Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2011
 

Other Code Provisions

Health and Safety Code

DIVISION 24. COMMUNITY REDEVELOPMENT AND HOUSING

PART 1. COMMUNITY REDEVELOPMENT LAW

CHAPTER 6. Financial Provisions


Chapter 6. Financial Provisions

Article 6. Taxation*

* Repealed and added by Stats. 1963, p. 3677, in effect September 20, 1963. Had the effect of renumbering the article and sections and repealed former Section 33954 relating to the operative date of the former article.

33670. Division of taxes. Any redevelopment plan may contain a provision that taxes, if any, levied upon taxable property in a redevelopment project each year by or for the benefit of the State of California, any city, county, city and county, district, or other public corporation (hereinafter sometimes called "taxing agencies") after the effective date of the ordinance approving the redevelopment plan, shall be divided as follows:

(a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the redevelopment project as shown upon the assessment roll used in connection with the taxation of that property by the taxing agency, last equalized prior to the effective date of the ordinance, shall be allocated to and when collected shall be paid to the respective taxing agencies as taxes by or for the taxing agencies on all other property are paid (for the purpose of allocating taxes levied by or for any taxing agency or agencies which did not include the territory in a redevelopment project on the effective date of the ordinance but to which that territory has been annexed or otherwise included after the effective date, the assessment roll of the county last equalized on the effective date of the ordinance shall be used in determining the assessed valuation of the taxable property in the project on the effective date); and

(b) Except as provided in subdivision (e) or in Section 33492.15, that portion of the levied taxes each year in excess of that amount shall be allocated to and when collected shall be paid into a special fund of the redevelopment agency to pay the principal of and interest on loans, moneys advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the redevelopment agency to finance or refinance, in whole or in part, the redevelopment project. Unless and until the total assessed valuation of the taxable property in a redevelopment project exceeds the total assessed value of the taxable property in that project as shown by the last equalized assessment roll referred to in subdivision (a), all of the taxes levied and collected upon the taxable property in the redevelopment project shall be paid to the respective taxing agencies. When the loans, advances, and indebtedness, if any, and interest thereon, have been paid, all moneys thereafter received from taxes upon the taxable property in the redevelopment project shall be paid to the respective taxing agencies as taxes on all other property are paid.

(c) In any redevelopment project in which taxes have been divided pursuant to this section prior to 1968, located within any county with total assessed valuation subject to general property taxes for the 1967–68 fiscal year between two billion dollars ($2,000,000,000) and two billion one hundred million dollars ($2,100,000,000), if the total assessed valuation of taxable property within the redevelopment project for the 1967–68 fiscal year was reduced, the total sum of the assessed value of taxable property used as the basis for apportionment of taxes under subdivision (a) shall be reduced by 10 percent for the 1968–69 fiscal year and fiscal years thereafter.

(d) For the purposes of this section, taxes shall not include taxes from the supplemental assessment roll levied pursuant to Chapter 3.5 (commencing with Section 75) of Part 0.5 of Division 1 of the Revenue and Taxation Code for the 1983–84 fiscal year.

(e) That portion of the taxes in excess of the amount identified in subdivision (a) which are attributable to a tax rate levied by a taxing agency for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that taxing agency. This subdivision shall only apply to taxes levied to repay bonded indebtedness approved by the voters of the taxing agency on or after January 1, 1989.

History.—Stats. 1968, p. 2432, in effect August 13, 1968, added (c). Stats. 1970, p. 2824, in effect November 23, 1970, substituted "1968" for "1966" in subdivision (c). Stats. 1981, Ch. 686, in effect January 1, 1982, substituted "to" for "into the funds of" after "paid" in subsection (a) and in the second and third sentences of subsection (b). Stats. 1984, Ch. 946, in effect September 10, 1984, added subdivision (d). Stats. 1989, Ch. 250, in effect January 1, 1990, substituted "that" for "such" after "connection with the taxation of" and "ordinance but to which" in subdivision (a), and "each year in excess of" and "value of taxable property in" in subdivision (b), substituted "the" for "such" after "taxation of that property by", "effective date of" in subdivision (a), and "incurred by", "refinance, in whole or in part,", "collected upon the taxable property in" and "When" in subdivision (b), substituted "the" for "said" after "taxing agencies as taxes by or for" the subdivision (a), added "Except as provided in subdivision (e)," before "that portion of the levied taxes" in subdivision (b), and added subdivision (e). Stats. 1993, Ch. 944, in effect October 8, 1993, added "or in Section 33492.15" after "in subdivision (e)" in the first sentence of subdivision (b) and substituted "the" for "such" after "taxable property in" in the third sentence of subdivision (b); substituted "1967–68 fiscal year" for "fiscal year 1967–1968" after "taxes for the" and after "project for the", and substituted "1968–69 fiscal year" for "fiscal year 1968–1969" after "percent for the" in subdivision (c).

Note.—Section 2 of Stats. 1987, Ch. 6X (First Extra Session), in effect November 16, 1987, provided, in part, that with respect to the adoption of the redevelopment plan within the City of Whittier which includes as the redevelopment project area thereof all or any portion of a disaster area, as defined in Section 34004 of the Health and Safety Code, based upon the earthquakes of October 1, 1987, and October 4, 1987, for the purposes of Section 33670 of the Health and Safety Code, and for purposes of the allocation of taxes pursuant to Section 33670 and the provisions of any such disaster area redevelopment plan, "last equalized assessment roll" and "base-year assessment roll" means the assessment roll as reduced in accordance with the provisions of subdivision (b) of Section 170 of the Revenue and Taxation Code.

Note.—Section 3 of Stats. 1983, Ch. 602, in effect August 31, 1983, provided that:

(a) Notwithstanding Section 33674 of the Health and Safety Code, any redevelopment agency which meets all of the requirements of subdivision (b) shall be entitled to be allocated and paid the portion of taxes provided by subdivision (b) of Section 33670 of the Health and Safety Code for the first time during the fiscal year commencing July 1, 1983.

(b) In order to be eligible to receive the tax increment pursuant to subdivision (a), a redevelopment agency shall have done all of the following:

(1) Transmitted the information required by Section 33327 of the Health and Safety Code to the county auditor, assessor, and tax collector and to the State Board of Equalization.

(2) Adopted a redevelopment plan which became effective after July 1, 1982, but prior to August 20, 1982.

(3) Recorded a copy of the description of the redevelopment project area and the statement required by Section 33373 of the Health and Safety Code prior to December 31, 1982.

(4) Transmitted all required documents pursuant to Section 33375 of the Health and Safety Code prior to the effective date of this section.

(c) The county and the State Board of Equalization shall not be required, in implementing this section, to establish a tax rate area for the redevelopment project area for the fiscal year commencing July 1, 1983.

(d) This section shall remain in effect only until January 1, 1985, and as of such date is repealed, unless a later enacted statute, which is chaptered before January 1, 1985, deletes or extends that date.

Construction.—Taxable property within the redevelopment project means currently taxable and it must be redetermined whenever project property is acquired by a tax exempt agency and the loss of revenue that results should be divided proportionately between the redevelopment agency special fund and the taxing agencies. Redevelopment Agency v. San Bernardino County, 21 Cal.3d 255. Unlike subdivision (a) of this section, subdivision (b) does not refer to the equalized assessment roll. Instead, it states that the redevelopment agency is to receive the benefit of that portion of the levied taxes in excess of the taxes attributable to the base year assessments. Thus, the tax revenue to which the redevelopment agency is entitled is not restricted to the revenue based on the equalized assessment roll. Accordingly, escape assessments must be included in the tax increment calculation. Community Development Comm. of the City of Oxnard v. County of Ventura, 152 Cal.App.4th 1470.

Last Equalized Assessment Roll.—The proper base roll to be used when dividing property tax revenues between taxing agencies and a redevelopment agency is the assessment roll prepared annually and which becomes the last equalized roll on August 20, not the adjusted assessment roll made later in the tax year as the result of assessment appeals board decisions and after a redevelopment plan ordinance had been adopted. Redevelopment Agency v. Los Angeles County, 75 Cal.App.4th 68.

Penalties and Interest.—A community redevelopment agency is entitled to a share of the delinquency penalties, interest and redemption penalties arising from unpaid property taxes within its jurisdiction when property sold for unpaid taxes is redeemed. Community Redevelopment Agency v. Bloodgood, 182 Cal.App.3d 342.

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33670.5. Allocation between agencies. Section 33670 fulfills the intent of Section 16 of Article XVI of the Constitution. To further carry out the intent of Section 16 of Article XVI of the Constitution, whenever that provision requires the allocation of money between agencies such allocation shall be consistent with the intent of the people when they approved Section 16 of Article XVI of the Constitution. Whenever money is allocated between agencies by means of a comparison of assessed values for different years, that comparison shall be based on the same assessment ratio. When there are different assessment ratios for the years compared, the assessed value shall be changed so that it is based on the same assessment ratio for the years so compared.

History.—Added by Stats. 1978, Ch. 1207, in effect January 1, 1979, operative January 1, 1981.

33670.8. Allocation of taxes; redevelopment project areas; City of Santa Cruz and City of Watsonville. (a) With respect to the allocation of taxes pursuant to Section 33670 in redevelopment project areas within the incorporated City of Santa Cruz, which were already approved on October 17, 1989, the otherwise applicable provisions of this part shall be modified as specified in this subdivision.

For the purpose of determining the portion of taxes to be paid annually to the Redevelopment Agency of the City of Santa Cruz pursuant to Sections 33328, 33670, and 33675 for any redevelopment project which was approved on or before October 17, 1989 "assessment roll . . . last equalized" and "base-year assessment roll" mean the last equalized assessment roll determined pursuant to subdivision (a) of Section 33670 reduced by the same amount as the amount of reduction in the current assessment roll determined pursuant to Section 170 of the Revenue and Taxation Code.

(b) With respect to the allocation of taxes pursuant to Section 33670 in redevelopment project areas within the incorporated City of Watsonville, which were already approved on October 17, 1989, the otherwise applicable provisions of this part shall be modified as specified in this subdivision.

For the purpose of determining the portion of taxes to be paid annually to the Redevelopment Agency of the City of Watsonville pursuant to Sections 33328, 33670, and 33675 for any redevelopment project which was approved on or before October 17, 1989, "assessment roll . . . last equalized" and "base-year assessment roll" mean the last equalized assessment roll determined pursuant to subdivision (a) of Section 33670 reduced by the same amount as the amount of reduction in the current assessment roll determined pursuant to Section 170 of the Revenue and Taxation Code.

(c) In claiming an allocation of taxes pursuant to Section 33675, as adjusted pursuant to subdivision (b), the redevelopment agency of the City of Watsonville shall consider the economic impact of the allocation on other agencies which have sustained substantial disaster damage and shall negotiate and enter into an agreement with the County of Santa Cruz to avoid further economic hardship.

(d) Within 30 days after receipt of a notice from the Assessor of the County of Santa Cruz establishing the adjustment in the assessment roll pursuant to subdivision (b), the Redevelopment Agency of the City of Watsonville may elect not to be subject to this section by giving written notice of its decision to the County of Santa Cruz. Notwithstanding an election by the Redevelopment Agency of the City of Watsonville not to be subject to this section pursuant to this subdivision, it shall still reimburse the County of Santa Cruz for its cost of revising the property tax assessment rolls and allocations.

(e) Subdivisions (a) and (b) shall apply to allocation of taxes levied on the 1990 and subsequent equalized assessment rolls, upon the request of the redevelopment agencies of the Cities of Santa Cruz and Watsonville, and those agencies shall reimburse the County of Santa Cruz for its cost of revising the property tax assessment rolls and allocations.

(f) (1) The county auditor shall certify to the director of finance of each city which includes a redevelopment project subject to this section when the total sum of the assessed value of the taxable property in each redevelopment project subject to this section as shown upon each current year's equalized assessment roll becomes equal to the total sum of the assessed value of the taxable property in each redevelopment project as shown upon the assessment roll last equalized before October 17, 1989, adjusted by the change in the Consumer Price Index for the San Francisco/Oakland

Metropolitan Area between 1989 and the date of the certification pursuant to this subdivision. On the July 1 following the date of certification and each July 1 thereafter, the county auditor shall increase the total sum of the assessed value of the taxable property in each redevelopment project as shown upon the assessment roll adjusted pursuant to subdivision (a) or (b) by 10 percent of the difference between the total sum of the assessed value of the taxable property in each redevelopment project determined pursuant to subdivision (a) of Section 33670 and the total sum of the assessed value of the taxable property in each redevelopment project as adjusted pursuant to subdivision (a) or (b), until the two total assessed values are equal, and shall report this adjusted value to the other county officials charged with the responsibility of allocating taxes pursuant to Section 33670 and 33675, who shall use this assessed value in determining the portion of taxes to be paid annually to the redevelopment agency subject to this section.

(2) For purposes of this subdivision only, in the event that any redevelopment project area within the incorporated area of the City of Santa Cruz already approved on October 17, 1989, is amended to add territory to the project area, the assessed value of taxable property in the territory added shall be computed separately and the county assessor shall not take the assessed value into account in determining when the total sum of the assessed value of the taxable property in the redevelopment project becomes equal to the total sum of the assessed value of the taxable property as shown on the assessment roll last equalized prior to October 17, 1989, as adjusted pursuant to this subdivision.

(g) With respect to an area added to a redevelopment project by the City of Santa Cruz or the City of Watsonville pursuant to Sections 33458.5 and 33477, the terms "assessment roll" and "last equalized assessment roll" as used in Section 33670 shall mean and refer to the assessment roll as reduced in accordance with the provisions of subdivision (b) of Section 170 of the Revenue and Taxation Code.

History.—Added by Stats. 1990, Ch. 26 (First Extra Ordinary Session), in effect July 18, 1990, operative July 1, 1990. Stats. 1991, Ch. 78, in effect January 1, 1992, numbered the first and second paragraphs of subdivision (f) as paragraphs (1) and (2); substituted "auditor" for "assessor" after "county", deleted "county auditor and the" after "certify to the" in the first sentence of paragraph (1) of subdivision (f); substituted "auditor" for "assessor" after "the county", deleted "county auditor" after "value to the" in the second sentence of paragraph (1) of subdivision (f); substituted "City" for "Cities" after "project by the", and added "the City of" after "Cruz or" in subdivision (g).

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33670.9. Allocation of taxes; disaster area redevelopment plan; City of Oakland. [Repealed by Stats. 1990, Ch. 26 (First Extraordinary Session), in effect July 18, 1990, operative June 30, 1992.]

33670.9. Orange County; transfers to general fund. (a) For a period of 20 years commencing on July 1, 1996, the Orange County Development Agency shall transfer to the general fund of the County of Orange an amount equal to four million dollars ($4,000,000) a year in two equal installments on June 15 and February 15 of each year. The Orange County Development Agency shall not incur any obligation with respect to loans, advances of money, or indebtedness, whether funded, refunded, assumed, or otherwise, that would impair its ability to make the foregoing transfers or that would cause the foregoing transfers to violate Section 16 of Article XVI of the California Constitution or subdivision (b) of Section 33670. Funds allocated to low- and moderate-income housing pursuant to Section 33334.2 shall not be used for purposes of this section.

(b) This section shall not take effect unless and until (1) a plan of adjustment is confirmed in Case No. SA-94-22272-JR in the United States Bankruptcy Court for the Central District of California or (2) a trustee is appointed pursuant to Chapter 10 (commencing with Section 30400) of Division 3 of Title 3 of the Government Code.

History.—Added by Stats. 1995, Ch. 745, in effect January 1, 1996.

33670.95. Orange County; redevelopment agency payment. (a) The board of supervisors of a county of the second class may, upon adoption of a resolution or resolutions approved by a majority of all of its members, provide for the repayment by the county's redevelopment agency of its debt to the county for general and specific benefits previously provided by the county to redevelopment project areas within the county. Such resolution or resolutions may provide for the transfer of (1) amounts equal to four million dollars ($4,000,000) a year in two equal installments on June 15 and February 15 of each year and (2) such additional amounts, at such times as are specified in the resolution or resolutions, as may be necessary to assure full repayment of the debt, provided that those additional amounts shall not exceed, in the aggregate, the sum of any amounts required to be repaid by the county to the redevelopment agency pursuant to, or as a consequence of, the final determination described in subdivision (c).

(b) A redevelopment agency of a county of the second class shall not incur any obligation with respect to loans, advances of money, or indebtedness, whether funded, refunded, assumed, or otherwise, that would impair its ability to make the transfers described in subdivision (a) or that would cause those transfers to violate Section 16 of Article XVI of the California Constitution or subdivision (b) of Section 33670. Funds allocated to low-and moderate-income housing pursuant to Section 33334.2 shall not be used for purposes of this section.

(c) This section shall become operative on the earlier of the date that a court of appellate jurisdiction renders a final determination invalidating Chapter 745 of the Statutes of 1995 or the date of a court action suspending or preventing the operation of any provision of Chapter 745. This section shall become inoperative on July 1, 2016, and, as of January 1, 2017, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2017, deletes or extends the dates on which it becomes inoperative and is repealed.

History.—Added by Stats. 1998, Ch. 724 (AB 2699), in effect January 1, 1999.

33671. Pledge of portion of taxes. In any redevelopment plan or in the proceedings for the advance of moneys, or making of loans, or the incurring of any indebtedness (whether funded, refunded, assumed, or otherwise) by the redevelopment agency to finance or refinance, in whole or in part, the redevelopment project, the portion of taxes mentioned in subdivision (b) of Section 33670 may be irrevocably pledged for the payment of the principal of and interest on such loans, advances, or indebtedness.

33671.5. Pledge of taxes; priority. Whenever any redevelopment agency is authorized to, and does, expressly pledge taxes allocated to, and paid into a special fund of, the agency pursuant to Section 33670, to secure, directly or indirectly, the obligations of the agency including, but not limited to, bonded indebtedness and agreements pursuant to subdivision (b) of Section 33401, then that pledge heretofore or hereafter made shall have priority over any other claim to those taxes not secured by a prior express pledge of those taxes.

History.—Added by Stats. 1989, Ch. 1264, in effect January 1, 1990.

33672. "Taxes" defined. As used in this article the word "taxes" shall include, but without limitation, all levies on an ad valorem basis upon land or real property. As used in this article, "taxes" shall not include any amounts of money deposited in a Sales and Use Tax Compensation Fund pursuant to Section 97.68 of the Revenue and Taxation Code or a Vehicle License Fee Property Tax Compensation Fund pursuant to Section 97.70 of the Revenue and Taxation Code.

History.—Amended by Stats. 2004, Ch. 211 (SB 1096), in effect August 5, 2004.

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33672.5. Allocation of taxes; report; redevelopment agencies. (a) Upon the written request of a redevelopment agency for the purpose of assisting the agency, the county auditor or other officer responsible for allocation of tax revenues pursuant to Section 33670 shall prepare a statement each fiscal year, commencing with the 1992–93 fiscal year, for each redevelopment project area and each area added to a redevelopment project area by amendment, which provides for all the following:

(1) The total taxable assessed value of secured, unsecured, and state-assessed railroad and nonoperating, nonunitary property.

(2) The total taxable assessed value used by the county auditor to determine the division of taxes required by subdivision (a) of Section 33670.

(3) The total taxable assessed value used by the county auditor to determine the division of taxes required by subdivision (b) of Section 33670.

(4) The estimated amount of taxes calculated pursuant to subdivision (b) of Section 33670, as adjusted by subdivision (e) of Section 33670 and subdivision (a) of Section 33676. The statement shall specify the gross amount of tax-increment revenue allocated to the agency and any payments to other taxing entities that are deducted from the gross amount allocated.

(5) The estimated amount of taxes to be allocated pursuant to subdivisions (c) and (d) of Section 100 of the Revenue and Taxation Code.

(b) If requested to provide a statement pursuant to subdivision (a), the county auditor shall deliver each statement to the respective redevelopment agencies receiving property tax revenue on or before November 30 of each year.

(c) (1) Upon the request of a redevelopment agency pursuant to subdivision (a), and concurrently with the disbursement of those property tax revenues, the county auditor shall prepare a statement which provides the amount of disbursement made pursuant to all of the following:

(A) Section 33670.

(B) Section 100 of the Revenue and Taxation Code.

(C) Supplemental property tax revenues allocated pursuant to Sections 75 to 75.80 of the Revenue and Taxation Code, inclusive.

(2) The statement provided pursuant to this subdivision shall also include corrections, updates, or adjustments, if any, to the property tax revenue amounts and taxable assessed values reported pursuant to subdivision (a) of Section 33670.

(d) The county auditor shall also provide to a redevelopment agency, no later than 30 days after the receipt of a written request from that agency, information or clarification with respect to any statement issued pursuant to this section.

(e) If any redevelopment agency requests a statement or information pursuant to this section, the agency shall reimburse the county auditor for all actual and reasonable costs incurred.

History.—Added by Stats. 1992, Ch. 636, in effect January 1, 1993. Stats. 1999, Ch. 442 (AB 634), in effect January 1, 2000, added "The statement shall specify the gross amount of tax-increment revenue allocated to the agency and any payments to other taxing entities that are deducted from the gross amount allocated." as the second sentence of subdivision (a) (4); and substituted "100" for "98.9" after "Section" in subdivision (a)(5) and subdivision (c)(1)(B).

33672.7. Project area disbursements. [Repealed by Stats. 2005, Ch. 72 (AB 138), effective July 19, 2005.]

33673. Taxation of leased property. Whenever property in any redevelopment project has been redeveloped and thereafter is leased by the redevelopment agency to any person or persons or whenever the agency leases real property in any redevelopment project to any person or persons for redevelopment, the property shall be assessed and taxed in the same manner as privately owned property, and the lease or contract shall provide that the lessee shall pay taxes upon the assessed value of the entire property and not merely the assessed value of his or its leasehold interest.

33673.1. Notice of property leases. Every redevelopment agency shall provide notice to the local assessor within 30 days whenever the agency leases real property in a redevelopment project to any person or persons for redevelopment. The notice shall provide the date on which the lessee acquires the beneficial use of the leased property. The notice shall be accompanied by a memorandum of lease and a map of the leased property.

History.—Added by Stats. 1985, Ch. 650, in effect January 1, 1986.

33674. Taxes allocable and payable for first time. The portion of taxes mentioned in subdivision (b) of Section 33670 shall not be allocable and payable for the first time until the tax year which begins after the December 1st next following the transmittal of the documents as required in Section 33375 or Section 33457.

History.—Added by Stats. 1967, p. 3019, in effect November 8, 1967. Stats. 1997, Ch. 940 (SB 1105), in effect January 1, 1998, substituted "December" for "January" after "begins after the" in the first sentence.

33674.5. Redevelopment agency tax payments. (a) Notwith-standing Section 33674, any redevelopment agency which meets all of the requirements of subdivision (b) shall be entitled to be allocated and paid the portion of taxes provided by subdivision (b) of Section 33670 for the first time during the fiscal year commencing July 1, 1984.

(b) In order to be eligible to receive the tax increment pursuant to subdivision (a), a redevelopment agency shall have done all of the following:

(1) Transmitted the information required by Section 33327 to the county auditor, assessor, and tax collector and to the State Board of Equalization.

(2) Adopted a redevelopment plan which became effective after December 1, 1983, but prior to January 1, 1984.

(3) Recorded a copy of the description of the redevelopment project area and the statement required by Section 33373 prior to December 31, 1983.

(4) Transmitted all required documents pursuant to Section 33375 prior to the effective date of this section.

(c) The county and the State Board of Equalization shall not be required, in implementing this section, to establish a tax rate area for the redevelopment project area for the fiscal year commencing July 1, 1984.

(d) This section shall remain in effect only until January 1, 1986, and as of that date is repealed, unless a later enacted statute, which is chaptered before January 1, 1986, deletes or extends that date.

History.—Added by Stats. 1984, Ch. 1224, in effect September 17, 1984.

Note.—Section 3 of Stats. 1984, Ch. 1224, provided no payment by state to local governments because of this act, however, a local agency or school district may pursue any remedies to obtain reimbursement.

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33675. Procedure for allocation and payment of taxes. (a) The portion of taxes required to be allocated pursuant to subdivision (b) of Section 33670 shall be allocated and paid to the agency by the county auditor or officer responsible for the payment of taxes into the funds of the respective taxing entities pursuant to the procedure contained in this section.

(b) Not later than October 1 of each year, for each redevelopment project for which the redevelopment plan provides for the division of taxes pursuant to Section 33670, the agency shall file, with the county auditor or officer described in subdivision (a), a statement of indebtedness and a reconciliation statement certified by the chief financial officer of the agency.

(c) (1) For each redevelopment project for which a statement of indebtedness is required to be filed, the statement of indebtedness shall contain all of the following:

(A) For each loan, advance, or indebtedness incurred or entered into, all of the following information:

(i) The date the loan, advance, or indebtedness was incurred or entered into.

(ii) The principal amount, term, purpose, interest rate, and total interest of each loan, advance, or indebtedness.

(iii) The principal amount and interest due in the fiscal year in which the statement of indebtedness is filed for each loan, advance, or indebtedness.

(iv) The total amount of principal and interest remaining to be paid for each loan, advance, or indebtedness.

(B) The sum of the amounts determined under clause (iii) of subparagraph (A).

(C) The sum of the amounts determined under clause (iv) of subparagraph (A).

(D) The available revenues as of the end of the previous year, as determined pursuant to paragraph (10) of subdivision (d).

(2) The agency may estimate the amount of principal or interest, the interest rate, or term of any loan, advance, or indebtedness if the nature of the loan, advance, or indebtedness is such that the amount of principal or interest, the interest rate or term cannot be precisely determined. The agency may list on a statement of indebtedness any loan, advance, or indebtedness incurred or entered into on or before the date the statement is filed.

(d) For each redevelopment project for which a reconciliation statement is required to be filed, the reconciliation statement shall contain all of the following:

(1) A list of all loans, advances, and indebtedness listed on the previous year's statement of indebtedness.

(2) (A) A list of all loans, advances, and indebtedness, not listed on the previous year's statement of indebtedness, but incurred or entered into in the previous year and paid in whole or in part from revenue received by the agency pursuant to Section 33670. This listing may aggregate loans, advances, and indebtedness incurred or entered into in the previous year for a particular purpose (such as relocation expenses, administrative expenses, consultant expenses, or property management expenses) into a single item in the listing.

(B) For purposes of this section, any payment made pursuant to Section 33684 shall be considered as payment against existing passthrough payment indebtedness as listed on the agency's statement of indebtedness. If the most recent statement of indebtedness documents failed to include all or a part of the agency's obligation to the passthrough payments, those obligations shall be added to the next statement of indebtedness to be filed and shall include both current payments plus all future passthrough obligations.

(3) For each loan, advance, or indebtedness described in paragraph (1) or (2), all of the following information:

(A) The total amount of principal and interest remaining to be paid as of the later of the beginning of the previous year or the date the loan, advance, or indebtedness was incurred or entered into.

(B) Any increases or additions to the loan, advance, or indebtedness occurring during the previous year.

(C) The amount paid on the loan, advance, or indebtedness in the previous year from revenue received by the agency pursuant to Section 33670.

(D) The amount paid on the loan, advance, or indebtedness in the previous year from revenue other than revenue received by the agency pursuant to Section 33670.

(E) The total amount of principal and interest remaining to be paid as of the end of the previous fiscal year.

(4) The available revenues of the agency as of the beginning of the previous fiscal year.

(5) The amount of revenue received by the agency in the previous fiscal year pursuant to Section 33670.

(6) The amount of available revenue received by the agency in the previous fiscal year other than pursuant to Section 33670.

(7) The sum of the amounts specified in subparagraph (D) of paragraph (3), to the extent that the amounts are not included as available revenues pursuant to paragraph (6).

(8) The sum of the amounts specified in paragraphs (4), (5), (6), and (7).

(9) The sum of the amounts specified in subparagraphs (C) and (D) of paragraph (3).

(10) The amount determined by subtracting the amount determined under paragraph (9) from the amount determined under paragraph (8). The amount determined pursuant to this paragraph shall be the available revenues as of the end of the previous fiscal year.

(e) For the purposes of this section, available revenues shall include all cash or cash equivalents held by the agency that were received by the agency pursuant to Section 33670 and all cash or cash equivalents held by the agency that are irrevocably pledged or restricted to payment of a loan, advance, or indebtedness that the agency has listed on a statement of indebtedness. In no event shall available revenues include funds in the agency's Low and Moderate Income Housing Fund established pursuant to Section 33334.3. For the purposes of determining available revenues as of the end of the 1992–93 fiscal year, an agency shall conduct an examination or audit of its books and records for the 1990–91, 1991–92, and 1992–93 fiscal years to determine the available revenues as of the end of the 1992–93 fiscal year.

(f) For the purposes of this section, the amount an agency will deposit in its Low and Moderate Income Housing Fund established pursuant to Section 33334.3 shall constitute an indebtedness of the agency. For the purposes of this section, no loan, advance, or indebtedness that an agency intends to pay from its Low and Moderate Income Housing Fund established pursuant to Section 33334.3 shall be listed on a statement of indebtedness or reconciliation statement as a loan, advance, or indebtedness of the agency. For the purposes of this section, any statutorily authorized deficit in or borrowing from an agency's Low and Moderate Income Housing Fund established pursuant to Section 33334.3 shall constitute an indebtedness of the agency.

(g) The county auditor or officer shall, at the same time or times as the payment of taxes into the funds of the respective taxing entities of the county, allocate and pay the portion of taxes provided by subdivision (b) of Section 33670 to each agency. The amount allocated and paid shall not exceed the amount determined pursuant to subparagraph (C) of paragraph (1) of subdivision (c) minus the amount determined pursuant to subparagraph (D) of paragraph (1) of subdivision (c).

(h) (1) The statement of indebtedness constitutes prima facie evidence of the loans, advances, or indebtedness of the agency.

(2) (A) If the county auditor or other officer disputes the amount of loans, advances, or indebtedness as shown on the statement of indebtedness, the county auditor or other officer shall, within 30 days after receipt of the statement, give written notice to the agency thereof.

(B) The agency shall, within 30 days after receipt of notice pursuant to subparagraph (A), submit any further information it deems appropriate to substantiate the amount of any loans, advances, or indebtedness which has been disputed. If the county auditor or other officer still disputes the amount of loans, advances, or indebtedness, final written notice of that dispute shall be given to the agency, and the amount disputed may be withheld from allocation and payment to the agency as otherwise required by subdivision (g). In that event, the auditor or other officer shall bring an action in the superior court in declaratory relief to determine the matter not later than 90 days after the date of the final notice.

(3) In any court action brought pursuant to this section, the issue shall involve only the amount of loans, advances, or indebtedness, and not the validity of any contract or debt instrument or any expenditures pursuant thereto. Payments to a trustee under a bond resolution or indenture of any kind or payments to a public agency in connection with payments by that public agency pursuant to a lease or bond issue shall not be disputed in any action under this section. The matter shall be set for trial at the earliest possible date and shall take precedence over all other cases except older matters of the same character. Unless an action is brought within the time provided for herein, the auditor or other officer shall allocate and pay the amount shown on the statement of indebtedness as provided in subdivision (g).

(i) Nothing in this section shall be construed to permit a challenge to or attack on matters precluded from challenge or attack by reason of Sections 33500 and 33501. However, nothing in this section shall be construed to deny a remedy against the agency otherwise provided by law.

(j) The Controller shall prescribe a uniform form of statement of indebtedness and reconciliation statement. These forms shall be consistent with this section. In preparing these forms, the Controller shall obtain the input of county auditors, redevelopment agencies, and organizations of county auditors and redevelopment agencies.

(k) For the purposes of this section, a fiscal year shall be a year that begins on July 1 and ends the following June 30.

History.—Added by Stats. 1976, Ch. 1337, p. 6069, in effect January 1, 1977. Stats. 1977, Ch. 246, in effect January 1, 1978, substituted "Controller" for "State Board of Equalization" in paragraph (3), subdivision (c). Stats. 1980, Ch. 676, in effect January 1, 1981, substituted "over" for "of" after "precedence" in the eighth sentence of subdivision (e) and "However" for "provided that" before "nothing" in the second sentence of subdivision (f). Stats. 1993, Ch. 942, in effect January 1, 1994, substituted "October 1" for "the first day of October" after "Not later than", added "for each redevelopment . . . to Section 33670," after "of each year,", added a comma after "shall file"; deleted "of this section" after "subdivision (a)", added "and a reconciliation statement" after "statement of indebtedness"; deleted "to" after "certified"; substituted "financial" for "fiscal" after "chief", and deleted "for each redevelopment project . . . to Section 33670" after "of the agency" in subdivision (b); expanded subdivisions (c), (d), (e), (f), (g), and (h); relettered former subdivision (f) as subdivision (i); and added subdivisions (j) and (k). Amended by Stats. 2008, Ch. 751 (AB 1389), in effect September 30, 2008.

Construction.—County was barred from challenging a redevelopment agency's past claims for tax increment revenues as the result of its failure to give notice as prescribed by this section. Santa Cruz County v. City of Watsonville, 177 Cal.App.3d 831. It's the county auditor's function to see that the aggregate amount of tax revenues paid to a redevelopment agency does not exceed the aggregate of its indebtedness, and it is only when the agency's total indebtedness has been paid that tax increment revenues are to be paid to other tax entities such as school districts. Marek v. Napa Community Redevelopment Agency, 46 Cal.3d 1070.

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33676. Election to receive taxes allocable. (a) Prior to the adoption by the legislative body of a redevelopment plan providing for tax increment financing pursuant to Section 33670, any affected taxing agency may elect to be allocated, and every school district and community college district shall be allocated, in addition to the portion of taxes allocated to the affected taxing agency pursuant to subdivision (a) of Section 33670, all or any portion of the tax revenues allocated to the agency pursuant to subdivision (b) of Section 33670 attributable to one or more of the following:

(1) Increases in the rate of tax imposed for the benefit of the taxing agency which levy occurs after the tax year in which the ordinance adopting the redevelopment plan becomes effective.

(2) If an agency pursuant to Section 33354.5 amends a redevelopment plan that does not utilize tax increment financing and pursuant to subdivision (a) of Section 33670 uses the assessment roll last equalized prior to the effective date of the ordinance originally adopting the redevelopment plan, an affected taxing agency may elect to be allocated all or any portion of the tax revenues allocated to the agency pursuant to subdivision (b) of Section 33670 that the affected taxing agency would receive if the agency were to use the assessment roll last equalized prior to the effective date of the ordinance amending the redevelopment plan to add tax increment financing.

(b) (1) Any local education agency that is a basic aid district or office at the time the ordinance adopting a redevelopment plan is adopted and that receives no state funding, other than that provided pursuant to Section 6 of Article IX of the California Constitution, pursuant to Section 2558, 42238, or 84751, as appropriate, of the Education Code, shall receive annually its percentage share of the property taxes from the project area allocated among all of the affected taxing entities during the fiscal year the funds are allocated, increased by an amount equal to the lesser of the following:

(A) The percentage growth in assessed value that occurs throughout the district, excluding the portion of the district within the redevelopment project area.

(B) Eighty percent of the growth in assessed value that occurs within the portion of the district within the redevelopment project area.

(2) Subparagraphs (A) and (B) of paragraph (1) shall not apply to a redevelopment plan adopted by the legislative body of a community if both of the following occur:

(A) The median household income in the community in which the redevelopment project area is located is less than 80 percent of the median household income in the county in which the redevelopment project area is located.

(B) The preliminary plan for the redevelopment plan was adopted on or before September 1, 1993, and the redevelopment plan was adopted on or before August 1, 1994.

(3) Any local education agency that is a basic aid district or office at the time the ordinance amending a redevelopment plan is adopted pursuant to Section 33607.7 and that receives no state funding, other than that provided pursuant to Section 6 of Article IX of the California Constitution, pursuant to Section 2558, 42238, or 84751, as appropriate, of the Education Code, shall receive either of the following:

(A) If an agreement exists that requires payments to the basic aid district, the amount required to be paid by an agreement between the agency and the basic aid district entered into prior to January 1, 1994.

(B) If an agreement requiring those payments does not exist, the percentage share of the increase in property taxes from the project area allocated among all of the affected taxing entities during the fiscal year the funds in the project area are allocated, derived from 80 percent of the growth in assessed value that occurs within the portion of the district within the redevelopment project area from the year in which the amendment takes effect pursuant to subdivision (c) of Section 33607.7.

(4) The redevelopment agency shall subtract from any payments made pursuant to this section the amount that a basic aid district receives pursuant to Sections 33607.5 and 33607.7 for the purposes of either paragraph (1) of subdivision (h) of Section 42238 of the Education Code or either Section 2558 or 84751 of the Education Code.

(c) The governing body of any affected taxing agency, other than a school district and a community college district, electing to receive allocation of taxes pursuant to this section in addition to taxes allocated to it pursuant to subdivision (a) of Section 33670 shall adopt a resolution to that effect and transmit the same, prior to the adoption of the redevelopment plan, to (1) the legislative body, (2) the agency, and (3) the official or officials performing the functions of levying and collecting taxes for the affected taxing agency. Upon receipt by the official or officials of the resolution, allocation of taxes pursuant to this section to the affected taxing agency that has elected to receive the allocation pursuant to this section by the adoption of the resolution and allocation of taxes pursuant to this section to every school district and community college district shall be made at the time or times allocations are made pursuant to subdivision (a) of Section 33670.

(d) An affected taxing agency, at any time after the adoption of the resolution, may elect not to receive all or any portion of the additional allocation of taxes pursuant to this section by rescinding the resolution or by amending the same, as the case may be, and giving notice thereof to the legislative body, the agency, and the official or officials performing the functions of levying and collecting taxes for the affected taxing agency. After receipt of a notice by the official or officials that an affected taxing agency has elected not to receive all or a portion of the additional allocation of taxes by rescission or amendment of the resolution, any allocation of taxes to the affected taxing agency required to be made pursuant to this section shall not thereafter be made but shall be allocated to the agency and the affected taxing agency shall thereafter be allocated only the portion of taxes provided for in subdivision (a) of Section 33670. After receipt of a notice by the official or officials that an affected taxing agency has elected to receive additional tax revenues attributable to only a portion of the increases in the rate of tax, only that portion of the tax revenues shall thereafter be allocated to the affected taxing agency in addition to the portion of taxes allocated pursuant to subdivision (a) of Section 33670, and the remaining portion thereof shall be allocated to the agency.

(e) As used in this section, "affected taxing agency" means and includes every public agency for the benefit of which a tax is levied upon property in the project area, whether levied by the public agency or on its behalf by another public agency.

(f) This section applies only to redevelopment projects for which a final redevelopment plan is adopted pursuant to Article 5 (commencing with Section 33360) of Chapter 4 on or after January 1, 1977.

History.—Added by Stats. 1976, Ch. 1162, p. 5241, in effect January 1, 1977. Stats. 1977, Ch. 579, in effect January 1, 1978 added "of this part" to subdivision (e). Also renumbered from "33675" to "33676". Stats. 1984, Ch. 147, in effect January 1, 1985, substituted "and unless an agreement . . . college district shall elect" for "any affected taxing agency may elect", added "one or both . . . following:" after "33670 attributable to", added "(1)" before "increases", and added subsection (2) to subdivision (a); deleted "of this part" after "Chapter 4" in subdivision (e); and made nonsubstantive changes throughout the section. Stats. 1990, Ch. 1368, in effect September 27, 1990, substituted "more" for "both" after "one or" in subdivision (a); and added subsection (3) to subdivision (a). Stats. 1993, Ch. 942, in effect January 1, 1994, deleted "and unless an agreement is entered into or payments are otherwise distributed by the agency in accordance with Section 33401," after "to Section 33670", added "to be allocated" after "agency may elect", added "district" after "school", and deleted "elect, to" after "district shall" in subdivision (a); deleted former subparagraph (a)(2) which stated "Increases in the assessed value of the taxable property in the redevelopment project area, as the assessed value is established by the assessment roll last equalized prior to the effective date of the ordinance adopting the redevelopment plan pursuant to subdivision (a) of Section 33670, which are, or otherwise would be, calculated annually pursuant to subdivision (f) of Section 110.1 of the Revenue and Taxation Code."; renumbered former subparagraph (a)(3) as (a)(2); added subdivision (b); relettered former subdivisions (b), (c), (d), and (e) as (c), (d), (e), and (f), respectively; and added ", other than a school district and a community college district," after "taxing agency" in the first sentence, and added "and allocation of taxes pursuant to this section to every school district and community college district" after "adoption of the resolution" in the second sentence of subdivision (c). Stats. 1994, Ch. 936, in effect January 1, 1995, substituted "84751" for "84750" after "2558, 42238, or" in subdivision (b)(3); deleted "of" after "area allocated among" in subdivision (b)(3)(B); substituted "Sections 33607.5 and 33607.7" for "Section 33607.5" after "receives pursuant to", and substituted "either Section 2558 or Section 84751" for "Section 84750" after "Education Code or" in subdivision (b)(4). Stats. 1994, Ch. 146, in effect January 1, 1995, substituted "that" for "which" twice and deleted "to add tax increment financing" after "increment financing" in paragraph (2) of subdivision (a); added "requiring those payments" after "If an agreement" in paragraph (3)(B) of subdivision (b); substituted "that" for 'which" after "taxing agency" in subdivision (c); substituted "applied" for "shall apply" in subdivision (f). Stats. 1996, Ch. 799, in effect January 1, 1997, substituted "tax increment" for "tax-increment" after "plan providing for" in subdivision (a); substituted "84751" for "84750" before ", as appropriate," in paragraph (1) and substituted "Section 2558 or 84751" for "Section 2558 or Section 84751" after "Education Code or either" in paragraph (4) of subdivision (b).

Note.—Section 17 of Stats. 1984, Ch. 147, provided no payment by state to local governments because of this act, however, a local agency or school district may pursue any remedies to obtain reimbursement.

Construction.—A school district's action to require payment of a portion of tax revenues pursuant to this section was properly decided in the district's favor, even though the then operative version of the section required the district to elect, prior to the adoption of the redevelopment plan at issue, to be allocated the revenues, and the district did not make such an election until afterward. The legislative history indicated that the Legislature intended that the payment of the funds be mandatory. Santa Ana Unified School District v. Orange County Development Agency, 90 Cal.App.4th 404.

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33677. Separate computation of taxes. The amount of taxes allocated to the redevelopment agency pursuant to Section 33670 shall be separately computed for each constituent project area merged into a single project area pursuant to Section 33460, and for the original project area and each separate addition of land to the project area made by amendment of the redevelopment plan pursuant to Section 33450. The section is declaratory of existing law with respect to amendments to redevelopment plans.

History.—Added by Stats. 1976, Ch. 1338, p. 6073, in effect January 1, 1977. Stats. 1977, Ch. 579, in effect January 1, 1978 renumbered section from "33675" to "33677".

33677.5. Tax offset within redevelopment project area. A county auditor shall only offset excess amounts of property tax revenues allocated to a redevelopment project against property tax revenues of that redevelopment project, and not against the property tax revenues of another redevelopment project governed by the same redevelopment agency.

History.—Added by Stats. 1992, Ch. 636, in effect January 1, 1993.

33678. Redevelopment tax-increment revenues not proceeds of taxes within meaning of Article XIII B. (a) This section implements and fulfills the intent of this article and of Article XIII B and Section 16 of Article XVI of the California Constitution. The allocation and payment to an agency of the portion of taxes specified in subdivision (b) of Section 33670 for the purpose of paying principal of, or interest on, loans, advances, or indebtedness incurred for redevelopment activity, as defined in subdivision (b) of this section, shall not be deemed the receipt by an agency of proceeds of taxes levied by or on behalf of the agency within the meaning or for the purposes of Article XIII B of the California Constitution, nor shall such portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to limitation of, any other public body within the meaning or for purposes of Article XIII B of the California Constitution or any statutory provision enacted in implementation of Article XIII B. The allocation and payment to an agency of this portion of taxes shall not be deemed the appropriation by a redevelopment agency of proceeds of taxes levied by or on behalf of a redevelopment agency within the meaning or for purposes of Article XIII B of the California Constitution.

(b) As used in this section, "redevelopment activity" means either of the following:

(1) Redevelopment meeting all of the following criteria:

(A) Is redevelopment as prescribed in Sections 33020 and 33021.

(B) Primarily benefits the project area.

(C) None of the funds are used for the purpose of paying for employee or contractual services of any local governmental agency unless these services are directly related to the purpose of Sections 33020 and 33021 and the powers established in this part.

(2) Payments authorized by Section 33607.5.

(c) Should any law hereafter enacted, without a vote of the electorate, confer taxing power upon an agency, the exercise of that power by the agency in any fiscal year shall be deemed a transfer of financial responsibility from the community to the agency for that fiscal year within the meaning of subdivision (a) of Section 3 of Article XIII B of the California Constitution.

History.—Added by Stats. 1980, Ch. 1342, in effect September 30, 1980. Stats. 1993, Ch. 942, in effect January 1, 1994, substituted "this" for "such" after "agency of" in the third sentence of subdivision (a); added "either of the following:" after "means" in subdivision (b); created paragraph (1) of subdivision (b) with the balance of former subdivision (b) and substituted "Redevelopment" for "redevelopment" before "meeting" therein; relettered former paragraphs (1), (2), and (3) of subdivision (b) as subparagraphs (A), (B), and (C), respectively; substituted "these" for "such" after "unless" in subparagraph (C) of subdivision (b); added paragraph (2) to subdivision (b); added subdivision letter (c) before the former second paragraph of subdivision (b) and substituted "that" for "such" twice therein.

Construction.—A sales and use tax ordinance adopted by a redevelopment agency did not violate Article XIII B of the Constitution because there was a transfer of financial responsibility to the agency within the meaning of Article XIII B, Section 3(a) and this section. Huntington Park Redevelopment Agency v. Martin, 38 Cal.3d 100. In enacting this section, the Legislature properly exercised its powers to resolve the constitutional ambiguity created by Article XIII B of the Constitution; and because the means chosen were not arbitrary, unreasonable, or repugnant to the literal language of Article XIII B, the Legislature's judgment that the receipt of tax increment revenues by redevelopment agencies does not constitute receipt of taxes or proceeds of taxes within the meaning of Article XIII B would not be disturbed. Brown v. Community Redevelopment Agency, 168 Cal.App.3d 1014. This section is a valid legislative interpretation and reconciliation of Article XVI, Section 16 of the Constitution and Article XIII B of the Constitution, which fails to mention its effect on the redevelopment process. In enacting this section, the Legislature intended to interpret the inter-relationship between said provisions and to dispel any ambiguity. Bell Community Redevelopment Agency v. Woosley, 169 Cal.App.3d 24. Under this section, which provides that tax increment financing is not deemed to be the "proceeds of taxes," the source of funds used by a redevelopment agency is exempt from the scope of Article XIIIB, Section 6 of the Constitution. Although Section 6 does not expressly discuss the source of funds used by an agency to fund a program, the historical and contextual context of the section demonstrates that it applies only to costs recovered solely from tax revenues. Redevelopment Agency v. Commission on State Mandates, 55 Cal.App.4th 976. This section is constitutionally valid. Article XIII B of the California Constitution is vague and uncertain with respect to tax increment financing, and the legislative clarification in this section is neither arbitrary and unreasonable, nor repugnant to the language of Article XIII B. City of El Monte v. Commission on State Mandates, 83 Cal.App.4th 266.

33679. Public hearing requirements. Before an agency commits to use the portion of taxes to be allocated and paid to an agency pursuant to subdivision (b) of Section 33670 for the purpose of paying all or part of the value of the land for, and the cost of the installation and construction of, any publicly owned building, other than parking facilities, the legislative body shall hold a public hearing.

Notice of the time and place of the public hearing shall be published in a newspaper of general circulation in the community for at least two successive weeks prior to the public hearing. There shall be available for public inspection and copying, at a cost not to exceed the cost of duplication, a summary that includes all of the following:

(a) Estimates of the amount of the taxes proposed to be used to pay for the land and construction of any publicly owned building, including interest payments.

(b) Sets forth the facts supporting the determinations required to be made by the legislative body pursuant to Section 33445 or the findings required to be made by the legislative body pursuant to Section 33445.1.

(c) Sets forth the redevelopment purpose for which the taxes are being used to pay for the land and construction of the publicly owned building.

The summary shall be made available to the public for inspection and copying no later than the time of the first publication of the notice of the public hearing.

History.—Added by Stats. 1980, Ch. 1342, in effect September 30, 1980. Amended by Stats. 2009, Ch. 555 (SB 93), in effect January 1, 2010.

Construction.—School districts had standing to challenge the validity of a construction financing contract between a county and a redevelopment agency that provided for tax increment financing, authorized under Article XVI, Section 16 of the California Constitution, to pay for the cost of a proposed courthouse. The school districts were "affected taxing entities", whose future tax base could be limited by implementation of the contract. Meany v. Sacramento Housing and Redevelopment Agency, 13 Cal.App.4th 566.

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