BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 900|
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THIRD READING
Bill No: AB 900
Author: De Leon (D), et al
Amended: 8/20/10 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SUBJECT : Property taxation: City of Bell: refunds for
overpayment
SOURCE : Author
DIGEST : Senate Floor Amendments delete the content of
the bill dealing with water diversion and create a new bill
regarding property tax refunds in the City of Bell.
ANALYSIS : Existing property tax law establishes various
procedures and requirements with respect to the annual
allocation of ad valorem property tax revenues derived from
the ad valorem taxation of locally assessed property.
These procedures include a reduction in the allocation of
ad valorem property taxes to a jurisdiction that imposes a
rate in excess of the maximum rate authorized by law in
amounts equal to the amount collected pursuant to the
excess rate, and requires any amount subtracted from a
jurisdiction's allocation to be allocated to elementary,
high school, and unified school districts, as provided.
This bill requires, with respect to the ad valorem property
taxes collected in excess of the maximum rate authorized by
CONTINUED
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law in the 2007-08, 2008-09, and 2009-10 fiscal years for
the City of Bell, that the City of Bell pay the County of
Los Angeles an amount equal to the amount of ad valorem
property taxes collected in excess of the maximum rate, and
would require the County of Los Angeles to make refunds to
taxpayers, as provided. This bill requires those amounts
remaining after making refunds to taxpayers, as specified,
to be allocated to elementary, high school, and unified
school districts, as provided. This bill requires the City
of Bell to reimburse the county auditor for the actual and
reasonable costs incurred by the county auditor in
administering these refunds and allocations. This bill
also makes findings and declarations regarding the
necessity of a special statute.
This bill provides that the Legislature finds and declares
that a special law is necessary and that a general law
cannot be made applicable within the meaning of Section 16
of Article IV of the California Constitution because of the
unique circumstances encountered by the City of Bell with
respect to the collection of property taxes.
This bill:
1. Prohibits the current law governing the allocation of
property tax revenue attributable to a rate in excess of
the maximum allowable rate from applying to the City of
Bell and the County of Los Angeles for fiscal years
2007-2008, 2008-2009, and 2009-2010.
2. Requires the City of Bell to pay the County of Los
Angeles, by December 31, 2010, an amount equal to the
amount of excess ad valorem property tax collected for
the fiscal years 2007-2008, 2008-2009, and 2009-2010,
including interest calculated at the average rate earned
by the City of Bell on its idle funds during fiscal
years 2007-2008, 2008-2009, and 2009-2010.
3. Requires the County of Los Angeles to refund the amount
it receives from the City of Bell to any property
taxpayers of the City of Bell who overpaid, in a manner
generally consistent with the County of Los Angeles tax
refund practices.
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4. Requires that if the County is unable to locate a
taxpayer to make a refund by December 31, 2011, the
amounts remaining from the amounts paid by the City to
the County must be allocated to elementary, high school,
and unified school districts as provided under current
law.
5. Requires the City of Bell to reimburse the county
auditor for the actual and reasonable costs of
administering the bill's provisions.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
RJG:nl 8/23/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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