Newport Beach Municipal Code Art. VI Procedures for Levying

§ 3.32.630. Ordinance – Tax Rate and Apportionment – Exemption of Governmental…¶

After a special improvement district has been created and authorized to levy specified special taxes pursuant to Article III, IV, or V of this chapter, the City Council may, by ordinance, levy the special taxes at the rate and apportion them in the manner specified in the resolution adopted pursuant to Article III, IV, or V of this chapter. The City Council may provide, by resolution, for the levy of the special tax in the current tax year or future tax years at the same rate or at a lower rate than the rate provided by ordinance, if the resolution is adopted and a certified list of all parcels subject to the special tax levy, including the amount of the tax to be levied on each parcel for the applicable tax year, is filed by the Clerk or other official designated by the City Council with the County Auditor on or before August 10th of that tax year. The Clerk or other official designated by the City Council may file the certified list after August 10th but not later than August 21st if the Clerk or other official obtains prior written consent of the County Auditor. Properties or entities of the State, Federal, or other local governments shall, except as otherwise provided in Section 3.32.160, 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 resolution of formation to establish a district adopted pursuant to Section 3.32.290 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 3.32.480. The proceeds of any special tax may only be used to pay, in whole or part, the cost of providing public facilities, services, and incidental expenses pursuant to this Code. 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 resolution of formation establishing the district and adopted by the City Council. The tax collector may collect the special tax at intervals as specified in the resolution 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 special improvement 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 in accordance with Section 3.32.690 or until the special tax ceases to be levied by the City Council in the manner provided in Section 3.32.430. If any portion of a parcel is encumbered by a lien pursuant to this Code, the entirety of the parcel shall be encumbered by that lien.

(Ord. 94-40 § 2 (part), 1994; Ord. 2023-22 § 158, 2023)

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§ 3.32.640. Preparation of Current Roll of Special Tax Levy Obligations – Designation…¶

A. The City Council shall designate an office, department, or bureau of the City which shall 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 which 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 City Council, shall be liable if any estimate of future tax liability is inaccurate, nor for any failure of any seller to request a notice of special tax or to provide the notice to a buyer.

B. For purposes of enabling sellers of real property subject to the levy of special taxes to satisfy the notice requirements of California Civil Code Section 1102.6a(b), the designated office, department, or bureau shall furnish a notice of special tax to any individual requesting the notice or any owner of property subject to a special tax levied by the City within five business days of receiving a request for such notice. The City may charge a reasonable fee for this service not to exceed ten dollars ($10.00).

C. The notice shall contain the heading “NOTICE OF SPECIAL TAX” in no smaller than eight-point type, and shall be in substantially the following form. The form may be modified as needed to clearly and accurately consolidate information about the tax structure and other characteristics of two or more districts that levy or are authorized to levy special taxes with respect to the lot, parcel, or unit. The notice shall be completed by the designated office, department, or bureau except for the signatures and date of signing:

NOTICE OF SPECIAL TAX
CITY OF NEWPORT BEACH
SPECIAL IMPROVEMENT DISTRICT NO._____ COUNTY OF ORANGE, CALIFORNIA
TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS:
__________
__________
THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCHASING THIS PROPERTY.
This property is subject to a special tax, which is in addition to the regular property taxes and any other charges and benefit assessments on the parcel. This special tax may not be imposed on all parcels within the City of Newport Beach. If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public facilities or services that are likely to particularly benefit the property. YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM THE PUBLIC FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY.
2. The maximum special tax which may be levied against this parcel to pay for public facilities is $_____ during the - tax year. This amount will increase by _____ percent per year after that (if applicable). The special tax will be levied each year until all of the authorized facilities are built and all special tax bonds are repaid, but in any case not after the _____ tax year.
An additional special tax will be used to pay for ongoing services, if applicable. The maximum amount of this tax is _____ dollars ($_____) during the - tax year. This amount may increase by _____ (if applicable), and may be levied until the _____- _____ tax year (or forever, as applicable.)
3. The authorized facilities which are being paid for by the special taxes, and by the money received from the sale of bonds which are being repaid by the special taxes, are: [identify the facilities]
These facilities may not yet have all been constructed or acquired and it is possible that some may never be constructed or acquired.
In addition, the special taxes may be used to pay for costs of the following services:
YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH AUTHORIZED CREATION OF THE SPECIAL IMPROVEMENT DISTRICT, AND WHICH SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND HOW THE PROCEEDS OF THE TAX WILL BE USED, FROM THE CITY OF NEWPORT BEACH BY CALLING _____ (telephone number). THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE ESTIMATED REASONABLE COST OF PROVIDING THE DOCUMENT.
I (WE) ACKNOWLEDGE THAT I (WE) HAVE RECEIVED A COPY OF THIS NOTICE. I (WE) UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT AFTER RECEIVING THIS NOTICE FROM THE OWNER OR AGENT SELLING THE PROPERTY. THE CONTRACT MAY BE TERMINATED WITHIN THREE DAYS IF THE NOTICE WAS RECEIVED IN PERSON OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER OR AGENT SELLING THE PROPERTY.
DATE:_____

(Ord. 94-40 § 2 (part), 1994; Ord. 2023-22 § 159, 2023)

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§ 3.32.650. Actions or Proceedings to Attack, Review, Set Aside, Void, or Annul Levy of…¶

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 Code shall be commenced within thirty (30) days after the special tax is approved by the voters. Any appeal from a final judgment in that action or proceeding shall be perfected within thirty (30) days after the entry of judgment.

(Ord. 94-40 § 2 (part), 1994)

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§ 3.32.660. Sale or Lease of Lot, Parcel or Unit of Subdivision – Notice of Special Tax…¶

A. If a lot, parcel, or unit of a subdivision is subject to a special tax levied pursuant to this Code, the subdivider, his or her agent, or representative, shall not sell, or lease for a term exceeding five years, or permit a prospective purchaser or lessee to sign a contract of purchase or a deposit receipt or any substantially equivalent document in the event of a lease with respect to 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 no smaller than eight-point type, and shall be in substantially the following form, although the form may be modified as needed to clearly and accurately consolidate information about the tax structure and other characteristics of two or more districts that levy or are authorized to levy special taxes with respect to the lot, parcel, or unit:

NOTICE OF SPECIAL TAX
CITY OF NEWPORT BEACH
SPECIAL IMPROVEMENT DISTRICT NO. __________ COUNTY OF ORANGE, CALIFORNIA
TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS:
__________[address of parcel number]
THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A CONTRACT TO PURCHASE THIS PROPERTY. THE SELLER IS REQUIRED TO GIVE YOU THIS NOTICE AND TO OBTAIN A COPY SIGNED BY YOU TO INDICATE THAT YOU HAVE RECEIVED AND READ A COPY OF THIS NOTICE.
1. This property is subject to a special tax, which is in addition to the regular property taxes and any other charges, fees, special taxes, and benefit assessments on the parcel. It is imposed on this property because it is a new development, and may not be imposed generally upon property outside of this new development. If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public facilities or services that are likely to particularly benefit the property. YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM THE PUBLIC FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY.
2. The maximum special tax which may be levied against this parcel to pay for public facilities is $__________ during the - tax year. This amount will increase by __________ percent per year after that (if applicable). The special tax will be levied each year until all of the authorized facilities are built and all special tax bonds are repaid, but in any case not after the - tax year. An additional special tax will be used to pay for ongoing service costs, if applicable. The maximum amount of this tax is __________ dollars ($__________) during the - tax year. This amount may increase by __________, (if applicable), and that part may be levied until the - tax year (or forever, as applicable.)
3. The authorized facilities which are being paid for by the special taxes, and by the money received from the sale of bonds which are being repaid by the special taxes, are:
[identify facilities]
These facilities may not yet have all been constructed or acquired and it is possible that some may never be constructed or acquired.
In addition, the special taxes may be used to pay for costs of the following services:
YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH AUTHORIZED CREATION OF THE SPECIAL IMPROVEMENT DISTRICT, AND WHICH SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND HOW THE PROCEEDS OF THE TAX WILL BE USED, FROM THE CITY OF NEWPORT BEACH BY CALLING __________ (telephone number). THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE REASONABLE COST OF PROVIDING THE DOCUMENT.
I (WE) ACKNOWLEDGE THAT I (WE) HAVE READ THIS NOTICE AND RECEIVED A COPY OF THIS NOTICE PRIOR TO ENTERING INTO A CONTRACT TO PURCHASE, OR DEPOSIT RECEIPT WITH RESPECT TO THE ABOVE-REFERENCED PROPERTY. I (WE) UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITHIN THREE DAYS AFTER RECEIVING THIS NOTICE IN PERSON OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER, SUBDIVIDER OR AGENT SELLING THE PROPERTY.
DATE: __________

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 and includes a condominium project, as defined by California Civil Code Section 6542, a community apartment project, a stock cooperative, and a limitedequity housing cooperative, as defined in California Business and Professions Code Sections 11004, 11003.2, and 11003.4, respectively.

C. The buyer shall have three days after delivery in person or five days after delivery by deposit in the mail of any notice required by this section, to terminate his or her agreement by delivery of written notice of that termination to the owner, subdivider, or agent.

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

E. Any person or entity who 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 ($500.00). In an action to enforce such liability or fine, the prevailing party shall be awarded reasonable attorney’s fees.

(Ord. 94-40 § 2 (part), 1994; Ord. 2023-22 § 160, 2023)

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§ 3.32.670. Manner of Fixing and Collecting Charges.¶

For any special improvement district or zone thereof, the City Council may fix and collect charges in the same manner as for miscellaneous extended services in County service areas.

(Ord. 94-40 § 2 (part), 1994)

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§ 3.32.680. Use of Charges for Authorized Facilities and Services.¶

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

(Ord. 94-40 § 2 (part), 1994)

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§ 3.32.690. Prepayment and Satisfaction of Special Tax Lien – Notice of Cancellation of…¶

In the event that the special tax is permanently satisfied as to a particular parcel of land, the Clerk shall prepare and record in the office of the County Recorder of the County of Orange, and the County Recorder shall accept for recordation, a notice of cancellation of special tax lien as to that parcel. The notice of cancellation of special tax lien shall identify with particularity the special tax which has been prepaid and permanently satisfied, shall state the book and page number in the records of the County Recorder where the notice of special tax lien being canceled is recorded, shall contain the legal description and assessor’s parcel number of the particular parcel of land subject to the lien, and shall contain the name of the owner of record of the parcel. The recorder shall mail the original notice of cancellation of special tax lien to the owner of the property after recording the document. The City Council may specify a charge for the preparation and recordation of this notice.

(Ord. 94-40 § 2 (part), 1994)

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