BILL ANALYSIS �
AB 2210
Page 1
Date of Hearing: May 25, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2210 (Smyth) - As Amended: May 21, 2012
Policy Committee: Local
GovernmentVote:8-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires a county assessor, when requested by the
board of supervisors, to estimate whether annual property
valuations for the county have decreased by 3% or more, and if
so, to notify the county and the Department of Finance of the
decrease. Specifically, this bill:
1)Requires the assessor, within 30 days of receiving the request
by the governing body of the jurisdiction and in cooperation
with the tax collector, to estimate whether property
valuations have decreased by 3% or more.
2)Requires the assessor, if property valuations have decreased
by an estimated 3% or more, to notify the requesting body
before the end of the 30-day period.
FISCAL EFFECT
Negligible state fiscal impact.
COMMENTS
1)Purpose. The author contends scandals in the Cities of Bell
and Vernon demonstrate the need for more transparency in local
government. The author further notes the brewing scandal in
the Los Angeles County Assessor's Office proves that further
transparency is needed to ensure that governing bodies have
the appropriate information to make informed decisions when
budgeting for their jurisdiction.
2)Background. The Los Angeles County Assessor alerted the Board
AB 2210
Page 2
of Supervisors in April 2012 that the county's property
valuations and resulting tax base would be dramatically lower
than what the assessor had forecast in December 2011. The
Assessor originally told the board in December 2011 that the
estimated decrease in the property tax base would be roughly
$2.6 billion, but his April 2012 communication to the board
revised the estimated decrease to $13.5 billion. This led the
Board of Supervisors to call for a complete audit of the
office. In addition, there is an ongoing criminal
investigation of the Los Angeles County Assessor for allegedly
soliciting campaign contributions in exchange for lowered
property valuations.
Under existing law, the governing body of a local taxing
jurisdiction may ask (by February 20) the assessor's office to
provide by May 15 an estimate of the assessed valuation of the
property within the jurisdiction. The purpose is to give the
governing body information about the expected revenues from
property taxes, which then helps guide that body's
budget-making process. Counties, cities and special districts
are all allowed to make this request under current law.
3)Opposition . This bill is opposed by the Santa Clara County
Assessor who contends assessors should not be in the
estimation business at all: "By necessity, training and law,
assessors must look backward on transactions that have
actually occurred in the real estate marketplace. Assessors
do not possess the skill set or information required to
accurately project future property tax revenue. Forecasting is
the proper role of economists and budget analysts. As
assessor, I regularly decline requests by cities and school
districts to provide projections, and would be unable to
comply, with any degree of accuracy or reliability, the
estimates demanded in AB 2210?"
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081