Revenue and Taxation Code section 98.01
(a)
An independent qualifying city shall receive a distribution of the following percentages of the TEA formula, as computed in subdivision (c) of Section 98, if the amount of that distribution, less the applicable reductions provided for in subdivisions (e), (f), and (g) of Section 98, would be greater than the amount the city would have been allocated without the application of the TEA formula:(1)
Thirty-three and one-third percent of the amount determined in subparagraph (G) of paragraph (6) of subdivision (c) of Section 98, less any applicable reductions provided for in subdivisions (e), (f), and (g) of Section 98, for the first fiscal year in which the independent qualifying city receives an allocation pursuant to this section.(2)
Sixty-six and two-thirds percent of the amount determined in subparagraph (G) of paragraph (6) of subdivision (c) of Section 98, less any applicable reductions provided for in subdivisions (e), (f), and (g) of Section 98, for the second fiscal year in which the independent qualifying city receives an allocation pursuant to this section.(3)
One hundred percent of the amount determined in subparagraph (G) of paragraph (6) of subdivision (c) of Section 98, less any applicable reductions provided for in subdivisions (e), (f), and (g) of Section 98, for the third fiscal year in which the independent qualifying city receives an allocation pursuant to this section.(b)
“Independent qualifying city” means a qualifying city, as defined in Section 98, in the County of Los Angeles which met the following criteria on January 1, 1988:(1)
Was not served by a special district which received a portion of the 1 percent property tax revenue, and provided any of the following services to the qualified city:(A)
Emergency medical services.(B)
Fire prevention services.(C)
Fire suppression.(D)
Libraries.(E)
Parks.(F)
Recreation services.(G)
Street lighting.(2)
Did not have redevelopment project areas which receive property tax revenues.(3)
The county general fund received greater than 65 percent of the 1 percent property tax revenues collected from tax rate areas within the qualifying city’s boundaries.
Source:
Section 98.01, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=98.01. (updated Jan. 1, 1995; accessed Jul. 21, 2025).
