AB 1521, as amended, Fox. Local government finance: property tax revenue allocations: vehicle license fee adjustments.
Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue to local jurisdictions in accordance with specified formulas and procedures, and generally provides that each jurisdiction shall be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction’s portion of the annual tax increment, as defined.
Existing property tax law also requires that, for purposes of determining property tax revenue allocations in each county for the 1992-93 and 1993-94 fiscal years, the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. It requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for allocation to school districts, community college districts, and the county office of education.
Beginning with the 2004-05 fiscal year and for each fiscal year thereafter, existing law requires that each city, county, and city and county receive additional property tax revenues in the form of a vehicle license fee adjustment amount, as defined, from a vehicle license fee property tax compensation fund that exists in each county treasury. Existing law requires that these additional allocations be funded from ad valorem property tax revenues otherwise required to be allocated to educational entities.
This bill would modify these reduction and transfer provisions, for the 2014-15 fiscal year and for each fiscal year thereafter, by providing for a vehicle license fee adjustment amount calculated on the basis of changes in assessed valuation.
begin insertThis bill would incorporate additional changes to Section 97.70 of the Revenue and Taxation Code made by this bill and SB 69, to take effect if both bills are chaptered and this bill is chaptered last.
end insertBy imposing additional duties upon local tax officials with respect to 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
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 97.70 of the Revenue and Taxation Code
2 is amended to read:
Notwithstanding any other law, for the 2004-05 fiscal
4year and for each fiscal year thereafter, all of the following apply:
5(a) (1) (A) The auditor shall reduce the total amount of ad
6valorem property tax revenue that is otherwise required to be
P3 1allocated to a county’s Educational Revenue Augmentation Fund
2by the countywide vehicle license fee adjustment amount.
3(B) If, for the fiscal year, after complying with Section 97.68
4there is not enough ad valorem property tax revenue that is
5otherwise required to be allocated to a county Educational Revenue
6Augmentation Fund for the auditor to complete the allocation
7reduction
required by subparagraph (A), the auditor shall
8
additionally reduce the total amount of ad valorem property tax
9revenue that is otherwise required to be allocated to all school
10districts and community college districts in the county for that
11fiscal year by an amount equal to the difference between the
12countywide vehicle license fee adjustment amount and the amount
13of ad valorem property tax revenue that is otherwise required to
14be allocated to the county Educational Revenue Augmentation
15Fund for that fiscal year. This reduction for each school district
16and community college district in the county shall be the percentage
17share of the total reduction that is equal to the proportion that the
18total amount of ad valorem property tax revenue that is otherwise
19required to be allocated to the school district or community college
20district bears to the total amount of ad valorem property tax revenue
21that is otherwise required to be allocated to all
school districts and
22community college districts in a county. For purposes of this
23subparagraph, “school districts” and “community college districts”
24do not include any districts that are excess tax school entities, as
25defined in Section 95.
26(2) The countywide vehicle license fee adjustment amount shall
27be allocated to the Vehicle License Fee Property Tax Compensation
28Fund that shall be established in the treasury of each county.
29(b) (1) The auditor shall allocate moneys in the Vehicle License
30Fee Property Tax Compensation Fund according to the following:
31(A) Each city in the county shall receive its vehicle license fee
32adjustment amount.
33(B) Each county and city and county shall receive its vehicle
34license fee adjustment amount.
35(2) The auditor shall allocate one-half of the amount specified
36in paragraph (1) on or before January 31 of each fiscal year, and
37the other one-half on or before May 31 of each fiscal year.
38(c) For purposes of this section, all of the following apply:
P4 1(1) “Vehicle license fee adjustment amount” for a particular
2city, county, or a city and county means, subject to an adjustment
3under paragraph (2) and Section 97.71, all of the following:
4(A) For the 2004-05 fiscal year, an amount equal to the
5difference between the following two amounts:
6(i) The estimated total amount of revenue that would have been
7deposited to the credit of the Motor Vehicle License Fee Account
8in the Transportation Tax Fund, including any amounts that would
9have been certified to the Controller by the auditor of the County
10of Ventura under subdivision (j) of Section 98.02, as that section
11read on January 1, 2004, for distribution under the law as it read
12on January 1, 2004, to the county, city and county, or city for the
132004-05 fiscal year if the fee otherwise due under the Vehicle
14License Fee Law (Pt. 5 (commencing with Section 10701) of Div.
152) was 2 percent of the market value of a vehicle, as specified in
16
Sections 10752 and 10752.1 as those sections read on January 1,
172004.
18(ii) The estimated total amount of revenue that is required to be
19distributed from the Motor Vehicle License Fee Account in the
20Transportation Tax Fund to the county, city and county, and each
21city in the county for the 2004-05 fiscal year under Section 11005,
22as that section read on the operative date of the act that amended
23this clause.
24(B) (i) Subject to an adjustment under clause (ii), for the
252005-06 fiscal year, the sum of the following two amounts:
26(I) The difference between the following two amounts:
27(ia) The actual total amount of revenue that would
have been
28deposited to the credit of the Motor Vehicle License Fee Account
29in the Transportation Tax Fund, including any amounts that would
30have been certified to the Controller by the auditor of the County
31of Ventura under subdivision (j) of Section 98.02, as that section
32read on January 1, 2004, for distribution under the law as it read
33on January 1, 2004, to the county, city and county, or city for the
342004-05 fiscal year if the fee otherwise due under the Vehicle
35License Fee Law (Part 5 (commencing with Section 10701) of
36Division 2) was 2 percent of the market value of a vehicle, as
37specified in Sections 10752 and 10752.1 as those sections read on
38January 1, 2004.
39(ib) The actual total amount of revenue that was distributed
40from the Motor Vehicle License Fee Account in the Transportation
P5 1Tax Fund to the county, city and county,
and each city in the county
2for the 2004-05 fiscal year under Section 11005, as that section
3read on the operative date of the act that amended this
4subsubclause.
5(II) The product of the following two amounts:
6(ia) The amount described in subclause (I).
7(ib) The percentage change from the prior fiscal year to the
8current fiscal year in gross taxable assessed valuation within the
9jurisdiction of the entity, as reflected in the equalized assessment
10roll for those fiscal years. For the first fiscal year for which a
11change in a city’s jurisdictional boundaries first applies, the
12percentage change in gross taxable assessed valuation from the
13prior fiscal year to the current fiscal year shall be calculated solely
14on the
basis of the city’s previous jurisdictional boundaries, without
15regard to the change in that city’s jurisdictional boundaries. For
16each following fiscal year, the percentage change in gross taxable
17assessed valuation from the prior fiscal year to the current fiscal
18year shall be calculated on the basis of the city’s current
19jurisdictional boundaries.
20(ii) The amount described in clause (i) shall be adjusted as
21follows:
22(I) If the amount described in subclause (I) of clause (i) for a
23particular city, county, or city and county is greater than the amount
24described in subparagraph (A) for that city, county, or city and
25county, the amount described in clause (i) shall be increased by
26an amount equal to this difference.
27(II) If the amount described in subclause (I) of clause (i) for a
28particular city, county, or city and county is less than the amount
29described in subparagraph (A) for that city, county, or city and
30county, the amount described in clause (i) shall be decreased by
31an amount equal to this difference.
32(C) For the 2006-07 fiscal year, to the 2013-14 fiscal year,
33inclusive, the sum of the following two amounts:
34(i) The vehicle license fee adjustment amount for the prior fiscal
35year, if Section 97.71 and clause (ii) of subparagraph (B) did not
36apply for that fiscal year, for that city, county, and city and county.
37(ii) The product of the following two amounts:
38(I) The amount described in clause (i).
39(II) The percentage change from the prior fiscal year to the
40current fiscal year in gross taxable assessed valuation within the
P6 1jurisdiction of the entity, as reflected in the equalized assessment
2roll for those fiscal years. For the first fiscal year for which a
3change in a city’s jurisdictional boundaries first applies, the
4percentage change in gross taxable assessed valuation from the
5prior fiscal year to the current fiscal year shall be calculated solely
6on the basis of the city’s previous jurisdictional boundaries, without
7regard to the change in that city’s jurisdictional boundaries. For
8each following fiscal year, the percentage change in gross taxable
9assessed valuation from the prior fiscal year to the current fiscal
10year shall be calculated on the basis of the city’s current
11jurisdictional
boundaries.
12(D) For the 2014-15 fiscal year, the sum of the following two
13amounts:
14(i) The amount described in clause (i) of subparagraph (B) if
15Section 97.71 and clause (ii) of subparagraph (B) did not apply
16for that fiscal year, for that city, county, and city and county.
17(ii) The product of the following two amounts:
18(I) The amount described in clause (i).
19(II) The percentage change from the 2004-05 fiscal year to the
202014-15 fiscal year, inclusive, in gross taxable assessed valuation
21within
the jurisdiction of the entity, as reflected in the equalized
22assessment roll for those fiscal years.
23(E) For the 2015-16 fiscal year and each fiscal year thereafter,
24the sum of the following two amounts:
25(i) The vehicle license fee adjustment amount for the prior fiscal
26year.
27(ii) The product of the following two amounts:
28(I) The amount described in clause (i).
29(II) The percentage change from the immediately preceding
30fiscal year to the current fiscal year in gross taxable
assessed
31valuation within the jurisdiction of the entity, as reflected in the
32equalized assessment roll for those fiscal years.
33(2) For the 2013-14 fiscal year, the vehicle license fee
34adjustment amount that is determined under subparagraph (C) of
35paragraph (1) for the County of Orange shall be increased by
36fifty-three million dollars ($53,000,000). For the 2014-15 fiscal
37year and each fiscal year thereafter, the calculation of the vehicle
38license fee adjustment amount for the County of Orange under
39subparagraph (D) or (E), as applicable, of paragraph (1) shall be
40based on a prior fiscal year amount that reflects the full amount
P7 1of this one-time increase of fifty-three million dollars
2($53,000,000).
3(3) “Countywide vehicle license fee
adjustment amount” means,
4for any fiscal year, the total sum of the amounts described in
5paragraphs (1) and (2) for a county or city and county, and each
6city in the county.
7(4) On or before June 30 of each fiscal year, the auditor shall
8report to the Controller the vehicle license fee adjustment amount
9for the county and each city in the county for that fiscal year.
10(d) For the 2005-06 fiscal year and each fiscal year thereafter,
11the amounts determined under subdivision (a) of Section 96.1, or
12any successor to that provision, shall not reflect, for a preceding
13fiscal year, any portion of any allocation required by this section.
14(e) For purposes of Section 15 of Article XI of the California
15Constitution, the allocations from a
Vehicle License Fee Property
16Tax Compensation Fund constitute successor taxes that are
17otherwise required to be allocated to counties and cities, and as
18successor taxes, the obligation to make those transfers as required
19by this section shall not be extinguished nor disregarded in any
20manner that adversely affects the security of, or the ability of, a
21county or city to pay the principal and interest on any debts or
22obligations that were funded or secured by that city’s or county’s
23allocated share of motor vehicle license fee revenues.
24(f) This section shall not be construed to do any of the following:
25(1) Reduce any allocations of excess, additional, or remaining
26funds that would otherwise have been allocated to county
27superintendents of schools, cities, counties, and cities and
counties
28pursuant to clause (i) of subparagraph (B) of paragraph (4) of
29subdivision (d) of Sections 97.2 and 97.3 or Article 4 (commencing
30with Section 98) had this section not been enacted. The allocations
31required by this section shall be adjusted to comply with this
32paragraph.
33(2) Require an increased ad valorem property tax revenue
34allocation or increased tax increment allocation to a community
35redevelopment agency.
36(3) Alter the manner in which ad valorem property tax revenue
37growth from fiscal year to fiscal year is otherwise determined or
38allocated in a county.
39(4) Reduce ad valorem property tax revenue allocations required
40under Article 4 (commencing with Section 98).
P8 1(g) Tax exchange or revenue sharing agreements, entered into
2prior to the operative date of this section, between local agencies
3or between local agencies and nonlocal agencies are deemed to be
4modified to account for the reduced vehicle license fee revenues
5resulting from the act that added this section. These agreements
6are modified in that these reduced revenues are, in kind and in lieu
7thereof, replaced with ad valorem property tax revenue from a
8Vehicle License Fee Property Tax Compensation Fund or an
9Educational Revenue Augmentation Fund.
begin insertSection 97.70 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
11amended to read:end insert
Notwithstanding any other law, for the 2004-05 fiscal
13year and for each fiscal year thereafter, all of the following apply:
14(a) (1) (A) The auditor shall reduce the total amount of ad
15valorem property tax revenue that is otherwise required to be
16allocated to a county’s Educational Revenue Augmentation Fund
17by the countywide vehicle license fee adjustment amount.
18(B) If, for the fiscal year, after complying with Section 97.68
19there is not enough ad valorem property tax revenue that is
20otherwise required to be allocated to a county Educational Revenue
21Augmentation Fund for the auditor to complete the allocation
22reduction required by subparagraph (A), the auditor shall
23
additionally reduce the total amount of ad valorem property tax
24revenue that is otherwise required to be allocated to all school
25districts and community college districts in the county for that
26fiscal year by an amount equal to the difference between the
27countywide vehicle license fee adjustment amount and the amount
28of ad valorem property tax revenue that is otherwise required to
29be allocated to the county Educational Revenue Augmentation
30Fund for that fiscal year. This reduction for each school district
31and community college district in the county shall be the percentage
32share of the total reduction that is equal to the proportion that the
33total amount of ad valorem property tax revenue that is otherwise
34required to be allocated to the school district or community college
35district bears to the total amount of ad valorem property tax revenue
36that is otherwise required to be allocated to all school districts and
37community college districts in a county. For purposes of this
38subparagraph, “school districts”
and “community college districts”
39do not include any districts that are excess tax school entities, as
40defined in Section 95.
P9 1(2) The countywide vehicle license fee adjustment amount shall
2be allocated to the Vehicle License Fee Property Tax Compensation
3Fund that shall be established in the treasury of each county.
4(b) (1) The auditor shall allocate moneys in the Vehicle License
5Fee Property Tax Compensation Fund according to the following:
6(A) Each city in the county shall receive its vehicle license fee
7adjustment amount.
8(B) Each county and city and county shall receive its vehicle
9license fee adjustment amount.
10(2) The auditor shall allocate one-half of the
amount specified
11in paragraph (1) on or before January 31 of each fiscal year, and
12the other one-half on or before May 31 of each fiscal year.
13(c) For purposes of this section, all of the following apply:
14(1) “Vehicle license fee adjustment amount” for a particular
15city, county, or a city and county means, subject to an adjustment
16under paragraph (2) and Section 97.71, all of the following:
17(A) For the 2004-05 fiscal year, an amount equal to the
18difference between the following two amounts:
19(i) The estimated total amount of revenue that would have been
20deposited to the credit of the Motor Vehicle License Fee Account
21in the Transportation Tax Fund, including any amounts that would
22have been certified to the Controller by the auditor of the County
23of
Ventura under subdivision (j) of Section 98.02, as that section
24read on January 1, 2004, for distribution under the law as it read
25on January 1, 2004, to the county, city and county, or city for the
262004-05 fiscal year if the fee otherwise due under the Vehicle
27License Fee Lawbegin delete (Pt.end deletebegin insert (Partend insert
5 (commencing with Section 10701)
28ofbegin delete Div.end deletebegin insert Divisionend insert 2) was 2 percent of the market value of a vehicle,
29as specified inbegin delete Sectionend deletebegin insert
Sectionsend insert 10752 and 10752.1 as those
30sections read on January 1, 2004.
31(ii) The estimated total amount of revenue that is required to be
32distributed from the Motor Vehicle License Fee Account in the
33Transportation Tax Fund to the county, city and county, and each
34city in the county for the 2004-05 fiscal year under Section 11005,
35as that section read on the operative date of the act that amended
36this clause.
37(B) (i) Subject to an adjustment under clause (ii), for the
382005-06 fiscal year, the sum of the following two amounts:
39(I) The difference between the following two amounts:
40(Ia)
end delete
P10 1begin insert(ia)end insert The actual total amount of revenue that would have been
2deposited to the credit of the Motor Vehicle License Fee Account
3in the Transportation Tax Fund, including any amounts that would
4have been certified to the Controller by the auditor of the County
5of Ventura under subdivision (j) of Section 98.02, as that section
6read on January 1, 2004, for distribution under the law as it read
7on January 1, 2004, to the county, city and county, or city for the
82004-05 fiscal year if the fee otherwise due under the Vehicle
9License Fee Law (Part 5 (commencing with Section 10701) of
10Division 2) was 2 percent of the market value of a vehicle, as
11specified in Sections 10752 and 10752.1 as those sections read on
12January 1, 2004.
13(Ib)
end delete
14begin insert(ib)end insert The actual total amount of revenue that was distributed
15from the Motor Vehicle License Fee Account in the Transportation
16Tax Fund to the county, city and county, and each city in the county
17for the 2004-05 fiscal year under Section 11005, as that section
18read on the operative date of the act that amended this
19begin delete sub-subclauseend deletebegin insert subsubclauseend insert.
20(II) The product of the following two amounts:
21(IIa)
end delete22begin insert(ia)end insert The amount described in subclause (I).
23(IIb)
end delete
24begin insert(ib)end insert The percentage change from the prior fiscal year to the
25current fiscal year in gross taxable assessed valuation within the
26jurisdiction of the entity, as reflected in the equalized assessment
27roll for those fiscal years. For the first fiscal year for which a
28change in a city’s jurisdictional boundaries first applies, the
29percentage change in gross taxable assessed valuation from the
30prior fiscal year to the current fiscal year shall be calculated solely
31on
the basis of the city’s previous jurisdictional boundaries, without
32regard to the change in that city’s jurisdictional boundaries. For
33each following fiscal year, the percentage change in gross taxable
34assessed valuation from the prior fiscal year to the current fiscal
35year shall be calculated on the basis of the city’s current
36jurisdictional boundaries.
37(ii) The amount described in clause (i) shall be adjusted as
38follows:
39(I) If the amount described in subclause (I) of clause (i) for a
40particular city, county, or city and county is greater than the amount
P11 1described in subparagraph (A) for that city, county, or city and
2county, the amount described in clause (i) shall be increased by
3an amount equal to this difference.
4(II) If the amount described in subclause (I) of clause (i) for a
5particular city, county, or city
and county is less than the amount
6described in subparagraph (A) for that city, county, or city and
7county, the amount described in clause (i) shall be decreased by
8an amount equal to this difference.
9(C) For the 2006-07 fiscal yearbegin delete and for each fiscal year begin insert to the 2013-14 fiscal year, inclusive,end insert
the sum of the
10thereafter,end delete
11following two amounts:
12(i) The vehicle license fee adjustment amount for the prior fiscal
13year, if Section 97.71 and clause (ii) of subparagraph (B) did not
14apply for that fiscal year, for that city, county, and city and county.
15(ii) The product of the following two amounts:
16(I) The amount described in clause (i).
17(II) The percentage change from the prior fiscal year to the
18current fiscal year in gross taxable assessed valuation within the
19jurisdiction of the entity, as reflected in the equalized assessment
20roll for those fiscal years. For the first fiscal year for which a
21change in a city’s jurisdictional boundaries first applies, the
22percentage change in gross taxable assessed valuation from the
23prior fiscal year to
the current fiscal year shall be calculated solely
24on the basis of the city’s previous jurisdictional boundaries, without
25regard to the change in that city’s jurisdictional boundaries. For
26each following fiscal year, the percentage change in gross taxable
27assessed valuation from the prior fiscal year to the current fiscal
28year shall be calculated on the basis of the city’s current
29jurisdictional boundaries.
30(D) For the 2014-15 fiscal year, the sum of the following two
31amounts:
32(i) The amount described in clause (i) of subparagraph (B) if
33Section 97.71 and clause (ii) of subparagraph (B) did not apply
34for that fiscal year, for that city, county, and city and county.
35(ii) The product of the following two amounts:
end insertbegin insert36(I) The amount described in clause (i).
end insertbegin insert
37(II) The percentage change from the 2004-05 fiscal year to the
382014-15 fiscal year, inclusive, in gross taxable assessed valuation
39within the jurisdiction of the entity, as reflected in the equalized
40assessment roll for those fiscal years.
P12 1(E) For the 2015-16 fiscal year and each fiscal year thereafter,
2the sum of the following two amounts:
3(i) The vehicle license fee adjustment amount for the prior fiscal
4year.
5(ii) The product of the following two amounts:
end insertbegin insert6(I) The amount described in clause (i).
end insertbegin insert
7(II) The percentage change
from the immediately preceding
8fiscal year to the current fiscal year in gross taxable assessed
9valuation within the jurisdiction of the entity, as reflected in the
10equalized assessment roll for those fiscal years.
11(2) Notwithstanding paragraph (1), “vehicle license fee
12adjustment amount,” for a city incorporating after January 1,
132004, and on or before January 1, 2012, means the following:
14(A) For the 2014-15 fiscal year, the quotient derived from the
15following fraction:
16(i) The numerator is the product of the following two amounts:
end insertbegin insert
17(I) The sum of the most recent vehicle license fee adjustment
18amounts determined for all cities in the county.
19(II) The population of the incorporating city.
end insertbegin insert
20(ii) The denominator is the sum of the populations of all cities
21in the county.
22(B) For the 2015-16 fiscal year and each fiscal year thereafter,
23the sum of the following two amounts:
24(i) The vehicle license fee adjustment amount for the prior fiscal
25year.
26(ii) The product of the following two amounts:
end insertbegin insert27(I) The amount described in clause (i).
end insertbegin insert
28(II) The percentage change from the prior fiscal year to the
29current fiscal year in gross taxable assessed valuation within the
30jurisdiction of the entity, as reflected in the equalized assessment
31roll for those fiscal years.
32(2)
end delete
33begin insert(3)end insert For the 2013-14 fiscal year, the vehicle license fee
34adjustment amount that is determined under subparagraph (C) of
35paragraph (1) for the County of Orange shall be increased by
36fifty-three million dollars ($53,000,000). For the 2014-15 fiscal
37year and each fiscal year thereafter, the calculation of the vehicle
38license fee adjustment amount for the County of Orange under
39subparagraphbegin delete (C)end deletebegin insert
(D) or (E), as applicable,end insert
of paragraph (1) shall
40be based on a prior fiscal year amount that reflects the full amount
P13 1of this one-time increase of fifty-three million dollars
2($53,000,000).
3(3)
end delete
4begin insert(4)end insert “Countywide vehicle license fee adjustment amount” means,
5for any fiscal year, the total sum of the amounts described in
6paragraphsbegin delete (1) andend deletebegin insert (1),end insert (2)begin insert, and (3)end insert for a county or city and county,
7
and each city in the county.
8(4)
end delete
9begin insert(5)end insert On or before June 30 of each fiscal year, the auditor shall
10report to the Controller the vehicle license fee adjustment amount
11for the county and each city in the county for that fiscal year.
12(d) For the 2005-06 fiscal year and each fiscal year thereafter,
13the amounts determined under subdivision (a) of Section 96.1, or
14any successor to that provision, shall not reflect, for a preceding
15fiscal year, any portion of any allocation required by this section.
16(e) For purposes of Section 15 of Article XI of the
California
17Constitution, the allocations from a Vehicle License Fee Property
18Tax Compensation Fund constitute successor taxes that are
19otherwise required to be allocated to counties and cities, and as
20successor taxes, the obligation to make those transfers as required
21by this section shall not be extinguished nor disregarded in any
22manner that adversely affects the security of, or the ability of, a
23county or city to pay the principal and interest on any debts or
24obligations that were funded or secured by that city’s or county’s
25allocated share of motor vehicle license fee revenues.
26(f) This section shall not be construed to do any of the following:
27(1) Reduce any allocations of excess, additional, or remaining
28funds that would otherwise have been allocated to county
29superintendents of schools, cities, counties, and cities and counties
30pursuant to clause (i) of subparagraph (B) of
paragraph (4) of
31subdivision (d) of Sections 97.2 and 97.3 or Article 4 (commencing
32with Section 98) had this section not been enacted. The allocations
33required by this section shall be adjusted to comply with this
34paragraph.
35(2) Require an increased ad valorem property tax revenue
36allocation or increased tax increment allocation to a community
37redevelopment agency.
38(3) Alter the manner in which ad valorem property tax revenue
39growth from fiscal year to fiscal year is otherwise determined or
40allocated in a county.
P14 1(4) Reduce ad valorem property tax revenue allocations required
2under Article 4 (commencing with Section 98).
3(g) Tax exchange or revenue sharing agreements, entered into
4prior to the operative date of this section, between local agencies
5or
between local agencies and nonlocal agencies are deemed to be
6modified to account for the reduced vehicle license fee revenues
7resulting from the act that added this section. These agreements
8are modified in that these reduced revenues are, in kind and in lieu
9thereof, replaced with ad valorem property tax revenue from a
10Vehicle License Fee Property Tax Compensation Fund or an
11Educational Revenue Augmentation Fund.
Section 1.5 of this bill incorporates amendments to
13Section 97.70 of the Revenue and Taxation Code proposed by both
14this bill and Senate Bill 69. It shall only become operative if (1)
15both bills are enacted and become effective on or before January
161, 2015, but this bill becomes operative first, (2) each bill amends
17Section 97.70 of the Revenue and Taxation Code, and (3) this bill
18is enacted after Senate Bill 69, in which case Section 97.70 of the
19Revenue and Taxation Code, as amended by Section 1 of this bill,
20shall remain operative only until the operative date of Senate Bill
2169, at which time
Section 1.5 of this bill shall become operative.
If the Commission on State Mandates determines that
24this act contains costs mandated by the state, reimbursement to
25local agencies and school districts for those costs shall be made
26pursuant to Part 7 (commencing with Section 17500) of Division
274 of Title 2 of the Government Code.
This act is an urgency statute necessary for the
30immediate preservation of the public peace, health, or safety within
31the meaning of Article IV of the Constitution and shall go into
32immediate effect. The facts constituting the necessity are:
33In order to provide timely fiscal relief to preserve the public
34peace, health, and safety in cities that annexed inhabited areas that
35lost revenue as a result of the passage of Senate Bill 89 of the
362011-12 Regular Session (Chapter 35 of the
Statutes of 2011), it
37is necessary that this act take effect immediately.
O
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