Garden Grove Municipal Code Ch. 1.20 Limitations on Income Derived from Municipal Real Property Taxes And…

During the municipal election held on March 7, 1978, the voters of Garden Grove approved the adoption of a City ordinance limiting property tax income and business license taxes. It is the purpose of this chapter to implement the action taken by the voters.

(1656 § 1, 1978; 2800 § 1, 2011)

For purposes of use in this chapter, the following words or terms shall have the following definitions:

"Business license tax"

refers to the tax imposed by the City for transacting and carrying on business within the City, but does not include income from inspection fees related to such business activities.

"National cost of living index"

refers to any one of several national indexes published by the federal government showing increases or decreases in the cost of living. Each fiscal year the City Council shall determine which national cost of living index to use in computing provisions contained in Section 1.20.030(B).

"Real property taxes"

refers to City-imposed taxes on real property located within the City.

"Real property tax income"

refers to the total income derived from the imposition of the real property tax, excluding therefrom income derived for paramedics.

"Real property tax rate"

refers to the tax rate per $100.00 assessed valuation imposed on city real property.

(1656 § 1, 1978; 2800 § 1, 2011)

The City Council shall annually set the real property tax rate so as to yield for the fiscal year, property tax income as follows:

A. Fiscal Year 1977-1978. For the fiscal year 1977-1978, the property tax income is not to exceed $3,019,000.00;

B. Fiscal Year 1978-1979. Commencing with the fiscal year 1978-1979 and continuing thereafter, each fiscal year, the real property tax rate shall be set to yield property tax income not greater than the preceding fiscal year's real property tax income, except that such income may be increased at a rate not to exceed one-half percent for each one percent increase in the national annual cost of living index for the previous fiscal year period;

C. Property Tax Income Increases. Property tax income increases as authorized by subsection A of this section shall further be limited so as not to increase in any fiscal year more than five percent over the previous fiscal year;

D. Property Tax Income Carryover. Should real property tax income during any fiscal year exceed the amount permitted as provided in this section, the excess amount shall be carried over to the following fiscal year, and the City's real property tax rate shall be adjusted downward to reflect the excess as income.

(1656 § 1, 1978; 2800 § 1, 2011)

Business operation taxes are, by separate ordinance, to be set at the rate provided during the 1974-1975 fiscal year.

(1656 § 1, 1978; 2800 § 1, 2011)