Payment of Taxes in Subdivision of Land Bond - Los Angeles County, CA in California

Brief Summary

A final map or parcel map in Los Angeles County will not record while taxes that are a lien but not yet payable sit on the land unsecured. This bond is the security that clears that hold. It lets the subdivider record without depositing cash for the estimated taxes, and the amount is tied to the Assessor's estimate rather than to the size of the project.

Under California Government Code 66493, when land being subdivided carries a lien for taxes or special assessments that are not yet payable, the final map or parcel map cannot record until the owner or subdivider files an estimate of those taxes and posts security conditioned on their payment. In Los Angeles County the security is filed with the Clerk of the Board of Supervisors, and the amount cannot be set until the Assessor determines the value of the property being bonded.

We can help with all California bonds!

How to Apply for a Payment of Taxes in Subdivision of Land Bond:

• Submit the Property Tax Bond Estimate Declaration (RP-115) so the Assessor can estimate the taxes to be secured.
• Order an original 5-year tax history signed by a title officer and dated within the last 90 days.
• Pay the County bond processing fee and allow about 15 working days for the estimate, or about 10 with priority status from Public Works.
• Have the bond written for the amount the County sets from the Assessor's estimate.
• Execute the bond and file it with the Clerk of the Board of Supervisors before the final map or parcel map records.
• Ask whether a supplemental tax bond is also needed, since it is a separate bond with its own fee.

Detailed Information About the California Payment of Taxes in Subdivision of Land Bond:

The amount comes from the Assessor, not from you

Most people expect a fixed bond amount or a figure based on project cost. Neither applies. The security covers the state, county, municipal and local taxes, plus the current installment of principal and interest on special assessments collected as taxes, that are a lien on the property when the map records but are not yet payable. Los Angeles County Public Works states that the amount cannot be determined until the Assessor determines the full value of the real property subject to the bonding requirement.

If the land being subdivided is only part of a larger parcel on the last tax roll, Government Code 66493(b) limits the security to what the county finds sufficient to pay the current and delinquent taxes on the portion being subdivided, plus penalties and costs if those taxes become delinquent. Under 66493(g), only amounts on the regular assessment roll and any supplemental rolls are counted.

How the process works in Los Angeles County

The subdivider submits a Property Tax Bond Estimate Declaration (form RP-115) so the Assessor can estimate the taxes. The Assessor's instructions say processing takes about 15 working days, or about 10 working days with priority status from the Department of Public Works. Public Works also asks for an original 5-year tax history signed by a title officer and dated within the last 90 days.

The security is then executed and filed with the Clerk of the Board of Supervisors of the county where any part of the subdivision lies. That is true even when the map is in a city inside Los Angeles County. Separately, Government Code 66492 requires a certificate from the county showing no liens for unpaid taxes or special assessments other than those not yet payable.

Timing and fees that catch people

Los Angeles County Public Works warns that once a tax bond has been processed, the fees have been expended if the map does not record that same year. A supplemental tax bond is a separate bond with its own processing fee.

Special assessment bonds

Where a lot line divides land subject to a special assessment or bond that can be paid in full, Government Code 66493(e) requires one of three things: pay it in full, file security with the Clerk of the Board payable to the county as trustee for the assessment bondholders, or have the responsibility for payment certified as segregated under 66493(f).

Waiver for small maps

Government Code 66493(d) lets a county waive this security by ordinance, after consulting the tax collector, for a final parcel map of four or fewer parcels or for a lot line adjustment. Ask County Public Works whether a waiver applies to your map before you order the bond. The requirement does not apply to amending maps filed under Section 66469.

Eligibility and Requirements for a California Payment of Taxes in Subdivision of Land Bond:

• Posted by the owner or subdivider of the land being mapped.
• Conditioned on payment of state, county, municipal and local taxes and the current installment of special assessments collected as taxes that are a lien but not yet payable.
• Filed with the Clerk of the Board of Supervisors of Los Angeles County, even for maps in incorporated cities.
• Amount limited to the portion being subdivided when that land is part of a larger parcel on the tax roll.
• Owner or entity name on the bond matching the record owner on the map and title report.

California Payment of Taxes in Subdivision of Land Bond FAQs:

Official and Additional Resources for the California Payment of Taxes in Subdivision of Land Bond: