BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 2211
          Author:   Ting (D)
          Amended:  6/18/14 in Senate
          Vote:     21


           SENATE GOVERNANCE & FINANCE COMMITTEE  :  7-0, 6/25/14
          AYES:  Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 8/14/14
          AYES:  De Le�n, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters, Gaines

           ASSEMBLY FLOOR  :  78-0, 5/28/14 - See last page for vote


           SUBJECT  :    Counties:  database:  information regarding general  
          ad valorem  property tax revenues

           SOURCE  :     Author


           DIGEST  :    This bill requires each county to make available to  
          taxpayers on its Internet Web site 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.

           ANALYSIS  :    Existing law requires ad valorem property taxes be  
          based on the assessed value of the property.  Prior to voters'  
          approval of Proposition 13 (1978), local governments set their  
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          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 existing law.  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 existing law. 

          This bill requires each county to make available to taxpayers on  
          its Internet Web site 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.

          This bill requires each county to update the graph annually and  
          work to improve the appearance, organization, and clarity of the  
          information provided.

          This bill requires each county's Internet Web site 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's 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. 

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           Similar Legislation
           
          AB 920 (Ting, 2013) 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee, unknown  
          state-mandated costs to counties, reimbursable from the state  
          General Fund, as follows:

           One-time costs, potentially several hundred thousand dollars  
            statewide, for each county to create a tool providing a  
            graphic representation of countywide property tax allocations  
            on a summarized jurisdictional level, to compile information  
            on the programs and services funded by property tax revenues,  
            and post the information and a specified Internet Web site  
            link on the county's Internet Web site.

           Likely minor ongoing costs for each county to annually update  
            the graph and to make improvements in the appearance,  
            organization, and clarity of the information.

           SUPPORT  :   (Verified  8/15/14)

          Board of Equalization Chairman, Jerome E. Horton
          California Professional Firefighters

           ARGUMENTS IN SUPPORT  :    According to the author, "AB 2211 would  
          help taxpayers clearly see that government is working for them,  
          resulting in increased transparency and understanding about the  
          important services, such as schools and public safety, funded by  
          property tax revenue.  The bill would require county websites to  
          include a graph visualization that details how property tax  
          revenues are allocated countywide, along with a description of  
          the types of programs and services funded by different local  
          jurisdictions.  Counties would be required to update this  
          information annually, and work towards providing even more  
          comprehensive and customized disclosure to individual taxpayers  
          over time."

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           ASSEMBLY FLOOR  :  78-0, 5/28/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,  
            Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez, Holden,  
            Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,  
            Nazarian, Nestande, Olsen, Pan, Patterson, Perea, John A.  
            P�rez, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon, 
            Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,  
            Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED:  Frazier, Vacancy


          AB:e  8/15/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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