BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2109|
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THIRD READING
Bill No: AB 2109
Author: Daly (D)
Amended: 5/6/14 in Assembly
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 6/18/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14
AYES: De León, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
ASSEMBLY FLOOR : 77-0, 5/27/14 - See last page for vote
SUBJECT : Controller: reports: parcel taxes
SOURCE : Author
DIGEST : This bill requires the State Controller (Controller)
to report annually on locally assessed parcel taxes and requires
local government to provide information required by the
Controller to complete the report.
ANALYSIS : The Constitution allows cities, counties, and
special districts to impose a special tax for specified purposes
with the approval of two-thirds of the voters. Cities,
counties, or special districts can impose parcel taxes, which
are special taxes levied on a flat per-parcel rate or measured
by the square footage of the parcel or its improvements. A
local government or a special district can specify in the ballot
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measure how the funds from the parcel tax will be used.
Generally, local parcel taxes provide secure funding for schools
and other local building projects. Counties collect parcel
taxes with property taxes and then remit the funds back to the
taxing entity. Existing law requires that a county tax bill
includes information on the billing of any special purpose
parcel tax.
Existing law requires the Controller to compile and publish on
his/her Internet Web site annual reports summarizing local
agencies' finances, including their revenue sources. The
reports are based on financial data submitted to the Controller
by the counties, cities, and special districts. The reports
detail the aggregate amount of various taxes collected by each
local government or special district, including the allocation
of ad valorem taxes on real property, voter approved taxes,
property assessments, and special assessments. The Controller
does not independently verify the information. Taxpayer
advocates want to collect statewide data on local parcel taxes.
This bill requires the Controller to report annually on the
imposition of each locally assessed parcel tax, including, but
not limited to, the following:
A. The type and rate of parcel tax imposed;
B. The number of parcels subject to the parcel tax;
C. The number of parcels exempt from the parcel tax;
D. The sunset date of the parcel tax, if any;
E. The amount of revenue received from the parcel tax; and
F. The manner in which the revenue received from the parcel
tax is being used.
This bill requires each county, city, and special district that
assesses a parcel tax to provide any information required by the
Controller to complete the report.
The bill requires the Controller to adopt regulations to
prescribe the format by which the local agencies shall report
the information.
This bill requires the Controller in implementing the provisions
of the bill to utilize existing funds or resources.
This bill defines "parcel tax" to mean a tax levied by a local
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agency upon any parcel of property identified using the
assessor's parcel number system or upon any person as an
incident of property ownership pursuant to the California
Constitution (Section 4 of Article XIII A) that is collected via
the annual property tax bill.
Comments
Parcel taxes have grown increasingly popular among local
governments over the past decade. However, there is a lack of
uniform statewide data on local parcel taxes. A statewide
detailed report on parcel taxes can help inform voters who must
decide on several parcel tax measures throughout the state each
election. It can also help businesses in their decisions
regarding long-term planning, expansion, and relocation. This
bill centralizes statewide parcel tax data to increase
transparency and oversight over locally-imposed parcel taxes and
provide value information to state and local lawmakers,
taxpayers, and businesses.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
The Controller indicates that this bill will result in
estimated first-year General Fund costs of $450,000 and
ongoing costs of up to $200,000 annually to collect, process,
analyze and publish parcel tax data.
Potentially significant reimbursable costs to cities, counties
and special districts (local governments) that assess parcel
taxes to report the specified information to the Controller's
Office.
SUPPORT : (Verified 8/15/14)
California State Controller, John Chiang
Air Conditioning Trade Association
Allied Managed Care
Apartment Association of Greater Los Angeles
Associated Builders and Contractors of California
Associated Builders and Contractors of California- San Diego
Chapter
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Associated General Contractors of America
Building Owners and Managers Association of California
California Apartment Association
California Asian Pacific Chamber of Commerce
California Association of Realtors
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
California Chapter of American Fence Association
California Fence Contractors' Association
California Grocers Association
California Hotel & Lodging Association
California Manufacturers & Technology Association
California Pool and Spa Association
California Railroad Industry
California Restaurant Association
California Retailers Association
California Taxpayers' Association
Coalition of Small and Disabled Veteran Business
Engineering Contractors Association
Family Business Association
Flasher Barricade Association
Howard Jarvis Taxpayers Association
International Council of Shopping Centers
Marin Builders Association
NAIOP of California, the Commercial Real Estate Development
Association
National Federation of Independent Business
Orange County Business Council
Orange County Taxpayers Association
Plumbing-Heating-Cooling Contractors Association of California
San Diego County Apartment Association
Santa Barbara Rental Property Association
Simi Valley Chamber of Commerce
West Coast Lumber & Building Material Association
Western Electrical Contractors Association
Western Manufactured Housing Communities Association
OPPOSITION : (Verified 8/15/14)
California Special Districts Association
ARGUMENTS IN SUPPORT : According to the author, "AB 2109 seeks
to improve transparency on parcel taxes, especially since such
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taxes have become an increasingly popular option for cities,
counties and special districts looking to raise revenue for
various programs."
ARGUMENTS IN OPPOSITION : The opposition argues that, "AB 2109
would mandate each local agency to complete a new report to the
State Controller's Office regarding each of the local parcel
taxes, including Mello-Roos or Community Facilities Districts,
the agency assesses. This new state mandated local program is
redundant to existing reporting requirements."
ASSEMBLY FLOOR : 77-0, 5/27/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández,
Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,
Nazarian, Nestande, Olsen, Pan, Perea, John A. Pérez, V.
Manuel Pérez, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas,
Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,
Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Patterson, Quirk-Silva, Vacancy
AB:e 8/16/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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