The Teeter Plan is an alternative method of allocating property tax collections to local agencies, regardless of actual payments and delinquencies. It can provide predictable, stable, and timely revenue streams for property taxes and other revenues collected via the county property tax roll.
Did you know that the Teeter Plan was first enacted in 1949? The basic concept of the Teeter Plan was first introduced by Mr. Desmond Teeter, who was the Auditor-Controller of Contra Costa County. The purpose of this “Teeter” method was to provide an alternative method for distributing property taxes and other levies collected via the secured roll. The county apportions these monies to all taxing jurisdictions, although 100% of the payments have not been collected yet. Mr. Teeter’s proposal resulted in the addition of Chapter 3/Revenue and Taxation Code Section 4701-4716. At the time, only five Counties originally adopted the Teeter Plan. Those Counties were Contra Costa, Modoc, El Dorado, Siskiyou and Solano.
Today, more than 90% of California counties have adopted and participated in some version of the Teeter Plan. The electing county will essentially “front” these revenues and in return receive all interest and delinquent penalties. Each county adopts their own Teeter Plan, “teetering” secured ad valorem taxes and certain direct charges. Check with your county for specific details for your agency, or call NBS and we can help.