Bill Text: CA AB483 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Local government: taxes, fees, assessments, and charges: definitions.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2013-10-04 - Chaptered by Secretary of State - Chapter 552, Statutes of 2013. [AB483 Detail]

Download: California-2013-AB483-Amended.html

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BILL NUMBER: AB 483	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 26, 2013

INTRODUCED BY   Assembly Member Ting

                        FEBRUARY 19, 2013

   An act to amend Section  12463 of the Government Code, and to
amend Sections 95.3 and  402.5 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 483, as amended, Ting. Property  taxation: valuing
property: comparable sales.   taxation.  
   Existing property tax law provides, pursuant to a specified
formula, for a county auditor's determination of those proportionate
shares of the county's property tax administrative costs that are
attributable to the other jurisdictions in the county, and further
provides for a county's recovery from all other jurisdictions within
the county, except for school entities or an Educational Revenue
Augmentation Fund (ERAF), of those proportionate shares of the county'
s property tax administrative costs.  
   This bill would authorize a county, by resolution of its board of
supervisors, to recover, at any time commencing with the 2013-14
fiscal year and through the 2023-24 fiscal year, the property tax
administrative cost shares attributable to school entities or an
ERAF, but would reduce the amounts recoverable for the 2013-14 fiscal
year and the 2014-15 fiscal year, as provided.  
   This bill would require any county that recovers these additional
cost shares to maintain a base level of staffing and total funding
for the administration of the property tax system that is equal to or
greater than the level of staffing or funding provided in the
2012-13 fiscal year. The bill would require a county that recovers
the additional cost shares to use the additional amounts recovered to
enhance the property tax administration system, and would prohibit
the use of additional amounts recovered to supplant the level of
funding that was provided for property tax administration in the
2012-13 fiscal year.  
   The bill would also require a county that recovers the additional
cost shares to provide the Controller with information that indicates
what percentage of general ad valorem property tax is allocated to
each local government jurisdiction, and a comprehensive account of
all of the local government services funded by general ad valorem
property tax revenues. The bill would require the Controller,
commencing in the 2014-15 fiscal year, to publish on its Internet Web
site, with respect to each county, the percentage of general ad
valorem property tax allocated to each local government jurisdiction,
and for the 2015-16 fiscal year and each fiscal year thereafter, to
make the information available to taxpayers via an interactive,
searchable database on its Internet Web site, a specified. 
   Existing property tax law requires, when valuing property by
comparison with sales of other properties, in order to be considered
comparable, the sales to be sufficiently near in time to the
valuation date, and the properties sold to be located sufficiently
near, and sufficiently alike, to the property being valued, as
specified.
   This bill would make a clarifying change to this provision. 
   The bill would also require the State Board of Equalization to
annually conduct a survey of counties, the results of which shall be
presented in a report that is made available to the Legislature and
the Department of Finance, on the operation of the provisions of this
act. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) While the role of the assessor is not to be a revenue
generator, his or her work results in tax revenues, and all local
government agencies and taxpayers are impacted, whether positively or
negatively, by the extent to which the assessor is able to perform
his or her duties in a timely, efficient, and equitable manner. The
county assessor, the county auditor, the assessment appeals board,
and the county treasurer tax collector are the key administrators of
the property tax system. This act will restore proper support for the
administration of the property tax system.  
   (b) Budget cuts to local government agencies have resulted in
staff and funding reductions. County assessors' offices have not
escaped these cuts. Neither the taxpayer nor the taxing agencies
benefit from this situation.  
   (c) Recognizing that K-14 education received approximately 52
percent of every property tax dollar collected in California and
acknowledging that county governments were receiving less than 20
percent of those revenues, the Legislature in 1995 acknowledged that
reductions in county assessors' office resources and the resultant
reduction in services were detrimental to the best interests of
Californians. The Legislature initiated a loan program, the "Property
Tax Administration Program" (PTAP). For 10 years, PTAP provided
loans or grants to county assessors to support additional work in the
county assessors' offices. Local taxing agencies received the
benefit of PTAP. Funding from the loans or grants resulted in a 12 to
1 rate of return, as confirmed by the California State Auditor in
2000.  
   (d) The administration of the property tax system, which includes
the county assessor, assessment appeals board, auditor, and treasurer
tax collector, supports our state's public education system and
should be strengthened for the benefit of the taxpayer as well as
local entities that receive property tax revenues. 
   SEC. 2.    Section 12463 of the   Government
Code   is amended to read: 
   12463.  (a) The Controller shall compile and publish reports of
the financial transactions of each county, city, and special
district, respectively, within this state, together with any other
matter he or she deems of public interest. The reports shall include
the appropriations limits and the total annual appropriations subject
to limitation of the counties, cities, and special districts. The
reports to the Controller shall be made in the time, form, and manner
prescribed by the Controller.
   (b) Effective January 1, 2005, the Controller shall compile and
publish reports of the financial transactions of each county, city,
and special district pursuant to subdivision (a) on or before August
1, September 1, and October 1 respectively, of each year following
the end of the annual reporting period. The Controller shall make
data collected pursuant to this subdivision available upon request to
the Legislature and its agents, on or before April 1 of each year.

   (c) (1) The Controller shall, with input from counties, formulate
a plan to annually compile and publish on its Internet Web site
pursuant to paragraphs (2) and (3), information provided to it by
counties that elect to recover the proportionate cost shares of
property tax administrative costs attributable to school entities or
an Educational Revenue Augmentation Fund (ERAF) under paragraph (2)
of subdivision (b) of Section 95.3 of the Revenue and Taxation Code,
that indicates what percentage of general ad valorem property tax is
allocated to each local government jurisdiction including, but not
limited to, the county, any city, and any special district, including
school districts, and the services provided by the county, any city,
and any special district, including any school district.  
   (2) Commencing in the 2014-15 fiscal year, with respect to each
county, the Controller shall publish the percentage of general ad
valorem property tax allocated to each local government jurisdiction
including, but not limited to, the county, any city, and any special
district, including school districts, on its Internet Web site. 

   (3) In the 2015-16 fiscal year and each fiscal year thereafter,
the Controller shall make the information described in paragraph (1)
available to taxpayers via an interactive, searchable database on its
Internet Web site that allows visitors to input information about
their property tax liability and receive a customized, comprehensive
account of the amount of general ad valorem property tax that is
allocated to each local government jurisdiction including, but not
limited to, the county, any city, and any special district, including
school districts, and all of the local government services funded by
their general ad valorem property taxes, including, but not limited
to, the services provided by the county, any city, and any special
district, including any school district. The account of services
shall list, ordered by decreasing dollar amount, each category of
local government services.  
   (c) 
    (d)  The Controller shall annually publish, on the
Internet Web site of the Controller, reports of the financial
transactions of each school district within this state, together with
any other matter he or she deems of public interest. The reports
shall include the appropriations limit and the total annual
appropriations subject to limitation of the school district. The
reports to the Controller shall be made in the time, form, and manner
prescribed by the Controller. 
   (d) 
    (e)  As used in this section, the following terms have
the following meanings:
   (1) "School district" means a school district as defined in
Section 80 of the Education Code.
   (2) "Special district" means any of the following:
   (A) A special district as defined in Section 95 of the Revenue and
Taxation Code.
   (B) A commission provided for by a joint powers agreement pursuant
to Chapter 5 (commencing with Section 6500) of Division 7 of Title
1.
   (C) A nonprofit corporation that is any of the following:
   (i) Was formed in accordance with the provisions of a joint powers
agreement to carry out functions specified in the agreement.
   (ii) Issued bonds, the interest on which is exempt from federal
income taxes, for the purpose of purchasing land as a site for, or
purchasing or constructing, a building, stadium, or other facility,
that is subject to a lease or agreement with a local public entity.
   (iii) Is wholly owned by a public agency.
   SEC. 3.    Section 95.3 of the   Revenue and
Taxation Code   is amended to read: 
   95.3.  (a) Notwithstanding any other provision of law, for the
1990-91 fiscal year and each fiscal year thereafter, the auditor
shall divide the sum of the amounts calculated with respect to each
jurisdiction, Educational Revenue Augmentation Fund (ERAF), or
community redevelopment agency pursuant to Sections 96.1 and 100, or
their predecessor sections, and Section 33670 of the Health and
Safety Code, by the countywide total of those calculated amounts. The
resulting ratio shall be known as the "administrative cost
apportionment factor" and shall be multiplied by the sum of the
property tax administrative costs incurred in the immediately
preceding fiscal year by the assessor, tax collector, county board of
equalization and assessment appeals boards, and auditor to determine
the fiscal year property tax administrative costs proportionately
attributable to each jurisdiction, ERAF, or community redevelopment
agency. For purposes of this paragraph, property tax administrative
costs shall also include applicable administrative overhead costs
allowed by the federal Office of Management and Budget Circular A-87
standards, but shall not include any amount reimbursed pursuant to
Section 75.60 and former Section 98.6, or include any amount in
excess of the amounts reimbursable pursuant to Section 75.60, unless
a county meets the conditions of paragraph (2) of subdivision (b) of
Section 75.60. However, no amount of funds appropriated to counties
for purposes of property tax administration in Item 9100-102-001 of
the Budget Act of 1994 or any subsequent Budget Act shall result in
any deduction from those property tax administrative costs that are
eligible for reimbursement pursuant to this subdivision.
   (b) (1) Each proportionate share of property tax administrative
costs determined pursuant to subdivision  (a), except for
those proportionate shares determined with respect to a school entity
or ERAF,   (a)  shall , subject to an election
under paragraph (2) with respect to the proportionate share
attributable to a school entity or an ERAF,  be deducted from
the property tax revenue allocation of the relevant jurisdiction or
community redevelopment agency, and shall be added to the property
tax revenue allocation of the county. For purposes of applying this
paragraph for the 1990-91 fiscal year, each proportionate share of
property tax administrative costs shall be deducted from those
amounts allocated to the relevant jurisdiction or community
redevelopment agency after January 1, 1991. 
   (2) It is the intent of the Legislature that the portion of those
shares of property tax administrative costs that are calculated by
the auditor for each fiscal year pursuant to subdivision (a) for
school entities and the county's ERAF, that is attributable to the
county's costs in providing boards and hearing officers for the
review of property tax assessment appeals, be calculated by local
officials and reimbursed by the state in the time and manner
specified by a future act of the Legislature that makes an
appropriation for purposes of that reimbursement.  
   (2) A county by resolution of its board of supervisors, may elect,
at any time commencing with the 2013-14 fiscal year, to recover in
the manner provided in paragraph (1) the proportionate cost shares
attributable to school entities or an ERAF. Any county that so elects
shall do all of the following:  
   (A) Maintain a base level of staffing, including contract staff,
for the administration of the property tax system, which includes the
county assessor, the county auditor, the assessment appeals board,
and the county treasurer tax collector's office, that is in an amount
equal to or greater than the level of staffing provided in the
2012-13 fiscal year.  
   (B) Maintain a total level of funding for the administration of
the property tax system, which includes the county assessor, the
county auditor, the assessment appeals board, and the county
treasurer tax collector's office, that, independent of the additional
amounts recovered pursuant to the election, is in an amount equal to
or greater than the level of funding provided in the 2012-13 fiscal
year.  
   (C) Use the additional amounts recovered pursuant to the election
to enhance the property tax administration system by providing
additional resources. The additional amounts recovered shall not be
used to supplant the level of funding that was provided for property
tax administration in the 2012-13 fiscal year. The additional amounts
recovered shall be used by the county assessor for administrative
costs related to assessment appeals, declines or restoration in the
full cash value base pursuant to subdivision (b) of Section 2 of
Article XIII A of the California Constitution, compliance with
mandatory audits required by Section 469 and with nonmandatory
audits, reappraisal upon new construction or change in ownership
under subdivision (a) of Section 2 of Article XIII A, and the
unsecured roll and supplemental roll.  
   (D) For the 2013-14 fiscal year, multiply the proportionate share
attributable to a school entity or an ERAF by a factor of 0.25. For
the 2014-15 fiscal year, multiply the proportionate share
attributable to a school entity or an ERAF by a factor of 0.50. For
the 2015-16 fiscal year and for each fiscal year thereafter to and
including fiscal year 2023-24, no multiplier shall be used to reduce
the proportionate share attributable to a school entity or ERAF.
 
   (E) Provide information to the Controller pursuant to subdivision
(c) of Section 12463 of the Government Code that indicates what
percentage of general ad valorem property tax is allocated to each
local government jurisdiction including, but not limited to, the
county, any city, and any special district, including school
districts, and the services provided by the county, any city, and any
special district, including any school district. 
   (c) Reductions made pursuant to this section to property tax
revenue allocations shall be made without regard to Section 907 of
the Government Code.
   (d) Any additional amounts of property tax revenue allocated to
the county pursuant to this section shall be used only to fund costs
incurred by the county in assessing, equalizing, and collecting
property taxes, and in allocating property tax revenues, and shall
constitute charges for those services, not exceeding the actual and
reasonable costs incurred by the county in performing those services.

   (e) It is the intent of the Legislature in enacting this section
to recognize that since the adoption of Article XIII A of the
California Constitution by the voters, county governments have borne
an unfair and disproportionate part of the financial burden of
assessing, collecting, and allocating property tax revenues for other
jurisdictions and for redevelopment agencies. The Legislature finds
and declares that this section is intended to fairly apportion the
burden of collecting property tax revenues and is not a reallocation
of property tax revenue shares or a transfer of any financial or
program responsibility.
   (f) Commencing with the 1992-93 fiscal year and each fiscal year
thereafter, this section shall supersede and replace Section 95.2, as
authority for a county to recover property tax administrative costs.

   (g) This section shall apply to the entire 1993-94 fiscal year,
regardless of the operative date of the act adding the predecessor to
this section, and to each fiscal year thereafter.
   SECTION 1.   SEC. 4.   Section 402.5 of
the Revenue and Taxation Code is amended to read:
   402.5.  When valuing property by comparison with sales of other
properties, in order to be considered comparable, the sales shall be
sufficiently near in time to the valuation date, and the properties
sold shall be located sufficiently near the property being valued,
and shall be sufficiently alike in respect to character, size,
situation, usability, zoning, or other legal restriction as to use
unless rebutted pursuant to Section 402.1, to make it clear that the
properties sold and the properties being valued are comparable in
value and that the cash equivalent price realized for the properties
sold may fairly be considered as shedding light on the value of the
property being valued. "Near in time to the valuation date" does not
include any sale more than 90 days after the valuation date.
   SEC. 5.    (a) The State Board of Equalization shall
annually conduct a survey of counties, the results of which shall be
presented in a report that is made available to the Legislature and
the Department of Finance, on the operation of the provisions of
Sections 2 and 3 of this act.  
   (b) A report submitted pursuant to this section shall be submitted
in compliance with Section 9795 of the Government Code.  
   (c) Notwithstanding Section 10231.5 of the Government Code, this
section is repealed on July 1, 2024.