Los Angeles Municipal Code Art. 5 Procedures for Levying

Tax Proceeds; Tax Collection, Penalties, Etc.

Time for Commencement; Time for Perfection of Appeal from Final Judgment.

Sec. 6.748. Ordinance; Tax Rate and Apportionment; Exemption of Governmental Properties and Entities from Special Tax; Use of Tax Proceeds; Tax Collection, Penalties, Etc.

After a Community Taxing District has been created and authorized to levy specified special taxes pursuant to Articles 2, 3 or 4 of this Chapter, the Council may, by ordinance, levy the special taxes at the rate and apportion them in the manner specified in the ordinance of formation or consideration, as applicable, adopted pursuant to Articles 2, 3 or 4 of this Chapter. The ordinance, after adoption, shall remain in effect until repealed by a later ordinance. The Council may, by resolution, clarify any aspect of the levy of the special tax as provided by the ordinance.

Properties or entities of the state, federal, or other local governments shall, except as otherwise provided in Sections 6.709 or 6.710, be exempt from the special tax. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in the ordinance of formation to establish a District adopted pursuant to Section 6.723 or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment of an existing special tax as provided in Section 6.735.

The proceeds of any special tax may only be used to pay, in whole or part, the cost of providing facilities, services and incidental expenses of the City or the District pursuant to this Chapter. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedures, sale, and lien priority in case of delinquency as is provided for ad valorem taxes, unless another procedure has been authorized in the ordinance of formation establishing the District and adopted by the Council. The tax collector may collect the special tax at intervals as specified in the ordinance of formation, including intervals different from the intervals at which the ordinary ad valorem property taxes are collected. The tax collector may deduct the reasonable administrative costs

incurred in collecting the special tax. All special taxes levied by a Community Taxing District shall be secured by the lien imposed pursuant to California Streets and Highways Code Section 3115.5. This lien shall be a continuing lien and shall secure each levy of special taxes. The lien of the special tax shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled, or until the special tax ceases to be levied by the Council in the manner provided in Section 6.732.

SECTION HISTORY

Added by Ord. No. 177,051, Eff. 11-20-05.

The Council shall designate an office, department or bureau of the City that will be responsible for annually preparing the current roll of special tax levy obligations by assessor’s parcel number on nonexempt property within the District and that will be responsible for estimating future special tax levies. The designated office, department or bureau shall establish procedures to promptly respond to inquiries concerning current and future estimated tax liability. Neither the designated office, department or bureau, nor the Council, shall be liable if any estimate of future tax liability is inaccurate.

SECTION HISTORY

Added by Ord. No. 177,051, Eff. 11-20-05.

Sec. 6.750. Actions or Proceedings to Attach, Review, Set Aside, Void or Annual Levy of Special Tax or Increase in Special Tax; Time for Commencement; Time for Perfection of Appeal from Final Judgment.

Any action or proceeding to attack, review, set aside, void or annul the levy of a special tax or an increase in a special tax pursuant to this Chapter, shall be commenced within thirty days after the special tax or the Debt, as applicable, is approved by the voters. Any appeal from a final judgment in that action or proceeding shall be perfected within thirty days after the entry of judgment.

SECTION HISTORY

Added by Ord. No. 177,051, Eff. 11-20-05.

A. If a lot, parcel or unit of a subdivision is subject to a special tax levied pursuant to this Chapter for which a public report is not required pursuant to Article 2 (commencing with Section 11010) of Chapter 1 of Part 2 of Division 4 of the California Business and Professions Code, the subdivider, its agent or representative, shall not sell, or lease for a term exceeding five years, the lot, parcel or unit, or cause it to be sold or leased for a term exceeding five years, until the prospective purchaser or lessee of the lot, parcel, or unit has been furnished with and has signed a written notice as provided in this section. The notice shall contain the heading “NOTICE OF SPECIAL TAX” in type no smaller than 8-point type, and shall state the following in clear and simple language:

1. That the property being purchased is or will be subject to a special tax;

2. The maximum annual amount of the special tax, and the number of years for which it will be levied;

3. The types of facilities or services to be paid for with the proceeds of the special tax.

B. “Subdivision,” as used in subsection A of this section, means improved or unimproved land that is divided or proposed to be divided for the purpose of sale, lease, or financing, whether immediate or future, into two or more lots, parcels, or units for residential use and includes a condominium project, a community apartment project, a stock cooperative, and a limited-equity housing cooperative, as defined in Sections 11004, 11003.2 and 11003.4, respectively, of the California Business and Professions Code.

C. If any disclosure required to be made by this section is delivered after the execution of an agreement to purchase, the buyer shall have three days after delivery in person or five days after delivery by deposit in the mail, to terminate the buyer’s agreement by delivery of written notice of that termination to the owner, subdivider, or agent. Any disclosure delivered after the execution of an agreement to purchase shall contain a statement describing the buyer’s right, method and time to rescind as prescribed by this subsection.

D. The failure of the buyer or lessee to sign the notice shall not invalidate any grant, conveyance, lease or encumbrance.

E. Any person or entity that willfully violates the provisions of this section shall be liable to the purchaser of a lot or unit, which is subject to the provisions of this section, for actual, damages, and in addition thereto, shall be guilty of a public offense punishable by a fine in an amount not to exceed five hundred dollars. In an action to enforce this liability or fine, the prevailing party shall be awarded reasonable attorney’s fees.

SECTION HISTORY

Added by Ord. No. 177,051, Eff. 11-20-05.

For any Community Taxing District or zone in the District created in the ordinance of formation, the Council may fix and collect charges in the same manner as for miscellaneous extended services in county service areas.

SECTION HISTORY

Added by Ord. No. 177,051, Eff. 11-20-05.

Any charges collected pursuant to this Article may only be used for facilities and services authorized by this Chapter.

SECTION HISTORY

Added by Ord. No. 177,051, Eff. 11-20-05.

If the special tax is permanently satisfied as to a particular parcel of land, the City Clerk shall prepare and record in the office of the Los Angeles County Recorder, and the County Recorder shall accept for recordation, a Notice of Cancellation of Special Tax Authorization as to that parcel. The Notice of Cancellation of Special Tax Authorization shall identify with particularity the special tax being cancelled, shall contain the legal description and assessor’s parcel number of the particular parcel of land subject to the tax, and shall contain the name of the owner of record of the parcel. The City Clerk shall mail the original Notice of Cancellation of Special Tax Authorization to the owner of the property after recording the document. The City Clerk may specify a charge for the preparation and recordation of this notice.

SECTION HISTORY

Added by Ord. No. 177,051, Eff. 11-20-05.