This section shall provide an alternate procedure to the other provisions of this chapter for establishing maximum property tax rates.
The maximum property tax rate which may be levied by, or on behalf of, a local agency shall be a rate equivalent to the following:
(1)
The maximum property tax rate which could have been levied for such agency pursuant to any provision of this chapter for the prior fiscal year, plus
(2)
A property tax rate, not less than zero, on the secured roll which would produce an amount of property tax revenue equal to the following:
(a)
The amount of property tax revenue which would be received by such agency in the current fiscal year by levying the rate identified in subparagraph (1) of this paragraph against the agency’s total assessed value for the current fiscal year, subtracted from
(b)
The amount of property tax revenue which would be received by such agency in the current fiscal year if its property tax revenue from the prior year were to change by a percentage equal to the following: the percentage change in the population of the agency (as determined pursuant to Section 2227 or 2228) plus the percentage change in the cost of living (as determined pursuant to Section 2212) which is applicable to the agency.
As used in this section “property tax revenue from the prior year” means the revenue which would have been received by a local agency in the prior fiscal year by levying the maximum property tax rate authorized by this chapter against the total assessed value for such year.
As used in this section “total assessed value” means all assessed value subject to ad valorem property taxation by a local agency plus assessed value attributable to the homeowners’ property tax exemption and to the business inventory property tax exemption.
Any property tax rate established pursuant to this section shall be the maximum property tax rate for a local agency until such rate is subsequently changed or adjusted pursuant to the provisions of this section or other provisions of this chapter.