Subdivision Map Tax and Assessment Bond - San Diego County, CA in California

Brief Summary

Your final map cannot record in San Diego County while taxes that are already a lien but not yet billed sit unsecured. A tax bond covers that gap without tying up cash. You post it with the Clerk of the Board, the map records, and the bond is released once the Treasurer-Tax Collector confirms the bills were paid.

Under California Government Code 66493, a final or parcel map cannot be recorded until the owner or subdivider files security for taxes and special assessments that are a lien on the land but not yet payable. In San Diego County the amount comes from the Treasurer-Tax Collector's Map Tax Clearance Certificate, and the bond is filed with the Clerk of the Board of Supervisors on the County's own form.

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How to Apply for a Subdivision Map Tax and Assessment Bond:

• Request the Map Tax Clearance Certificate from the Treasurer-Tax Collector at least six weeks ahead, with the $279 fee, the property questionnaire and a copy of the map.
• Wait for the Treasurer-Tax Collector to call with the bond amount for future taxes.
• Apply for the bond in that exact amount and review the quoted premium.
• Have the bond executed on the County of San Diego Subdivision Map Tax and Assessment Bond form, with notarized acknowledgments for the principal and the surety's attorney in fact.
• Deliver the bond and a copy of the Tax Certificate to the Clerk of the Board of Supervisors before the map records.
• Pay the tax bills when they issue so the Clerk can release the bond.

Detailed Information About the California Subdivision Map Tax and Assessment Bond:

Why the bond exists

Property taxes in California attach as a lien on January 1, but the bill does not arrive until later in the year. A sale, a transfer or new construction can also create a supplemental tax that has not been billed yet. Government Code 66493 says a final map or parcel map cannot record while any part of the subdivision carries a lien like that, unless the owner or subdivider files an estimate of the taxes and posts security for them with the clerk of the board of supervisors.

How San Diego County sets the amount

The amount is not a fixed figure. It is stated on the Map Tax Clearance Certificate issued by the San Diego County Treasurer-Tax Collector. Per the Treasurer-Tax Collector, the assessed value is multiplied by an estimated tax rate of 1.25 percent and fixed charge special assessments, including Mello Roos charges, are added. That estimate is then increased by 20 percent to cover penalties, costs and fees if the taxes go delinquent, and the total is rounded up to the nearest $100. The County's own example is a $450,000 value producing a $6,800 bond. The amount can change if the Assessor enrolls new bills or adjusts values.

The certificate comes first

Request the Map Tax Clearance Certificate about six weeks before you need it. The request needs a $279 processing fee, a completed property questionnaire and a copy of the map at least 26 by 18 inches. Most requests take four to six weeks.

Where the bond goes

The bond is written on the County's Subdivision Map Tax and Assessment Bond form, with the County of San Diego as obligee, and filed with the Clerk of the Board of Supervisors at the County Administration Center, 1600 Pacific Highway. The Clerk holds it until the taxes are paid and the Treasurer-Tax Collector clears its release. A cashier's check or an irrevocable standby letter of credit are also accepted instead of a bond.

What the surety agrees to

The County form is strict. If the covered taxes become delinquent, or the first installment is still unpaid on the February 1 due date of the second installment, the surety pays on written demand from the Clerk without proof of loss. The surety also waives Civil Code 2845 and covers the County's reasonable enforcement costs, including attorney fees.

Eligibility and Requirements for a California Subdivision Map Tax and Assessment Bond:

• Bond amount equal to the figure on the Map Tax Clearance Certificate.
• County of San Diego named as obligee.
• Principal name matching the owner or subdivider of the map.
• Surety authorized to act as a surety in California.
• Final map and tract or parcel map number shown on the bond.

California Subdivision Map Tax and Assessment Bond FAQs:

Official and Additional Resources for the California Subdivision Map Tax and Assessment Bond: