BILL NUMBER: SB 536 INTRODUCED
BILL TEXT
INTRODUCED BY Senator DeSaulnier
(Coauthor: Assembly Member Buchanan)
FEBRUARY 17, 2011
An act to amend Section 100 of, and to add Section 100.96 to, the
Revenue and Taxation Code, relating to local government finance, and
declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 536, as introduced, DeSaulnier. Property tax revenue
allocations: public utilities: qualified property.
(1) The California Constitution requires the State Board of
Equalization to assess the property, other than franchises, of
companies transmitting or selling gas or electricity. Existing
property tax law provides for the valuation, as a unit, of properties
of a state assessee that are operated as a unit as a primary
function of that assessee, and for the allocation of the assessed
value of the unit among various counties in which the state assessee'
s unitary property is located. Existing law also provides, pursuant
to specified formulas, for the application in each county of
specified tax rates to unitary assessed value, and for the allocation
among jurisdictions in that county of the resulting revenues.
This bill would, for the 2011-12 fiscal year and for each fiscal
year thereafter, require that a specified amount of property tax
revenues derived from applying a specified tax rate to qualified
property, as defined, be allocated first to the county in which the
qualified property is located and to all of the school entities
located in that county, 2nd to the East Contra Costa Fire Protection
District, and 3rd to specified special districts, with the balance
allocated to the redevelopment agency governing the project area in
which the qualified property is located. This bill would also require
that a specified amount of property tax revenues derived from
applying another specified tax rate to the qualified property be
first allocated to taxing jurisdictions in those tax rate areas in
the county in which the qualified property is located, with the
balance allocated to taxing jurisdictions pursuant to a specified
formula. The bill would require the Oakley Redevelopment Agency to
reimburse the county auditor for the actual and reasonable costs
incurred by the county auditor in administering these allocations.
The bill would also require the Oakley Redevelopment Agency to
develop one new housing unit for each 40 jobs created on real
property within the project area, as prescribed. By establishing new
duties with respect to the annual allocation of property tax revenues
derived from state-assessed property, this bill would create a
state-mandated local program.
(2) This bill would make legislative findings and declarations as
to the necessity of a special statute.
(3) 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.
(4) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 100 of the Revenue and Taxation Code is amended
to read:
100. Notwithstanding any other provision of law, commencing with
the 1988-89 fiscal year, property tax assessed value attributable to
unitary and operating nonunitary property, as defined in Sections 723
and 723.1, that is assessed by the State Board of Equalization shall
be allocated by county as provided in Section 756, and the assessed
value and revenues attributable to that allocation shall be allocated
within each county as follows:
(a) Each county shall establish one countywide tax rate area. The
assessed value of all unitary and operating nonunitary property shall
be assigned to this tax rate area. No other property shall be
assigned to this tax rate area.
(b) Property assigned to the tax rate area created by subdivision
(a) shall be taxed at a rate equal to the sum of the following two
rates:
(1) A rate determined by dividing the county's total ad valorem
tax levies for the secured roll, including levies made pursuant to
Section 96.8, for the prior year, exclusive of levies for debt
service, by the county's total ad valorem secured roll assessed value
for the prior year.
(2) A rate determined as follows:
(A) By dividing the county's total ad valorem tax levies for
unitary and operating nonunitary property for the prior year debt
service only by the county's total unitary and operating nonunitary
assessed value for the prior year.
(B) Beginning with the 1989-90 fiscal year, adjusting the rate
determined pursuant to subparagraph (A) by the percentage change
between the two preceding fiscal years in the county's ad valorem
debt service levy for the secured roll, not including unitary and
operating nonunitary debt service.
(c) The property tax revenue derived from the assessed value
assigned to the countywide tax rate area pursuant to subdivision (a)
and pursuant to paragraph (2) of subdivision (a) of Section 100.1 by
the use of the tax rate determined in paragraph (1) of subdivision
(b) shall be allocated as follows:
(1) For the 1988-89 fiscal year and each fiscal year thereafter,
each taxing jurisdiction shall be allocated an amount of property tax
revenue equal to 102 percent of the amount of the aggregate property
tax revenue it received from all unitary and operating nonunitary
property in the prior fiscal year, exclusive of revenue attributable
to qualified property under Section Sections
100.95 and 100.96 and levies for debt service.
(2) If the amount of property tax revenue available for allocation
in the current fiscal year is insufficient to make the allocations
required by paragraph (1), the amount of revenue to be allocated to
each taxing jurisdiction shall be prorated based on a factor
determined by dividing the total amount of property tax revenue
available to all taxing jurisdictions from unitary and operating
nonunitary property in the current year, exclusive of revenue
attributable to levies for debt service, by the total amount of
property tax revenue received by all taxing jurisdictions from
unitary and operating nonunitary property in the prior fiscal year,
exclusive of revenue attributable to levies for debt service.
(3) If the amount of property tax revenue available for allocation
to all taxing jurisdictions in the current fiscal year from unitary
and operating nonunitary property, exclusive of revenue attributable
to qualified property under Section Sections
100.95 and 100.96 and levies for debt service,
exceeds 102 percent of the property tax revenue received by all
taxing jurisdictions from all unitary and operating nonunitary
property in the prior fiscal year, exclusive of revenue attributable
to qualified property under Section Sections
100.95 and 100.96 and levies for debt service, the
amount of revenue in excess of 102 percent shall be allocated to all
taxing jurisdictions in the county by a ratio determined by dividing
each taxing jurisdiction's share of the county's total ad valorem tax
levies for the secured roll for the prior year, exclusive of levies
for qualified property under Section Sections
100.95 and 100.96 and levies for debt service, by
the county's total ad valorem tax levies for the secured roll for the
prior year, exclusive of levies for qualified property under
Section Sections 100.95 and 100.96
and levies for debt service.
(d) The property tax revenue derived from the assessed value
assigned to the countywide tax rate area pursuant to subdivision (a)
and pursuant to paragraph (2) of subdivision (a) of Section 100.1 by
the use of the tax rate determined in paragraph (2) of subdivision
(b) shall be allocated as follows:
(1) An amount shall be computed for each taxing jurisdiction and
shall be determined by multiplying the amounts required in the
current year pursuant to subdivisions (a) and (c) of Section 93 by
that percentage that shall be determined by dividing the amount of
property tax revenue the jurisdiction received in the prior year from
unitary property and operating nonunitary property by the total
amount of property tax revenue the jurisdiction received in the prior
year from all property.
(2) The amount of property tax revenue available for allocation
pursuant to this subdivision shall be allocated among taxing
jurisdictions in the proportion that the amount computed for each
taxing jurisdiction pursuant to paragraph (1) bears to the total
amount computed pursuant to paragraph (1) for all taxing
jurisdictions.
(3) If a taxing jurisdiction is levying a tax rate for debt
service for the first time in the current fiscal year, for purposes
of determining the percentage specified in paragraph (1), that
percentage shall be the percentage determined by dividing the amount
of property tax revenue received by that taxing jurisdiction in the
prior year pursuant to subdivision (c) from unitary and operating
nonunitary property by the total amount of property tax revenue
received by that taxing jurisdiction in the prior year from all
property within the taxing jurisdiction.
(e) For purposes of this section:
(1) "The county's total ad valorem tax levies for the secured roll"
means all ad valorem tax levies for the county's secured roll,
including the general tax levy, levies for debt service (including
land only and land and improvement rates), and levies for
redevelopment agencies.
(2) "The county's total ad valorem secured roll" means the county'
s local roll, after all exemptions except the homeowner's exemption,
and the county's utility roll.
(3) "Taxing jurisdiction" includes a redevelopment agency.
(4) In a county of the second class, for the 1992-93 fiscal year
and each fiscal year thereafter, "taxing jurisdiction" includes that
fund that has been designated by the auditor as the "Unallocated
Residual Public Utility Tax Fund." All revenues allocated to that
fund pursuant to this section shall be deposited in that fund and
shall be distributed as follows:
(A) For the 1992-93 fiscal year to the 1996-97 fiscal year,
inclusive, at the discretion of the county board of supervisors.
(B) For the 1997-98 fiscal year, 100 percent to the Orange County
Fire Authority.
(C) For the 1998-99 fiscal year and each fiscal year thereafter,
in accordance with the following schedule:
(i) Fifty-seven and forty-seven hundredths percent to the Orange
County Fire Authority.
(ii) Forty-one and forty-seven hundredths percent to the Orange
County Library District.
(iii) Forty-eight hundredths percent to the Buena Park Library
District.
(iv) Fifty-eight hundredths percent to the Placentia Library
District.
(f) The assessed value of the unitary and operating nonunitary
property shall be kept separate for each state assessee throughout
the allocation process.
(g) Each state assessee shall be issued only one tax bill for all
unitary and operating nonunitary property within the county.
(h) This section applies to the unitary property of regulated
railway companies only to the extent described in Section 100.1.
(i) This section does not apply to property that on July 1, 1987,
was undeveloped and owned by a utility and located within a city,
county, or city and county that adopts a resolution stating that the
property is subject to a development plan or agreement and that this
section shall not apply to that property, and the city, county, or
city and county transmits a copy of that resolution, including a
legal description of the property, to the State Board of Equalization
and the county's auditor-controller prior to January 1, 1988.
(j) (1) For property that on July 1, 1990, was undeveloped and
owned by a utility and that is located within a city, county, or city
and county that adopts a resolution stating that the property is
subject to a development plan or agreement and that this subdivision
applies to that property, and the city, county, or city and county
transmits a copy of that resolution, including a legal description of
the property, to the county auditor prior to August 1, 1991, the
allocation of property tax revenues derived with respect to that
property pursuant to Sections 96.1, 96.2, 97.31, 98, 98.01, and
98.04, shall be subject to the allocation required by paragraph (2).
(2) The county auditor shall annually allocate to a city, county,
or city and county, that has adopted and transmitted a resolution
pursuant to paragraph (1), the amount of property tax revenues
derived with respect to the property described in paragraph (1) that
would be allocated to that city, county, or city and county if that
property were subject to assessment by the county assessor. In order
to provide the allocations required by this paragraph, the county
auditor shall make any necessary pro rata reductions in allocations
to local agencies other than that city, county, or city and county
adopting and transmitting a resolution pursuant to paragraph (1), of
property tax revenues derived with respect to the property described
in paragraph (1).
(k) (1) For property subject to this section that is owned by a
utility that serves no more than two counties and is located within a
city, county, or city and county that adopts a resolution stating
that the property is subject to a development plan or agreement for
new construction and the city, county, or city and county transmits a
copy of that resolution, including a legal description of the
property, to the State Board of Equalization and the county auditor
prior to January 1, 2006, the allocation of property tax revenues
derived with respect to that property pursuant to Sections 96.1,
97.31, 98, 98.01, and 98.04, shall be subject to the requirements of
paragraph (2).
(2) If the city, county, or city and county has adopted and
transmitted a resolution pursuant to paragraph (1), the county
auditor shall annually allocate the property tax revenue attributable
to the new construction described in the development plan or
agreement, as if that new construction were subject to assessment by
the county assessor, according to the following formula:
(A) An amount of property tax revenue to school entities, as
defined in subdivision (f) of Section 95, equivalent to the same
percentage the school entities received in the prior fiscal year of
the property tax revenues paid by the utility in the county in which
the property described in paragraph (1) is located.
(B) An amount of property tax revenue to the county in which the
property is located equivalent to the same percentage the county
received in the prior fiscal year of the property tax revenues paid
by the utility in the county in which the property described in
paragraph (1) is located. The county shall distribute those property
tax revenues to the county general fund, the county library district,
the county flood control district, the county sanitation districts,
and the county service areas.
(C) The property tax revenue remaining after the allocations
described in subparagraphs (A) and (B) are made shall be distributed
to the city in which the property described in paragraph (1) is
located.
(3) In order to provide the allocations required by paragraph (2),
the county auditor shall make any necessary pro rata reductions in
allocations of property taxes attributable to the property specified
in paragraph (1) to jurisdictions other than those receiving an
allocation under paragraph (2).
(l) (1) For property subject to this section that is owned by a
utility that was constructed by a wholly owned subsidiary of the
utility prior to January 1, 2007, and placed in service by the
utility on or after January 1, 2007, and the property is located
within a redevelopment project area of a joint powers authority
comprised of cities and a county that adopts a resolution stating
that the property is subject to a redevelopment plan and the joint
powers authority transmits a copy of that resolution, including a
legal description of the property, to the State Board of Equalization
and the county auditor prior to January 1, 2011, the allocation of
property tax revenues derived with respect to that property shall be
subject to the requirements of subdivision (a) of Section 100.9.
(2) Notwithstanding any other law, the State Board of Equalization
may amend the tax rolls for the 2010-11 fiscal year in order to
provide the allocations required by paragraph (1).
(m) The amendments made to this section by the act that added this
subdivision apply for the 2007-08 fiscal year and for each fiscal
year thereafter.
(n) The amendments made to this section by the act that added this
subdivision apply for the 2010-11 fiscal year and for each fiscal
year thereafter.
SEC. 2. Section 100.96 is added to the Revenue and Taxation Code,
to read:
100.96. (a) Notwithstanding any other law, for the 2011-12 fiscal
year and each fiscal year thereafter, all of the following shall
apply:
(1) The revenue from the property tax assessed on qualified
property, which is owned by a public utility and assessed by the
State Board of Equalization, shall be allocated in accordance with
subdivision (b) entirely within the county in which the qualified
property is located.
(2) The tax rate applied to the assessed value of qualified
property shall be the rate calculated pursuant to subdivision (b) of
Section 100.
(b) The county auditor shall do both of the following with respect
to the property tax revenues derived from applying the tax rate
described in subdivision (b) of Section 100 to the qualified
property:
(1) Allocate the property tax revenues derived from applying the
tax rate described in paragraph (1) of subdivision (b) of Section 100
as follows:
(A) First, to the county in which the qualified property is
located and to all of the school entities located in that county, the
amount of property tax revenues that would have otherwise been
allocated to the county and school entities or districts had this
section not been enacted.
(B) Second, to the East Contra Costa Fire Protection District, an
amount equal to 2 percent of the property tax revenues.
(C) Third, to any special district formed pursuant to Article 3
(commencing with Section 5500) of Chapter 3 of Division 5 of the
Public Resources Code, an amount of property tax revenues equal to
the amount of property tax revenues allocated to that special
district in the 2010-11 fiscal year.
(D) Fourth, to the redevelopment agency governing the project area
in which the qualified property is located, the balance of the
property tax revenues.
(2) Allocate the property tax revenues derived from applying the
tax rate described in paragraph (2) of subdivision (b) of Section 100
as follows:
(A) First, to taxing jurisdictions in those tax rate areas in the
county in which the qualified property is located, an amount
equivalent to the State Board of Equalization's assessed value of the
qualified property for the year multiplied by any override rate
adopted by the local agency for the year.
(B) Second, the balance to taxing jurisdictions in accordance with
subdivision (d) of Section 100.
(3) In order to make the allocations required by this subdivision,
the county auditor shall make any necessary pro rata reductions in
the allocations of property tax revenues attributable to the
qualified property to jurisdictions other than those receiving an
allocation under this subdivision.
(c) The Oakley Redevelopment Agency shall reimburse the county
auditor for the actual and reasonable costs incurred by the county
auditor to administer this section.
(d) For purposes of this section, all of the following shall
apply:
(1) "Qualified property" means both of the following:
(A) All plant and associated equipment, including substation
facilities and fee-owned land and easements, placed in service by a
public utility in the Oakley Redevelopment Project Area on or after
January 1, 2011, and related to the following:
(i) Electrical substation facilities that meet either of the
following conditions:
(I) The high-side voltage of the facility's transformer is 50,000
volts or more.
(II) The substation facilities are operated at 50,000 volts or
more.
(ii) Electric generation facilities that have a nameplate
generating capacity of 50 megawatts or more.
(iii) Electric transmission line facilities of 200,000 volts or
more.
(B) Any additions, modifications, reconductoring, or equivalent
replacements to the plant and associated equipment made after the
plant and associated equipment are placed into service.
(2) A public utility shall provide to the State Board of
Equalization a description of the qualified property in the form
prescribed by the board so that separate valuation can be determined.
The State Board of Equalization shall transmit to the auditor of
Contra Costa County the information necessary to identify the
qualified property and the corresponding assessed value data
necessary to make the property tax revenue allocations required by
this section.
(e) (1) The Oakley Redevelopment Agency shall develop one new
housing unit for each 40 jobs created on real property within the
project area that was, on September 1, 2010, owned by the Dupont
Corporation, commonly and formerly known as the Dupont Antioch plant,
and consisting of approximately 378 acres. This obligation shall
commence upon placing the qualified property in service.
(2) All units newly developed pursuant to this section:
(A) Shall be affordable to, and occupied by, extremely low income
persons, as defined in the Community Redevelopment Law (Part 1
(commencing with Section 33000) of Division 24 of the Health and
Safety Code).
(B) Shall comply with the requirements of the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), except as otherwise provided in
this section.
(C) Shall be completed and occupied no later than 10 years after
any number of units required pursuant to paragraph (1) is determined
pursuant to paragraph (3).
(D) May be located anywhere within the City of Oakley. The number
of units required by this section shall not be affected by whether
the units are within a project area, notwithstanding such a
requirement in the Community Redevelopment Law (Part 1 (commencing
with Section 33000) of Division 24 of the Health and Safety Code).
(E) May be used to satisfy the City of Oakley's regional housing
needs allocation.
(3) The number of jobs created in the area specified in paragraph
(1) shall be determined as follows:
(A) The agency shall determine the number of jobs, full and part
time, existing in the area described in paragraph (1) six months
prior to the approval of an agency's five-year implementation plan.
The agency shall use data from a state or federal agency in making
the determination. The number of units required pursuant to this
section shall be 1/40th of the number of jobs calculated and shall be
included in the first applicable implementation plan.
(B) For each subsequent implementation plan, the number of
additional units shall be based on the increase, if any, in the
number of jobs since the prior calculation.
SEC. 3. 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, in order to ensure that the Oakley Redevelopment Agency
receives sufficient tax increment funding to repay loans, or moneys
advanced to, or indebtedness incurred by, the redevelopment agency to
finance or refinance redevelopment projects.
SEC. 4. 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. 5. 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 Oakley Redevelopment Agency receives
sufficient tax increment funding to repay loans, or moneys advanced
to, or indebtedness incurred by, the redevelopment agency to finance
or refinance redevelopment projects, it is necessary that this act
take effect immediately.