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HomePublic Utilities CodeDiv. 10Pt. 1Ch. 11§ 27508 District Debt Tax Collection

§ 27508 District Debt Tax Collection

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 27508 District Debt Tax Collection

Key Takeaways

  • •If a special district (like a small local government area) is shut down but still owes money, the city or county takes over to pay off that debt.
  • •The city council or county supervisors become the bosses of the old district just to collect taxes and pay back what’s owed.
  • •They can only raise taxes to pay off the old debt, not for anything else.
  • •This keeps happening until all the debt and interest are paid off.

Example

A small local water district is closed down but still owes money for a big pipe project.

The city or county will take over, collect taxes from the people in that area, and use the money only to pay off the pipe project debt. They can’t use the money for anything else, like building a park.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 27508 District Debt Tax Collection

If at the time of dissolution there is any outstanding indebtedness of the district the legislative authority of the city, where the limits of the district lie wholly within the corporate limits of a city, and in all other cases the board of supervisors of the county in which the whole or greater portion of the district is situated are ex officio the board of directors of the district for the purpose only of the levy and collection of taxes for the payment of the indebtedness of the district existing at the time of dissolution and the interest thereon. The board or legislative authority shall levy the taxes and perform such other acts as are necessary to raise the money necessary for the payment of the indebtedness and the interest thereon. (Added by Stats. 1955, Ch. 1036.)

Last verified: January 23, 2026

Key Terms

dissolutionoutstanding indebtednessex officiolevy and collection of taxes

Related Statutes

  • § 27506 Voter Approved District Dissolution
  • § 27507 District Property Transfer Rules
  • § 29750 District Dissolution Election Rules
  • § 29755 Voter Approval Of Dissolution
  • § 29756 District Dissolution Procedures

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 27508.
View Official Source