| 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
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 the tax.
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 redemption.
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