Unsecured Business Property Tax

Unsecured taxes are computed by the County Assessor, who determines the value of the property and transmits that information to the County Auditor.

 The Auditor computes the amount of tax (see Computation of Taxes, above) and transmits that information to the Tax Collector, who prepares the bill for the taxpayer and collects the tax.

Unsecured Property taxes are levied on property as it exists on January 1st at 12:01 AM. Tax bills are prepared and mailed in July of each year. Unsecured taxes must be paid on or before August 31st unless otherwise stated. The obligation to pay unsecured taxes rests with the assessed owner of record on the lien date (January, 12:01 AM.) The disposal of property AFTER the lien date does not relieve the assessed owner from the obligation to pay unsecured taxes. 

Delinquent unsecured taxes are subject to collection enforcement. The Tax Collector cannot pro-rate taxes. 

Improvements to land are also considered unsecured property when they are not permanently attached to the land or they are made to land owned by another person or entity. 

For example, if a restaurant owner leases space in a building and renovates the space for his or her business by adding restrooms and a kitchen, unsecured property taxes would be due on the increased value of the building as a result of the added restrooms and kitchen.

• Business Equipment and Leasehold Improvements
• Mobile homes that are not attached to a foundation 
• Aircraft and Vessels (including fishing vessels)
• Cabins on leased or Publicly Owned Property
• Leased Business Equipment
• Possessory Interest (lessees of publicly owned properties such as marinas, airports, grazing rights, and housing on publicly owned lands)
• Unsecured Supplemental (real estate tax billed to a former owner following the close of escrow, for differences in assessed value resulting in an additional tax computed for a prior period of ownership) 

All property that is not real property is considered personal property and therefore is issued an Unsecured tax bill. Some typical items assessed and collected on the unsecured roll are:

• Boats
• Airplanes
• Improvements on the real estate of others
• Business property
• Most possessory interests
• Escape and supplemental assessments
• against former owners of real property
• Some fixtures

The lien for unsecured taxes is against the assessee and not against the property. The assessee can be any person owning, claiming, possessing, or controlling the property on the lien date.

The Assessor establishes the value of the unsecured property on January 1. This date is often referred to as the Tax Lien date. Ownership on the lien date, determines the obligation to pay taxes: Disposal, removal, or sale of the object of the assessment after the lien date will not affect the tax bill nor relieve the assessee of liability. No proration is made by the Tax Collector on unsecured taxes. Any proration is strictly a private matter between buyer and seller.

It is the date when the liability fixes to the assessee. The lien date is January 1.

The tax bill will be issued to the owner as of the lien date January 1. Disposal, removal, or sale of the assets after the lien date will not affect the tax bill. No prorations are made by the tax collector on unsecured property taxes. Any pro-ration is strictly a private matter between buyer and seller. The owner of record as of January 1 is responsible for payment and will be lien if bill is not paid. 

Contact the Assessor’s Office to make sure the ownership of record has been updated. Failure to do so could result in future billings and liens.

The January 1 value is multiplied by the tax rate (usually 1% plus voter approved indebtedness). The unsecured tax rate is the prior year secured rate.

An unsecured tax bill covers a fiscal year. The fiscal year begins July 1 and ends on June 30 of the following calendar year.

The County Assessor determines the person or entity to be assessed and the value of the property being assessed. The Auditor places a record on the roll for the Tax Collector to collect. The Tax Collector mails the tax bill to the latest billable address the Assessor has on file from the assesee.

Unsecured bills are mailed July 31. These bills must be paid on or before 5 p.m. on August 31. If the bill is mailed after July 31, the delinquent date is extended to the end of the month following the bill’s issuance.

If you do not receive a tax bill by July 10, contact the Tax Collector.

Unsecured Tax Bills bills must be paid on or before August 31st.

A tax penalty of 10% will be charged on the date of the delinquency. Additional penalties at the rate of 1.5 % per month will be charged starting the 1st day of the second month after the delinquency date until the tax is paid in full. 

Upon delinquency the following collection methods may be used to collect the tax: 

• Recordation of Liens with County Recorder 
• For vessels: DMV registration holds
• Legal Actions 

After full payment of the delinquent taxes, a certificate of release of lien will be recorded with the County Recorder's office. 

Yes. Disposal of the property after the January 1 lien date does not eliminate your tax liability. If you sell the property before the unsecured tax bill is issued, make sure you collect an estimated amount for the unsecured tax from the buyer.