Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2014
 

Other Code Provisions

Health and Safety Code

DIVISION 24. COMMUNITY REDEVELOPMENT AND HOUSING

PART 1. COMMUNITY REDEVELOPMENT LAW

Chapter 6. Financial Provisions

Article 6. Taxation*

Section 33670

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.

* 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.