BILL ANALYSIS �
SENATE GOVERNANCE & FINANCE COMMITTEE
Senator Lois Wolk, Chair
BILL NO: AB 2211 HEARING: 6/25/14
AUTHOR: Ting FISCAL: Yes
VERSION: 6/18/14 TAX LEVY: No
CONSULTANT: Urquiza
COUNTIES: DATABASE:
INFORMATION REGARDING PROPERTY TAX REVENUES
Requires each county to make available to taxpayers on its
internet website a graph visualization of how ad valorem
property tax revenues are allocated countywide.
Background and Existing Law
Ad valorem property taxes are taxes based on the assessed
value of the property. Prior to voters' approval of
Proposition 13 (1978), local governments set their own
property tax rates. Proposition 13 capped the rate of ad
valorem taxes on real property at 1%.
When taxpayers pay their property taxes to the county
treasurer-tax collector, the funds are transferred to the
county auditor for distribution. In general, county
auditors allocate revenue from the 1% rate to a variety of
local governments within the county pursuant to an
allocation system established in state law (AB 8, Green,
1979). Each county is divided into tax rate areas,
geographic areas within a county served by the same local
governments, county, schools, and special districts. The
number of tax rate areas varies, with some counties having
thousands of tax rate areas. The auditors allocate revenue
to local governments by tax rate area as directed by state
law.
On a typical property tax bill the 1% rate is listed as the
general tax levy or countywide rate with no indication as
to which local governments receive the revenue or for what
purpose the funds are used. Some public officials want to
require counties to provide taxpayers information on how
revenues from the general ad valorem tax are allocated
among local governments.
AB 2211 -- 6/18/14 -- Page 2
Proposed Law
AB 2211 requires each county to make available to taxpayers
on its website a graph visualization of how general ad
valorem property tax revenues are allocated countywide at a
summarized jurisdictional level that includes, but is not
limited to, the county, cities, independent special
districts, school districts, and redevelopment successor
agencies.
The bill requires each county to update the graph annually
and work to improve the appearance, organization, and
clarity of the information provided.
AB 2211 requires each county's website to do the following:
Inform taxpayers that all general ad valorem
property tax revenues are used to fund a significant
number of local government programs and services
within the county in which they are collected,
including programs and services provided by K-12
schools and community colleges, the county, cities,
and special districts.
Provide a brief summary of the types of programs
and services funded with ad valorem property tax
revenues at a summarized jurisdictional level.
Include a link to the county final budget document
where more information about specific programs and
services funded with ad valorem property tax revenues
is detailed, if the county posts such documents.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill . The current tax bill does not
provide information on where revenues from the general ad
valorem property tax are allocated. Some reports have
suggested that taxpayers also are unaware that all property
revenue from property taxes is kept at the local level for
vital services such as education, police and fire
AB 2211 -- 6/18/14 -- Page 3
protection, and parks and recreation. AB 2211 requires
counties to post information on their websites about how ad
valorem property tax revenues are allocated countywide to
help taxpayers understand how local governments use
property tax revenue to fund important services.
2. Valuable information ? Property tax revenues are not
distributed equally from each taxpayer since individual
parcels have different allocations. While countywide data
provides a general overview of where property tax revenues
are allocated it does not provide information about where
an individual taxpayers' property taxes are allocated. AB
2211 mandates that all counties create a graph
visualization on their website on how general ad valorem
property tax revenues are allocated countywide. This
information would not be very valuable for taxpayers who
want to know where their specific property tax revenues are
allocated.
3. Similar legislation . AB 920 (Ting, 2013), would have
required the property tax bill to include specific
information on how property tax revenues fund critical
local government functions. The bill died in the Assembly
Appropriations Committee.
4. Mandate . The California Constitution requires the
state to reimburse local governments for the costs of new
or expanded state mandated local programs. Because AB 2211
imposes a new requirement on counties, Legislative Counsel
says that it imposes a new state mandate. AB 2211 requires
the state to reimburse local agencies if the Commission on
State Mandates determines that the bill imposes a
reimbursable mandate.
Assembly Actions
Assembly Floor 78-0
Assembly Appropriations 17-0
Assembly Local Government 9-0
Support and Opposition (6/19/14)
Support : California Professional Firefighters; Jerome E.
AB 2211 -- 6/18/14 -- Page 4
Horton, Chairman of the Board of Equalization.
Opposition : Unknown.