2005 California Revenue and Taxation Code Sections 2227-2237.5 Article 2. General Provisions

2227.  Annually, the Department of Finance shall transmit to each
city and each county an estimate of the percentage change in the
population of the city or the county.  Such estimates shall indicate
the percentage change in the resident population, excluding the
population in state mental and correctional facilities and in federal
correctional and federal military installations, of each city and
each county between January 1 of the prior year and January 1 of the
current year.  Such statements shall be transmitted by May 1.
   The Department of Finance may request data from any local agency
to be used to prepare the population estimate required by this
section.  If any local agency fails to supply the requested data, the
department is not required to provide an estimate for that agency,
but may do so using the method deemed most appropriate by the
department.
2228.  (a) The annual percentage change in population for special
districts shall be the percentage changes established pursuant to
Section 2227 and this section:
   (1) If a special district is located entirely within a city, the
annual percentage change in population for the district shall be that
established for the city pursuant to Section 2227.
   (2) If a special district is located entirely within the
unincorporated area of a county, the annual percentage change in
population for the district shall be that established for the county
or the unincorporated area of the county.
   (3) If a special district is located within a single county or
within more than one city or any combination of cities and
unincorporated areas within a single county, the annual percentage
change in population for the district shall be that established for
the county or the weighted average of the percentage change of each
city and the unincorporated area.
   (4) If a special district is located within more than one county,
the annual  percentage change in population for the district shall be
the weighted average of the percentage change of each county or city
or unincorporated area within the district or any combination,
provided that the areas selected are mutually exclusive.
   (b) The Department of Finance may request data from any local
jurisdiction to  be used to prepare the percentage change in
population required by this section.  The Department of Finance shall
determine the weights to be used in establishing weighted averages.
   (c) If the governing body of a special district determines that
the percentage change in population in subdivision (a) will not be
accurate for the district,  it may, before June 1, request the
Department of Finance to prepare a special population change estimate
for the district.  The department shall comply with the request
before September 1, and the estimate prepared by the department shall
be used to determine population change for purposes of this chapter.
  The district shall reimburse the department for the actual cost of
preparing the estimate.
2228.1.  (a) Annually, the Department of Finance shall transmit to
each community college district an estimate of its annual percentage
change in adult population.  Such estimates shall indicate the
percentage change in the resident population within the geographic
boundaries of the district consistent with the geographic boundaries
used to determine the assessed valuation for the current and budget
fiscal years excluding the population in state and federal
correctional institutions and all full-time enrollment associated
with four-year educational institutions with an enrollment of 3,000
or more and persons residing in military barracks of each district
between January 1 of the prior year and January 1 of the current year
if possible, or between the fall school census week of the prior
fiscal year and the fall school census week of the current year.
Such statements shall be transmitted by May 15.
   The Department of Finance may request data from any local agency
to be used to prepare the population estimate required by this
section.  If any local agency fails to supply the requested data, the
department is not required to provide an estimate for the school
district affected, but may do so using the method deemed most
appropriate by the department after first notifying the community
college district.
   (b) If the total population of a district as currently delineated
was within 15 percent of the total population of one or more cities
or counties or city and county each of whose population is 50 percent
or more within the district as of the most recent federal special or
decennial census or local census carried out under the Department of
Finance supervision covering the area in question, it may apply to
the Department of Finance for a special estimate of the percentage
change in total population of the corresponding area for the past
year.  The department will prepare the estimate in accordance with
the data and methods used pursuant to Section 2227 of the Revenue and
Taxation Code and the district may use the estimate in lieu of the
estimate prepared under subdivision (a) of this section.
2229.   (a) Any classification or exemption of property for purposes
of ad valorem property taxation enacted by the Legislature after
January 1, 1973, shall be reimbursed by the state for the 1973-1974
fiscal year and for each fiscal year thereafter.
   (b) For purposes of this section the actual loss of revenue does
not include potential revenue from property of a type which was not
being assessed and taxed on January 1, 1973.
   (c) Upon appropriation of reimbursement funds by the Legislature,
each county auditor shall file a claim with the Controller on or
before September 30 for reimbursement of the tax loss attributable to
the exemption.  The Controller shall pay on or before December 30 of
each year one-half of the amount claimed and shall pay the other
one-half on or before April 30.  The Controller may audit, or may
request the State Board of Equalization to audit, any of these claims
or payments.  This section does not apply to classes of property
affected by Sections 988, 1152, 5303, and subdivision (c) of Section
227.
   (d) The Legislative Analyst shall review any classification or
exemption of property to which this section is applicable and shall
report to the Legislature on the general economic effects thereof.
This report shall be submitted at least one year prior to the date on
which the classification or exemption is scheduled to terminate.
   (e) Any claim alleging that the reimbursement requirements of this
section have not been complied with shall be presented directly to
the Legislature and Sections 905.2 and 945.4 of the Government Code
shall not apply thereto.
2230.  The state shall annually reimburse cities and counties for
the net loss of revenue from each statute enacted after January 1,
1973, which provides for a sales or use tax exemption.  The
reimbursement shall be made, when funds have been appropriated by the
Legislature, as follows:
   (a) Twenty percent of the local net loss shall be distributed to
the counties in the same ratio as the total amount of sales and use
taxes collected in each county is to the whole.  This amount of money
shall be deposited by the board of supervisors in the local
transportation fund established pursuant to Section 29530 of the
Government Code.  These moneys shall become part of the local
transportation fund and shall be appropriated in the same manner and
for the same purposes specified in Section 29531 of the Government
Code.
   (b) Eighty percent of the local net loss shall be distributed to
cities and counties in the same ratio as provided in Section 30462
for the distribution of moneys from the Cigarette Tax Fund.
   The distribution of reimbursement moneys pursuant to this section
shall be made at the same time and in the same manner as provided in
Section 30462 for the distribution of moneys from the Cigarette Tax
Fund.
   For purposes of this section the Director of Finance shall
estimate the annual net loss of revenue to local agencies.  In the
case of legislative bills which provide for a sales or use tax
exemption, the Director of Finance shall prepare an estimate of the
annual net loss of revenue to local agencies during the initial
fiscal year in which the bill becomes effective.  An appropriation
consistent with such estimate shall be included in the bill.  In
subsequent fiscal years an appropriation to reimburse local agencies
as required by this section shall be included in the State Budget.
The amount included each year in the State Budget shall be changed by
the estimated percentage change from the prior year, in the amount
of revenue distributed to cities and counties pursuant to Part 1.5
(commencing with Section 7200) of Division 2.
   For purposes of this section the net loss of revenue does not
include (i)  potential revenue from the sale or use of property of a
type which was not being taxed on January 1, 1973, or (ii) the amount
which would have been deducted by the Board of Equalization pursuant
to Section 7204.3 for the cost of administering local sales and use
tax ordinances.
   In lieu of distributing reimbursement revenue as provided in this
section, any statute exempting property from sales or use tax may
provide an alternative procedure for such distribution.
   Any claim alleging that the reimbursement requirements of this
section have not been complied with shall be presented directly to
the Legislature and the provisions of Sections 905.2 and 945.4 of the
Government Code shall not apply thereto.
2230.5.  Notwithstanding the provisions of Sections 2229 and 2230,
prior to the end of each calendar year, commencing with the 1978
calendar year, the Department of Finance shall review all statutes
enacted and executive orders issued during such calendar year which
contain provisions relating to Sections 2229 and 2230.  The
department shall cause to be included in each Budget Bill the amount
necessary to provide for reimbursement to local agencies and school
districts for the net property tax revenue losses and for
reimbursement to cities and counties for the net revenue losses
caused by any sales or use tax exemption.
2232.  Any funds received by a local agency or school district
pursuant to the provisions of this chapter may be used for any public
purpose.
2233.  (a) The Director of Finance shall include in the Governor's
Budget an appropriation for a statute which has an otherwise minimal
fiscal effect on local agencies or school districts if the director
determines that the fiscal effect of the statute and other related
statutes is, in the aggregate, significant.
   (b) No claim shall be made pursuant to Sections 2229 and 2231, nor
shall any payment be made on claims submitted pursuant to Sections
2229 and 2231, unless such claims exceed two hundred dollars ($200),
provided that a county superintendent of schools or county may submit
a combined claim on behalf of direct service  districts or special
districts within their county if the combined claim exceeds two
hundred dollars ($200) even if the individual direct service or
special district's claims do not each exceed two hundred dollars
($200).  The county superintendent of schools or county shall
determine if the submission of such combined claim is economically
feasible and shall be responsible for disbursing such funds to each
direct service or special district.  Such combined claims may be
filed only when the superintendent of schools or county is the fiscal
agent for such districts.  All subsequent claims based upon the same
mandate shall only be filed in such combined form.
2235.  Claims for direct and indirect costs filed pursuant to
Sections 2229 and 2231 shall be filed in the manner prescribed by the
State Controller.
2237.2.  (a) Annually, no later than 90 days following the end of
the fiscal year, each local agency (as defined in Section 95) shall
report to the Controller any ad valorem property tax levied by or on
behalf of the local agency for the current fiscal year at a rate
which is in excess of the limitation prescribed by subdivision (a) of
Section 1 of Article XIIIA of the Constitution.  For purposes of
this section, ad valorem property taxes levied by the county or by a
special district governed by the board of supervisors at a rate in
excess of the limitation prescribed in subdivision (a) of Section 1
of Article XIIIA of the Constitution shall be reported by the county
auditor.
   (b) The information to be reported pursuant to this section shall
be provided on a form to be specified by the Controller and shall
include all of the following information:
   (1) A description of the local obligation or indebtedness for
which the tax is levied.
   (2) The reason for the exemption from the limitation prescribed by
subdivision (a) of Section 1 of Article XIIIA of the Constitution.
   (3) The date of the election authorizing each tax levy, the
results of the election, and a copy of the ballot measure, if the
levy was authorized by election.
   (4) The tax rate and the total revenues expected to be generated
in the fiscal year.
   (5) Actual revenues, if any, generated from the levy in the prior
fiscal year and actual expenditures, if any, made in the prior year
for the local obligation or indebtedness for which the tax was
levied.
   (6) Any other information relating to the levy of property tax at
a rate in excess of the limitation prescribed by subdivision (a) of
Section 1 of Article XIIIA which the Controller deems relevant.
   (c) With respect to ad valorem property tax levies in excess of
the rate limitation prescribed in subdivision (a) of Section 1 of
Article XIIIA of the Constitution which have been authorized by the
voters but not collected during the fiscal year, each local agency
shall report the information specified in paragraphs (1), (2), and
(3) of subdivision (b).
   (d) The official of each local agency responsible for submitting
the report required by this section shall certify that the
information submitted is, to the best of his or her knowledge, true
and accurate.
   (e) The Controller shall require that any property tax levied at a
rate in excess of the limit prescribed by subdivision (a) of Section
1 of Article XIIIA of the Constitution be reported in the manner
specified in this section.
   (f) For purposes of this section, an "ad valorem property tax"
shall be any tax or assessment imposed on the basis of the value of
the real property, including any special ad valorem assessment.
2237.4.  If a local agency fails to file by October 1 each year a
report required by Section 2237.2, the Controller and the county
auditor in the succeeding fiscal year shall reduce the payment they
are required to make to such jurisdiction based on claims filed
pursuant to Section 16113 of the Government Code.  The reduction
shall be 10 percent of the prior year's payment or five thousand
dollars ($5,000), whichever is less.
2237.5.  For the 1979-80 fiscal year and thereafter, except as
provided by subdivision (b) of Section 12 of Article XIII of the
Constitution, for purposes of computing tax rates on the unsecured
tax roll, the county auditor may add to the 1-percent rate the rate
levied on the prior year's secured tax roll for indebtedness approved
by the voters prior to July 1, 1978, and bonded indebtedness for the
acquisition or improvement of real property approved by two-thirds
of the voters on or after June 4, 1986, as described in subdivision
(b) of Section 1 of Article XIIIA of the California Constitution.