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HomeEducation CodeCh. 4Art. 2§ 17429 School District Lease Tax

§ 17429 School District Lease Tax

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

§ 17429 School District Lease Tax

Key Takeaways

  • •This law lets a school district rent a school building from a nonprofit if voters agree to raise taxes for it.
  • •The school building must already be on land owned by the school district and meet certain rules.
  • •The nonprofit can't charge more rent than what it actually cost to build the school, including loan interest.
  • •An accountant must check the building costs before the nonprofit buys the school.

Example

A school district wants to rent a new school building instead of building one themselves.

If the voters say yes to higher taxes, the district can rent the building from a nonprofit. But the rent can't be more than what it cost to build the school, and an accountant has to check the numbers first.

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

Official Source
View on CA.gov

§ 17429 School District Lease Tax

(a) This section shall apply only to a school district in which the electorate authorizes an increase in the maximum tax rate of the district pursuant to this article for the lease of one or more schools, and there exists at the time of the election on a site owned by the district a school facility not owned by the district meeting all of the requirements of Article 3 (commencing with Section 17280) of this chapter, which site and school facility are designated and described in the ballot proposition approved by the voters. (b) Notwithstanding any other law, a school district may lease from a California nonprofit corporation an existing school and may pay rentals therefor from funds derived from the increase in the maximum tax rate approved by the voters at an election. The purchase price of the school paid by the nonprofit corporation to the owners of the school shall not exceed the actual audited cost of construction thereof including actual interest paid on money borrowed to finance such construction. Prior to the purchase of the school by the nonprofit corporation, an independent certified public accountant shall be retained by the school district to verify the actual cost of construction and any interest paid to finance the construction, and the nonprofit corporation may conclusively rely upon any certificate or opinion setting forth the actual cost of construction and the interest prepared by the independent certified public accountant. (c) A school district, the electorate of which, prior to the effective date of this section, authorized an increase in the maximum tax rate in the manner, for the purposes, and under the circumstances specified in subdivision (a), may avail itself of the authority afforded by subdivision (b). (Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)

Last verified: January 23, 2026

Key Terms

school districtmaximum tax rateleaseCalifornia nonprofit corporationactual audited cost of constructionindependent certified public accountant

Related Statutes

  • § 17403 School District Lease Terms
  • § 17415 School District Tax Lease Transfers
  • § 17400 School District Property Leases
  • § 17407 School Building Lease Agreements
  • § 17408 School District Lease Elections

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 17429.
View Official Source