When could a sheriff sell property seized for California tax debt under the minimum-bid rules discussed in 1995?

Plain-English summary

California legal staff said property seized for tax collection could not be sold at a sheriff's sale unless the highest bid exceeded the protected amounts listed in Code of Civil Procedure section 701.620.

For a Board-requested sale, the memorandum identified preferred labor claims under section 1206, a specified deposit under section 720.260 when the buyer was not the Board, and applicable debtor exemptions for motor vehicles, household furnishings, or tools of the trade.

If no adequate bid was received, sections 701.620(c) and 699.060 required release of the property to the person from whom it was taken. For a vehicle sale, staff said the Board's normal minimum bid should exceed the then-current $1,200 vehicle exemption.

Common questions

Could the sheriff accept any positive bid?

No. The bid had to exceed the protected claims, deposits, and exemptions that applied.

What happened if the minimum was not met?

The sheriff had to release the property.

Is the $1,200 vehicle exemption current?

The source gives that amount for 1995; this page does not present it as current.

Citations and references

• California Code of Civil Procedure section 701.620 — minimum-bid and release rules discussed
• California Code of Civil Procedure section 1206 — preferred labor claims referenced
• California Code of Civil Procedure section 720.260 — deposit included in minimum-bid calculation
• California Code of Civil Procedure section 699.060 — release requirement cited
• California Code of Civil Procedure section 704.010 — historical motor-vehicle exemption cited

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/170-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/170-0086.pdf

Original ruling text

State of California

Board of Equalization
Legal Division (MIC:82)

170.0086

Memorandum
To:

Mr. Wes Hamiel
Collection Section (MIC:55)

From:

Thomas J. Cooke
Staff Counsel

Subject:

Minimum Bids Cited in C.C.P.§ 701.620

Date: May 31, 1995

Gary Jugum has requested that I respond to your memorandum to him dated May 11, 1995 concerning the above subject. In your memorandum, you state that the Sacramento District Office requests a legal opinion on the ramifications of C.C.P. Section 701.620. C.C.P. Section 701.620 provides that property seized by levy may not be sold at a sheriff’s sale unless the highest bid received exceeds the total of certain enumerated legal exemptions and obligations. The code section further provides: “(c) If a minimum bid required for the sale of property pursuant to this section is not received, the levying officer shall promptly release the property.” C.C.P. Section 701.620 protects certain interests (including the judgment debtor’s particular exemption for the property to be sold) from a sheriff’s sale for an inadequate highest bid. If the Board is the “judgment creditor” (i.e., it has requested the sheriff to seize and sell property to satisfy a “judgment debtor’s” tax liability), the property cannot be sold at a sheriff’s sale unless the highest bid received by the sheriff exceeds 1) the amount of all preferred labor claims that are required by Section 1206 to be satisfied from the sale proceeds, 2) if the purchaser at the sale is not the Board, the amount of any deposit made pursuant to C.C.P. Section 720.260 and 3) the taxpayer’s exemption for motor vehicles, household furnishings or tools of trade if applicable to the property to be sold. If the sheriff does not receive a bid at the sale that exceeds these amounts, the sheriff is required by C.C.P. Section 701.620(c) and C.C.P. Section 699.060 to release the seized property to the “person from whom it was taken.”

Mr. Wes Hamiel

-2-

May 31, 1995
170.0086

The Legislature has determined that a judgment debtor’s property should not be seized and sold at a sheriff’s sale unless the proceeds of the sale are sufficient to justify the disruption to the judgment debtor’s property interests. Normally, if the Board is requesting the sheriff to seize and sell a motor vehicle, the minimum bid submitted by the Board should at least exceed the $1,200.00 exemption provided by C.C.P. Section 704.010.

TJC:plh
cc:

Mr. Rick Slater - MIC:55