AB-2705 • 2026

Property taxation: tax-defaulted property sales: excess proceeds claims.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Dixon
Last action: 2026-03-16
Official status: Referred to Com. on REV. & TAX.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide information on how this change will affect the number of claims filed directly by interested parties versus those filed through agreements with others.

Property Tax Sales: Claims for Extra Money

This law changes how people can claim extra money from the sale of a property that was sold because the owner did not pay taxes on it.

What This Bill Does

Removes the requirement for someone acting on behalf of an interested party to provide proof of certain disclosures when filing a claim for excess proceeds.
Allows any interested party to make an agreement with another person or entity to file a claim for excess proceeds on their behalf.
Requires that agreements made under this law clearly inform the interested party about their right to file a claim directly with the county without paying anyone else.

Who It Names or Affects

People who have an interest in property that is sold because of unpaid taxes.
Entities or individuals acting on behalf of interested parties for filing claims.

Terms To Know

tax-defaulted property: A piece of property whose owner has not paid their property taxes and the property can be sold to pay off those taxes.
excess proceeds: Money left over from selling a tax-defaulted property after all debts have been paid.

Limits and Unknowns

The changes only apply to agreements made on or after January 1, 2027.
It is unclear how this change will affect the number of claims filed directly by interested parties versus those filed through agreements with others.

Bill History

2026-03-16 California Legislative Information
Referred to Com. on REV. & TAX.
2026-02-21 California Legislative Information
From printer. May be heard in committee March 23.
2026-02-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 2705, as introduced, Dixon.
Property taxation: tax-defaulted property sales: excess proceeds claims.
Under existing property tax law, if unpaid property taxes are declared delinquent and the taxes remain unpaid, the property is declared tax-defaulted and subject to sale, as provided, if not redeemed by the owner within a certain amount of time. Existing property tax law authorizes any party of interest in property that is sold as a tax-defaulted property to file a claim with the county for the excess proceeds, as described.
Existing law requires a person who acts on behalf of, or in place of, any party of interest with respect to filing a claim for any excess proceeds to submit proof with the claim of certain disclosures, including that the party of interest has been advised of their right to file a claim for the excess proceeds on their own behalf directly with the county at no cost.
This bill would
delete the above-described requirement and would, instead, authorize any party of interest to enter into an agreement with any person or entity to act on behalf of the party of interest with respect to filing a claim for any excess proceeds. The bill would condition the validity of an agreement entered as described above on certain conditions, including that the agreement clearly advises the party of interest of their right to file a claim for the excess proceeds on their own behalf directly with the county at no cost. The bill would limit the provision above to agreements entered into on or after January 1, 2027.

Current Bill Text

Read the full stored bill text

Download Bill PDF