CCSA Answers: Receiving in lieu of property tax funding

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January 9, 2019 Question: How do we receive in lieu of property tax funding for students residing in other districts, but attending our charter school?

Answer: A charter school's sponsoring district (or the school district that denied the charter if it was approved on appeal by the county or state) is responsible for the in lieu tax payments for all students attending the charter school, not just students residing in the district's attendance area. Students from basic aid districts are the sole exception. If your students are from local tax districts (revenue limit districts) then their district of residence is not relevant. If a student resides in a basic aid district, that basic aid school district of residence is responsible for paying the in-lieu taxes. The state backfills this funding meaning there is a net zero fiscal affect for the sponsoring district (or the school district that denied the charter if it was approved on appeal by the county or state), with the exception of a basic aid district. Reference Education Codes 47632(i) and 47635 here for more information.