Five-Year Payment Plan Contract – San Diego County, CA

The Five-Year Payment Plan Contract is the San Diego County Treasurer-Tax Collector (TTC) form on which a person elects to pay delinquent taxes on a tax-defaulted parcel in installments, agrees to the plan's terms and confirms authority to set up that parcel.

The form itself is titled Installment Payment Plan of Redemption (Five Year Plan) Contract and cites California Revenue and Taxation Code Section 4216 and following. Signing it commits you to pay the required amount of each payment under the plan on or before its due date.

The contract spells out how the plan works:

• To start, you return the signed form before the deadline and pay at least 20% of the total redemption amount, plus any current year taxes due and the pay plan setup fee.
• Each following year, by April 10th, you pay at least 20% of the redemption amount, all accrued interest, all current year taxes due and a maintenance fee.
• Interest accrues on the first day of each month following the preceding payment, on the unpaid balance of the redemption amount.
• Payments made on the plan are not refundable, and any refund due on the parcel is applied as a payment.
• If the plan is kept according to its terms, the property does not become subject to the TTC's power to sell and the right of redemption does not cease.

The contract also warns that a payment plan does not stop a foreclosure by a mortgage holder or holder of a deed of trust. Fee amounts are printed on the form; ask the TTC for current figures.

The contract is for any person who wants to pay delinquent taxes on a tax-defaulted parcel in installments instead of paying the full redemption amount at once. The form states that any person may make this election, and the signer confirms being authorized to set up the parcel on a payment plan.

Conditions printed on the form:

• The election must be made before the deadline described under When to file, and before the property becomes subject to the TTC's power to sell.
• A plan that has defaulted cannot be restarted in the same fiscal year, and it cannot be restarted at all if the property has become subject to the tax collector's power to sell.
• If you are eligible, a new plan can be started after July 1st of the fiscal year following the year the plan defaulted.

Limits you should know before signing: a payment plan does not stop a foreclosure action by a mortgage holder or holder of a deed of trust, and the taxpayer must contact the mortgage company or financial institution about a payment plan. It also does not prevent foreclosure for delinquent debt service under the Improvement Bond Act of 1915 or the Mello-Roos Community Facilities Act of 1982 (CFD's).

Return the contract before 5 p.m. on the last business day of the fifth fiscal year after the property originally became tax-defaulted, and before the property becomes subject to the Treasurer-Tax Collector's power to sell. The form also requires the initial payment at that time.

After the plan starts, the contract sets a yearly cycle. By April 10th of each following year you must pay at least 20% of the redemption amount, all accrued interest, all current year taxes due and a maintenance fee. A notice showing the minimum amount due is mailed each March; if you have not received it before April 1st, contact the office. Not receiving the notice is not a basis for delayed payment, waiver of interest or reinstatement of a defaulted plan.

Current taxes and penalties coming due each fiscal year must be paid in full no later than April 10th. The second installment of any supplemental tax that becomes delinquent after April 10th must not be delinquent on June 30th. The unpaid balance plus accrued interest may be paid in full at any time before the fifth and final payment would be due.

The contract says to complete, sign and return it to the Tax Collector's Office before the deadline; it prints no portal, fax number or other channel. The page footer of the form lists the office as SDTTC, 1600 Pacific Highway Rm. 162, San Diego, CA 92101.

• Return the form: deliver the signed contract to the Tax Collector's Office before the deadline. The form warns that additional documents may be required, so ask the office what applies to your parcel.
• Pay to start the plan: the plan begins only when you also pay at least 20% of the total redemption amount, any current year taxes due and the pay plan setup fee. The form gives no payment method of its own, so confirm accepted methods with the office.
• Keep the plan current: a March notice shows the minimum due by April 10th each year; if it has not arrived before April 1st, contact the office for the current amount due on the plan and current year taxes. An annual maintenance fee applies.

Fee amounts are printed on the contract; ask the Treasurer-Tax Collector for current figures. FillingPDF lets you fill out and download the PDF; submission follows the channels above.