 2002-2003 tax year on parcel number 080-040-070.

Background

Under California Revenue and Taxation Code Sections 2607 et. seq. and Attorney General Opinion 247 (55 Ops. Atty. Gen. 247, 6-16-72), the entire tax on real property may be paid in full when the first installment is due or anytime thereafter. The second installment may be paid separately only if the first installment has been paid. Partial payment of real property taxes is not compliant under the Code.

Under California Government Code Section 6157, San Mateo County is authorized to impose a reasonable charge for returned checks offered in payment of property taxes to recover processing and collection costs. This charge may be added to and become part of the underlying obligation. Pursuant to San Mateo County Board of Supervisors Resolution 57330, adopted on July 13, 1993, the Tax Collector-Treasurer charges a $35 fee for returned checks.

Discussion

The first property tax installment for Parcel no. 080-040-070 was paid in a timely manner by Jack Wilson of Linwood Realty and applied by the Tax Collector-

Treasurer. Sometime thereafter a check was received from the owner of the subject property, Colin Palmer, for payment of property taxes on the same parcel and was applied to payment of the second installment. That check bounced and was returned. Consequently, the Tax Collector-Treasurer added a $35.00 fee to the remaining tax obligation and notified Mr. Palmer of the bounced check and the additional fee by letter dated January 9, 2003. There were no penalties added at that time because the second installment had not yet come due. Mr. Palmer never responded in any way.

Prior to April 10, 2003, the due date for the second property tax installment, the Tax Collector-Treasurer received a check for the second installment amount from Jack Wilson of Linwood Realty. The check amount, however, was short the $35.00 bounced check fee and was therefore rejected as an underpayment of taxes. A delinquent notice was sent to the owner of the property, Colin Palmer, in May 2003. The remaining balance incurred redemption fees and penalties until it was paid in full by cashier's check on August 25, 2003.

The second property tax installment including the returned check fee was not paid in full in a timely manner despite the fact that the Tax Collector-Treasurer provided proper notice to the property owner of the additional fee as well as of his delinquency. It appears there may have been a miscommunication between the owner of the property and the property manager, Linwood Realty. There is no basis, however, for a refund of the $443.66 penalty under the law and the claim should therefore be denied.