SB 86,
as amended, Committee on Budget and Fiscal Review. begin deleteBudget Act of 2013. end deletebegin insert State government.end insert
(1) Existing law provides that there is the Transit-Oriented Development Implementation Fund from which the Department of Housing and Community Development shall provide grants and loans to cities, counties, cities and counties, transit agencies, and developers for the purpose of developing or facilitating the development of higher density uses within close proximity to transit stations that will increase public transit riderships. Existing law appropriates various sums to this fund for use by the department for liquidation of encumbrances for limited periods of time, as specified.
end insertbegin insertThis bill would instead extend the period of time during which the appropriated funds shall be available for liquidation of encumbrances until June 30, 2017, subject to performance-based milestones to be established by the department.
end insertbegin insertExisting law provides that there is the Regional Planning, Housing, and Infill Incentive Account in the Housing and Emergency Shelter Trust Fund of 2006 from which funds shall be available, upon appropriation by the Legislature, and subject to other conditions and criteria as the Legislature may provide in statute, for infill incentive grants for capital outlay related to infill housing development and other related infill development, and for brownfield cleanup that promotes infill housing development and other related infill development consistent with regional and local plans. Existing law appropriates various sums to this fund for use by the department for liquidation of encumbrances for limited periods of time, as specified.
end insertbegin insertThis bill instead would extend the period of time during which the appropriated funds shall be available for liquidation of encumbrances until June 30, 2017, subject to performance-based milestones to be established by the department.
end insertbegin insertBecause this bill would extend the period of time during which various appropriations are available for use by the department for particular purposes, this bill would make an appropriation.
end insertbegin insert(2) Existing 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 requires that each jurisdiction 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 reduces the amounts of ad valorem property tax revenue that would otherwise be annually allocated to the county, cities, and special districts pursuant to these general allocation requirements by requiring, for purposes of determining property tax revenue allocations in each county for the 1992-93 and 1993-94 fiscal years, that 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. Existing law 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.
end insertbegin insertExisting law requires the county auditor to decrease, for the fiscal adjustment period, as defined, the amount of ad valorem property tax revenue allocated to a county’s Educational Revenue Augmentation Fund by the countywide adjustment amount, as defined, and requires the county auditor to instead allocate this amount to the Sales and Use Tax Compensation Fund in the county. Existing law requires, during this same period, the county auditor to allocate moneys from the Sales and Use Tax Compensation Fund to cities and counties to reimburse these entities for local tax revenue losses resulting from a specified statute, as provided. Existing law defines the “fiscal adjustment period” as the period beginning with the 2004-05 fiscal year and continuing through the fiscal year in which the Director of Finance provides a notification to the State Board of Equalization, as provided. Existing law specifies the manner in which the countywide adjustment amount is required to be calculated and to be allocated after the end of the fiscal adjustment period.
end insertbegin insertThis bill would redefine the “fiscal adjustment period” to instead mean the fiscal year in which the Director of Finance provides a specified notification to the State Board of Equalization or the fiscal year in which an additional countywide adjustment amount is determined by the Director of Finance, whichever is later. This bill would require the Director of Finance to estimate when the notification to the State Board of Equalization is likely to occur, and to determine the month of that notification, as provided.
end insertbegin insertThis bill would require the Director of Finance, in the calendar year quarter when the director determines that the notification to the State Board of Equalization will occur within either the current or subsequent quarter, to revise the countywide adjustment amount, as specified. This bill would require the Director of Finance, after the end of the revenue exchange period, to provide a schedule to the Controller and the auditor of each county and a copy to the Joint Legislative Budget Committee, of amounts required to be transferred from the Fiscal Recovery Fund to the Sales and Use Tax Compensation Fund in each county, as specified. This bill would require the Controller to transfer the amounts specified in the schedule from the Fiscal Recovery Fund to the Sales and Use Tax Compensation Fund in each county for allocation by the auditor of each county to the county and each city in the county, as provided, thereby making an appropriation.
end insertbegin insert(3) The Personal Income Tax Law and the Corporation Tax Law exclude the recognition of any gain or loss on the exchange of property held for productive use in a trade or business or for investment, if that property is exchanged solely for property of a like kind that is to be held either for productive use in a trade or business or for investment. Existing law authorizes the Franchise Tax Board to propose an assessment upon a failure to file a return, as provided.
end insertbegin insertThis bill would, for exchanges that occur in taxable years beginning on or after January 1, 2014, require taxpayers to file an informational return with the Franchise Tax Board if the property acquired in the exchange is located out of state. The bill would authorize the Franchise Tax Board to make an estimate of the net income, from any available information, and to propose to assess the amount of tax, interest, and penalties due in a specified manner if the taxpayer fails to file the information return, and fails to file a tax return, as provided.
end insertbegin insert(4) Existing law, the Housing and Emergency Shelter Trust Fund Act of 2006, authorizes the issuance of bonds in the amount of $2,850,000,000 pursuant to the State General Obligation Bond Law. Proceeds from the sale of these bonds are used to finance various existing housing programs, capital outlay related to infill development, brownfield cleanup that promotes infill development, housing-related parks, and transit-oriented development administered by the Department of Housing and Community Development. Existing law appropriates $50,000,000, and additional moneys, as specified, of bond revenues to the Department of Housing and Community Development. From that amount, existing law allocates $25,000,000, and additional moneys, as specified, from the Regional Planning, Housing, and Infill Incentive Account for infill incentive grants, and $25,000,000, and additional moneys, from the Transit-Oriented Development Implementation Fund for transit-oriented grants and loans, including any moneys allocated and appropriated that become disencumbered and redeposited in the Transit-Oriented Development Account during the 2012-13 fiscal year, for the purpose of funding transit-oriented grants and loans, as specified.
end insertbegin insertThis bill would additionally allocate any moneys allocated and appropriated that become disencumbered and redeposited in the Transit-Oriented Development Account during the 2013-14 fiscal year for the purpose of funding transit-oriented grants and loans, as specified, thereby making an appropriation.
end insertbegin insert(5) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
end insertThis bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2013.
end deleteVote: majority.
Appropriation: begin deleteno end deletebegin insertyesend insert.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 53545.15 is added to the end insertbegin insertHealth and
2Safety Codeend insertbegin insert, to read:end insert
(a) Notwithstanding any other law, funds
4appropriated for deposit into the Transit-Oriented Development
5Implementation Fund by Item 2240-101-9736 of the Budget Act
6of 2007, as reappropriated by Item 2240-492 of the Budget Act of
72010; Item 2240-101-9736 of the Budget Act of 2008, as
8reappropriated by Section 129 of the Budget Act of 2009, as
9reappropriated by Item 2240-492 of the Budget Act of 2010; Item
102240-101-9736 of the Budget Act of 2009, as reappropriated by
11Item 2240-492 of the Budget Act of 2010; and subdivision (b) of
12Section 1 of Chapter 39 of the Statutes of 2008, as reappropriated
13by Item 2240-492 of the Budget Act of 2010; shall be made
14available for liquidation of encumbrances until June 30, 2017,
15subject to performance-based milestones to be established by the
16department.
17(b) The department shall amend the guidelines with revised
18performance-based milestones to approve disbursement extensions.
19(c) The department shall evaluate the revised performance-based
20milestones on a project by project basis to determine which projects
21should be granted time extensions within the timeframe specified.
begin insertSection 53565 is added to the end insertbegin insertHealth and Safety Codeend insertbegin insert,
23to read:end insert
(a) Notwithstanding any other law, funds appropriated
25for deposit into the Regional Planning, Housing, and Infill
26Incentive Account in the Housing and Emergency Shelter Trust
27Fund of 2006 by Item 2240-101-6069 of the Budget Act of 2007,
28as reappropriated by Item 2240-492 of the Budget Act of 2010;
29Item 2240-101-6069 of the Budget Act of 2008, as reappropriated
30by Section 129 of the Budget Act of 2009, as reappropriated by
31Item 2240-492 of the Budget Act of 2010; Item 2240-101-6069 of
32the Budget Act of 2009, as reappropriated by Item 2240-492 of
33the Budget Act of 2010; and subdivision (a) of Section 1 of Chapter
3439 of the Statutes of 2008, as reappropriated by Item 2240-492 of
35the Budget Act of 2010; shall be made available for liquidation of
36encumbrances until June 30, 2017, subject to performance-based
37
milestones to be established by the department.
P6 1(b) The department shall amend the guidelines with revised
2performance-based milestones to approve disbursement extensions.
3(c) The department shall evaluate the revised performance-based
4milestones on a project by project basis to determine which projects
5should be granted time extensions within the timeframe specified.
begin insertSection 97.68 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
7amended to read:end insert
Notwithstanding any other provision of law, in allocating
9ad valorem property tax revenue allocations for each fiscal year
10during the fiscal adjustment period, all of the following apply:
11(a) (1) The total amount of ad valorem property tax revenue
12otherwise required to be allocated to a county’s Educational
13Revenue Augmentation Fund shall be reduced by the countywide
14adjustment amount.
15(2) The countywide adjustment amount shall be deposited in a
16Sales and Use Tax Compensation Fund that shall be established
17in the treasury of each county.
18(b) For purposes of this section, the following definitions apply:
19(1) “Fiscal adjustment period” means the period beginning with
20the 2004-05 fiscal year and continuing through thebegin delete fiscal year in begin insert
later of either of the following:end insert
21which the Director of Finance notifies the State Board of
22Equalization pursuant to subdivision (b) of Section 99006 of the
23Government Code.end delete
24(A) The fiscal year in which the Director of Finance notifies the
25State Board of Equalization pursuant to subdivision (b) of Section
2699006 of the Government Code.
27(B) The fiscal year in which an additional countywide
28adjustment amount, as described in subparagraph (B) of paragraph
29(3) of subdivision (d), is determined.
30(2) Except as otherwise provided in subdivision (d), the
31“countywide adjustment amount” means the combined total
32revenue loss of the county and each city in the county that is
33annually estimated by the Director of
Finance, based upon the
34actual amount of sales and use tax revenues transmitted under
35Section 7204 in that county in the prior fiscal year and any
36projected growth on that amount for the current fiscal year as
37determined by the State Board of Equalization and reported to the
38director on or before August 15 of each fiscal year during the fiscal
39adjustment period, to result for each of those fiscal years from the
400.25 percent reduction in local sales and use rate tax authority
P7 1applied by Section 7203.1. The director shall adjust the estimates
2described in this paragraph if the board reports to him or her any
3changes in the projected growth in local sales and use tax revenues
4for the current fiscal year.
5(3) “In lieu local sales and use tax revenues” means those
6revenues that are transferred under this section to a county or a
7city from a Sales and Use Tax Compensation Fund or an
8Educational Revenue Augmentation Fund.
9(c) Except as otherwise provided in subdivision (d), for each
10fiscal year during the fiscal adjustment period, in lieu sales and
11use tax revenues in the Sales and Use Tax Compensation Fund
12shall be allocated among the county and the cities in the county,
13and those allocations shall be subsequently adjusted, as follows:
14(1) The Director of Finance shall, on or before September 1 of
15each fiscal year during the fiscal adjustment period, notify each
16county auditor of that portion of the countywide adjustment amount
17for that fiscal year that is attributable to the county and to each
18city within that county.
19(2) The county auditor shall allocate revenues in the Sales and
20Use Tax Compensation Fund among the county and cities in the
21county in the amounts described in paragraph (1). The auditor shall
22allocate one-half of the
amount described in paragraph (1) in each
23January during the fiscal adjustment period and shall allocate the
24balance of that amount in each May during the fiscal adjustment
25period.
26(3) After the end of each fiscal year during the fiscal adjustment
27period, other than a fiscal year subject to subdivision (d), the
28Director of Finance shall, based on the actual amount of sales and
29use tax revenues that were not transmitted for the prior fiscal year,
30recalculate each amount estimated under paragraph (1) and notify
31the county auditor of the recalculated amount.
32(4) If the amount recalculated under paragraph (3) for the county
33or any city in the county is greater than the amount allocated to
34that local agency under paragraph (2), the county auditor shall, in
35the fiscal year next following the fiscal year for which the
36allocation was made, transfer an amount of ad valorem property
37tax
revenue equal to this difference from the Sales and Use Tax
38Compensation Fund to that local agency.
39(5) If the amount recalculated under paragraph (3) for the county
40or any city in the county is less than the amount allocated to that
P8 1local agency under paragraph (2), the county auditor shall, in the
2fiscal year next following the fiscal year for which the allocation
3was made, reduce the total amount of ad valorem property tax
4revenue otherwise allocated to that city or county from the Sales
5and Use Tax Compensation Fund by an amount equal to this
6difference and instead allocate this difference to the county
7Educational Revenue Augmentation Fund.
8(6) If there is an insufficient amount of moneys in a county’s
9Sales and Use Tax Compensation Fund to make the transfers
10required by paragraph (4), the county auditor shall transfer from
11the county Educational Revenue Augmentation Fund an
amount
12sufficient to make the full amount of these transfers.
13(d) Notwithstanding any
other provision of this section, when
14Section 7203.1 ceases to be operative , all of the following apply:
15(1) If Section 7203.1 ceases to be operative on an October 1 of
16a fiscal year during the fiscal adjustment period, all of the following
17apply:
18(A) The “countywide adjustment amount” for that fiscal year
19means an amount equal to sum of the following two amounts:
20(i) The combined total revenue loss of the county and each city
21in the county that is estimated by the director, based upon actual
22sales and use tax revenues transmitted under Section 7204 for the
23first quarter of the prior fiscal year as determined by the State
24Board of Equalization and reported to the director on or before
25that August 15, to result for the first quarter of the current fiscal
26year from the 0.25 percent reduction in local sales and use tax
rate
27authority applied by Section 7203.1.
28(ii) The difference between the following two amounts:
29(I) The total amount that was allocated to the county and each
30city in the county under subdivision (c) for the prior fiscal year.
31(II) The actual total amount of local sales and use tax revenue
32that was not transmitted the county or city and county and each
33city in the county for the prior fiscal year as a result of the 0.25
34percent suspension of local sales and use tax authority applied by
35Section 7203.1.
36(B) On or before January 31 of that fiscal year, the auditor shall
37allocate to the county and each city in the county that portion of
38the countywide adjustment amount for that fiscal year that is
39attributable to the county and each city in the county.
P9 1(C) On or before May 1 of that fiscal year, the State Board of
2Equalization shall report to the director the actual total amount of
3local sales and use tax revenue that was not transmitted to the
4county and each city in the county in that fiscal year as a result of
5the 0.25 percent suspension of local sales and use tax authority
6applied by Section 7203.1. On or before May 1 of that fiscal year,
7the director shall do both of the following:
8(i) Determine the difference between the following two amounts:
9(I) The amount specified in clause (i) of subparagraph (A) that
10was allocated to the county and each city in the county for that
11fiscal year under subparagraph (B).
12(II) The actual total amount of local sales and use tax revenue
13that was not transmitted to
the county and each city in the county
14for that fiscal year as a result of the 0.25 percent suspension of
15local sales and use tax authority applied by Section 7203.1.
16(ii) Notify the auditor of each county of the amounts determined
17under clause (i) for his or her county and all of the cities in that
18county.
19(D) (i) If, for any county or city, the amount described in
20subclause (I) of clause (i) of subparagraph (C) is greater than the
21amount described in subclause (II) of clause (i) of subparagraph
22(C), the county auditor shall, on or before May 31 of that fiscal
23year, reallocate from the entity to the county Educational Revenue
24Augmentation Fund the difference between those amounts.
25(ii) If, for any county or city, the amount described in subclause
26(I) of clause (i) of subparagraph (C) is less
than the amount
27described in subclause (II) of clause (i) of subparagraph (C), the
28county auditor shall, on or before May 31 of that fiscal year,
29reallocate from the county Educational Revenue Augmentation
30Fund to that entity the difference between those amounts.
31(2) If Section 7203.1 ceases to be operative on a January 1 of
32a fiscal year during the fiscal adjustment period, all of the following
33apply:
34(A) The “countywide adjustment amount” for that fiscal year
35means an amount equal to the sum of the following two amounts:
36(i) The combined total revenue loss of the county and each city
37in the county that is estimated by the director, based upon actual
38sales and use tax revenues transmitted under Section 7204 for the
39first and second quarters of the prior fiscal year as determined by
40the State Board of Equalization
and reported to the director on or
P10 1before that August 15, to result for the first and second quarters
2of that fiscal year from the 0.25 percent reduction in local sales
3and use tax rate authority applied by Section 7203.1.
4(ii) The difference between the following two amounts:
5(I) The total amount that was allocated to the county and each
6city in the county under subdivision (c) for the prior fiscal year.
7(II) The actual total amount of local sales and use tax revenue
8that was not transmitted the county or city and county and each
9city in the county for the prior fiscal year as a result of the 0.25
10percent suspension of local sales and use tax authority applied by
11Section 7203.1.
12(B) The auditor shall allocate to the county and each city in the
13county
that portion of the countywide adjustment amount for that
14fiscal year that is attributable to the county and each city in the
15county. One-half of this amount shall be allocated on or before
16January 31 of that fiscal year and the other one-half of that amount
17shall be allocated on or before May 31 of that fiscal year.
18(C) On or before June 30 of that fiscal year, the State Board of
19Equalization shall report to the director the actual total amount of
20local sales and use tax revenue that was not transmitted to the
21county and each city in the county for that fiscal year as a result
22of the 0.25 percent suspension of local sales and use tax authority
23applied by Section 7203.1. On or before June 30 of that fiscal year,
24the director shall do both of the following:
25(i) Determine the difference between the following two amounts:
26(I) The amount specified in clause (i) of subparagraph (A) that
27was allocated to the county and each city in the county for that
28fiscal year under subparagraph (B).
29(II) The actual total amount of local sales and use tax revenue
30that was not transmitted to the county and each city in the county
31for that fiscal year as a result of the 0.25 percent suspension of
32local sales and use tax authority applied by Section 7203.1.
33(ii) Notify the auditor of each county of the amounts determined
34under clause (i) for his or her county and all of the cities in that
35county.
36(D) (i) If, for any county or city, the amount described in
37subclause (I) of clause (i) of subparagraph (C) is greater than the
38amount described in subclause (II) of clause (i) of subparagraph
39(C), the county auditor shall, on
or before January 31 of the
40following fiscal year, reallocate from the entity to the county
P11 1Educational Revenue Augmentation Fund the difference between
2those amounts.
3(ii) If, for any county or city, the amount described in subclause
4(I) of clause (i) of subparagraph (C) is less than the amount
5described in subclause (II) of clause (i) of subparagraph (C), the
6county auditor shall, on or before January 31 of the following fiscal
7year, reallocate from the county Educational Revenue
8Augmentation Fund to that entity the difference between those
9amounts.
10(3) If Section 7203.1 ceases to be operative on an April 1 of a
11fiscal year during the fiscal adjustment period, all of the following
12apply:
13(A) On or before May 1 of that fiscal year, the director shall
14determine and report to the auditor of each county that portion of
15
the countywide adjustment amount that is attributable to the
16estimated sales and use tax revenue losses, resulting from the rate
17suspension applied by Section 7203.1, for the fourth quarter of
18that fiscal year for the county and each city in the county.
19(B) The auditor shall reduce the total amount that is otherwise
20required to be allocated in May of that fiscal year from the county
21Sales and Use Tax Compensation Fund to the county and each city
22in the county by the amount reported by the director with respect
23to that entity under subparagraph (A). After the May allocations
24have been made, the auditor shall transfer any moneys remaining
25in the county Sales and Use Tax Compensation Fund to the county
26Educational Revenue Augmentation Fund.
27(C) On or before January 1 of the next fiscal year, the State
28Board of Equalization shall report to the director the actual total
29amount of local
sales and use tax revenue that was not transmitted
30to the county and each city in the county for the prior fiscal year
31as a result of the 0.25 percent suspension of local sales and use tax
32authority applied by Section 7203.1. On or before January 1 of
33that fiscal year, the director shall do both of the following:
34(i) Determine the difference between the following two amounts:
35(I) The total amount that was allocated to the county and each
36city in the county for the prior fiscal year under subdivision (c),
37as adjusted under subparagraph (B).
38(II) The actual total amount of local sales and use tax revenue
39that was not transmitted to the county and each city in the county
P12 1for the prior fiscal year as a result of the 0.25 percent suspension
2of local sales and use tax authority applied by Section 7203.1.
3(ii) Notify the auditor of each county of the amounts determined
4under clause (i) for his or her county and all of the cities in that
5county.
6(D) (i) If, for any county or city, the amount described in
7subclause (I) of clause (i) of subparagraph (C) is greater than the
8amount described in subclause (II) of clause (i) of subparagraph
9(C), the county auditor shall, on or before January 31 of that fiscal
10year, reallocate from the entity to the county Educational Revenue
11Augmentation Fund the difference between those amounts.
12(ii) If, for any county or city, the amount described in subclause
13(I) of clause (i) of subparagraph (C) is less than the amount
14described in subclause (II) of clause (i) of subparagraph (C), the
15county auditor shall, on or before January 31 of the following fiscal
16year,
reallocate from the county Educational Revenue
17Augmentation Fund to that entity the difference between those
18amounts.
19(4) If Section 7203.1 ceases to be operative on a July 1, all of
20the following apply:
21(A) On or before January 1 of that fiscal year, the State Board
22of Equalization shall notify the Director of Finance of the actual
23total amount of local sales and use tax revenue that was not
24transmitted to each county and city for the prior fiscal year as a
25result of the 0.25 percent suspension of local sales and use tax
26authority applied by Section 7203.1.
27(B) On or before January 31 of that fiscal year, the director shall
28do both of the following:
29(i) Determine for each city, county, and city and county, the
30difference between the following two
amounts:
31(I) The total amount that was allocated to that entity under
32subdivision (c) for the prior fiscal year.
33(II) The actual total amount of local sales and use tax revenue
34that was not transmitted to the entity for the prior fiscal year as a
35result of the 0.25 percent suspension of local sales and use tax
36authority applied by Section 7203.1.
37(ii) Notify the auditor of each county of the amounts determined
38under clause (i) for his or her county and all of the cities in that
39county.
P13 1(C) (i) If, for any county or city, the amount described in
2subclause (I) of clause (i) of subparagraph (B) is greater than the
3amount described in subclause (II) of clause (i) of subparagraph
4(B), the county auditor shall, on or before January 31 of
that fiscal
5year, reallocate from the entity to the county Educational Revenue
6Augmentation Fund the difference between those amounts.
7(ii) If, for any county or city, the amount described in subclause
8(I) of clause (i) of subparagraph (B) is less than the amount
9described in subclause (II) of clause (i) of subparagraph (B), the
10county auditor shall, on or before January 31 of the following fiscal
11year, reallocate from the county Educational Revenue
12Augmentation Fund to that entity the difference between those
13amounts.
14(d) (1) At such time as the Director of Finance estimates that
15the notification described in subparagraph (A) of paragraph (1)
16of subdivision (b) is likely to occur within the
subsequent 12
17months, the director shall, at the beginning of each subsequent
18calendar year quarter, determine the month in which the
19notification will occur.
20(2) (A) In the calendar year quarter in which the Director of
21Finance determines that the notification described in subparagraph
22(A) of paragraph (1) of subdivision (b) will occur within either the
23current or subsequent quarter, the director shall revise the
24countywide adjustment amount described in subdivision (c) for
25the current fiscal year such that the countywide adjustment amount
26is calculated only through the quarter in which the director gives
27notification pursuant to subparagraph (A) of paragraph (1) of
28subdivision (b). The director, when appropriate, may revise the
29countywide adjustment amount described in subdivision (c) for
30the subsequent fiscal year
such that the countywide adjustment
31amount described in subdivision (c) is calculated only through the
32quarter in which the director gives notification pursuant to
33subparagraph (A) of paragraph (1) of subdivision (b).
34(B) If the determination regarding the notification described in
35subparagraph (A) is revised, the countywide adjustment amount
36calculated in subparagraph (A) for either the current or the
37subsequent fiscal year shall be recalculated such that the
38countywide adjustment amount described in subdivision (c) is
39calculated only through the quarter in which the Director of
P14 1Finance gives notification pursuant to subparagraph (A) of
2paragraph (1) of subdivision (b).
3(3) (A) After the end of the revenue exchange period, the
4Director of Finance shall do both of the following:
5(i) Provide to the Controller, with a copy to the Joint Legislative
6Budget Committee, a schedule providing for a transfer from the
7Fiscal Recovery Fund, established pursuant to Section 99008 of
8the Government Code, to the Sales and Use Tax Compensation
9Fund of either of the following amounts:
10(I) An amount equal to the local sales and use tax revenue not
11received by the county and each city in the county during the
12revenue exchange period as a result of the 0.25-percent reduction
13in local sales and use tax authority applied by Section 7203.1
14minus the sum of all countywide adjustment amounts deposited
15during the revenue exchange
period, as determined by the director.
16This amount shall be summed over all counties.
17(II) If the amount summed over all counties in subclause (I) is
18greater than the difference between the balance in the Fiscal
19Recovery Fund and an amount sufficient to cover the estimated
20costs associated with closing the Fiscal Recovery Fund, then a
21proportion shall be calculated equal to the proportion between
22the amount in subclause (I) summed over all counties and an
23amount equal to the difference between the balance in the Fiscal
24Recovery Fund and an amount sufficient to cover the estimated
25costs associated with closing the Fiscal Recovery Fund. The
26amount calculated under this subclause is equal to the product of
27the amount calculated in subclause (I) and the proportion
28calculated in this subclause.
29(ii) Provide a schedule to the auditor of each county of the
30amounts calculated under clause (i).
31(B) If the amount provided for in the schedule required pursuant
32to clause (i) of subparagraph (A) is the amount that is described
33in subclause (II) of clause (i) of subparagraph (A), an amount
34equal to the difference between the amount that is described in
35subclause (I) of clause (i) of subparagraph (A) and the amount
36that is described in subclause (II) of clause (i) of subparagraph
37(A) shall constitute an additional countywide adjustment amount
38to be applied in the manner prescribed in subdivision (a) for either
39the current or subsequent fiscal year, as determined by the director.
P15 1(4) The Controller shall transfer,
from the Fiscal Recovery Fund
2to the Sales and Use Tax Compensation Fund for each county, the
3amount specified for that county in the schedule provided by the
4Director of Finance pursuant to clause (i) of subparagraph (A) of
5paragraph (3).
6(5) Within 60 days of the transfer by the Controller of revenues
7from the Fiscal Recovery Fund to the Sales and Use Tax
8Compensation Fund for each county, each county auditor shall
9allocate revenue to the county and each city in the county per the
10schedule provided by the Director of Finance pursuant to clause
11(ii) of subparagraph (A) of paragraph (3).
12(6) For purposes of this subdivision, “revenue exchange period”
13has the same
meaning as defined in subdivision (b) of Section
147203.1
15(e) For the 2005-06 fiscal year and each fiscal year thereafter,
16the amounts determined under subdivision (a) of Section 96.1, or
17any successor to that provision, may not reflect any portion of any
18property tax revenue allocation required by this section for a
19preceding fiscal year.
20(f) This section may not be construed to do any of the following:
21(1) Reduce any allocations of excess, additional, or remaining
22funds that would otherwise have been allocated to cities, counties,
23cities and counties, or special districts pursuant to clause (i) of
24subparagraph (B) of paragraph (4) of subdivision (d) of Section
2597.2, clause (i) of subparagraph (B) of paragraph (4) of subdivision
26(d) of Section 97.3, or Article 4 (commencing with Section 98),
27
had this section not been enacted. The allocation made pursuant
28to subdivisions (a) and (c) shall be adjusted to comply with this
29paragraph.
30(2) Require an increased ad valorem property tax revenue
31allocation to a community redevelopment agency.
32(3) Alter the manner in which ad valorem property tax revenue
33growth from fiscal year to fiscal year is determined or allocated
34in a county.
35(g) Existing tax exchange or revenue sharing agreements,
36entered into prior to the operative date of this section, between
37local agencies or between local agencies and nonlocal agencies
38shall be deemed to be temporarily modified to account for the
39reduced sales and use tax revenues, resulting from the temporary
40reduction in the local sales and use tax rate, with those reduced
P16 1revenues to be replaced in kind by property tax revenue from a
2
Sales and Use Tax Compensation Fund or an Educational Revenue
3Augmentation Fund, on a temporary basis, as provided by this
4section.
begin insertSection 18032 is added to the end insertbegin insertRevenue and Taxation
6Codeend insertbegin insert, to read:end insert
(a) If gain or loss from the exchange of property in
8this state of a taxpayer is not recognized under this part because
9of Section 1031 of the Internal Revenue Code, relating to exchange
10of property held for productive use or investment, for a taxable
11year and the property acquired in that exchange is located outside
12of this state, the taxpayer shall file an information return with the
13Franchise Tax Board for the taxable year of the exchange and for
14each subsequent taxable year in which the gain or loss from that
15exchange has not been recognized, in the form and manner
16prescribed by the Franchise Tax Board.
17(b) If a taxpayer fails to file an information return required
18pursuant to subdivision (a), and fails to file a return required under
19
Part 10.2 (commencing with Section 18401), the Franchise Tax
20Board may make an estimate of the net income, from any available
21information, including the amount of gain described in subdivision
22(a), and may propose to assess the amount of tax, interest, and
23penalties due in the same manner as Section 19087.
24(c) Chapter 3.5 (commencing with Section 11340) of Part 1 of
25Division 3 of Title 2 of the Government Code shall not apply to
26any standard, criterion, procedure, determination, rule, notice, or
27guideline established or issued by the Franchise Tax Board
28pursuant to this section.
29(d) This section shall apply to exchanges of property that occur
30in taxable years beginning on or after January 1, 2014.
begin insertSection 24953 is added to the end insertbegin insertRevenue and Taxation
32Codeend insertbegin insert, to read:end insert
(a) If gain or loss from the exchange of property in
34this state of a taxpayer is not recognized under this part because
35of Section 1031 of the Internal Revenue Code, relating to exchange
36of property held for productive use or investment, for a taxable
37year and the property acquired in that exchange is located outside
38of this state, the taxpayer shall file an information return with the
39Franchise Tax Board for the taxable year of the exchange and for
40each subsequent taxable year in which the gain or loss from that
P17 1exchange has not been recognized, in the form and manner
2prescribed by the Franchise Tax Board.
3(b) If a taxpayer fails to file an information return required
4pursuant to subdivision (a), and fails to file a return required under
5
Part 10.2 (commencing with Section 18401), the Franchise Tax
6Board may make an estimate of the net income, from any available
7information, including the amount of gain described in subdivision
8(a), and may propose to assess the amount of tax, interest, and
9penalties due in the same manner as Section 19087.
10(c) Chapter 3.5 (commencing with Section 11340) of Part 1 of
11Division 3 of Title 2 of the Government Code shall not apply to
12any standard, criterion, procedure, determination, rule, notice, or
13guideline established or issued by the Franchise Tax Board
14pursuant to this section.
15(d) This section shall apply to exchanges of property that occur
16in taxable years beginning on or after January 1, 2014.
begin insertSection 2 of Chapter 777 of the Statutes of 2012 is
18amended to read:end insert
The sum of fifty million dollars ($50,000,000), and the
21amount of moneys specified in subdivision (c), is hereby
22appropriated to the Department of Housing and Community
23Development as follows:
24(a) Twenty-five million dollars ($25,000,000) from the Regional
25Planning, Housing, and Infill Incentive Account established
26pursuant to subdivision (b) of Section 53545 of the Health and
27Safety Code, for the purpose of funding infill incentive grants
28pursuant to Section 53545.13 of the Health and Safety Code.
29(b) Twenty-five million dollars
($25,000,000) from the
30Transit-Oriented Development Implementation Fund established
31pursuant to subdivision (c) of Section 53545 of the Health and
32Safety Code, for the purpose of funding transit-oriented grants and
33loans pursuant to Part 13 (commencing with Section 53560) of
34Division 31 of the Health and Safety Code.
35(c) (1) Any moneys allocated and appropriated pursuant to
36subdivision (b) of Section 53545 of the Health and Safety Code
37that become disencumbered and redeposited in the Regional
38Planning, Housing, and Infill Incentive Account during the
392012-13 and 2013-14 fiscal years, for the purpose of funding infill
P18 1incentive grants pursuant to Section 53545.13 of the Health and
2Safety Code.
3(2) Any moneys allocated and appropriated pursuant to
4subdivision (c) of Section 53545 of the Health and Safety Code
5that become disencumbered and redeposited in the
Transit-Oriented
6Development Account during the 2012-13begin insert and 2013-14end insert fiscal
7begin delete yearend deletebegin insert
yearsend insert, for the purpose of funding transit-oriented grants and
8loans pursuant to Part 13 (commencing with Section 53560) of
9Division 31 of the Health and Safety Code.
This act is a bill providing for appropriations related
11to the Budget Bill within the meaning of subdivision (e) of Section
1212 of Article IV of the California Constitution, has been identified
13as related to the budget in the Budget Bill, and shall take effect
14immediately.
It is the intent of the Legislature to enact statutory
16changes relating to the Budget Act of 2013.
O
98