First American Commercial Real Estate Services Inc. v. County of San Diego

County of San Diego (the County) appeals from a judgment ordering it, pursuant to Revenue and Taxation Code section 4985.2, subdivisions (a) and (b), to cancel and refund penalties paid by First American Commercial Real Estate Services, Inc. (First American), for late payment of real property taxes. 1 As we will explain, First American did not *221 establish the requirements for cancellation and refund under section 4985.2, subdivisions (a) and (b). We accordingly reverse the judgment.

I

FACTUAL AND PROCEDURAL BACKGROUND

The County assesses annual real property taxes to the owners of real property in the County (§ 405), and collects tax payments from real property owners in semiannual installments due on November 1 and the following February 1. (§§ 2605, 2606.) For the second installment, taxes not paid by the end of the statutory grace period on April 10 incur a 10 percent penalty. (§§ 2702, 2705.)

The County reciprocal tax accounting (CORTAC) program allows lenders or other entities to make bulk payments of real property taxes—through a wire transfer to the County’s bank—on behalf of the real property owners who are assessed property tax by the County. As we…