Amended in Senate February 22, 2016

Senate BillNo. 817


Introduced by Senator Roth

January 5, 2016


An actbegin insert to amend Section 97.70 of the Revenue and Taxation Code,end insert relating to local government finance.

LEGISLATIVE COUNSEL’S DIGEST

SB 817, as amended, Roth. Local governmentbegin delete finance.end deletebegin insert finance: property tax revenue allocations: vehicle license fee adjustments.end insert

begin insert

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 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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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 2016-17 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.

end insert
begin insert

By 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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

This bill would incorporate additional changes to Section 97.70 of the Revenue and Taxation Code proposed by AB 448 that would become operative if this bill and AB 448 are both chaptered and this bill is chaptered last.

end insert
begin delete

Existing law required, on and after July 1, 2004, and before July 1, 2011, that a specified portion of the motor vehicle license fee revenues deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund be allocated first to the County of Orange and next to each city and county meeting specified criteria, including each city that was incorporated from unincorporated territory after August 5, 2004. Existing law requires, on or after July 1, 2011, that the same portion of revenues be deposited into the Local Law Enforcement Services Account in the Local Revenue Fund 2011 for allocation to cities, counties, and cities and counties.

end delete
begin delete

This bill would state the Legislature’s intent to enact legislation that would restore funding to cities that were incorporated after 2004.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 97.70 of the end insertbegin insertRevenue and Taxation Codeend insert
2begin insert is amended to read:end insert

3

97.70.  

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
14 additionally 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 Lawbegin delete (Pt.end deletebegin insert (Partend insert 5 (commencing with Section 10701)
21ofbegin delete Div.end deletebegin insert Divisionend insert 2) was 2 percent of the market value of a vehicle,
22as specified inbegin delete Sectionend deletebegin insert Sectionsend insert 10752 and 10752.1 as those
23sections read on January 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:

begin delete

33(Ia)

end delete

34begin insert(ia)end insert The actual total amount of revenue that would have been
35deposited to the credit of the Motor Vehicle License Fee Account
36in the Transportation Tax Fund, including any amounts that would
37have been certified to the Controller by the auditor of the County
38of Ventura under subdivision (j) of Section 98.02, as that section
39read on January 1, 2004, for distribution under the law as it read
40on January 1, 2004, to the county, city and county, or city for the
P5    12004-05 fiscal year if the fee otherwise due under the Vehicle
2License Fee Law (Part 5 (commencing with Section 10701) of
3Division 2) was 2 percent of the market value of a vehicle, as
4specified in Sections 10752 and 10752.1 as those sections read on
5 January 1, 2004.

begin delete

6(Ib)

end delete

7begin insert(ib)end insert The actual total amount of revenue that was distributed
8from the Motor Vehicle License Fee Account in the Transportation
9Tax Fund to the county, city and county, and each city in the county
10for the 2004-05 fiscal year under Section 11005, as that section
11read on the operative date of the act that amended this
12begin delete sub-subclause.end deletebegin insert subsubclause.end insert

13(II) The product of the following two amounts:

begin delete

14(IIa)

end delete

15begin insert(ia)end insert The amount described in subclause (I).

begin delete

16(IIb)

end delete

17begin insert(ib)end insert 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.

begin delete

30(ii)

end delete

31begin insert(iii)end insert The amount described in clause (i) shall be adjusted as
32follows:

33(I) If the amount described in subclause (I) of clause (i) for a
34particular city, county, or city and county is greater than the amount
35described in subparagraph (A) for that city, county, or city and
36county, the amount described in clause (i) shall be increased by
37an amount equal to this difference.

38(II) If the amount described in subclause (I) of clause (i) for a
39particular city, county, or city and county is less than the amount
40described in subparagraph (A) for that city, county, or city and
P6    1county, the amount described in clause (i) shall be decreased by
2an amount equal to this difference.

3(C) For the 2006-07 fiscal year and for each fiscal year
4thereafter, the sum of the following two amounts:

5(i) The vehicle license fee adjustment amount for the prior fiscal
6year, if Section 97.71 and clause (ii) of subparagraph (B) did not
7apply for that fiscal year, for that city, county, and city and county.

8(ii) The product of the following two amounts:

9(I) The amount described in clause (i).

10(II) The percentage change from the prior fiscal year to the
11current fiscal year in gross taxable assessed valuation within the
12jurisdiction of the entity, as reflected in the equalized assessment
13roll for those fiscal years. For the first fiscal year for which a
14change in a city’s jurisdictional boundaries first applies, the
15percentage change in gross taxable assessed valuation from the
16prior fiscal year to the current fiscal year shall be calculated solely
17on the basis of the city’s previous jurisdictional boundaries, without
18regard to the change in that city’s jurisdictional boundaries. For
19each following fiscal year, the percentage change in gross taxable
20assessed valuation from the prior fiscal year to the current fiscal
21year shall be calculated on the basis of the city’s current
22jurisdictional boundaries.

begin insert

23(2) Notwithstanding paragraph (1), “vehicle license fee
24adjustment amount,” for a city incorporating after January 1,
252004, and on or before January 1, 2012, means the following:

end insert
begin insert

26(A) For the 2016-17 fiscal year, the quotient derived from the
27following fraction:

end insert
begin insert

28(i) The numerator is the product of the following two amounts:

end insert
begin insert

29(I) The sum of the most recent vehicle license fee adjustment
30amounts determined for all cities in the county.

end insert
begin insert

31(II) The population of the incorporating city.

end insert
begin insert

32(ii) The denominator is the sum of the populations of all cities
33in the county.

end insert
begin insert

34(B) For the 2017-18 fiscal year, and for each fiscal year
35thereafter, the sum of the following two amounts:

end insert
begin insert

36(i) The vehicle license fee adjustment amount for the prior fiscal
37year.

end insert
begin insert

38(ii) The product of the following two amounts:

end insert
begin insert

39(I) The amount described in clause (i).

end insert
begin insert

P7    1(II) The percentage change from the prior fiscal year to the
2current fiscal year in gross taxable assessed valuation within the
3jurisdiction of the entity, as reflected in the equalized assessment
4roll for those fiscal years.

end insert
begin delete

5(2)

end delete

6begin insert(3)end insert For the 2013-14 fiscal year, the vehicle license fee
7adjustment amount that is determined under subparagraph (C) of
8paragraph (1) for the County of Orange shall be increased by
9fifty-three million dollars ($53,000,000). For the 2014-15 fiscal
10year and each fiscal year thereafter, the calculation of the vehicle
11license fee adjustment amount for the County of Orange under
12subparagraph (C) of paragraph (1) shall be based on a prior fiscal
13year amount that reflects the full amount of this one-time increase
14of fifty-three million dollars ($53,000,000).

begin delete

15(3)

end delete

16begin insert(4)end insert “Countywide vehicle license fee adjustment amount” means,
17for any fiscal year, the total sum of the amounts described in
18paragraphsbegin delete (1)end deletebegin insert (1), (2),end insert andbegin delete (2)end deletebegin insert (3)end insert for a county or city and county,
19and each city in the county.

begin delete

20(4)

end delete

21begin insert(5)end insert On or before June 30 of each fiscal year, the auditor shall
22report to the Controller the vehicle license fee adjustment amount
23for the county and each city in the county for that fiscal year.

24(d) For the 2005-06 fiscal year and each fiscal year thereafter,
25the amounts determined under subdivision (a) of Section 96.1, or
26any successor to that provision, shall not reflect, for a preceding
27fiscal year, any portion of any allocation required by this section.

28(e) For purposes of Section 15 of Article XI of the California
29Constitution, the allocations from a Vehicle License Fee Property
30Tax Compensation Fund constitute successor taxes that are
31otherwise required to be allocated to counties and cities, and as
32successor taxes, the obligation to make those transfers as required
33by this section shall not be extinguished nor disregarded in any
34manner that adversely affects the security of, or the ability of, a
35county or city to pay the principal and interest on any debts or
36obligations that were funded or secured by that city’s or county’s
37allocated share of motor vehicle license fee revenues.

38(f) This section shall not be construed to do any of the following:

39(1) Reduce any allocations of excess, additional, or remaining
40funds that would otherwise have been allocated to county
P8    1superintendents of schools, cities, counties, and cities and counties
2pursuant to clause (i) of subparagraph (B) of paragraph (4) of
3subdivision (d) of Sections 97.2 and 97.3 or Article 4 (commencing
4with Section 98) had this section not been enacted. The allocations
5required by this section shall be adjusted to comply with this
6paragraph.

7(2) Require an increased ad valorem property tax revenue
8allocation or increased tax increment allocation to a community
9redevelopment agency.

10(3) Alter the manner in which ad valorem property tax revenue
11growth from fiscal year to fiscal year is otherwise determined or
12allocated in a county.

13(4) Reduce ad valorem property tax revenue allocations required
14under Article 4 (commencing with Section 98).

15(g) Tax exchange or revenue sharing agreements, entered into
16prior to the operative date of this section, between local agencies
17or between local agencies and nonlocal agencies are deemed to be
18 modified to account for the reduced vehicle license fee revenues
19resulting from the act that added this section. These agreements
20are modified in that these reduced revenues are, in kind and in lieu
21thereof, replaced with ad valorem property tax revenue from a
22Vehicle License Fee Property Tax Compensation Fund or an
23Educational Revenue Augmentation Fund.

24begin insert

begin insertSEC. 1.5.end insert  

end insert

begin insertSection 97.70 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
25amended to read:end insert

26

97.70.  

Notwithstanding any other law, for the 2004-05 fiscal
27year and for each fiscal year thereafter, all of the following apply:

28(a) (1) (A) The auditor shall reduce the total amount of ad
29valorem property tax revenue that is otherwise required to be
30allocated to a county’s Educational Revenue Augmentation Fund
31by the countywide vehicle license fee adjustment amount.

32(B) If, for the fiscal year, after complying with Section 97.68
33there is not enough ad valorem property tax revenue that is
34otherwise required to be allocated to a county Educational Revenue
35Augmentation Fund for the auditor to complete the allocation
36reduction required by subparagraph (A), the auditor shall
37 additionally reduce the total amount of ad valorem property tax
38revenue that is otherwise required to be allocated to all school
39districts and community college districts in the county for that
40fiscal year by an amount equal to the difference between the
P9    1countywide vehicle license fee adjustment amount and the amount
2of ad valorem property tax revenue that is otherwise required to
3be allocated to the county Educational Revenue Augmentation
4Fund for that fiscal year. This reduction for each school district
5and community college district in the county shall be the percentage
6share of the total reduction that is equal to the proportion that the
7total amount of ad valorem property tax revenue that is otherwise
8required to be allocated to the school district or community college
9district bears to the total amount of ad valorem property tax revenue
10that is otherwise required to be allocated to all school districts and
11community college districts in a county. For purposes of this
12subparagraph, “school districts” and “community college districts”
13do not include any districts that are excess tax school entities, as
14defined in Section 95.

15(2) The countywide vehicle license fee adjustment amount shall
16be allocated to the Vehicle License Fee Property Tax Compensation
17Fund that shall be established in the treasury of each county.

18(b) (1) The auditor shall allocate moneys in the Vehicle License
19Fee Property Tax Compensation Fund according to the following:

20(A) Each city in the county shall receive its vehicle license fee
21adjustment amount.

22(B) Each county and city and county shall receive its vehicle
23license fee adjustment amount.

24(2) The auditor shall allocate one-half of the amount specified
25in paragraph (1) on or before January 31 of each fiscal year, and
26the other one-half on or before May 31 of each fiscal year.

27(c) For purposes of this section, all of the following apply:

28(1) “Vehicle license fee adjustment amount” for a particular
29city, county, or a city and county means, subject to an adjustment
30under paragraph (2) and Section 97.71, all of the following:

31(A) For the 2004-05 fiscal year, an amount equal to the
32difference between the following two amounts:

33(i) The estimated 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
P10   1License Fee Lawbegin delete (Pt.end deletebegin insert (Partend insert 5 (commencing with Section 10701)
2ofbegin delete Div.end deletebegin insert Divisionend insert 2) was 2 percent of the market value of a vehicle,
3as specified inbegin delete Sectionend deletebegin insert Sectionsend insert 10752 and 10752.1 as those
4sections read on January 1, 2004.

5(ii) The estimated total amount of revenue that is required to be
6distributed from the Motor Vehicle License Fee Account in the
7Transportation Tax Fund to the county, city and county, and each
8city in the county for the 2004-05 fiscal year under Section 11005,
9as that section read on the operative date of the act that amended
10this clause.

11(B) (i) Subject to an adjustment under clause (ii), for the
122005-06 fiscal year, the sum of the following two amounts:

13(I) The difference between the following two amounts:

begin delete

14(Ia)

end delete

15begin insert(ia)end insert The actual total amount of revenue that would have been
16deposited to the credit of the Motor Vehicle License Fee Account
17in the Transportation Tax Fund, including any amounts that would
18have been certified to the Controller by the auditor of the County
19of Ventura under subdivision (j) of Section 98.02, as that section
20read on January 1, 2004, for distribution under the law as it read
21on January 1, 2004, to the county, city and county, or city for the
222004-05 fiscal year if the fee otherwise due under the Vehicle
23License Fee Law (Part 5 (commencing with Section 10701) of
24Division 2) was 2 percent of the market value of a vehicle, as
25specified in Sections 10752 and 10752.1 as those sections read on
26 January 1, 2004.

begin delete

27(Ib)

end delete

28begin insert(ib)end insert The actual total amount of revenue that was distributed
29from the Motor Vehicle License Fee Account in the Transportation
30Tax Fund to the county, city and county, and each city in the county
31for the 2004-05 fiscal year under Section 11005, as that section
32read on the operative date of the act that amended this
33begin delete sub-subclause.end deletebegin insert subsubclause.end insert

34(II) The product of the following two amounts:

begin delete

35(IIa)

end delete

36begin insert(ia)end insert The amount described in subclause (I).

begin delete

37(IIb)

end delete

38begin insert(ib)end insert The percentage change from the prior fiscal year to the
39current fiscal year in gross taxable assessed valuation within the
40jurisdiction of the entity, as reflected in the equalized assessment
P11   1roll for those fiscal years. For the first fiscal year for which a
2change in a city’s jurisdictional boundaries first applies, the
3percentage change in gross taxable assessed valuation from the
4prior fiscal year to the current fiscal year shall be calculated solely
5on the basis of the city’s previous jurisdictional boundaries, without
6regard to the change in that city’s jurisdictional boundaries. For
7each following fiscal year, the percentage change in gross taxable
8assessed valuation from the prior fiscal year to the current fiscal
9year shall be calculated on the basis of the city’s current
10jurisdictional boundaries.

begin delete

11(ii)

end delete

12begin insert(iii)end insert The amount described in clause (i) shall be adjusted as
13follows:

14(I) If the amount described in subclause (I) of clause (i) for a
15particular city, county, or city and county is greater than the amount
16described in subparagraph (A) for that city, county, or city and
17county, the amount described in clause (i) shall be increased by
18an amount equal to this difference.

19(II) If the amount described in subclause (I) of clause (i) for a
20particular city, county, or city and county is less than the amount
21described in subparagraph (A) for that city, county, or city and
22county, the amount described in clause (i) shall be decreased by
23an amount equal to this difference.

24(C) For the 2006-07 fiscalbegin delete year and for eachend deletebegin insert year, to the
252014-15end insert
fiscalbegin delete year thereafter,end deletebegin insert year, inclusive,end insert the sum of the
26following two amounts:

27(i) The vehicle license fee adjustment amount for the prior fiscal
28year, if Section 97.71 and clause (ii) of subparagraph (B) did not
29apply for that fiscal year, for that city, county, and city and county.

30(ii) The product of the following two amounts:

31(I) The amount described in clause (i).

32(II) The percentage change from the prior fiscal year to the
33current fiscal year in gross taxable assessed valuation within the
34jurisdiction of the entity, as reflected in the equalized assessment
35roll for those fiscal years. For the first fiscal year for which a
36change in a city’s jurisdictional boundaries first applies, the
37percentage change in gross taxable assessed valuation from the
38prior fiscal year to the current fiscal year shall be calculated solely
39on the basis of the city’s previous jurisdictional boundaries, without
40regard to the change in that city’s jurisdictional boundaries. For
P12   1each following fiscal year, the percentage change in gross taxable
2assessed valuation from the prior fiscal year to the current fiscal
3year shall be calculated on the basis of the city’s current
4jurisdictional boundaries.

begin insert

5(D) For the 2015-16 fiscal year, the sum of the following two
6amounts:

end insert
begin insert

7(i) The amount described in clause (i) of subparagraph (B) if
8Section 97.71 and clause (ii) of subparagraph (B) did not apply
9for that fiscal year, for that city, county, and city and county.

end insert
begin insert

10(ii) The product of the following two amounts:

end insert
begin insert

11(I) The amount described in clause (i).

end insert
begin insert

12(II) The percentage change from the 2004-05 fiscal year to the
132015-16 fiscal year, inclusive, in gross taxable assessed valuation
14within the jurisdiction of the entity, as reflected in the equalized
15assessment roll for those fiscal years.

end insert
begin insert

16(E) For the 2016-17 fiscal year and each fiscal year thereafter,
17the sum of the following two amounts:

end insert
begin insert

18(i) The vehicle license fee adjustment amount for the prior fiscal
19year.

end insert
begin insert

20(ii) The product of the following two amounts:

end insert
begin insert

21(I) The amount described in clause (i).

end insert
begin insert

22(II) The percentage change from the immediately preceding
23fiscal year to the current fiscal year in gross taxable assessed
24valuation within the jurisdiction of the entity, as reflected in the
25equalized assessment roll for those fiscal years.

end insert
begin insert

26(2) Notwithstanding paragraph (1), “vehicle license fee
27adjustment amount,” for a city incorporating after January 1,
282004, and on or before January 1, 2012, means the following:

end insert
begin insert

29(A) For the 2016-17 fiscal year, the quotient derived from the
30following fraction:

end insert
begin insert

31(i) The numerator is the product of the following two amounts:

end insert
begin insert

32(I) The sum of the most recent vehicle license fee adjustment
33amounts determined for all cities in the county.

end insert
begin insert

34(II) The population of the incorporating city.

end insert
begin insert

35(ii) The denominator is the sum of the populations of all cities
36in the county.

end insert
begin insert

37(B) For the 2017-18 fiscal year, and for each fiscal year
38thereafter, the sum of the following two amounts:

end insert
begin insert

39(i) The vehicle license fee adjustment amount for the prior fiscal
40year.

end insert
begin insert

P13   1(ii) The product of the following two amounts:

end insert
begin insert

2(I) The amount described in clause (i).

end insert
begin insert

3(II) The percentage change from the prior fiscal year to the
4current fiscal year in gross taxable assessed valuation within the
5jurisdiction of the entity, as reflected in the equalized assessment
6roll for those fiscal years.

end insert
begin delete

7(2)

end delete

8begin insert(3)end insert For the 2013-14 fiscal year, the vehicle license fee
9adjustment amount that is determined under subparagraph (C) of
10paragraph (1) for the County of Orange shall be increased by
11fifty-three million dollars ($53,000,000). For the 2014-15 fiscal
12year and each fiscal year thereafter, the calculation of the vehicle
13license fee adjustment amount for the County of Orange under
14subparagraphbegin delete (C)end deletebegin insert (C), (D), or (E), as applicable,end insert of paragraph (1)
15shall be based on a prior fiscal year amount that reflects the full
16amount of this one-time increase of fifty-three million dollars
17($53,000,000).

begin delete

18(3)

end delete

19begin insert(4)end insert “Countywide vehicle license fee adjustment amount” means,
20for any fiscal year, the total sum of the amounts described in
21paragraphsbegin delete (1)end deletebegin insert (1), (2),end insert andbegin delete (2)end deletebegin insert (3)end insert for a county or city and county,
22and each city in the county.

begin delete

23(4)

end delete

24begin insert(5)end insert On or before June 30 of each fiscal year, the auditor shall
25report to the Controller the vehicle license fee adjustment amount
26for the county and each city in the county for that fiscal year.

27(d) For the 2005-06 fiscal year and each fiscal year thereafter,
28the amounts determined under subdivision (a) of Section 96.1, or
29any successor to that provision, shall not reflect, for a preceding
30fiscal year, any portion of any allocation required by this section.

31(e) For purposes of Section 15 of Article XI of the California
32Constitution, the allocations from a Vehicle License Fee Property
33Tax Compensation Fund constitute successor taxes that are
34otherwise required to be allocated to counties and cities, and as
35successor taxes, the obligation to make those transfers as required
36by this section shall not be extinguished nor disregarded in any
37manner that adversely affects the security of, or the ability of, a
38county or city to pay the principal and interest on any debts or
39obligations that were funded or secured by that city’s or county’s
40allocated share of motor vehicle license fee revenues.

P14   1(f) This section shall not be construed to do any of the following:

2(1) Reduce any allocations of excess, additional, or remaining
3funds that would otherwise have been allocated to county
4superintendents of schools, cities, counties, and cities and counties
5pursuant to clause (i) of subparagraph (B) of paragraph (4) of
6subdivision (d) of Sections 97.2 and 97.3 or Article 4 (commencing
7with Section 98) had this section not been enacted. The allocations
8required by this section shall be adjusted to comply with this
9paragraph.

10(2) Require an increased ad valorem property tax revenue
11allocation or increased tax increment allocation to a community
12redevelopment agency.

13(3) Alter the manner in which ad valorem property tax revenue
14growth from fiscal year to fiscal year is otherwise determined or
15allocated in a county.

16(4) Reduce ad valorem property tax revenue allocations required
17under Article 4 (commencing with Section 98).

18(g) Tax exchange or revenue sharing agreements, entered into
19prior to the operative date of this section, between local agencies
20or between local agencies and nonlocal agencies are deemed to be
21 modified to account for the reduced vehicle license fee revenues
22resulting from the act that added this section. These agreements
23are modified in that these reduced revenues are, in kind and in lieu
24thereof, replaced with ad valorem property tax revenue from a
25Vehicle License Fee Property Tax Compensation Fund or an
26Educational Revenue Augmentation Fund.

27begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

Section 1.5 of this bill incorporates amendments to
28Section 97.70 of the Revenue and Taxation Code proposed by this
29bill and Assembly Bill 448. It shall only become operative if (1)
30both bills are enacted and become effective on or before January
311, 2017, (2) each bill amends Section 97.70 of the Revenue and
32Taxation Code, and (3) this bill is enacted after Assembly Bill 448,
33in which case Section 97.70 of the Revenue and Taxation Code,
34as amended by Assembly Bill 448, shall remain operative only
35until the operative date of this bill, at which time Section 1.5 of
36this bill shall become operative, and Section 1 of this bill shall not
37become operative.

end insert
38begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

If the Commission on State Mandates determines that
39this act contains costs mandated by the state, reimbursement to
40local 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.

end insert
begin delete
3

SECTION 1.  

It is the intent of the Legislature to enact
4legislation that would restore funding to cities that were
5incorporated after 2004.

end delete


O

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