§ 33401 Tax Exempt Property Payments

• •If a government agency owns tax-free property, it can choose to pay money to local groups like schools or cities.
• •The payment can't be more than what those groups would have gotten if the property was taxed normally.
• •This is optional—the agency doesn’t have to do it, but if they do, they can’t pay more than the usual tax amount.

A city agency owns a big empty lot that doesn’t pay property taxes. Nearby, a school district is struggling with money.

The agency can decide to give the school district some money—like a pretend tax payment—but they can’t give more than what the school would have gotten if the lot was taxed like normal.