Tax or Taxes - Compulsory charges levied by a
governmental unit for the purpose of raising revenue. Taxes should be
distinguished from special assessments, which are levied according to the
actual benefits derived, and from fees, which must bear a reasonable relation
to the costs of administration or regulation, and are imposed under a
government's police power. Tax revenues are used to pay for services or
improvements provided for the general public benefit.
Tax Base - The total resource of the community that
is legally available for taxation.
Tax Allocation Bond - Bonds issued in conjunction
with a redevelopment project. The taxes pledged to their repayment come from
the increase of assessed value over and above a pre-established base. The
redevelopment creates this added value, known as the tax increment.
Tax-exempt Bond - Bonds exempt from federal income,
state income, or state tax and local personal property taxes. This tax
exemption results from the theory of reciprocal immunity: States do not tax
instruments of the federal government and the federal government does not tax
interest of securities of state and local governments.
Tax Rate - The county levies an ad valorem property
tax at a rate equal to 1% of the full cash value. In addition, the rate will
include an amount equal to the amount needed to make annual payments for the
interest and principal on general obligation bonds or other indebtedness
approved by the voters prior to July 1, 1978.
Tax Rate Area (TRA) – Properties are subject to
taxation by a number of taxing agencies, such as the county, cities school
districts and various special districts. The Auditor-Controller groups
properties into Tax Rate Areas. The TRAs are numbered and appear on both
secured and unsecured tax bills. The Board of Supervisors sets the tax rates
that are calculated in accordance with Article 13(a) of the Constitution of the
State of California.
Tax Rate Limit - The maximum rate or mileage of tax
which a local government may levy. This limit may apply to taxes raised for a
particular purpose or for all purposes; to a single government, or class of
governments; or to all governments operating in a particular area.
Tax Roll - The official list showing the amount of
taxes levied against each parcel of property, prepared and authenticated in
proper form to warrant the collecting officers to proceed with administering
Technical Default - Failure by the issuer to meet the
requirements of a bond covenant. These defaults do not necessarily result in
losses to the bond holder. The default may be cured by simple changes of policy
or actions by the issuer.
Term Bond - A large block of bonds of long maturity.
They may be part of a serial Bond issue; there may be more than one term bond
in an issue or a single maturity. Some are subject to a sinking fund
Treasurer/Tax Collector - The Treasurer/Tax Collector
is one of the three major governmental agencies that oversees property taxation
in California. The Treasurer/Tax Collector bills and collects all secured,
supplemental, and unsecured property taxes levied by the taxing governmental
agencies and disburses the funds accordingly.
Trustee - A bank designated as the custodian of funds
and official representative of bondholders. Trustees are appointed to insure
compliance with the trust indenture and represents bondholders to enforce their
contract with the issuer.
Underwrite - An agreement to purchase an issuer's
unsold securities at a set price, thereby guaranteeing the issuer proceeds and
a fixed borrowing cost.
Variable Rate Bond - A bond whose yield is not fixed
but is adjusted periodically according to a prescribed formula.
Water Standby Charge - This is a charge levied on all
parcels within a specific improvement district to which water services may be
made available. The amount of the standby charge which is to be levied on each
parcel of land is based upon and will not exceed the reasonable cost of the
proportional special benefit conferred upon that parcel. This charge typically
applies to undeveloped parcels that have access to water service, but has yet
to use that water service.