BILL NUMBER: AB 468	CHAPTERED
	BILL TEXT

	CHAPTER  319
	FILED WITH SECRETARY OF STATE  SEPTEMBER 26, 2011
	APPROVED BY GOVERNOR  SEPTEMBER 26, 2011
	PASSED THE SENATE  AUGUST 30, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 2, 2011
	AMENDED IN SENATE  AUGUST 18, 2011
	AMENDED IN ASSEMBLY  MAY 27, 2011
	AMENDED IN ASSEMBLY  MARCH 8, 2011

INTRODUCED BY   Assembly Member Smyth

                        FEBRUARY 15, 2011

   An act to amend Section 98.02 of the Revenue and Taxation Code,
relating to property taxation, and declaring the urgency thereof, to
take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 468, Smyth. Property taxes: TEA formula allocation: maintenance
or improvement districts: City of Simi Valley.
   Existing property tax law requires the auditor of each county with
qualifying cities, as defined, to make certain property tax revenue
allocations to those cities in accordance with an established Tax
Equity Allocation (TEA) formula and to make corresponding reductions
in the amount of property tax revenue that is allocated to the
county, as specified.
   This bill, commencing with the 2012-13 fiscal year, would prohibit
the auditor of the County of Ventura from reducing the amount
distributed to the City of Simi Valley by reason of that city
receiving property taxes previously allocated to a maintenance or
improvement district pursuant to specified provisions. This bill
would require the City of Simi Valley to reimburse the auditor for
the actual and reasonable costs incurred by the auditor to administer
these allocations, as provided. This bill would also make findings
and declarations regarding the necessity of a special statute.
   By imposing new duties upon county officials in the allocation of
ad valorem property tax revenues, this bill would impose a
state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   This bill would declare that it is to take effect immediately as
an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 98.02 of the Revenue and Taxation Code is
amended to read:
   98.02.  (a) In the County of Ventura, the computations made
pursuant to Section 96.1 or its predecessor section, for the 1989-90
fiscal year and each fiscal year thereafter, shall be modified as
follows:
   With respect to tax rate areas, except excluded tax rate areas,
within the boundaries of a qualifying city, there shall be excluded
from the aggregate amount of "property tax revenue allocated pursuant
to this chapter to local agencies, other than for a qualifying city,
in the prior fiscal year," an amount equal to the sum of the amounts
calculated pursuant to the TEA formula.
   (b) (1) Each qualifying city shall, for the 1989-90 fiscal year
and each fiscal year thereafter, be allocated by the auditor an
amount determined pursuant to the TEA formula.
   (2) For each qualifying city, the auditor shall, for the 1989-90
fiscal year and each fiscal year thereafter, distribute the amount
determined pursuant to the TEA formula to all tax rate areas, except
excluded tax rate areas, within that city in proportion to each tax
rate area's share of the total assessed value in the city for the
applicable fiscal year, and the amount so determined shall be
subtracted from the county's proportionate share of the property tax
revenue for that fiscal year within those tax rate areas.
   (3) After making the allocations pursuant to paragraphs (1) and
(2), but before making the calculations pursuant to Section 96.5 or
its predecessor section, the auditor shall, for all tax rate areas,
except excluded tax rate areas, in the qualifying city, calculate the
proportionate share of property tax revenue allocated pursuant to
this section and Section 96.1, or their predecessor sections, in the
1989-90 fiscal year and each fiscal year thereafter to each
jurisdiction in the tax rate area.
   (4) In lieu of making the allocations of annual tax increment
pursuant to subdivision (e) of Section 96.5 or its predecessor
section, the auditor shall for the 1989-90 fiscal year and each
fiscal year thereafter, allocate the amount of property tax revenue
determined pursuant to subdivision (d) of Section 98 to jurisdictions
in the tax rate area, except an excluded tax rate area, using the
proportionate shares derived pursuant to paragraph (3).
   (5) For purposes of the calculations made pursuant to Section 96.1
or its predecessor section, in the 1990-91 fiscal year and each
fiscal year thereafter, the amounts that would have been allocated to
all tax rate areas, except excluded tax rate areas, of qualifying
cities pursuant to this subdivision shall be deemed to be the "amount
of property tax revenue allocated to those tax rate areas in the
prior fiscal year."
   (c) "TEA formula" means the Tax Equity Allocation formula, and
shall be calculated by the auditor for each qualifying city as
follows:
   (1) For the 1988-89 fiscal year and each fiscal year thereafter,
the auditor shall determine the total amount of property tax revenue
to be allocated to all jurisdictions in all tax rate areas, except
excluded tax rate areas, within the qualifying city, before the
allocation and payment of funds in that fiscal year to a community
redevelopment agency within the qualifying city, as provided in
subdivision (b) of Section 33670 of the Health and Safety Code.
   (2) The auditor shall determine the amount of funds allocated in
each fiscal year to those tax rate areas, except excluded tax rate
areas, within a community redevelopment agency in accordance with
subdivision (b) of Section 33670 of the Health and Safety Code.
   (3) (A) The auditor shall determine the total amount of funds paid
in each fiscal year by a community redevelopment agency within the
city to jurisdictions other than the city pursuant to subdivision (b)
of Section 33401 and Section 33676 of the Health and Safety Code,
and the cost to the redevelopment agency of any land or facilities
transferred and any amounts paid to jurisdictions other than the city
to assist in the construction or reconstruction of facilities
pursuant to an agreement entered into under Section 33401 or 33445.5
of the Health and Safety Code.
   (B) Of the total amount determined in subparagraph (A), the
auditor shall compute a proportionate amount to be attributed to all
tax rate areas, except excluded tax rate areas, within the community
redevelopment agency. That proportionate amount shall be equal to
that proportion which the amount determined in paragraph (2) in each
fiscal year bears to the total amount of funds allocated in each
fiscal year to a community redevelopment agency in accordance with
subdivision (b) of Section 33670 of the Health and Safety Code.
   (4) The auditor shall subtract the amount determined in
subparagraph (B) of paragraph (3) from the amount determined in
paragraph (2).
   (5) The auditor shall subtract the amount determined in paragraph
(4) from the amount determined in paragraph (1).
   (6) The amount computed in paragraph (5) shall be multiplied by
the following percentages in order to determine the TEA formula
amount to be distributed to the qualifying city in each fiscal year:
   (A) For the first fiscal year in which the qualifying city
receives a distribution pursuant to this section, 1 percent of the
amount determined in paragraph (5).
   (B) For the second fiscal year in which the qualifying city
receives a distribution pursuant to this section, 2 percent of the
amount determined in paragraph (5).
   (C) For the third fiscal year in which the qualifying city
receives a distribution pursuant to this section, 3 percent of the
amount determined in paragraph (5).
   (D) For the fourth fiscal year and each fiscal year thereafter in
which the qualifying city receives a distribution pursuant to this
section, 4 percent of the amount determined in paragraph (5).
   (d) For purposes of this section, "excluded tax rate area" means
either of the following:
   (1) Any tax rate area included in territory annexed by the
qualifying city and allocated a prescribed percentage of property tax
revenue pursuant to an existing agreement between the qualifying
city and the county.
   (2) Any tax rate area described in paragraph (1) that was detached
from the county library district and that is also allocated an
additional prescribed percentage of property tax revenue pursuant to
an existing agreement between the qualifying city and the county.
   (e) (1) All existing agreements between the qualifying city and
the county covering the allocation of property tax revenues to tax
rate areas described in subdivision (d) shall remain in force.
   (2) All existing agreements between the qualifying city and the
county covering the allocation of property tax revenues to tax rate
areas that were detached from the county library district but are not
included in territory that was annexed by the qualifying city shall
remain in force.
   (3) All allocations to those tax rate areas described in
subdivision (d), including allocations of annual tax increments, made
pursuant to the existing agreements between the qualifying city and
the county shall be governed by subdivision (a) of Section 96.1 and
Section 96.5.
   (4) All allocations to those tax rate areas described in paragraph
(2), including allocations of annual tax increments, made pursuant
to the existing agreements between the qualifying city and the county
shall be governed by subdivision (a) of Section 96.1 and Section
96.5. However, the tax rate areas referred to in this paragraph shall
also be distributed an amount of property tax revenue determined
pursuant to the TEA formula that is over and above the amount
allocated as provided in the preceding sentence.
   (f) "Qualifying city" means any city that incorporated prior to
June 5, 1987, and had an amount of property tax revenue allocated to
it pursuant to subdivision (a) of Section 96.1 or its predecessor
section in the 1988-89 fiscal year that is less than 4 percent of the
amount of property tax revenue computed as follows:
   (1) The auditor shall determine the total amount of property tax
revenue allocated to all tax rate areas, except excluded tax rate
areas, in the city in the 1988-89 fiscal year.
   (2) The auditor shall subtract the amount in the 1988-89 fiscal
year determined in paragraph (3) of subdivision (c) from the amount
determined in paragraph (2) of subdivision (c).
   (3) The auditor shall subtract the amount determined in paragraph
(2) from the amount of property tax revenue in paragraph (1) of
subdivision (c).
   (4) The auditor shall divide the amount of property tax revenue
determined in paragraph (1) of this subdivision by the amount of
property tax revenue determined in paragraph (3) of this subdivision.

   (5) If the quotient determined in paragraph (4) of this
subdivision is less than 0.04, the city is a qualifying city. If the
quotient determined in that paragraph is equal to or greater than
0.04, the city is not a qualifying city.
   (g) The auditor may assess each qualifying city its proportional
share of the actual costs of making the calculations required by this
section, and may deduct that assessment from the amount allocated
pursuant to subdivision (b). For purposes of this subdivision, a
qualifying city's proportional share of the auditor's actual costs
shall not exceed the proportion it receives of the total amounts
excluded in the county pursuant to subdivision (a).
   (h) (1) Notwithstanding subdivision (b), except as otherwise
provided in paragraph (2), in any fiscal year in which a qualifying
city receives a distribution pursuant to this section, the auditor
shall reduce the actual amount distributed to the qualifying city by
the amount of revenue not collected by the qualifying city in the
first fiscal year following the city's reduction after January 1,
1988, of the tax rate or tax base of any locally imposed general or
special tax. The amount so computed by the auditor shall constitute a
reduction in the amount of property tax revenue distributed to the
qualifying city pursuant to this section in each succeeding fiscal
year. That amount shall be aggregated with any additional amount
computed pursuant to this paragraph as the result of the city's
reduction in any subsequent year of the tax rate or tax base of the
same or any other locally imposed general or special tax.
   (2) No reduction shall be made pursuant to paragraph (1) in the
case in which a local tax is reduced or eliminated as a result of
either a court decision or the approval or rejection of a ballot
measure by the voters.
   (i) If the auditor determines that the amount to be distributed to
a qualifying city pursuant to subdivision (b), as modified by
subdivisions (g) and (h), would result in a qualifying city having
proceeds of taxes in excess of its appropriation limit, the auditor
shall reduce the amount, on a dollar-for-dollar basis, by the amount
that exceeds the city's appropriations limit.
   (j) Notwithstanding any other provision of this section, no
qualifying city shall be distributed an amount pursuant to this
section that is less than the amount the city would have been
allocated without the application of the TEA formula.
   (k) (1) Notwithstanding any other provision of this section,
commencing with the 1994-95 fiscal year, the auditor shall not reduce
the amount distributed to a qualifying city under this section by
reason of that city becoming the successor agency to a special
district that is dissolved, merged with that city, or becomes a
subsidiary district of that city, on or after July 1, 1994.
   (2) Notwithstanding any other provision of this section, in no
event may the auditor reduce the amount of ad valorem property tax
revenue otherwise allocated to a qualifying city pursuant to this
section on the basis of any additional ad valorem property tax
revenues received by that city pursuant to a services for revenue
agreement. For purposes of this subdivision, a "services for revenue
agreement" means any agreement between a qualifying city and the
county in which it is located, entered into by joint resolution of
that city and that county, under which additional service
responsibilities are exchanged in consideration for additional
property tax revenues.
   (3) (A) Notwithstanding any other law, commencing with the 2012-13
fiscal year, the auditor shall not reduce the amount distributed to
the City of Simi Valley under this section by reason of that city
receiving, pursuant to subdivision (c) of Section 99, property taxes
previously allocated to a maintenance or improvement district.
   (B) The City of Simi Valley shall reimburse the auditor for the
actual and reasonable costs incurred by the auditor to administer
this paragraph.
   (l) The amount not distributed as a result of this section to the
tax rate areas, except excluded tax rate areas, in each qualifying
city shall be allocated by the auditor to the county.
  SEC. 2.  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 need to ensure that the City of Simi Valley can meet
established timelines to begin the process of immediately dissolving
a maintenance district and serving as its successor, to simplify city
accounting, and to give the city maximum budget flexibility.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
this act provides for reimbursement to a local agency in the form of
additional revenues that are sufficient in amount to fund the new
duties established by this act, within the meaning of Section 17556
of the Government Code.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to ensure that the City of Simi Valley can meet
established timelines to begin the process of immediately dissolving
a maintenance district and serving as its successor, to simplify city
accounting, and to give the city maximum budget flexibility, it is
necessary that this act take effect immediately.