2005 California Revenue and Taxation Code Sections 2270-2280.1 Article 5. Additional Property Tax Rates

2270.  A local agency may levy, or have levied on its behalf, a rate
in addition to the maximum property tax rate established pursuant to
this chapter (commencing with Section 2201) to pay the cost of:  (1)
interest and redemption charges on bonded or other indebtedness
authorized prior to the effective date of this section, together with
any reserve or sinking funds required in connection therewith; (2)
interest and redemption charges on bonded or other indebtedness
authorized after the effective date of this section by the voters of
such agency, together with any reserve or sinking funds required in
connection therewith; (3) interest charges on notes of a local agency
issued in anticipation of bonds, if such bonds were authorized prior
to the effective date of this section or were authorized by the
voters of such agency after the effective date of this section, and
if the principal amount of any such notes is payable only from
proceeds of the sale of such bonds; (4) interest and redemption
charges on refunding bonds or on bonds issued pursuant to Section
53541 of the Government Code or Section 71960 of the Water Code,
together with any reserve or sinking funds required in connection
therewith; (5) retirement and pension benefits or plans which are
being provided pursuant to provisions of a city or county charter or
which have been specifically approved by the voters of a local
agency; and (6) payments or contributions which are required to be
made to a special fund by specific provision of a city or county
charter; provided, however, that this subdivision shall not apply to
any city or county whose charter contains a provision permitting the
governing body to suspend or defer such payments or contributions
upon making a finding that statutory limitations on ad valorem
property taxation limit the ability of the city or county to make
such payments or contributions.
2271.  A local agency may levy, or have levied on its behalf, a rate
in addition to the maximum property tax rate established pursuant to
this chapter (commencing with Section 2201) to pay costs mandated by
the federal government or costs mandated by the courts or costs
mandated by initiative enactment, which are not funded by federal or
state government.
   The Controller may audit any rate imposed under this section and
any data related to the establishment thereof.  If the Controller
determines that such rate exceeds a rate which would be necessary to
meet the federally mandated, initiative-mandated or court-mandated
costs, or if the Controller determines that such rate has been levied
to pay any cost mandated by a court which has resulted from
litigation entered into in order to avoid the property tax rate
limits established by this chapter, or if the Controller determines
that a local agency has erroneously concluded that it is subject to
costs mandated by the courts or costs mandated by the federal
government, he shall immediately notify the local agency of such
determination, and the local agency shall reduce its property tax
rate by an appropriate amount for the next succeeding fiscal year.
In the event that a local agency fails to make such a reduction in
its property tax rate, the Controller shall request the Attorney
General to bring an action under Chapter 2 (commencing with Section
1084) of Title 1 of Part 3 of the Code of Civil Procedure to force a
reduction in the rate.
2271.1.  An additional property tax heretofore or hereafter levied
pursuant to the provisions of Section 2271 shall not be invalidated
and may continue to be levied to meet recurring costs resulting from
any program or activity undertaken or implemented by a local agency
in order to comply with a mandate by the federal government, by
initiative enactment or the courts, notwithstanding the reversal,
repeal, stay, or invalidation of such mandate, if the reversal,
repeal, stay, or invalidation of the mandate occurred or occurs after
the local agency has made such additional levy to satisfy continuing
contractual obligations entered into in order to undertake,
implement or continue the mandated program or activity.
   The additional rate shall not continue to be levied if the
reversal, repeal, stay, or invalidation of the mandate is upheld by a
final court order.
2271.15.  Notwithstanding the provisions of Section 2271.1, an
additional levy made prior to January 1, 1976, pursuant to the
provisions of Section 2271 to pay costs mandated by the 1974
amendments to the Fair Labor Standards Act, or regulations issued
pursuant thereto, shall not be invalidated and may continue to be
made to meet recurring costs resulting from any program or activity
undertaken or implemented by a local agency in order to comply with
such amendments or regulations, notwithstanding the repeal, stay or
invalidation of such amendments or regulations, if the repeal, stay
or invalidation of such amendments or regulations occurs or occurred
after the local agency has made such additional levy or has incurred
continuing obligations in order to implement the mandated program or
activity.
2271.2.  The Controller shall issue, and shall revise, as needed,
advisory guidelines to assist local agencies in determining when an
additional property tax rate may be levied pursuant to Section 2271.
2272.  A local agency may levy, or have levied on its behalf, a rate
in addition to the maximum property tax rate established pursuant to
this chapter (commencing with Section 2201) for the purpose of
complying with Sections 5302.5, 6467, 6468, 8809, and 10206 of the
Streets and Highways Code or with Section 43240 of the Government
Code or with Article 1 (commencing with Section 13371) of Chapter 7.5
of Division 6 of the Public Utilities Code.
2273.  (a) A local agency may levy, or have levied on its behalf, a
rate in addition to the maximum property tax rate established
pursuant to this chapter (commencing with Section 2201) for the
purpose of meeting the costs of written contractual obligations,
leases and agreements, including determinations made pursuant to the
Meyers-Milias-Brown Act (Chapter 10 (commencing with Section 3500) of
Division 4 of Title 1 of the Government Code), which were entered
into, or authorized by the governing body or by the voters of such
agency, prior to January 1, 1973, if:
   (1) The local agency incurred no costs or budgeted no expenditures
under the contractual obligation or agreement during the 1972-1973
fiscal year but will incur such costs in subsequent fiscal years, or
   (2) The local agency did incur costs pursuant to the contractual
obligation or agreement in the 1972-1973 fiscal year, but in
subsequent fiscal years such costs increase in an amount which
exceeds either the growth rate in the local agency's assessed value
or its growth rate in population and cost of living as determined
pursuant to Section 2212 and Sections 2227 or 2228.
   (b) The additional rate which may be levied to meet costs
described in paragraph (1) of subdivision (a) shall be that rate in
each fiscal year which produces the amount of revenue needed to meet
the actual annual costs of the contract or obligation.
   (c) The additional rate which may be levied in each fiscal year to
meet costs described in paragraph (2) of subdivision (a) shall be
that rate which produces an amount of revenue equal to the difference
between (i) the cost of the contract for the current year and (ii)
the adjusted base year cost of the contract.  Such adjusted base year
cost shall be determined as follows:  (i) for the 1973-1974 fiscal
year, the actual cost of the contract in the 1972-1973 fiscal year
shall be multiplied by either the percentage increase in population
and the cost of living or the percentage increase in assessed value
which is applicable to the local agency, whichever is greater.  The
product of such multiplication plus the actual cost of the contract
during the 1972-1973 fiscal year shall be the adjusted base cost of
the contract; (ii) for each subsequent fiscal year, the adjusted base
year cost of the contract of the prior year shall be multiplied by
either the percentage increase in the cost of living and population
or the percentage increase in assessed value which is applicable to
the local agency, whichever is  greater.  The product of such
multiplication plus the adjusted base year cost of the contract in
the prior fiscal year shall be the adjusted base cost of the contract
in the current year.  For the 1981-82 fiscal year, the assessed
value for the 1980-81 fiscal year shall be multiplied by four prior
to calculating the  percentage increase in assessed value.
   (d) No local agency may levy an additional rate as provided in
this section after the termination of the contractual obligation or
agreement described in subdivision (a); provided that a local agency
may continue to levy an additional rate equal to the rate levied for
the entire last year of such a contract or agreement if (i) the local
agency enters a new contractual obligation which provides for
substantially similar kinds of services or goods as the terminated
contract, and (ii) the new contractual obligation concerns personal
services, consumable goods or personal property and does not in any
manner involve real property as defined in Section 104.
   The additional property tax rate authorized by this section shall
apply (i) to contractual obligations arising from the exercise of
options and (ii) to contractual obligations arising from contingent
promises.  Except as specifically provided by this section, the
additional property tax rate authorized by this section does not
apply to contractual obligations incurred by mutual agreement of the
contracting parties after January 1, 1973.
2273.1.  The provisions of Section 2273 shall apply to a contract or
lease signed after January 1, 1973, if a local agency, in
anticipation of such contract, shall have taken formal action prior
to January 1, 1973, to implement one or more projects to be acquired
or constructed pursuant to such contract.
   "Formal action to implement any one or more projects" means:
   (a) The incurring of a liability for a substantial portion of an
architectural or engineering contract relating to the project; or
   (b) The acquisition of land or improvements for the project.
2273.2.  If, prior to January 1, 1973, a local agency was a party to
any contract or lease, the terms of which provide (1) that the local
agency shall make payments to the federal government, the State of
California or any other local agency and (2) that the governing body
of such local agency shall, whenever necessary, levy an ad valorem
property tax sufficient to provide for all payments under the
contract or lease in a timely manner, such local agency may levy, or
have levied on its behalf, a rate in addition to the maximum property
tax rate established pursuant to this chapter (commencing with
Section 2201) for the purpose of making such payments as are required
by such contract or lease; provided, that, the provisions of this
section shall apply to a contract or lease signed after January 1,
1973, which contains the terms stated in (1) and (2) above if the
terms of such contract or lease are designed to prevent an increase
in the burden on the taxpayers of the local agency by means of
providing for a reduction in payments under a contract or lease
signed before January 1, 1973, to which this section is applicable,
in amounts at least equal to the payments required under the contract
or lease signed after January 1, 1973.
2274.  (a) In the event of an emergency which constitutes a danger
to the public health, safety or welfare, or of a general disaster,
which requires a local agency to incur additional costs which cannot
be met under the maximum property tax rates provided by this chapter
(commencing with Section 2201), a local agency may levy, or have
levied on its behalf, an additional rate which will produce 1 percent
of the amount produced by its maximum property tax rate.   Such a
rate shall be authorized by a two-thirds vote of the governing body
and shall be levied for one year only.
   In the event that the property tax rate has been set when an
additional rate is authorized pursuant to this subdivision, such
additional rate may be levied in the next following fiscal year.
   (b) If the additional rate authorized by subdivision (a) is not
sufficient to meet the costs incurred as a result of the emergency or
general disaster, a local agency may, by resolution, request the
Controller to authorize an additional amount of ad valorem property
taxation in excess of that authorized pursuant to subdivision (a).
   The local agency shall, upon request of the Controller, provide
the Controller with such facts and evidence as will enable him to
authorize an additional amount pursuant to the provisions of this
subdivision.
   Upon receipt of the resolution requesting the authorization of an
additional amount, the Controller shall hold a public hearing within
the jurisdiction of the local agency or as near thereto as is
practicable.  At the conclusion of the hearing he shall authorize an
additional amount if he makes the following findings:  (1) An
emergency or general disaster does exist the costs of which cannot be
met under the agency's maximum property tax rate and under the
additional tax rate provided in subdivision (a).  (2) Such costs are
the responsibility of the local agency and cannot be met from revenue
sources other than the property tax.  (3) Such costs are not within
the immediate control of the local agency but are due rather to
general economic, environmental, or social conditions, or any of
them, or acts of God.  Environmental conditions shall include orders
of the State Water Resources Control Board or regional water quality
control boards.  (4) The emergency or general disaster endangers
public health, safety or welfare.
   The additional amount authorized pursuant to this subdivision may
be raised during a single fiscal year or, at the discretion of the
local agency, a portion of such amount may be raised in each of
several fiscal years.
   In any fiscal year a local agency may levy, or have levied on its
behalf, a rate in addition to the maximum property tax rate
established pursuant to this chapter which will be sufficient to
produce the amount authorized pursuant to this subdivision, or the
portion thereof which the local agency has determined will be raised
in such fiscal year.
2275.  A local agency may levy, or have levied on its behalf, a rate
in addition to the maximum property tax rate established pursuant to
this chapter (commencing with Section 2201) to pay the cost of
interest and redemption charges, together with any reserve or sinking
funds required in connection therewith, on any note or other
evidence of indebtedness which such agency is authorized by statute
to issue in the event of emergencies involving major damage to, and
destruction of, such agency's works or facilities.  Such rate shall
be levied without regard to the provisions of Section 2274.
2276.  A local agency to which Section 2267 is applicable, may levy,
or have levied on its behalf, a rate in addition to the maximum
property tax rate established pursuant to Section 2267 for the
purpose of repaying any indebtedness which was incurred in order to
pay the operating costs of such agency during the fiscal years in
which an error or omission occurred in determining the property tax
rate for such agency.
2277.  A local agency may levy, or have levied on its behalf, a rate
in addition to the maximum property tax rate established pursuant to
this chapter (commencing with Section 2201) for the purpose of
paying the actual cost of holding an election pursuant to the
provisions of Article 6 (commencing with Section 2285).
2278.  In the event that a local agency is required to pay or is
authorized to collect any fees, assessments, charges or obligations
as a term or condition of a "governmental reorganization," as such
term is defined in Section 2295, the local agency may levy, or have
levied on its behalf, a rate, in addition to the maximum property tax
rate established pursuant to this chapter, for the purpose of paying
or collecting the actual amount of such fees, assessments, charges,
or obligations.
2279.1.  A local agency may levy, or have levied on its behalf, a
rate in addition to the maximum property tax rate established
pursuant to this chapter for interest and redemption charges on
amounts borrowed pursuant to Section 54902.1 of the Government Code.
2280.  A special district may levy, or have levied on its behalf, a
rate in addition to the maximum property tax rate established
pursuant to this chapter in order to pay the extraordinary costs of
purchasing electricity for use for street lighting which was in
operating condition in the 1972-73 fiscal year.  This section shall
apply only to special districts that were in existence on January 1,
1976, and which have as their sole and exclusive purpose the
provision of street lighting services.  Such additional rate shall be
determined in the following manner:
   (1) The special district shall determine the actual cost of
electricity used for street lighting purposes during the 1972-73
fiscal year.
   (2) The special district shall then determine the property tax
rate which, applied to such district's assessed valuation in the
1972-73 fiscal year, would have produced an amount of revenue
equivalent to the costs determined pursuant to subdivision (1).
   (3) Annually, the special district shall determine whether the
property tax rate determined pursuant to subdivision (2) would be
increased if such rate were adjusted as provided in Section 2266.  If
such property tax rate would be increased, it shall be adjusted in
the manner provided in Section 2266.
   (4) The property tax rate determined pursuant to subdivision (2),
as such rate may have been adjusted pursuant to subdivision (3),
shall then be applied to the district's assessed valuation for the
current fiscal year.  The resulting amount shall represent the cost
of electricity for street lighting purposes which shall be funded,
during the current fiscal year, out of such district's maximum
property tax rate.
   (5) The amount determined pursuant to subdivision (4) shall be
subtracted from the actual cost to the district for the current
fiscal year of electricity for street lighting which was in operating
condition in the 1972-73 fiscal year.  The amount resulting from
such subtraction shall represent such district's extraordinary cost
of purchasing electricity for street lighting purposes and the
special district may levy such additional property tax rate as may be
necessary to produce an amount of revenue equivalent to such
extraordinary costs.  If the amount resulting from such subtraction
is a negative amount, the special district shall reduce its property
tax rate as may be necessary to produce an amount of revenue which,
when deducted from the actual cost to the district for the current
fiscal year of electricity for street lighting, will not result in a
negative balance.
2280.01.  (a) A local agency may levy, or have levied on its behalf,
a rate in addition to the maximum property tax rate established
pursuant to this chapter for purposes authorized by this section.
   (b) In the event that a local agency desires to levy a property
tax rate for a specified purpose, it shall submit a proposal to levy
such a tax to the qualified voters thereof for approval.  The
proposal shall specify the maximum rate to be levied.
   (c) An election held pursuant to this section shall be called,
held and conducted in the same manner as required by Article 6
(commencing with Section 2285).
   (d) In the event that the qualified voters of a local agency
approve an additional property tax rate as provided in this section,
such tax rate may be levied for the purpose specified in the ballot
proposition.
   (e) Once the purpose for which the additional property tax rate
was authorized has been accomplished, the additional rate shall
terminate.
   (f) The proposal may specify a date on which the special property
tax rate shall terminate.
2280.1.  A city may levy, or have levied on its behalf, a rate in
addition to the maximum tax rate established pursuant to this chapter
in order to comply with the provisions of Section 43073 of the
Government Code.