Budget and Tax LevyTax Levy

Section § 29100

Explanation

Every year by October 3, the board must decide on the tax rates for properties that will help pay for voter-approved debt, following a 1% cap set by law. They figure out how much tax is needed by considering various factors like unpaid taxes, expected changes, disputes, and other funds.

The money collected from these taxes should cover the county's yearly needs to pay off its voter-approved debt. Any extra money saved should be put towards that same debt, and any interest earned should also go to this fund.

(a)CA Government Code § 29100(a) On or before October 3 of each year, the board shall adopt by resolution the rates of taxes on the secured roll, not to exceed the 1-percent limitation specified in Article XIII A of the Constitution and Sections 93 and 100 of the Revenue and Taxation Code. For voter-approved indebtedness, the board shall adopt the rates on the secured roll by determining the percentage of full value of property on the secured roll legally subject to support the annual debt requirement. Each rate shall be such as will produce the amount determined as necessary to be raised by taxation on the secured roll after due allowance for delinquency, anticipated changes to the roll, disputed tax revenues anticipated to be impounded pursuant to Section 26906.1, amounts subject to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code), and other available financing sources. The board may adopt a rate for voter-approved indebtedness as will produce an amount determined as appropriate for necessary reserves.
(b)CA Government Code § 29100(b) For purposes of this section, “an amount appropriate for necessary reserves” shall be limited to an amount sufficient to accommodate the county’s anticipated annual cashflow needs for servicing the county’s voter-approved debt. The funds reserved may service only the debt for which the extraordinary rate is levied. All interest earned on the amount deposited in the nonspendable, restricted, committed, or assigned fund balance account shall accrue to the same account.
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Section § 29100.6

Explanation

Every year by December 1st, county auditors in California must report to the Controller the total amount of property tax exemptions given for homeowners in their area. This report includes details for counties, cities, school districts, and other special districts. The report calculates the loss of tax revenue due to these exemptions and requests reimbursement from the state for the lost funds.

On or before December 1 of each year, each county auditor shall file with the Controller in such form as the Controller directs, a statement of the amounts of exempt values granted for the homeowners’ property tax exemption under subdivision (k) of Section 3 and Section 25 of Article XIII of the Constitution for the county, each city and school district or portion thereof within the county, each special district or subdivision or zone thereof or portion thereof within the county, for which a tax levy is carried on the county assessment roll. The auditor shall therein compute and show the total amount of ad valorem tax loss to the county and the cities and districts resulting from the exemption and the statement shall claim such amount against the state for payment of reimbursement.
county auditor homeowners' property tax exemption December 1 deadline ...

Section § 29101

Explanation

This law states that once the rates are decided, the governing board will impose taxes on county properties based on those rates. The taxes apply to the total assessed value of properties and only to those properties that can legally be taxed.

After adopting the rates, the board shall levy the taxes upon the taxable property of the county in specific sums in terms of the rates so adopted. Each rate is upon the full assessed valuation of property and only upon property which is legally subject to such tax.
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Section § 29102

Explanation

This section outlines the responsibilities of county boards of supervisors in setting tax rates for school districts and special districts unless another law states otherwise. Even if the county board doesn't directly manage these districts, if they levy taxes through the county's assessment roll, the board is involved. Additionally, when the assessed value of taxable property on the unsecured roll in a special district is higher than that on the secured roll, the board must adjust the tax rate appropriately to meet the district's revenue needs for the current and following year.

Unless otherwise provided by law, the authority and duties of the county board of supervisors with respect to adopting tax rates and levying of taxes prescribed in this article shall have application to school districts and to special districts, or zones or improvement districts thereof, whose affairs and finances are not under the supervision and control of the county board of supervisors but for which a tax levy is carried on the regular county assessment roll.
If the assessed value of the taxable property in a special district on the unsecured roll exceeds the assessed value of the taxable property on the secured roll, the special district tax rate which is adopted by the board for the secured roll shall be adjusted to an amount which the board determines will meet the estimated annual revenue requirements of the district for both the current and the next succeeding year.
county board of supervisors tax rates adoption levying taxes ...

Section § 29103

Explanation

This law states that it's the auditor's job to calculate different tax rates for the board to review and act upon.

It shall be the responsibility of the auditor to calculate the several tax rates for the board’s action thereon.
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Section § 29104

Explanation

The board has the authority to set a tax rate for a fund, or a group of funds with the same tax base, rounding up to the nearest fraction of a percent. If collecting this rate leads to extra cash, or if there's extra cash from other reasons, it won't affect the validity of the tax levies.

The board may adopt a rate ending in the next highest fraction of a percent for a fund, or for a group of funds having the same tax base.
Any cash collections resulting from this rate or from an excess resulting from any other cause shall not invalidate the levies.
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Section § 29106

Explanation

This law section states that when tax rates are established, there needs to be a clear way to identify which entity or fund each rate applies to. This means there should be a classification system in place to easily match tax rates with their corresponding entities or funds.

In the resolution adopting tax rates, the entity or fund with its corresponding rate shall be classified in any manner sufficient to identify it.
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Section § 29107

Explanation

This law section states that if property taxes are already defined and secured by the Constitution, they will be applied automatically and do not require an additional formal approval or action by the board.

The tax rates for property not sufficiently secured as provided in Section 12 of Article XIII of the Constitution are levied in the amounts therein provided and need not be formally levied by the board.
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Section § 29109

Explanation

This law section requires that every year by December 1st, county auditors send a report to the state Controller. This report includes tax rates, property values, and the amount of taxes to be collected. If the auditor doesn't send these reports on time, the county may have to pay a $1,000 penalty. However, if there's a good reason for the delay, the Controller can choose to waive this fine.

(a)CA Government Code § 29109(a) On or before December 1 of each year, the auditor shall forward to the Controller, in the format prescribed by the Controller, a statement of the rates of taxation, the assessed valuation as shown on the current equalized assessment roll, and the amount of taxes to be levied and allocated pursuant to the Revenue and Taxation Code.
(b)Copy CA Government Code § 29109(b)
(1)Copy CA Government Code § 29109(b)(1) If the auditor, after receipt of written notice from the Controller fails to transmit the statements within 20 days, the county shall forfeit to the state, one thousand dollars ($1,000) to be recovered in an action brought by the Attorney General, in the name of the Controller.
(2)CA Government Code § 29109(b)(2) Upon a satisfactory showing of good cause, the Controller may waive the penalty for late filing provided in paragraph (1).
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