Four Year Payment Plan Information

COUNTY OF RIVERSIDE TREASURER-TAX COLLECTOR

AGREEMENT TO ENTER INTO A FOUR YEAR INSTALLMENT PAYMENT PLAN

1. To begin the plan, a deposit of 20% of the presently required total amount plus the Four Year Payment Plan startup fee must be submitted on or before the deadline stated.  In addition, I must pay all the current and prior year taxes secured or unsecured, including any supplemental or escaped assessments that may be due, in full with or prior to the initial installment payment. 

2. Prior to each April 10th on a secured assessment and August 31st on an unsecured assessment, I will be mailed an annual courtesy notice from the Tax Collector as to the Four Year Payment Plan (4YPP) amount due. The 4YPP amount due is the next 20% payment of the original amount, plus the annual maintenance fee.  Please note that if the escaped assessments(s) were created due to an error on behalf of the assesse, an additional 0.75% per month of accrued interest will be computed on the unpaid balance and added to each payment due.

3. I must also pay BOTH the current year secured property taxes by April 10 and the current unsecured taxes by August 31, including any supplemental or escaped assessments which may be due, otherwise, this Four Year Payment Plan arrangement will terminate automatically without prior notice.

4. I will keep the Tax Collector promptly informed of any changes in mailing address and will note whether the change is to affect the mailing address on my Four Year Payment Plan.

5. I will accept full responsibility to pay the annual taxes and installments due even though I may, for some reason, fail to receive either the current year tax bill and/or installment payment courtesy notice from the Tax Collector before the due date.

6. Under California law, should this Payment Plan terminate for failure to pay either the current year taxes or the installment payment by the deadline, a re-calculation of the total amount due will occur. This will result in substantial penalties being added to the amount.  My property may become subject to tax sale by the County Tax Collector if the prior year taxes have remained unpaid for five years or more.

8. All my rights, payment obligations, and liabilities resulting from non-payment of the current year taxes and/or Four Year Payment Plans are governed by Section 4837.5 of the California Revenue and Taxation Code.

Q. If I cannot pay the full redemption amount, may I pay one delinquent year separately from other years?
A. No, one year’s delinquent taxes may not be redeemed separately from other years’ delinquent taxes. When the redemption amount is calculated, the total taxes owed for all delinquent years are combined.


Q. What other payment option is available to me?
A. If you are unable to pay the full redemption amount (i.e., unpaid taxes for all delinquent years plus penalties, costs and other charges), you may open an installment plan of redemption. This plan allows you to make payments on your delinquent taxes over a five-year period beginning the date you open the installment account. 

It is important to note that if your prior year tax bill includes special assessments for the repayment of debt service obligations under the  Improvement Bond Act of 1915 of the Streets and Highways code, and/or special taxes for payment of debt service on bonds issued pursuant to  Mello-Roos Community Facilities Act of 1982 (CFD’s), the installment payment account will not prevent or delay foreclosure action on behalf of the bondholder pursuant to Section 53356.1 (a) of the Government Code.


Q. How do I open an installment plan of redemption?
A.

To open an installment payment plan, you must: 

1. Make an initial payment of at least 20% of the redemption amount.
2. Pay your current year’s taxes including any supplemental or escaped assessments which may be due. You must pay any applicable penalties and cost which were added after the delinquent dates. 
3. Pay the start-up fee. 
4. Sign and submit an Installment Payment Plan Application and Agreement                 


Q. When may I open an installment plan?
A. You can open an installment account after the date which the property has become tax defaulted (June 30) and within five years of that date (at which time your property becomes subject to the power of sale).


Q. How often will I be required to make installment payments?
A. Under the installment plan you are required to make one payment each year for five years, in addition to paying each year’s annual taxes. By each April 10 you must make one payment of 20% or more of the redemption amount, plus interest (which accrues at the rate of 1-1/2 % per month on the unpaid balance once the account has been opened), and pay an annual maintenance fee.  If you fail to make any installment payment or fail to pay your current year’s taxes or any supplemental taxes on or before April 10 of each year, then your account will default. You can, however, pay the total unpaid balance plus accrued interest any time before the fifth and final payment is due.


Q. Do my installment payments cover my current annual taxes?
A. No. Your installment payments NEVER include your current year’s taxes, which must be paid separately.


Q. If my first installment account defaults, may I open a second account?
A. If your first account defaults either because of your failure to make at least one installment payment between July 1 and April 10, or because of your failure to pay your current year’s taxes in full by April 10, you may open another account. However, the second account may not be opened until July 1 of the following fiscal year. You many NEVER reopen an installment account in the fiscal year that property becomes subject to the power of sale. 
Each time you open an account, you have five years to pay the full redemption amount. However, it is to your advantage not to default on an installment account, since there is an additional penalty. When a subsequent installment account is opened, the redemption amount is re-computed as though no previous payments had been paid. This means you will be charged the 1½% monthly penalty on the original unpaid taxes as though no Installment Plan had been started. You will be given credit for any previous payments against the re-computed redemption amount.  You must pay the start-up fee each time you open an Installment Plan.


Q. What is the advantage of paying my prior year delinquent taxes on the Installment Payment Plan?
A. As long as the Installment Payment Plan is in good standing, you will have five years to pay the delinquency without worry that the property will become subject to the Tax Collector’s Power to Sell and you will lose the property at public auction. 

However, as discussed previously, if your tax bill includes special assessments for the repayment of debt service obligations under the Improvement Bond Act of 1915 of the Streets and Highways code, and/or special taxes for payment of debt service on bonds issued pursuant to  Mello-Roos Community Facilities Act of 1982 (CFD’s), the installment payment account will not prevent or delay foreclosure action on behalf of the bondholder pursuant to Section 53356.1 (a) of the Government Code.


Q. Are there fees involved in the Installment Payment Plan?
A. There is an initial set-up fee and an annual maintenance fee.  No. 654.7, effective July 9, 2002, Ordinance allows  the Treasurer-Tax Collector to collect an Installment Payment Plan start-up fee and an annual maintenance fee.  Please click here for the current fee schedule.

Click here for the Application and Agreement for Installment Payment Plan.