Bill Text: CA SB56 | 2013-2014 | Regular Session | Amended
Bill Title: Local government finance: property tax revenue allocation: vehicle license fee adjustments.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB56 Detail]
Download: California-2013-SB56-Amended.html
BILL NUMBER: SB 56 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 11, 2013
AMENDED IN SENATE MAY 30, 2013
AMENDED IN SENATE APRIL 23, 2013
AMENDED IN SENATE MARCH 4, 2013
INTRODUCED BY Senators Roth and Emmerson
JANUARY 7, 2013
An act to amend Section 97.70 of the Revenue and Taxation Code,
relating to local government finance, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 56, as amended, Roth. Local government finance: property
tax revenue allocation: vehicle license fee adjustments.
Existing property tax law requires the county auditor, in each
fiscal year, to allocate property tax revenue to local jurisdictions
in accordance with specified formulas and procedures, and generally
provides that each jurisdiction shall be allocated an amount equal to
the total of the amount of revenue allocated to that jurisdiction in
the prior fiscal year, subject to certain modifications, and that
jurisdiction's portion of the annual tax increment, as defined.
Existing property tax law also requires that, for purposes of
determining property tax revenue allocations in each county for the
1992-93 and 1993-94 fiscal years, the amounts of property tax revenue
deemed allocated in the prior fiscal year to the county, cities, and
special districts be reduced in accordance with certain formulas. It
requires that the revenues not allocated to the county, cities, and
special districts as a result of these reductions be transferred to
the Educational Revenue Augmentation Fund in that county for
allocation to school districts, community college districts, and the
county office of education.
The Vehicle License Fee Law establishes, in lieu of any ad valorem
property tax upon vehicles, an annual license fee for any vehicle
subject to registration in this state. Beginning
Beginning with the 2004-05 fiscal year and for each
fiscal year thereafter, existing law requires that each city, county,
and city and county receive additional property tax revenues in
the form of a vehicle license fee adjustment amount, as
defined, from a Vehicle License Fee Property Tax Compensation Fund
that exists in each county treasury. Existing law requires that these
amounts additional allocations be
funded from ad valorem property tax revenues otherwise required to be
allocated to educational entities.
This bill would modify these reduction and transfer
provisions , for the 2013-14 fiscal year and for each fiscal
year thereafter, provide by providing
for a vehicle license fee adjustment amount calculated on the basis
of changes in assessed valuation. This bill would also
modify these reduction and transfer pro visions
, for the 2013-14 fiscal year and for each fiscal year thereafter,
provide by providing for a vehicle
license fee adjustment amount for certain cities incorporating after
a specified date, as provided.
By imposing additional duties upon local tax officials with
respect to the allocation of ad valorem property tax revenues, this
bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 97.70 of the Revenue and Taxation Code is
amended to read:
97.70. Notwithstanding any other law, for the 2004-05 fiscal year
and for each fiscal year thereafter, all of the following apply:
(a) (1) (A) The auditor shall reduce the total amount of ad
valorem property tax revenue that is otherwise required to be
allocated to a county's Educational Revenue Augmentation Fund by the
countywide vehicle license fee adjustment amount.
(B) If, for the fiscal year, after complying with Section 97.68
there is not enough ad valorem property tax revenue that is otherwise
required to be allocated to a county Educational Revenue
Augmentation Fund for the auditor to complete the allocation
reduction required by subparagraph (A), the auditor shall
additionally reduce the total amount of ad valorem property tax
revenue that is otherwise required to be allocated to all school
districts and community college districts in the county for that
fiscal year by an amount equal to the difference between the
countywide vehicle license fee adjustment amount and the amount of ad
valorem property tax revenue that is otherwise required to be
allocated to the county Educational Revenue Augmentation Fund for
that fiscal year. This reduction for each school district and
community college district in the county shall be the percentage
share of the total reduction that is equal to the proportion that the
total amount of ad valorem property tax revenue that is otherwise
required to be allocated to the school district or community college
district bears to the total amount of ad valorem property tax revenue
that is otherwise required to be allocated to all school districts
and community college districts in a county. For purposes of this
subparagraph, "school districts" and "community college districts" do
not include any districts that are excess tax school entities, as
defined in Section 95.
(2) The countywide vehicle license fee adjustment amount shall be
allocated to the Vehicle License Fee Property Tax Compensation Fund
that shall be established in the treasury of each county.
(b) (1) The auditor shall allocate moneys in the Vehicle License
Fee Property Tax Compensation Fund according to the following:
(A) Each city in the county shall receive its vehicle license fee
adjustment amount.
(B) Each county and city and county shall receive its vehicle
license fee adjustment amount.
(2) The auditor shall allocate one-half of the amount specified in
paragraph (1) on or before January 31 of each fiscal year, and the
other one-half on or before May 31 of each fiscal year.
(c) For purposes of this section, all of the following apply:
(1) "Vehicle license fee adjustment amount" for a particular city,
county, or a city and county means, subject to an adjustment under
paragraph (2) and Section 97.71, all of the following:
(A) For the 2004-05 fiscal year, an amount equal to the difference
between the following two amounts:
(i) The estimated total amount of revenue that would have been
deposited to the credit of the Motor Vehicle License Fee Account in
the Transportation Tax Fund, including any amounts that would have
been certified to the Controller by the auditor of the County of
Ventura under subdivision (j) of Section 98.02, as that section read
on January 1, 2004, for distribution under the law as it read on
January 1, 2004, to the county, city and county, or city for the
2004-05 fiscal year if the fee otherwise due under the Vehicle
License Fee Law (Part 5 (commencing with Section 10701) of Division
2) was 2 percent of the market value of a vehicle, as specified in
Section 10752 and 10752.1 as those sections read on January 1, 2004.
(ii) The estimated total amount of revenue that is required to be
distributed from the Motor Vehicle License Fee Account in the
Transportation Tax Fund to the county, city and county, and each city
in the county for the 2004-05 fiscal year under Section 11005, as
that section read on the operative date of the act that amended this
clause.
(B) (i) Subject to an adjustment under clause (ii), for the
2005-06 fiscal year, the sum of the following two amounts:
(I) The difference between the following two amounts:
(ia) The actual total amount of revenue that would have been
deposited to the credit of the Motor Vehicle License Fee Account in
the Transportation Tax Fund, including any amounts that would have
been certified to the Controller by the auditor of the County of
Ventura under subdivision (j) of Section 98.02, as that section read
on January 1, 2004, for distribution under the law as it read on
January 1, 2004, to the county, city and county, or city for the
2004-05 fiscal year if the fee otherwise due under the Vehicle
License Fee Law (Part 5 (commencing with Section 10701) of Division
2) was 2 percent of the market value of a vehicle, as specified in
Sections 10752 and 10752.1 as those sections read on January 1, 2004.
(ib) The actual total amount of revenue that was distributed from
the Motor Vehicle License Fee Account in the Transportation Tax Fund
to the county, city and county, and each city in the county for the
2004-05 fiscal year under Section 11005, as that section read on the
operative date of the act that amended this sub-subclause
subsubclause .
(II) The product of the following two amounts:
(ia) The amount described in subclause (I).
(ib) The percentage change from the prior fiscal year to the
current fiscal year in gross taxable assessed valuation within the
jurisdiction of the entity, as reflected in the equalized assessment
roll for those fiscal years. For the first fiscal year for which a
change in a city's jurisdictional boundaries first applies, the
percentage change in gross taxable assessed valuation from the prior
fiscal year to the current fiscal year shall be calculated solely on
the basis of the city's previous jurisdictional boundaries, without
regard to the change in that city's jurisdictional boundaries. For
each following fiscal year, the percentage change in gross taxable
assessed valuation from the prior fiscal year to the current fiscal
year shall be calculated on the basis of the city's current
jurisdictional boundaries.
(ii) The amount described in clause (i) shall be adjusted as
follows:
(I) If the amount described in subclause (I) of clause (i) for a
particular city, county, or city and county is greater than the
amount described in subparagraph (A) for that city, county, or city
and county, the amount described in clause (i) shall be increased by
an amount equal to this difference.
(II) If the amount described in subclause (I) of clause (i) for a
particular city, county, or city and county is less than the amount
described in subparagraph (A) for that city, county, or city and
county, the amount described in clause (i) shall be decreased by an
amount equal to this difference.
(C) For the 2006-07 fiscal year to the 2012-13 fiscal year,
inclusive, the sum of the following two amounts:
(i) The vehicle license fee adjustment amount for the prior fiscal
year, if Section 97.71 and clause (ii) of subparagraph (B) did not
apply for that fiscal year, for that city, county, and city and
county.
(ii) The product of the following two amounts:
(I) The amount described in clause (i).
(II) The percentage change from the prior fiscal year to the
current fiscal year in gross taxable assessed valuation within the
jurisdiction of the entity, as reflected in the equalized assessment
roll for those fiscal years. For the first fiscal year for which a
change in a city's jurisdictional boundaries first applies, the
percentage change in gross taxable assessed valuation from the prior
fiscal year to the current fiscal year shall be calculated solely on
the basis of the city's previous jurisdictional boundaries, without
regard to the change in that city's jurisdictional boundaries. For
each following fiscal year, the percentage change in gross taxable
assessed valuation from the prior fiscal year to the current fiscal
year shall be calculated on the basis of the city's current
jurisdictional boundaries.
(D) For the 2013-14 fiscal year, the vehicle license fee
adjustment amount shall be equal to the sum of the following two
amounts:
(i) The amount described in clause (i) of subparagraph (B) if
Section 97.71 and clause (ii) of subparagraph (B) did not apply for
that fiscal year, for that city, county, and city and county.
(ii) The product of the following two amounts:
(I) The amount described in clause (i).
(II) The percentage change from the 2004-05 fiscal year to the
2013-14 fiscal year, inclusive, in gross taxable assessed valuation
within the jurisdiction of the entity, as reflected in the equalized
assessment roll for those fiscal years.
(E) For the 2014-15 fiscal year and each fiscal year thereafter,
the sum of the following two amounts:
(i) The vehicle license fee adjustment amount for the prior fiscal
year.
(ii) The product of the following two amounts:
(I) The amount described in clause (i).
(II) The percentage change from the immediately preceding fiscal
year to the current fiscal year in gross taxable assessed valuation
within the jurisdiction of the entity, as reflected in the equalized
assessment roll for those fiscal years.
(2) Notwithstanding paragraph (1), "vehicle license fee adjustment
amount," for the 2013-14 fiscal year and each fiscal year
thereafter for a city incorporating after January 1,
2014, 2004, means the following:
(A) For the 2013-14 fiscal year, or the first year of
incorporation of the city, whichever is later, the quotient derived
from the following fraction:
(i) The numerator is the product of the following two amounts:
(I) The sum of the most recent vehicle license fee adjustment
amounts determined for all cities in the county incorporated prior to
2005.
(II) The population of the incorporating city.
(ii) The denominator is the sum of the populations of all cities
in the county.
(B) For the 2014-15 fiscal year, and for each
fiscal year thereafter, the sum of the following two amounts:
(i) The vehicle license fee adjustment amount for the prior fiscal
year.
(ii) The product of the following two amounts:
(I) The amount described in clause (i).
(II) The percentage change from the prior fiscal year to the
current fiscal year in gross taxable assessed valuation within the
jurisdiction of the entity, as reflected in the equalized assessment
roll for those fiscal years.
(3) "Countywide vehicle license fee adjustment amount" means, for
any fiscal year, the total sum of the amounts described in paragraphs
(1) and (2), for a county or city and county, and each city in the
county.
(4) On or before June 30 of each fiscal year, the auditor shall
report to the Controller the vehicle license fee adjustment amount
for the county and each city in the county for that fiscal year.
(d) For the 2005-06 fiscal year and each fiscal year thereafter,
the amounts determined under subdivision (a) of Section 96.1, or any
successor to that provision, shall not reflect, for a preceding
fiscal year, any portion of any allocation required by this section.
(e) For purposes of Section 15 of Article XI of the California
Constitution, the allocations from a Vehicle License Fee Property Tax
Compensation Fund constitute successor taxes that are otherwise
required to be allocated to counties and cities, and as successor
taxes, the obligation to make those transfers as required by this
section shall not be extinguished nor disregarded in any manner that
adversely affects the security of, or the ability of, a county or
city to pay the principal and interest on any debts or obligations
that were funded or secured by that city's or county's allocated
share of motor vehicle license fee revenues.
(f) This section shall not be construed to do any of the
following:
(1) Reduce any allocations of excess, additional, or remaining
funds that would otherwise have been allocated to county
superintendents of schools, cities, counties, and cities and counties
pursuant to clause (i) of subparagraph (B) of paragraph (4) of
subdivision (d) of Sections 97.2 and 97.3 or Article 4 (commencing
with Section 98) had this section not been enacted. The allocations
required by this section shall be adjusted to comply with this
paragraph.
(2) Require an increased ad valorem property tax revenue
allocation or increased tax increment allocation to a community
redevelopment agency.
(3) Alter the manner in which ad valorem property tax revenue
growth from fiscal year to fiscal year is otherwise determined or
allocated in a county.
(4) Reduce ad valorem property tax revenue allocations required
under Article 4 (commencing with Section 98).
(g) Tax exchange or revenue sharing agreements, entered into prior
to the operative date of this section, between local agencies or
between local agencies and nonlocal agencies are deemed to be
modified to account for the reduced vehicle license fee revenues
resulting from the act that added this section. These agreements are
modified in that these reduced revenues are, in kind and in lieu
thereof, replaced with ad valorem property tax revenue from a Vehicle
License Fee Property Tax Compensation Fund or an Educational Revenue
Augmentation Fund.
SEC. 2. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
SEC. 3. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to provide timely fiscal relief to preserve the public
peace, health, and safety in incorporated cities and cities that
annexed inhabited areas that lost revenue as a result of the passage
of Senate Bill 89 of the 2011-12 Regular Session (Chapter 35 of the
Statutes of 2011), it is necessary that this act take effect
immediately.
