AB 2705: Property taxation: tax-defaulted property sales: excess proceeds claims.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Under existing property tax law, if unpaid property taxes are declared delinquent and the taxes remain unpaid, the property is declared tax-defaulted and subject to sale, as provided, if not redeemed by the owner within a certain amount of time. Existing property tax law authorizes any party of interest in property that is sold as a tax-defaulted property to file a claim with the county for the excess proceeds, as described.

Existing law requires a person or entity who acts on behalf of, or in place of, any party of interest with respect to filing a claim for any excess proceeds to submit proof with the claim of certain disclosures, including that the party of interest has been advised of their right to file a claim for the excess proceeds on their own behalf directly with the county at no cost. Existing law requires a claim submitted as described above to contain any information and proof deemed necessary by the board of supervisors to establish the claimant’s rights to all or any portion of the excess proceeds.

This bill would subject an agreement between a party of interest and a person or entity who acts on behalf of, or in place of, a party of interest with respect to filing a claim for any excess proceeds to additional conditions, as specified. In that regard, the bill would require the agreement to, among other things, be in writing and to be signed by the party of interest after receipt of specified information. The bill would exempt specified parties of interest from the provision above and would limit the provision to agreements entered into on or after January 1, 2027.

This bill would authorize the county to allow a claimant to correct any insubstantial deficiency in the documentation submitted with the claim as described above, as specified.

Sponsors

Sponsors by party (alphabetical): Republican 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. June 24, 2026In committee: Set, first hearing. Hearing canceled at the request of author.
2. June 18, 2026From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on REV. & TAX.
3. June 3, 2026Referred to Com. on REV. & TAX.
4. May 21, 2026In Senate. Read first time. To Com. on RLS. for assignment.
5. May 21, 2026Read third time. Passed. Ordered to the Senate. (Ayes 67. Noes 0. Page 5233.)
6. May 4, 2026Read third time and amended. Ordered to third reading. (Page 4924.)
7. April 29, 2026Read second time. Ordered to third reading.
8. April 28, 2026From committee: Do pass. (Ayes 4. Noes 0.) (April 27).
9. April 28, 2026Coauthors revised.
10. March 16, 2026Referred to Com. on REV. & TAX.
11. February 21, 2026From printer. May be heard in committee March 23.
12. February 20, 2026Read first time. To print.