(a) For purposes of this section:

1. (1) “Quarterly local charges” means the total amount of local charges transmitted by the department to a city, county, or city and county for a calendar quarter.
2. (2) “Refund” means the amount of local charges deducted by the department from a city’s, county’s, or city and county’s quarterly local charges in order to pay the city’s, county’s, or city and county’s share of a local charge refund due to one taxpayer.
3. (3) “Offset portion” means that portion of the refund that exceeds the greater of fifty thousand dollars ($50,000) or 20 percent of the city’s, county’s, or city and county’s quarterly local charges.

(b) Except as provided in subdivision (c), if the department has deducted a refund from a city’s, county’s, or city and county’s quarterly local charges which includes an offset portion, then the following provisions apply:

1. (1) Within three months after the department has deducted an offset portion, the city, county, or city and county may request the department to transmit the offset portion to the city, county, or city and county.
2. (2) As promptly as feasible after the department receives the city’s, county’s, or city and county’s request, the department shall transmit to the city, county, or city and county the offset portion as part of the department’s periodic transmittal of local charges.
3. (3) The department shall thereafter deduct a pro rata share of the offset portion from future transmittals of local charges to the city, county, or city and county over a period to be determined by the department, but not less than two calendar quarters and not more than eight calendar quarters, until the entire amount of the offset portion has been deducted.