Common use of Payments in Lieu of Property Taxes Clause in Contracts

Payments in Lieu of Property Taxes. (a) In the event that the property of the Authority is not subject to the imposition of property taxes pursuant to Article 13 Section 11 of the California Constitution because the property is located within the boundaries of the Authority or a Member Entity, the Authority shall make annual payments to Alpine County, Amador County and Calaveras County in lieu of property taxes for the Authority’s property located in those respective counties. Said “in lieu” payments are intended to preclude the loss to the counties of tax revenue which each county would have received had the property remained owned by the transferor. (b) The tax year in which the Authority acquires such property may be a partial tax year (the “Base Year”). The Member Entities will determine from the County Assessors and the transferor the amount of taxes paid or to be paid to each County by the transferor on the property to be acquired by the Authority for the Base Year. The Member Entities shall agree on the amounts paid or to be paid to the counties by the transferor for the Base Year. If the Base Year is less than a full tax year, and the taxes paid or to be paid to each county by the transferor on the property to be acquired by the Authority for such Base Year is less than the full tax year’s tax revenue which would have been received by the counties from the transferor, the Authority shall make “in lieu” payments to the counties in the amounts necessary to equal the tax revenue which would have been received by each of the counties from the transferor in a full tax year. The sum of tax revenue from the transferor and “in lieu” payments necessary to equal the full year’s tax revenue to the counties in the Base Year is the “Base Year Revenue”. (c) In each tax year thereafter, the Authority shall make “in lieu” payments to each County in an amount equal to the Base Year Revenue escalated by an amount equal to the Consumer Price Index for San Francisco-Oakland-San Xxxx Xxxxx Wage Earners; provided that such escalation factor shall in no event exceed three percent (3.0%). (d) Improvements to property acquired by the Authority within the boundaries of the Authority or a Member Entity which would, except, for their location, be taxable pursuant to said Article 13 Section 11 shall be similarly subject to “in lieu” payments to the County where the improvements or additional property is located based on their cash value when constructed or acquired by the Authority.

Payments in Lieu of Property Taxes. (a) In the event that the property of the Authority is not subject to the imposition of property taxes pursuant to Article 13 Section 11 of the California Constitution because the property is located within the boundaries of the Authority or a Member Entity, the Authority shall make annual payments to Alpine County, Amador Xxxxxx County and Calaveras County in lieu of property taxes for the Authority’s property located in those respective counties. Said “in lieu” payments are intended to preclude the loss to the counties of tax revenue which each county would have received had the property remained owned by the transferor. (b) The tax year in which the Authority acquires such property may be a partial tax year (the “Base Year”). The Member Entities will determine from the County Assessors and the transferor the amount of taxes paid or to be paid to each County by the transferor on the property to be acquired by the Authority for the Base Year. The Member Entities shall agree on the amounts paid or to be paid to the counties by the transferor for the Base Year. If the Base Year is less than a full tax year, and the taxes paid or to be paid to each county by the transferor on the property to be acquired by the Authority for such Base Year is less than the full tax year’s tax revenue which would have been received by the counties from the transferor, the Authority shall make “in lieu” payments to the counties in the amounts necessary to equal the tax revenue which would have been received by each of the counties from the transferor in a full tax year. The sum of tax revenue from the transferor and “in lieu” payments necessary to equal the full year’s tax revenue to the counties in the Base Year is the “Base Year Revenue”. (c) In each tax year thereafter, the Authority shall make “in lieu” payments to each County in an amount equal to the Base Year Revenue escalated by an amount equal to the Consumer Price Index for San Francisco-Oakland-San Xxxx Xxxxx Wage Earners; provided that such escalation factor shall in no event exceed three percent (3.0%). (d) Improvements to property acquired by the Authority within the boundaries of the Authority or a Member Entity which would, except, for their location, be taxable pursuant to said Article 13 Section 11 shall be similarly subject to “in lieu” payments to the County where the improvements or additional property is located based on their cash value when constructed or acquired by the Authority.