Amended in Senate March 10, 2016

Senate BillNo. 975


Introduced by Committee on Governance and Finance (Senators Hertzberg (Chair), Beall, Hernandez, Lara, Moorlach, Nguyen, and Pavley)

February 8, 2016


An act to add Article 18.5 (commencing with Section 53993) to Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

SB 975, as amended, Committee on Governance and Finance. Tax increment: property tax override rates.

Existing law establishes procedures for the formation of infrastructure financing districts, enhanced infrastructure financing districts, infrastructure and revitalization financing districts, and community revitalization and investment authorities, as specified, to undertake various economic development projects, including financing public facilities and infrastructure, affordable housing, and economic revitalization. Existing law authorizes an infrastructure financing plan or a community revitalization and investment plan to provide for the division of taxes levied upon taxable property, if any, between the affected taxing entities, as defined, and the district or authority.

This bill, for the purpose of any law authorizing the division of taxes, would prohibit the division of revenues derived from a property tax rate approved by the votersbegin delete of a city, county, or city and countyend deletebegin insert pursuant to, specified provisions of the California Constitutionend insert and levied in addition to the general property tax rate limited by the California Constitution. The bill would specify that this limitation does not apply to the allocation of property taxes pursuant to provisions relating to the wind down of the affairs of redevelopment agencies and the activities of successor agencies.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

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SECTION 1.  

Article 18.5 (commencing with Section 53993)
2is added to Chapter 4 of Part 1 of Division 2 of Title 5 of the 3Government Code, to read:

4 

5Article 18.5.  Division of Property Taxes
6

 

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53993.  

(a) Notwithstanding any other law, except as provided
8in subdivision (b), for the purpose of any law authorizing the
9division of taxes levied upon taxable property, including, but not
10limited to, Sections 53369.30, 53396, 53398.30, 53398.75, and
1162005,begin delete anyend deletebegin insert noend insert revenues derived from the imposition of a property
12tax rate, approved by the votersbegin delete of a city, county, or city and countyend delete
13begin insert pursuant to subdivision (b) of Section 1 of Article XIIIend insertbegin insertend insertbegin insertA of the
14California Constitutionend insert
and levied in addition to the property tax
15rate limited by subdivision (a) of Section 1 of Article XIII A of
16the California Constitution, shallbegin delete notend delete be divided.

17(b) Subdivision (a) shall not apply to the allocation of property
18taxes pursuant to Part 1.85 (commencing with Section 34170) of
19Division 24 of the Health and Safety Code.



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