SB 69, as amended, Roth. Local government finance: property tax revenue allocation: 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 a city incorporating after January 1, 2004, and on or before January 1, 2012, 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 AB 1521, 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.
Vote: majority. 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
7allocated to a county’s Educational Revenue Augmentation Fund
8by the countywide vehicle license fee adjustment amount.
9(B) If, for the fiscal year, after complying with Section 97.68
10there is not enough ad valorem property tax revenue that is
11otherwise required to be allocated to a county Educational Revenue
12Augmentation Fund for the auditor to complete the allocation
13reduction
required by subparagraph (A), the auditor shall
14additionally reduce the total amount of ad valorem property tax
15revenue that is otherwise required to be allocated to all school
16districts and community college districts in the county for that
17fiscal year by an amount equal to the difference between the
18countywide vehicle license fee adjustment amount and the amount
19of ad valorem property tax revenue that is otherwise required to
20be allocated to the county Educational Revenue Augmentation
21Fund for that fiscal year. This reduction for each school district
22and community college district in the county shall be the percentage
23share of the total reduction that is equal to the proportion that the
24total amount of ad valorem property tax revenue that is otherwise
25required to be allocated to the school district or community college
26district bears to the total amount of ad valorem property tax revenue
27that is
otherwise required to be allocated to all school districts and
28community college districts in a county. For purposes of this
29subparagraph, “school districts” and “community college districts”
30do not include any districts that are excess tax school entities, as
31defined in Section 95.
32(2) The countywide vehicle license fee adjustment amount shall
33be allocated to the Vehicle License Fee Property Tax Compensation
34Fund that shall be established in the treasury of each county.
35(b) (1) The auditor shall allocate moneys in the Vehicle License
36Fee Property Tax Compensation Fund according to the following:
37(A) Each city in the county shall receive its vehicle license fee
38adjustment amount.
P4 1(B) Each county and city and county shall receive its vehicle
2license fee adjustment amount.
3(2) The auditor shall allocate one-half of the amount specified
4in paragraph (1) on or before January 31 of each fiscal year, and
5the other one-half on or before May 31 of each fiscal year.
6(c) For purposes of this section, all of the following apply:
7(1) “Vehicle license fee adjustment amount” for a particular
8city, county, or a city and county means, subject to an adjustment
9under paragraph (2) and Section 97.71, all of the following:
10(A) For the 2004-05 fiscal year, an amount equal to the
11difference between the
following two amounts:
12(i) The estimated total amount of revenue that would have been
13deposited to the credit of the Motor Vehicle License Fee Account
14in the Transportation Tax Fund, including any amounts that would
15have been certified to the Controller by the auditor of the County
16of Ventura under subdivision (j) of Section 98.02, as that section
17read on January 1, 2004, for distribution under the law as it read
18on January 1, 2004, to the county, city and county, or city for the
192004-05 fiscal year if the fee otherwise due under the Vehicle
20License Fee Law (Part 5 (commencing with Section 10701) of
21Division 2) was 2 percent of the market value of a vehicle, as
22specified in Sections 10752 and 10752.1 as those sections read on
23January 1, 2004.
24(ii) The estimated total amount of
revenue that is required to be
25distributed from the Motor Vehicle License Fee Account in the
26Transportation Tax Fund to the county, city and county, and each
27city in the county for the 2004-05 fiscal year under Section 11005,
28as that section read on the operative date of the act that amended
29this clause.
30(B) (i) Subject to an adjustment under clause (ii), for the
312005-06 fiscal year, the sum of the following two amounts:
32(I) The difference between the following two amounts:
33(ia) The actual total amount of revenue that would have been
34deposited to the credit of the Motor Vehicle License Fee Account
35in the Transportation Tax Fund, including any amounts that would
36have been certified to the Controller by
the auditor of the County
37of Ventura under subdivision (j) of Section 98.02, as that section
38read on January 1, 2004, for distribution under the law as it read
39on January 1, 2004, to the county, city and county, or city for the
402004-05 fiscal year if the fee otherwise due under the Vehicle
P5 1License Fee Law (Part 5 (commencing with Section 10701) of
2Division 2) was 2 percent of the market value of a vehicle, as
3specified in Sections 10752 and 10752.1 as those sections read on
4January 1, 2004.
5(ib) The actual total amount of revenue that was distributed
6from the Motor Vehicle License Fee Account in the Transportation
7Tax Fund to the county, city and county, and each city in the county
8for the 2004-05 fiscal year under Section 11005, as that section
9read on the operative date of the act that amended this
10subsubclause.
11(II) The product of the following two amounts:
12(ia) The amount described in subclause (I).
13(ib) The percentage change from the prior fiscal year to the
14current fiscal year in gross taxable assessed valuation within the
15jurisdiction of the entity, as reflected in the equalized assessment
16roll for those fiscal years. For the first fiscal year for which a
17change in a city’s jurisdictional boundaries first applies, the
18percentage change in gross taxable assessed valuation from the
19
prior fiscal year to the current fiscal year shall be calculated solely
20on the basis of the city’s previous jurisdictional boundaries, without
21regard to the change in that city’s jurisdictional boundaries. For
22each following fiscal year, the percentage change in gross taxable
23assessed valuation from the prior fiscal year to the current fiscal
24year shall be calculated on the basis of the city’s current
25jurisdictional boundaries.
26(ii) The amount described in clause (i) shall be adjusted as
27follows:
28(I) If the amount described in subclause (I) of clause (i) for a
29particular city, county, or city and county is greater than the amount
30described in subparagraph (A) for that city, county, or city and
31county, the amount described in clause (i) shall be increased by
32an
amount equal to this difference.
33(II) If the amount described in subclause (I) of clause (i) for a
34particular city, county, or city and county is less than the amount
35described in subparagraph (A) for that city, county, or city and
36county, the amount described in clause (i) shall be decreased by
37an amount equal to this difference.
38(C) For the 2006-07 fiscal year and for each fiscal year
39thereafter, the sum of the following two amounts:
P6 1(i) The vehicle license fee adjustment amount for the prior fiscal
2year, if Section 97.71 and clause (ii) of subparagraph (B) did not
3apply for that fiscal year, for that city, county, and city and county.
4(ii) The product of the following two amounts:
5(I) The amount described in clause (i).
6(II) The percentage change from the prior fiscal year to the
7current fiscal year in gross taxable assessed valuation within the
8jurisdiction of the entity, as reflected in the equalized assessment
9roll for those fiscal years. For the first fiscal year for which a
10change in a city’s jurisdictional boundaries first applies, the
11percentage change in gross taxable assessed valuation from the
12prior fiscal year to the current fiscal year shall be calculated solely
13on the basis of the city’s previous jurisdictional boundaries, without
14regard to the change in that city’s jurisdictional boundaries. For
15each following fiscal year, the percentage change in gross taxable
16assessed valuation from the prior fiscal year to the current fiscal
17year
shall be calculated on the basis of the city’s current
18jurisdictional boundaries.
19(2) Notwithstanding paragraph (1), “vehicle license fee
20adjustment amount,”begin delete for the 2014-15 fiscal year and each fiscal for a city incorporating after January 1, 2004, and
21year thereafter,end delete
22on or before January 1, 2012, means the following:
23(A) For the 2014-15 fiscal year,begin delete or the first year of incorporation the quotient derived from the
24of the city, whichever is later,end delete
25following fraction:
26(i) The numerator is the product of the following two amounts:
27(I) The sum of the most recent vehicle license fee adjustment
28amounts determined for all cities in the county.
29(II) The population of the incorporating city.
30(ii) The denominator is the sum of the populations of all cities
31in the county.
32(B) For thebegin delete followingend deletebegin insert 2015-16end insert fiscal year, and for each fiscal
33year thereafter, the sum of the following two amounts:
34(i) The vehicle license fee adjustment amount for the prior fiscal
35year.
36(ii) The product of the following two amounts:
37(I) The amount described in clause (i).
38(II) The percentage change from the prior fiscal year to the
39current fiscal year in gross taxable assessed valuation within the
P7 1jurisdiction of the entity, as reflected in the equalized assessment
2roll for those fiscal years.
3(3) For the 2013-14 fiscal year, the vehicle license fee
4adjustment amount that is determined under subparagraph (C) of
5paragraph (1) for the County of Orange shall be increased by
6fifty-three million dollars ($53,000,000). For the 2014-15 fiscal
7year and each fiscal year thereafter, the calculation of the vehicle
8license fee adjustment amount for the
County of Orange under
9subparagraph (C) of paragraph (1) shall be based on a prior fiscal
10year amount that reflects the full amount of this one-time increase
11of fifty-three million dollars ($53,000,000).
12(4) “Countywide vehicle license fee adjustment amount” means,
13for any fiscal year, the total sum of the amounts described in
14paragraphs (1), (2), and (3) for a county or city and county, and
15each city in the county.
16(5) On or before June 30 of each fiscal year, the auditor shall
17report to the Controller the vehicle license fee adjustment amount
18for the county and each city in the county for that fiscal year.
19(d) For the 2005-06 fiscal year and each fiscal year thereafter,
20the amounts determined under subdivision (a) of Section
96.1, or
21any successor to that provision, shall not reflect, for a preceding
22fiscal year, any portion of any allocation required by this section.
23(e) For purposes of Section 15 of Article XI of the California
24Constitution, the allocations from a Vehicle License Fee Property
25Tax Compensation Fund constitute successor taxes that are
26otherwise required to be allocated to counties and cities, and as
27successor taxes, the obligation to make those transfers as required
28by this section shall not be extinguished nor disregarded in any
29manner that adversely affects the security of, or the ability of, a
30county or city to pay the principal and interest on any debts or
31obligations that were funded or secured by that city’s or county’s
32allocated share of motor vehicle license fee revenues.
33(f) This section shall not be construed to do any of the following:
34(1) Reduce any allocations of excess, additional, or remaining
35funds that would otherwise have been allocated to county
36superintendents of schools, cities, counties, and cities and counties
37pursuant to clause (i) of subparagraph (B) of paragraph (4) of
38subdivision (d) of Sections 97.2 and 97.3 or Article 4 (commencing
39with Section 98) had this section not been enacted. The allocations
P8 1required by this section shall be adjusted to comply with this
2paragraph.
3(2) Require an increased ad valorem property tax revenue
4allocation or increased tax increment allocation to a community
5redevelopment agency.
6(3) Alter the manner in which ad valorem
property tax revenue
7growth from fiscal year to fiscal year is otherwise determined or
8allocated in a county.
9(4) Reduce ad valorem property tax revenue allocations required
10under Article 4 (commencing with Section 98).
11(g) Tax exchange or revenue sharing agreements, entered into
12prior to the operative date of this section, between local agencies
13or between local agencies and nonlocal agencies are deemed to be
14modified to account for the reduced vehicle license fee revenues
15resulting from the act that added this section. These agreements
16are modified in that these reduced revenues are, in kind and in lieu
17thereof, replaced with ad valorem property tax revenue from a
18Vehicle License Fee Property Tax Compensation Fund or an
19Educational Revenue Augmentation
Fund.
begin insertSection 97.70 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
21amended to read:end insert
Notwithstanding any other law, for the 2004-05 fiscal
23year and for each fiscal year thereafter, all of the following apply:
24(a) (1) (A) The auditor shall reduce the total amount of ad
25valorem property tax revenue that is otherwise required to be
26allocated to a county’s Educational Revenue Augmentation Fund
27by the countywide vehicle license fee adjustment amount.
28(B) If, for the fiscal year, after complying with Section 97.68
29there is not enough ad valorem property tax revenue that is
30otherwise required to be allocated to a county Educational Revenue
31Augmentation Fund for the auditor to complete the allocation
32reduction required by subparagraph (A), the auditor shall
33
additionally reduce the total amount of ad valorem property tax
34revenue that is otherwise required to be allocated to all school
35districts and community college districts in the county for that
36fiscal year by an amount equal to the difference between the
37countywide vehicle license fee adjustment amount and the amount
38of ad valorem property tax revenue that is otherwise required to
39be allocated to the county Educational Revenue Augmentation
40Fund for that fiscal year. This reduction for each school district
P9 1and community college district in the county shall be the percentage
2share of the total reduction that is equal to the proportion that the
3total amount of ad valorem property tax revenue that is otherwise
4required to be allocated to the school district or community college
5district bears to the total amount of ad valorem property tax revenue
6that is otherwise required to be allocated to all school districts and
7community college districts in a county. For purposes of this
8subparagraph, “school districts”
and “community college districts”
9do not include any districts that are excess tax school entities, as
10defined in Section 95.
11(2) The countywide vehicle license fee adjustment amount shall
12be allocated to the Vehicle License Fee Property Tax Compensation
13Fund that shall be established in the treasury of each county.
14(b) (1) The auditor shall allocate moneys in the Vehicle License
15Fee Property Tax Compensation Fund according to the following:
16(A) Each city in the county shall receive its vehicle license fee
17adjustment amount.
18(B) Each county and city and county shall receive its vehicle
19license fee adjustment amount.
20(2) The auditor shall allocate one-half of the
amount specified
21in paragraph (1) on or before January 31 of each fiscal year, and
22the other one-half on or before May 31 of each fiscal year.
23(c) For purposes of this section, all of the following apply:
24(1) “Vehicle license fee adjustment amount” for a particular
25city, county, or a city and county means, subject to an adjustment
26under paragraph (2) and Section 97.71, all of the following:
27(A) For the 2004-05 fiscal year, an amount equal to the
28difference between the following two amounts:
29(i) The estimated total amount of revenue that would have been
30deposited to the credit of the Motor Vehicle License Fee Account
31in the Transportation Tax Fund, including any amounts that would
32have been certified to the Controller by the auditor of the County
33of
Ventura under subdivision (j) of Section 98.02, as that section
34read on January 1, 2004, for distribution under the law as it read
35on January 1, 2004, to the county, city and county, or city for the
362004-05 fiscal year if the fee otherwise due under the Vehicle
37License Fee Lawbegin delete (Pt.end deletebegin insert (Partend insert 5 (commencing with Section 10701)
38ofbegin delete Div.end deletebegin insert Divisionend insert 2) was 2 percent of the market value of a vehicle,
39as specified inbegin delete Sectionend deletebegin insert
Sectionsend insert 10752 and 10752.1 as those
40sections read on January 1, 2004.
P10 1(ii) The estimated total amount of revenue that is required to be
2distributed from the Motor Vehicle License Fee Account in the
3Transportation Tax Fund to the county, city and county, and each
4city in the county for the 2004-05 fiscal year under Section 11005,
5as that section read on the operative date of the act that amended
6this clause.
7(B) (i) Subject to an adjustment under clause (ii), for the
82005-06 fiscal year, the sum of the following two amounts:
9(I) The difference between the following two amounts:
10(Ia)
end delete
11begin insert(ia)end insert The actual total amount of revenue that would have been
12deposited to the credit of the Motor Vehicle License Fee Account
13in the Transportation Tax Fund, including any amounts that would
14have been certified to the Controller by the auditor of the County
15of Ventura under subdivision (j) of Section 98.02, as that section
16read on January 1, 2004, for distribution under the law as it read
17on January 1, 2004, to the county, city and county, or city for the
182004-05 fiscal year if the fee otherwise due under the Vehicle
19License Fee Law (Part 5 (commencing with Section 10701) of
20Division 2) was 2 percent of the market value of a vehicle, as
21specified in Sections 10752 and 10752.1 as those sections read on
22January 1, 2004.
23(Ib)
end delete
24begin insert(ib)end insert The actual total amount of revenue that was distributed
25from the Motor Vehicle License Fee Account in the Transportation
26Tax Fund to the county, city and county, and each city in the county
27for the 2004-05 fiscal year under Section 11005, as that section
28read on the operative date of the act that amended this
29begin delete sub-subclauseend deletebegin insert subsubclauseend insert.
30(II) The product of the following two amounts:
31(IIa)
end delete32begin insert(ia)end insert The amount described in subclause (I).
33(IIb)
end delete
34begin insert(ib)end insert The percentage change from the prior fiscal year to the
35current fiscal year in gross taxable assessed valuation within the
36jurisdiction of the entity, as reflected in the equalized assessment
37roll for those fiscal years. For the first fiscal year for which a
38change in a city’s jurisdictional boundaries first applies, the
39percentage change in gross taxable assessed valuation from the
40prior fiscal year to the current fiscal year shall be calculated solely
P11 1on
the basis of the city’s previous jurisdictional boundaries, without
2regard to the change in that city’s jurisdictional boundaries. For
3each following fiscal year, the percentage change in gross taxable
4assessed valuation from the prior fiscal year to the current fiscal
5year shall be calculated on the basis of the city’s current
6jurisdictional boundaries.
7(ii) The amount described in clause (i) shall be adjusted as
8follows:
9(I) If the amount described in subclause (I) of clause (i) for a
10particular city, county, or city and county is greater than the amount
11described in subparagraph (A) for that city, county, or city and
12county, the amount described in clause (i) shall be increased by
13an amount equal to this difference.
14(II) If the amount described in subclause (I) of clause (i) for a
15particular city, county, or city
and county is less than the amount
16described in subparagraph (A) for that city, county, or city and
17county, the amount described in clause (i) shall be decreased by
18an amount equal to this difference.
19(C) For the 2006-07 fiscalbegin delete year and for each fiscal year begin insert year, to the 2013-14 fiscal year, inclusive,end insert
the sum of
20thereafter,end delete
21the following two amounts:
22(i) The vehicle license fee adjustment amount for the prior fiscal
23year, if Section 97.71 and clause (ii) of subparagraph (B) did not
24apply for that fiscal year, for that city, county, and city and county.
25(ii) The product of the following two amounts:
26(I) The amount described in clause (i).
27(II) The percentage change from the prior fiscal year to the
28current fiscal year in gross taxable assessed valuation within the
29jurisdiction of the entity, as reflected in the equalized assessment
30roll for those fiscal years. For the first fiscal year for which a
31change in a city’s jurisdictional boundaries first applies, the
32percentage change in gross taxable assessed valuation from the
33prior fiscal year to
the current fiscal year shall be calculated solely
34on the basis of the city’s previous jurisdictional boundaries, without
35regard to the change in that city’s jurisdictional boundaries. For
36each following fiscal year, the percentage change in gross taxable
37assessed valuation from the prior fiscal year to the current fiscal
38year shall be calculated on the basis of the city’s current
39jurisdictional boundaries.
P12 1(D) For the 2014-15 fiscal year, the sum of the following two
2amounts:
3(i) The amount described in clause (i) of subparagraph (B) if
4Section 97.71 and clause (ii) of subparagraph (B) did not apply
5for that fiscal year, for that city, county, and city and county.
6(ii) The product of the following two amounts:
end insertbegin insert7(I) The amount described in clause (i).
end insertbegin insert
8(II) The percentage change from the 2004-05 fiscal year to the
92014-15 fiscal year, inclusive, in gross taxable assessed valuation
10within the jurisdiction of the entity, as reflected in the equalized
11assessment roll for those fiscal years.
12(E) For the 2015-16 fiscal year and each fiscal year thereafter,
13the sum of the following two amounts:
14(i) The vehicle license fee adjustment amount for the prior fiscal
15year.
16(ii) The product of the following two amounts:
end insertbegin insert17(I) The amount described in clause (i).
end insertbegin insert
18(II) The percentage change
from the immediately preceding
19fiscal year to the current fiscal year in gross taxable assessed
20valuation within the jurisdiction of the entity, as reflected in the
21equalized assessment roll for those fiscal years.
22(2) Notwithstanding paragraph (1), “vehicle license fee
23adjustment amount,” for a city incorporating after January 1,
242004, and on or before January 1, 2012, means the following:
25(A) For the 2014-15 fiscal year, the quotient derived from the
26following fraction:
27(i) The numerator is the product of the following two amounts:
end insertbegin insert
28(I) The sum of the most recent vehicle license fee adjustment
29amounts determined for all cities in the county.
30(II) The population of the incorporating city.
end insertbegin insert
31(ii) The denominator is the sum of the populations of all cities
32in the county.
33(B) For the 2015-16 fiscal year and each fiscal year thereafter,
34the sum of the following two amounts:
35(i) The vehicle license fee adjustment amount for the prior fiscal
36year.
37(ii) The product of the following two amounts:
end insertbegin insert38(I) The amount described in clause (i).
end insertbegin insert
39(II) The percentage change from the prior fiscal year to the
40current fiscal year in gross taxable assessed valuation within the
P13 1jurisdiction of the entity, as reflected in the
equalized assessment
2roll for those fiscal years.
3(2)
end delete
4begin insert(3)end insert For the 2013-14 fiscal year, the vehicle license fee
5adjustment amount that is determined under subparagraph (C) of
6paragraph (1) for the County of Orange shall be increased by
7fifty-three million dollars ($53,000,000). For the 2014-15 fiscal
8year and each fiscal year thereafter, the calculation of the vehicle
9license fee adjustment amount for the County of Orange under
10subparagraphbegin delete (C)end deletebegin insert (D) or (E), as applicable,end insert
of paragraph (1) shall
11be based on a prior fiscal year amount that reflects the full amount
12of this one-time increase of fifty-three million dollars
13($53,000,000).
14(3)
end delete
15begin insert(4)end insert “Countywide vehicle license fee adjustment amount” means,
16for any fiscal year, the total sum of the amounts described in
17paragraphsbegin delete (1) andend deletebegin insert (1),end insert (2)begin insert, and (3)end insert for a county or city and county,
18
and each city in the county.
19(4)
end delete
20begin insert(5)end insert On or before June 30 of each fiscal year, the auditor shall
21report to the Controller the vehicle license fee adjustment amount
22for the county and each city in the county for that fiscal year.
23(d) For the 2005-06 fiscal year and each fiscal year thereafter,
24the amounts determined under subdivision (a) of Section 96.1, or
25any successor to that provision, shall not reflect, for a preceding
26fiscal year, any portion of any allocation required by this section.
27(e) For purposes of Section 15 of Article XI of the
California
28Constitution, the allocations from a Vehicle License Fee Property
29Tax Compensation Fund constitute successor taxes that are
30otherwise required to be allocated to counties and cities, and as
31successor taxes, the obligation to make those transfers as required
32by this section shall not be extinguished nor disregarded in any
33manner that adversely affects the security of, or the ability of, a
34county or city to pay the principal and interest on any debts or
35obligations that were funded or secured by that city’s or county’s
36allocated share of motor vehicle license fee revenues.
37(f) This section shall not be construed to do any of the following:
38(1) Reduce any allocations of excess, additional, or remaining
39funds that would otherwise have been allocated to county
40superintendents of schools, cities, counties, and cities and counties
P14 1pursuant to clause (i) of subparagraph (B) of
paragraph (4) of
2subdivision (d) of Sections 97.2 and 97.3 or Article 4 (commencing
3with Section 98) had this section not been enacted. The allocations
4required by this section shall be adjusted to comply with this
5paragraph.
6(2) Require an increased ad valorem property tax revenue
7allocation or increased tax increment allocation to a community
8redevelopment agency.
9(3) Alter the manner in which ad valorem property tax revenue
10growth from fiscal year to fiscal year is otherwise determined or
11allocated in a county.
12(4) Reduce ad valorem property tax revenue allocations required
13under Article 4 (commencing with Section 98).
14(g) Tax exchange or revenue sharing agreements, entered into
15prior to the operative date of this section, between local agencies
16or
between local agencies and nonlocal agencies are deemed to be
17modified to account for the reduced vehicle license fee revenues
18resulting from the act that added this section. These agreements
19are modified in that these reduced revenues are, in kind and in lieu
20thereof, replaced with ad valorem property tax revenue from a
21Vehicle License Fee Property Tax Compensation Fund or an
22Educational Revenue Augmentation Fund.
Section 1.5 of this bill incorporates amendments to
24Section 97.70 of the Revenue and Taxation Code proposed by this
25bill and Assembly Bill 1521. It shall only become operative if (1)
26both bills are enacted and become effective on or before January
271, 2015, (2) each bill amends Section 97.70 of the Revenue and
28Taxation Code, and (3) this bill is enacted after Assembly Bill
291521, in which case Section 97.70 of the Revenue and Taxation
30Code, as amended by Assembly Bill 1521, shall remain operative
31only until the operative date of this bill, at which time Section 1.5
32of this bill shall become
operative, and Section 1 of this bill shall
33not become operative.
If the Commission on State Mandates determines that
36this act contains costs mandated by the state, reimbursement to
37local agencies and school districts for those costs shall be made
P15 1pursuant to Part 7 (commencing with Section 17500) of Division
24 of Title 2 of the Government Code.
O
90