BILL NUMBER: AB 1499	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gray

                        FEBRUARY 27, 2015

   An act to amend Section 96.1 of the Revenue and Taxation Code,
relating to local government finance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1499, as introduced, Gray. Property tax: revenue allocations.
   Existing property tax law generally requires the county auditor,
in each fiscal year, to allocate property tax revenues 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.
   This bill would make a nonsubstantive change to that provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 96.1 of the Revenue and Taxation Code is
amended to read:
   96.1.  (a) Except as otherwise provided in Article 3 (commencing
with Section 97), and in Article 4 (commencing with Section 98), for
the 1980-81 fiscal year and each fiscal year thereafter, property tax
revenues shall be apportioned to each jurisdiction pursuant to this
section and Section 96.2 by the county auditor, subject to allocation
and payment of funds as provided for in subdivision (b) of Section
33670 of the Health and Safety Code and subparagraph (D) of paragraph
(3) of subdivision (g) of Section 53395.8 of the Government Code, to
each jurisdiction in the following manner:
   (1)  For  each   every  tax rate area,
each jurisdiction shall be allocated an amount of property tax
revenue equal to the amount of property tax revenue allocated
pursuant to this chapter to each jurisdiction in the prior fiscal
year, modified by any adjustments required by Section 99 or 99.02.
   (2)  The difference between the total amount of property tax
revenue and the amounts allocated pursuant to paragraph (1) shall be
allocated pursuant to Section 96.5, and shall be known as the "annual
tax increment."
   (3)  For purposes of this section, the amount of property tax
revenue referred to in paragraph (1) shall not include amounts
generated by the increased assessments under Chapter 3.5 (commencing
with Section 75).
   (b)  Any allocation of property tax revenue that was subjected to
a prior completed audit by the Controller, pursuant to the
requirements of Section 12468 of the Government Code, where all
findings have been resolved, shall be deemed correct.
   (c)  (1) Guidelines for legislation implementation issued and
determined necessary by the State Association of County Auditors, and
when adopted as regulations by either the Controller or the
Department of Finance pursuant to Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code, shall be considered an authoritative source deemed correct
until some future clarification by legislation or court decision.
   (2) If a county auditor knowingly does not follow the guidelines
referred to in paragraph (1), that county auditor shall inform the
Controller of the reason or reasons for not following the guidelines.
If the Controller disagrees with the stated reason or reasons for
not following the guidelines, the provisions of paragraph (3) do not
apply.
   (3) If, by audit begun on or after July 1, 2001, or discovery by
an entity on or after July 1, 2001, it is determined that an
allocation method is required to be adjusted and a reallocation is
required for previous fiscal years, the cumulative reallocation or
adjustment may not exceed 1 percent of the total amount levied at a
1-percent rate of the current year's original secured tax roll. The
reallocation shall be completed in equal increments within the
following three fiscal years, or as negotiated with the Controller in
the case of reallocation to the Educational Revenue Augmentation
Fund or school entities.
   (4) If it is determined that an allocation method is required to
be adjusted as provided in paragraph (3), the county auditor shall,
in the fiscal year following the fiscal year in which this
determination is made, correct the allocation method in accordance
with statute.