7.44.080 Tax relief determination--Maximum allowable rent for 1979.
Upon the issuance of property tax bills for 1978--79 reflecting the provisions of Article XIIIA of the Constitution of the State of California, every owner of rental property shall make the following appropriate calculations, as indicated in this section, for each property and rental unit covered by this chapter:
A. Total Base Rent.
1. For property which includes only rental units, the total base rent shall be the sum of the base rents, as calculated pursuant to Section 7.44.060, for all rental units in that property;
2. For property used partly for rental purposes, a good faith estimate of the fair market rental value of the unrented portion of the property, including any owner-occupied portion, shall be made based on the average rent in effect on June 6, 1978, for comparable portions of property in the City. This estimate plus the sum of the base rents for all rental units in the property shall constitute the total base rent.
B. Property Tax Savings. For the purposes of this chapter, property tax savings shall constitute the total taxes due, including all installments, as listed on the 1977--78 property tax bill less the total property taxes due, including all installments, as listed on the 1978--79 property tax bill. A difference of less than zero shall be considered as zero.
C. Property Tax Relief to be Allocated. The property tax relief to be allocated among units in a property shall be eighty percent of the property tax savings for that property.
D. Allocation of Property Tax Relief Among Units.
1. For property covered by this chapter, the property tax relief as defined in subsection C of this section shall be allocated among rental units and any unrented units in the property, including owner-occupied portions. Such allocation shall be made by determining the percentage of the total base rent of a property that the base rent for each unit in that property constitutes, and multiplying this percentage by the property tax relief to be allocated for that property. For each rental unit in a property, the resulting dollar amount shall be the rental property tax relief to be apportioned over the calendar year 1979.
2. In the case where base rents for different units in the same property are not directly comparable to each other, such as where rents for some but not all units are based on gross receipts, the necessary calculations shall be made so that the allocation of renter property tax relief is determined in an equitable manner consistent with the purposes of this chapter.
E. Apportionment of Renter Property Tax Relief as Rent Reductions Over Calendar Year 1979. The renter property tax relief for each rental unit covered by this chapter, as determined in subsection D of this section shall be apportioned over the calendar year 1979 by reducing the base rent of the rental unit by an amount equal to that unit’s allocated renter property tax relief divided by the number of rent payments to be made in 1979 by the renter of the unit pursuant to the rental agreement. For example, if rent is paid on a monthly basis, one-twelfth of the unit’s allocated renter property tax relief shall be the monthly rent reduction over calendar year 1979. If a rental unit covered by this chapter is rented to a particular renter for only part of the calendar year 1979, the renter property tax relief to be provided to that renter in 1979 shall be proportional to the percentage of time during 1979 the rental unit is rented to that renter.
F. Rounding to Dollar Amount. In order to simplify the calculations made under this chapter, money amounts may be rounded to the nearest dollar.
G. Maximum Allowable Rent for Calendar Year 1979. Commencing on January 1, 1979, and until December 31, 1979, the maximum allowable rent for any rental unit covered by this chapter shall be the base rent, as determined in Section 7.44.060, reduced by the apportioned renter property tax relief allocated for that unit as determined in this section. (Ord. 5109-NS § 8, 1978)