Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2012
 

Government Code Provisions

Provisions Relating to Property Tax Relief

DIVISION 4. FISCAL AFFAIRS

PART 1. FUNDS FOR SUBVENTIONS

CHAPTER 3. Open-Space Subventions


Chapter 3. Open-Space Subventions*

* Section 7 of Stats. 1976, Ch. 658, provided that the intent of the Legislature is to reallocate the open-space subventions to give greater priority to lands which are threatened with development or urbanization. It is also the intent of the Legislature that the provisions of this bill apply only until a revised system is developed by the state to more clearly express its interest in the preservation of certain categories of land.

† For the genesis of Chapter 3 see: Stats. 1969, p. 3115; Stats. 1970, p. 899; Stats. 1970, p. 2067; Stats. 1971 (First Extra Session), p. 4881; Stats. 1971 (First Extra Session), p. 5136; Stats. 1972, p. 1977. These provisions were renumbered 16140–16153 and amended in part by Stats. 1972, p. 1997, in effect August 18, 1972.

16140. Appropriation. There is hereby continuously appropriated to the Controller from the General Fund a sum sufficient to make the payments required by this chapter.

The payments provided by this chapter shall be made only when the value of each parcel of open-space land assessed under Sections 423, 423.3, 423.4, and 423.5 of the Revenue and Taxation Code is less than the value that would have resulted if the valuation of the property was made pursuant to Section 110.1 of the Revenue and Taxation Code, as though the property were not subject to an enforceable restriction in the base year.

History.—Stats. 1979, Ch. 1075, in effect September 28, 1979, applicable to the 1979–80 fiscal year and thereafter, added the second paragraph. Stats. 1981, Ch. 998, in effect September 29, 1981, deleted "State" before "General" in the first paragraph, and added "423.3" after "423" in the second paragraph. Stats. 1998, Ch. 353 (SB 1182), in effect August 24, 1998, added "423.4," after "423.3," in the first sentence of the second paragraph.

Note.—Section 4 of Stats. 1979, Ch. 1075, provided that notwithstanding Section 2231 or 2234 of the Revenue and Taxation Code, no appropriation is made by this act pursuant to these sections because local governmental entities have the option to prohibit computation of the lower of Williamson Act values determined according to capitalization rates or Article XIII A, and thus, this act does not itself impose additional duties or result in loss of revenues.

16141. Purpose. It is the purpose of this chapter to provide replacement revenues to local government by reason of the reduction of the property tax on open-space lands assessed under Sections 423, 423.3, 423.4, and 423.5 of the Revenue and Taxation Code. Notwithstanding any other provisions of this chapter, no subvention payments to a county, city, city and county, or school district shall be made pursuant to this chapter for land enforceably restricted pursuant to the Open-Space Easement Act of 1974 (Chapter 6.6 (commencing with Section 51070) of Part 1 of Division 1 of Title 5).

History.—Stats. 1976, Ch. 658, p. 1626, in effect January 1, 1977, added the second sentence. Stats. 1981, Ch. 998,in effect September 29, 1981, added "423.3" after "423" in the first sentence. Stats. 1998, Ch. 353 (SB 1182), in effect August 24, 1998, added "423.4," after "423.3," in the first sentence.

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Effective until January 1, 2016

16142. Payment. (a) The Secretary of the Natural Resources Agency shall direct the Controller to pay annually out of the funds appropriated by Section 16140, to each eligible county, city, or city and county, the following amounts for each acre of land within its regulatory jurisdiction that is assessed pursuant to Section 423, 423.3, 423.4, or 423.5, or 426 if it was previously assessed under Section 423.4, of the Revenue and Taxation Code:

(1) Five dollars ($5) for prime agricultural land, as defined in Section 51201.

(2) One dollar ($1) for all land, other than prime agricultural land, which is devoted to open-space uses of statewide significance, as defined in Section 16143.

(b) The amount per acre in paragraph (1) of subdivision (a) may be increased by the Secretary of the Natural Resources Agency to a figure which would offset any savings due to a more restrictive determination by the secretary as to what land is devoted to open-space use of statewide significance.

(c) The amount per acre in subdivision (a) shall only be paid for 10 years from the date that the land was first assessed pursuant to Section 426 of the Revenue and Taxation Code, if it was previously assessed under Section 423.4 of that code.

(d) Notwithstanding any other provision of law, for the 2008–09 fiscal year and each fiscal year thereafter, the Controller shall reduce, by 10 percent, any payment made pursuant to this section.

(edeletion) Effective January 1, 2011, if the payment pursuant to this section for the previous fiscal year is less than one-half of the participating county's actual foregone general fund property tax revenue, the county may make a determination to implement subdivision (b) of Section 51244 and Section 51244.3. The implementation of these sections shall be suspended for any subsequent fiscal year in which the payment for the previous fiscal year exceeds one-half of the foregone general fund property tax revenue.

For purposes of this subdivision, a county's actual foregone property tax revenue shall be based on the county's respective share of the general property tax dollars as reflected in the most recent annual report issued by the State Board of Equalization or 20 percent, whichever is higher.

(deletionf) This deletionsection shall remain deletionin effect only until January 1, deletion2016, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2016, deletes or extends that date.

History.—Stats. 1974, Ch. 1003, p. 2153, in effect January 1, 1975, added the second paragraph. Stats. 1976, Ch. 658, p. 1626, in effect January 1, 1977, relettered the former subsections (a), (b), and (c) as subsections (b), (c), and (d), respectively; added subsection (a); substituted "Five dollars ($5)" for "Three dollars ($3)" in subsection (b); added the balance of subsection (b)(1) after "city"; substituted the balance of subsection (b)(2) after "with" for "1,500 or more registered voters, or"; deleted former subsection (b)(3); substituted "One dollar ($1)" for "One dollar and fifty cents ($1.50)" in subsection (c); substituted "forty cents ($0.40)" for "fifty cents ($0.50)" in subsection (d); and substituted the second paragraph for the former second paragraph which provided that no payment shall be made with respect to land subject to an open-space easement accepted pursuant to the Open-Space Easement Act of 1974. Stats. 1981, Ch. 998, in effect September 29, 1981, added "423.3" after "423" in the first sentence of the first paragraph; deleted "of this code" after "51201" in the first sentences of subsections (a) and (b), and added "either of the following" after "is" in the first sentence of subsection (b); deleted "or" after "Finance" in subsection (b)(1), and substituted "subdivision (a)" for "(a) above" in the first sentence of subsection (b)(2); and added "as" before "defined" in subsection (d). Stats. 1993, Ch. 65, in effect June 30, 1993, deleted former subdivision (a) which imposed an eight dollar fee on agricultural land which was located within three miles of an incorporated city with a population of 25,000 or more; relettered former subdivision (b) as (a), and deleted ", which is either of the following" after "Section 51201" and deleted former paragraphs (1) and (2) which qualified the imposition of the five dollar fee to agricultural land located within an incorporated city of between 15,000 and 25,000 or within three miles of an incorporated city of 15,000 or more therein; deleted former subdivision (c) which stated "One dollar ($1) for all other prime agricultural land"; and relettered former subdivision (d) as (b), and substituted "One dollar ($1)" for "Forty cents ($0.40)" before "for all" therein. Stats. 1998, Ch. 353 (SB 1182), in effect August 24, 1998, added "423.4," after "423.3," in the first sentence of the section. Stats. 1999, Ch. 1019 (SB 649), in effect January 1, 2000, added "(a)" before "The" and former subdivisions (a) and (b) as paragraphs (1) and (2), respectively; added ",or 426 if it was previously assessed under Section 423.4," following "423.5" in the first sentence; deleted "The amount per acre in subdivision (a)" and replaced with "(b) The amount per acre in paragraph (1) of subdivision (a)"; and added subdivision (c). Stats 2008, Ch. 751 (AB 1389), in effect September 30, 2008, added subdivision (d). Stats. 2010, Ch. 722 (SB 863), in effect October 19, 2010, added "Natural" after "Secretary of the" in the first sentences of subdivisions (a) and (b); substituted "section" for "subdivision" after "to this" in the first sentence of subdivision (d); and added subdivision (e). Amended by Stats. 2011, Ch. 11 (SB 80), in effect March 24, 2011, deleted former subdivision (e). Stats. 2011, Ch. 90 (AB 1265), in effect July 15, 2011, restored former subdivision (e) and deleted paragraph designation (1) from the first paragraph of subdivision (e) and deleted former paragraph (2) thereof which provided that this subdivision would remain operative until January 1, 2015; and added subdivision (f).

Note.—Section 9 of Stats. 2010, Ch. 722 (SB 863), provides that it is the Legislature's intent to make the options in Sections 2, 3, 5, and 6 of this act available, but not required, for use by counties and landowners for the 2010–11 fiscal year, if feasible, and no later than the 2011–12 fiscal year.

Effective January 1, 2016

16142. Payment. (a) The Secretary of the Natural Resources Agency shall direct the Controller to pay annually out of the funds appropriated by Section 16140, to each eligible county, city, or city and county, the following amounts for each acre of land within its regulatory jurisdiction that is assessed pursuant to Section 423, 423.3, 423.4, or 423.5, or 426 if it was previously assessed under Section 423.4, of the Revenue and Taxation Code:

(1) Five dollars ($5) for prime agricultural land, as defined in Section 51201.

(2) One dollar ($1) for all land, other than prime agricultural land, which is devoted to open-space uses of statewide significance, as defined in Section 16143.

(b) The amount per acre in paragraph (1) of subdivision (a) may be increased by the Secretary of the Natural Resources Agency to a figure which would offset any savings due to a more restrictive determination by the secretary as to what land is devoted to open-space use of statewide significance.

(c) The amount per acre in subdivision (a) shall only be paid for 10 years from the date that the land was first assessed pursuant to Section 426 of the Revenue and Taxation Code, if it was previously assessed under Section 423.4 of that code.

(d) Notwithstanding any other law, for the 2008–09 fiscal year and each fiscal year thereafter, the Controller shall reduce, by 10 percent, any payment made pursuant to this section.

(e) This section shall become operative on January 1, 2016.

History.—Added by Stats. 2011, Ch. 90 (AB 1265), in effect July 15, 2011, operative January 1, 2016.

Effective until January 1, 2016

16142.1. Farmland security zones. (a) In lieu of the payments made pursuant to Section 16142, in a county that has adopted farmland security zones pursuant to Section 51296, the Secretary of the Natural Resources Agency shall direct the Controller to pay annually out of the funds appropriated by Section 16140, to each eligible county, city, or city and county, the following amount for each acre of land within its regulatory jurisdiction that is assessed pursuant to Section 423.4 or 426 of the Revenue and Taxation Code, if it was previously assessed under Section 423.4 of that code:

Eight dollars ($8) for land that is within, or within three miles of the boundaries of the sphere of influence of, each incorporated city.

(b) The amount per acre in subdivision (a) shall only be paid for 10 years from the date that the land was first assessed pursuant to Section 426 of the Revenue and Taxation Code, if it was previously assessed under Section 423.4 of that code. The appropriation authorized by this subdivision shall not exceed one hundred thousand dollars ($100,000) per year until 2005.

(c) Notwithstanding any other provision of law, for the 2008–09 fiscal year and each fiscal year thereafter, the Controller shall reduce, by 10 percent, any payments made pursuant to this section.

(ddeletion) Effective January 1, 2011, if the payment pursuant to this section for the previous fiscal year is less than one-half of the participating county's actual foregone general fund property tax revenue, the county may make a determination to implement subdivision (b) of Section 51244 and Section 51244.3. The implementation of these sections shall be suspended for any subsequent fiscal year in which the payment for the previous fiscal year exceeds one-half of the foregone general fund property tax revenue.

For purposes of this subdivision, a county's actual foregone property tax revenue shall be based on the county's respective share of the general property tax dollars as reflected in the most recent annual report issued by the State Board of Equalization or 20 percent, whichever is higher.

(deletione) This deletionsection shall remain deletionin effect only until January 1, deletion2016, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2016, deletes or extends that date.

History.—Added by Stats. 1999, Ch. 1019 (SB 649), in effect January 1, 2000. Stats. 2008, Ch. 751 (AB 1389), in effect September 30, 2008, added subdivision (c). Stats. 2010, Ch. 722 (SB 863), in effect October 19, 2010, added "Natural" after "Secretary of the" in the first sentence of subdivision (a); substituted "section" for "subdivision" after "to this" in the first sentence of subdivision (c); and added subdivision (d). Stats. 2011, Ch. 11 (SB 80), in effect March 24, 2011, deleted former subdivision (d). Stats. 2011, Ch. 90 (AB 1265) in effect July 15, 2011, restored former subdivision (d) and deleted paragraph designation (1) from the first paragraph and deleted former paragraph (2) which provided that this subdivision would remain operative until January 1, 2015; and added subdivision (e).

Note.—Section 9 of Stats. 2010, Ch. 722 (SB 863), provides that it is the Legislature's intent to make the options in Sections 2, 3, 5, and 6 of this act available, but not required, for use by counties and landowners for the 2010–11 fiscal year, if feasible, and no later than the 2011–12 fiscal year.

Effective January 1, 2016

16142.1. Farmland security zones. (a) In lieu of the payments made pursuant to Section 16142, in a county that has adopted farmland security zones pursuant to Section 51296, the Secretary of the Natural Resources Agency shall direct the Controller to pay annually out of the funds appropriated by Section 16140, to each eligible county, city, or city and county, the following amount for each acre of land within its regulatory jurisdiction that is assessed pursuant to Section 423.4 or 426 of the Revenue and Taxation Code, if it was previously assessed under Section 423.4 of that code: Eight dollars ($8) for land that is within, or within three miles of the boundaries of the sphere of influence of, each incorporated city.

(b) The amount per acre in subdivision (a) shall only be paid for 10 years from the date that the land was first assessed pursuant to Section 426 of the Revenue and Taxation Code, if it was previously assessed under Section 423.4 of that code. The appropriation authorized by this subdivision shall not exceed one hundred thousand dollars ($100,000) per year until 2005.

(c) Notwithstanding any other law, for the 2008–09 fiscal year and each fiscal year thereafter, the Controller shall reduce, by 10 percent, any payments made pursuant to this section.

(d) This section shall become operative on January 1, 2016.

History.—Added by Stats. 2011, Ch. 90 (AB 1265), in effect July 15, 2011, operative January 1, 2016.

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16142.5. Payment; limitation. (a) For the fiscal year 1977–78, no payment to a city or county shall increase or reduce the amount which would have been paid to the city or county under the provisions of Section 16142 as it existed on March 1, 1976, as applied to land assessed pursuant to Section 423 or 423.5 of the Revenue and Taxation Code for the fiscal year 1977–78, in excess of an amount which is equal to the property tax derived from a levy at the rate of three cents ($0.03) per hundred dollars of assessed value.

(b) For fiscal years subsequent to the fiscal year 1977–78, no payment to a city or county shall increase or reduce the amount which was paid in the prior fiscal year in excess of an amount which is equal to the property tax derived from a levy at the rate of three cents ($0.03) per hundred dollars of assessed value for the fiscal year, except as affected by an increase or a reduction in the acreage assessed under Section 423, 423.3, or 423.5 of the Revenue and Taxation Code.

History.—Added by Stats. 1976, Ch. 658, p. 1627, in effect January 1, 1977. Stats. 1981, Ch. 998, in effect September 29, 1981, substituted "the" for "such" after "value for", deleted "the provisions of" before "Section", and added "423.3" after "423" in subdivision (b).

16143. Open-space land. Land shall be deemed to be devoted to open-space uses of statewide significance if it:

(a) Could be developed as prime agricultural land, or

(b) Is open-space land as defined in Section 65560 which constitutes a resource whose preservation is of more than local importance for ecological, economic, educational, or other purposes. The Secretary of the Resources Agency shall be the final judge of whether the land is in fact devoted to open-space use of statewide significance.

16144. Reports. On or before October 31 each year, the governing body of each county, city, or city and county shall report to the Secretary of the Resources Agency the number of acres of land under its regulatory jurisdiction which qualify for state payments pursuant to the various categories enumerated in Section 16142, together with supporting documentation as the secretary by regulation may require. The secretary, after reviewing the report and determining the eligibility of the local government to receive payment and the actual amount to which it is entitled, shall certify that amount to the Controller for payment, and the Controller shall make the payment on or before June 30, but no earlier than April 20, of each year.

The secretary may make supplemental reports to the Controller as he or she deems necessary throughout the year to give effect to new or additional information received from local governing bodies, correct errors, and dispose of contested or conditional situations. Upon receiving the reports, the Controller shall pay any amount certified therein, and may withhold and deduct any certified overpayment from the amount that would otherwise be paid to the local government in the next succeeding year, including any cancellation fees that have not been collected and transmitted pursuant to Section 51283.

History.—Stats. 1972, p. 2394, in effect December 13, 1972, substituted all after "shall make payment" for "by December 31, 1972, and annually thereafter." in the first paragraph. Stats. 1983, Ch. 483, in effect January 1, 1984, substituted "the" for "such" after "make" and substituted "on or before June 30 of each year" for "at the same time payments are made to school districts pursuant to Section 16151" after the third "payment" in the second sentence of the first paragraph, and substituted "the" for "such" after "receiving" in the second sentence of the second paragraph. Stats. 1994, Ch. 1251, in effect January 1, 1995, substituted "each year," for ", 1972, and annually thereafter," after "before October 31", deleted "submit a" after "and county shall", deleted "itemizing" after "the Resources Agency", substituted "qualify" for "it believes to be qualified" after "regulatory jurisdiction which", and deleted "such" after "16142, together with" in the first sentence of the first paragraph; deleted "such" after "secretary may make" in the first sentence of the second paragraph; substituted "he or she" for "it" after "the Controller as" in the first sentence, and added ", including . . . Section 51283" after "succeeding year" in the second sentence of the second paragraph. Stats. 2008, Ch. 751 (AB 1389), in effect September 30, 2008, added ", but no earlier than April 20," after "before June 30" in the second sentence of the first paragraph.

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16145. Use of funds. Funds received by local governments pursuant to the provisions of this chapter may be used for county, city, or city and county purposes, as the case may be, or may, but need not necessarily, be used for purposes of general interest and benefit to the state. The use of the funds shall include administration, supervision, and enforcement of any open-space program under which a local government receives the funds. The funds may also include an allocation of all or part of them to any special district or school district existing within boundaries of a local government in which land is assessed pursuant to Section 423, 423.3, or 423.5 of the Revenue and Taxation Code, and which has thereby suffered a reduction in its assessed valuation, when the local governing body determines:

(a) That the loss of assessed value is substantial and will have an adverse effect upon programs of public importance carried on by the district.

(b) The benefits flowing from the restrictions on the use of land within the district do not accrue solely or primarily to landowners or residents within the district.

(c) That the taxes collected by the district are not devoted to expenditures primarily of benefit to land or landowners within the district.

Any special district or school district may make application for an allocation of the funds from the local government in the form and with such supporting evidence as the governing board of the local government may require. The governing board may also adopt such uniform standards as it believes necessary to determine the amount and method of payment of such assistance, and may provide for such payments to be reduced annually, according to a schedule, so as to cease financial assistance over a specified period of years. However, nothing herein shall be construed as requiring the governing board of the local government to make any allocation to any special district or school district, and the governing board of the local government shall be the sole judge of the entitlement of any special district or school district to any allocation, and to the amount of the allocation if granted.

History.—Stats. 1981, Ch. 998, in effect September 29, 1981, substituted "the" for "such" before the first and second "funds" in the second sentence and at the beginning of the third sentence in, and added "423.3" after "423" in the third sentence of the first paragraph; and substituted "the" for "such" before "funds" in the first sentence of, before "governing" at the beginning of the second sentence of, and before the second "local" and before the third "allocation" in the third sentence of the second paragraph.

16146. Determination of ineligibility. The Secretary of the Resources Agency may determine, after notice and hearing, that a local government is ineligible to receive state payments pursuant to this article by reason of its failure to comply with the provision of Article 10.5 (commencing with Section 65560) of Chapter 3 of Title 7, or with the provisions of any program which establishes an enforceable restriction upon which the assessment of land within its jurisdiction pursuant to Section 423, 423.3, 423.4, or 423.5 of the Revenue and Taxation Code is based. The fact that a local government has not complied with the requirements of Article 10.5 (commencing with Section 65560) of Chapter 3 of Title 7 by the dates set forth in that article shall not be reason to determine that the local government is ineligible to receive state payments if the local government has complied by July 1 of the year in which application is made. This section shall not be construed to require the disqualification of any land from assessment pursuant to Section 423, 423.3, 423.4, or 423.5 of the Revenue and Taxation Code as a consequence of any determination of ineligibility by the secretary.

History.—Stats. 1976, Ch. 658, p. 1627, in effect January 1, 1977, added the second sentence. Stats. 1981, Ch. 998, in effect September 29, 1981, deleted "of this code" after "Title 7" and added "423.3" after "423" in the first sentence, and added "423.3" after "423" in the third sentence. Stats. 1998, Ch. 353 (SB 1182), in effect August 24, 1998, added "423.4," after "423.3," in the first and third sentences of the first paragraph.

16147. Action by Attorney General. The Secretary of the Resources Agency may request the Attorney General to bring any action in court necessary to enforce any enforceable restriction as defined in Section 422 of the Revenue and Taxation Code, upon land for which the secretary has certified payment of state funds to the local governing body during the current or any preceding fiscal year. Such action may include, but is not limited to, an action to enforce the contract by specific performance or injunction.

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16148. 2010-11 fiscal year appropriation. deletionZero dollars ($deletion0) is appropriated for the 2010–11 fiscal year from the General Fund to the Controller to make subvention payments to counties pursuant to Section 16140 in proportion to the losses incurred by those counties by reason of the reduction of assessed property taxes.

History.—Added by Stats. 2010, Ch. 722 (SB 863), in effect October 19, 2010. Stats. 2011, Ch. 11 (SB 80), in effect March 24, 2011, substituted "Zero dollars ($0)" for "Ten million dollars ($10,000,000)" before "is appropriated" in the first sentence.

16149. Determination and report of open-space adjustment.[Repealed by Stats. 1981, Ch. 261, in effect January 1, 1982.]

16150. Maximum assistance to school districts. [Repealed by Stats. 1981, Ch. 261, in effect January 1, 1982.]

16151. Apportionment. [Repealed by Stats. 1981, Ch. 261, in effect January 1, 1982.]

16152. Limitation. [Repealed by Stats. 1976, Ch. 658, p. 1627, in effect January 1, 1977.]

16153. Maximum amount of allowable disbursement. [Repealed by Stats. 2000, Ch. 506, in effect January 1, 2001.]

16154. Report of additional information. In addition to the report required by Section 16144, the Secretary of the Resources Agency shall require from local government agencies such other information relative to lands valued pursuant to Section 8 of Article XIII of the California Constitution as is necessary for the proper administration of the provisions of Sections 16142 through 16153 and for periodic review of the policies established therein.

Information collected pursuant to this section shall be transmitted on request to the Legislature and to other state agencies, including, but not limited to, the State Board of Equalization, the Superintendent of Public Instruction, and the Department of Food and Agriculture.

History.—Stats. 1972, p. 2393, in effect December 13, 1972, renumbered and amended former Section 16119 as Section 16154. Stats. 1973, Ch. 140, p. 376, in effect January 1, 1974, added "Food and" in the first sentence of the second paragraph. Stats. 1984, Ch. 193, in effect January 1, 1985, substituted "Section 8 of Article XIII" for "the provisions of Article 28" in the first paragraph.

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