1.4.1 Determining the Category of Revenues

Different restrictions apply to “taxes,” “assessments,” and “fees and charges” under the California Constitution; therefore, it is important to understand how the different categories are defined. To determine the applicable category of a local government revenue source, ask the following series of questions:

Is the revenue source a “levy, charge, or exaction of any kind?” This is intended to include virtually every type of revenue.
If so, is the levy, charge, or exaction a “tax?” For these purposes, “tax” is defined by exclusion: all levies, charges, and exactions are taxes unless an exception applies. See What Is a Tax? (Section 1.4.2) below.
If so, is the tax an ad valorem real property tax; that is, is the amount of the tax a percentage of the assessed valuation of real property?
If the levy, charge, or exaction is a tax, but is not an ad valorem real property tax, is the tax a general tax or a special tax; that is, is the tax imposed by a general purpose governmental entity for general revenue purposes or is it imposed for a specific purpose or purposes or by a limited purpose governmental entity?
If the levy, charge, or exaction is not a tax, is it an “assessment” or is it a “fee or charge”?
If the levy, charge, or exaction is a fee or charge, is it a “property related fee or charge”?