Property owners are required to pay their property taxes on time. If an owner fails to pay on time, the unpaid portion will be considered delinquent and incur a 10% penalty charge and, in the case of second installment, a one-time administrative fee.
If a bill remains delinquent through the end of the fiscal year (June 30th), the bill is considered tax-defaulted. Tax-defaulted properties transfer to the redemption tax roll where they continue to accrue 1.5% of the original delinquent tax amount (18 percent per year) until the balance is paid in full. In addition, there is a one-time redemption fee.
Taxpayers who are not in power to sell status, may request an installment payment plan to pay defaulted taxes over a five-year period. To initiate an installment plan:
- Complete and sign a Redemption Installment Plan Agreement.
- Pay at least 20% of the total balance due, plus a $50 installment plan set up fee.
The Agreement form and payment can be submitted:
- Via mail to: City and County Tax Collector, P.O. Box 7426, San Francisco, CA 94120-7426.
To maintain a redemption plan in good standing, a taxpayer must:
- Make a yearly installment payment of 20% or more of the redemption amount, plus interest that has accrued by April 10th of each succeeding year.
- Continue to pay current taxes coming due each year on or before the second installment delinquent date. Delinquency on any current taxes will cause the installment plan to default.
Property that remains in tax-defaulted status for five or more years will become subject to the Tax Collector's power to sell. Once subject to power to sell, it will be notated on the Delinquent Property Tax Statement and the property may be sold at public auction or otherwise conveyed to new ownership. The power to sell status may be avoided by initiating and maintaining an installment plan within the first five years of default, or by completely redeeming the property through payment of all unpaid amounts together with penalties and fees before the subject property is sold. Properties that are subject to "Power to Sell" are not eligible for payment plans.
Our office will review requests in accordance with the California Revenue & Taxation Code and the San Francisco Business and Tax Regulation Code. We encourage taxpayers to provide any documentation supporting the requests.
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