Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2014
 

Revenue and Taxation Code

Property Taxation

Part 4. Levy of Tax

Chapter 3. Reimbursement for Costs Mandated by the State

Article 8. Functional Consolidation: Effect on Maximum Property Tax Rates * †

Section 2307

2307. Reduction in maximum rate for transferring agency. The local agency which transfers a program or service shall reduce its maximum property tax rate as provided in this section. Such reduction shall be effective beginning with the fiscal year after the transfer has occurred.

(a) The local agency shall determine the actual cost of providing the transferred program or service during the last full fiscal year in which such function was provided.

(b) The local agency shall determine the amount of the costs determined pursuant to subdivision (a) which are attributable to expenses for general administration and capital outlay and which cannot be transferred to the agency assuming the responsibility for providing the program or service; provided that such amount shall not exceed 10 percent of the amount determined pursuant to subdivision (a).

(c) The local agency shall subtract the amount determined pursuant to subdivision (b) from the amount determined pursuant to subdivision (a).

(d) The local agency shall determine the property tax rate which would have been required to produce the amount determined pursuant to subdivision (c) during the last full fiscal year in which the transferred program or service was provided and shall reduce its maximum property tax rate thereby.

* Article 8 shall not apply to property tax rates for the 1978–1979 fiscal year.

† Section 60 of Stats. 1979, Ch. 282, in effect July 24, 1979, provided that Article 8 shall not apply to property tax rates for the 1979–80 fiscal year.