A taxpayer may request cancellation of any penalty assessed on a secured or unsecured property tax bill by completing and submitting a Penalty Cancellation Form. The signed and completed request form and all supporting documentation are required for consideration of this cancellation request.
Note: In order for your Penalty Cancellation Request to be reviewed, you must make the payment in full. If your penalties are cancelled, you will receive a refund.
The following reasons for late payment are common examples which are NOT sufficient for the Department of Tax and Collections to waive penalties, as prescribed by state law, and these requests will be denied:
- I did not receive a tax bill.
- I forgot.
- I am having a financial hardship.
- I was out of town or country.
- I have paid on time in the past for many years and think I should not be penalized this time.
- My bank did not make the payment until after the deadline.
- I thought my mortgage company was going to pay.
- I used a private postal meter machine, such as Pitney Bowes.
The Department of Tax and Collections is governed by the California Revenue & Taxation (R&T) Code in granting a tax penalty cancellation. The following summarizes key concepts in sections of the R&T Code that provide the legal basis to determine when a tax payment is considered timely and when a tax penalty cancellation request may be granted.
Section 2512
- Payments received by mail are deemed received based on the United States Postal Service postmark date stamped on the envelope containing the payment or the date received if no postmark is available. If the postmark date is after the delinquent date, then the payment is considered late and the delinquent penalty will apply.
- Payments made through the Department of Tax and Collections website are deemed received on the date the transaction was completed by the taxpayer. Please be advised that if for any reason you are unable to make your tax payment in an automated fashion on the web, you are still responsible to make timely payment in order to avoid penalties.
- Payments made through online banking systems are deemed received based on the date the payment is actually received by the Department of Tax and Collections.
Section 2610.5 and 2910.1 Failure to receive a tax bill shall not relieve the lien of taxes, nor prevent the imposition of delinquent penalties.
Section 4985 A penalty may be cancelled if the penalty attached is due to an error made on the tax roll by the Department of Tax and Collections, Auditor, or Assessor.
Section 4985.2 On rare occasions of extenuating circ*mstances, penalties MAY be cancelled under this code if the failure to make a timely payment is due to a reasonable cause and ALL of the following criteria are met:
- The circ*mstances were beyond the taxpayer’s control.
- The circ*mstances occurred notwithstanding the exercise of ordinary care and judgment.
- The circ*mstances occurred in the absence of willful neglect.
(Requests made under this section MUST be accompanied by documentation/proof supporting the reason for request.)
Examples of supporting documentation include, but are not limited to:
- Proof of USPS mail delivery, used when contesting missed tax payment deadlines.
- Proof of mail theft or associated crimes.
- Proof of medical emergency that necessitated missing the tax payment deadlines.
- Proof of lost mail.
- Banking records, used when contesting missed tax payment deadlines and/or available funds for payment.
- Proof of death certificate.
Section 75.52 If taxes on the supplemental tax bill are not paid on or before the date they become delinquent, a penalty of 10 percent shall attach to them.
The request for penalty cancellation review process may take 45-90 days. If you have additional questions or need assistance, please call (408) 808-7900 from 9:00 AM to 4:00 PM on Monday-Friday, or email at [emailprotected].
