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that the manner in •Nhiel.:i these cests are allecated ts a pa·1er bear a fair er reasenable relatienshi13 ts the
<br />13a·1or's b1:1relens on, or benefits reeei11eel from, the go•.ieFRmental actit.iit'(
<br />(2) The retention ofrevenue by, or the payment to. a non-governmental entity ofa levv. charge, or exaction
<br />of any kind imposed by state law, shall not be a factor in determining whether the levy. charge, or exaction
<br />is a tax or exempt charge.
<br />(3) The characterization of a levy, charge, or exaction of any kind as being voluntary, or paid in exchange
<br />for a benefit, privilege, allowance, authorization, or asset, shall not be a factor in determining whether the
<br />levy, charge, or exaction is a tax or an exempt charge.
<br />/4} The use of revenue derived from the levy, charge or exaction shall be a factor in determining whether
<br />the levy, charge, or exaction is a tax or exempt charge.
<br />(h) As used in this section:
<br />(1) "Actual cost" of providing a service or product means: (i) the minimum amount necessary to reimburse
<br />the government for the cost of providing the service or product to the payor, and {ii) where the amount
<br />charged is not used by the government for any purpose other than reimbursing that cost. In computing
<br />"actual cost" the maximum amount that may be imposed is the actual cost less all other sources of revenue
<br />including, but not limited to taxes, other exempt charges, grants, and state or federal funds received to
<br />provide such service or product.
<br />(2) "Extend" includes, but is not limited to, doing any of the following with respect to a tax or exempt
<br />charge: lengthening its duration. delaying or eliminating its expiration, expanding its application to a new
<br />territory or class ofpayor, or expanding the base to which its rate is applied.
<br />(3) "Impose" means adopt, enact, reenact, create, establish, collect, increase or extend.
<br />(4) "State law" includes, but is not limited to. any state statute, state regulation, state executive order.
<br />state resolution, state ruling, state opinion Jetter, or other legal authority or interpretation adopted,
<br />enacted. enforced, issued, or implemented by the legislative or executive branches of state government.
<br />"State law" does not include actions taken by the Regents of the University of California, Trustees of the
<br />California State University, or the Board of Governors of the California Community Colleges.
<br />Section 5. Section 1 of Article XIII C of the California Constitution is amended, to read:
<br />Sec. 1. Definitions. As used in this article:
<br />{a) "Actual cost" of providing a service or product means: (i) the minimum amount necessary to reimburse
<br />the government for the cost of providing the service or product to the payor. and {ii) where the amount
<br />charged is not used by the government for any purpose other than reimbursing that cost. In computing
<br />"actual cost" the maximum amount that may be imposed is the actual cost less all other sources of revenue
<br />including, but not limited to taxes. other exempt charges, grants, and state or federal funds received to
<br />provide such service or product.
<br />(b) "Extend" includes, but is not limited to. doing any of the following with respect to a tax. exempt charge,
<br />or Article XIII D assessment. fee, or charge: lengthening its duration, delaying or eliminating its expiration.
<br />expanding its application to a new territory or class of payor, or expanding the base to which its rate is
<br />applied.
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