BILL NUMBER: SB 85 ENROLLED
BILL TEXT
PASSED THE SENATE FEBRUARY 11, 2010
PASSED THE ASSEMBLY JANUARY 27, 2010
AMENDED IN ASSEMBLY OCTOBER 26, 2009
AMENDED IN ASSEMBLY SEPTEMBER 10, 2009
AMENDED IN ASSEMBLY SEPTEMBER 4, 2009
INTRODUCED BY Senator Cogdill
(Coauthors: Senators Denham and Wolk)
(Coauthor: Assembly Member Yamada)
JANUARY 20, 2009
An act to add Sections 96.11 and 97.81 to the Revenue and Taxation
Code, relating to local government finance.
LEGISLATIVE COUNSEL'S DIGEST
SB 85, Cogdill. Local government finance.
Existing property tax law requires the county auditor, in each
fiscal year, to allocate property tax revenues to local jurisdictions
in accordance with specified formulas and procedures, and generally
requires that each jurisdiction 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 reduces the amounts of ad valorem
property tax revenue that would otherwise be annually allocated to
the county, cities, and special districts pursuant to these general
allocation requirements by requiring, for purposes of determining
property tax revenue allocations in each county for the 1992-93 and
1993-94 fiscal years, that 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.
This bill would, for purposes of property tax revenue allocations
for the 2011-12 and 2012-13 fiscal years, require the county auditor
for a county for which a negative sum was calculated pursuant to a
specified former statute, in reducing the amount of property tax
revenue otherwise allocated to the county by an amount attributable
to that negative sum, to apply a reduction amount equal to the
reduction amount determined for specified fiscal years.
This bill would also, for the 2011-12 fiscal year and for each
fiscal year thereafter, require the auditor of a qualified county, as
defined, to increase the total amount of ad valorem property tax
revenue otherwise required to be allocated to that county by the
county equity amount, as defined, and to commensurately reduce the
total amount of ad valorem property tax revenue otherwise required to
be allocated to school entities in the county, as specified.
By imposing new duties in the annual allocation of ad valorem
property tax revenues, the 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 no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 96.11 is added to the Revenue and Taxation
Code, to read:
96.11. Notwithstanding any other provision of this article, for
purposes of property tax revenue allocations, the county auditor of a
county for which a negative sum was calculated pursuant to
subdivision (a) of former Section 97.75 as that section read on
September 19, 1983, shall, in reducing the amount of property tax
revenue that otherwise would be allocated to the county by an amount
attributable to that negative sum, do all of the following:
(a) For the 2011-12 fiscal year, apply a reduction amount that is
equal to the lesser of either of the following:
(1) The reduction amount that was determined for the 2010-11
fiscal year.
(2) The reduction amount that is determined for the 2011-12 fiscal
year.
(b) For the 2012-13 fiscal year, apply a reduction amount that is
equal to the lesser of either of the following:
(1) The reduction amount that was determined in subdivision (a)
for the 2011-12 fiscal year.
(2) The reduction amount that is determined for the 2012-13 fiscal
year.
(c) For the 2013-14 fiscal year and each fiscal year thereafter,
apply a reduction amount that is determined on the basis of the
reduction amount applied for the immediately preceding fiscal year.
SEC. 2. Section 97.81 is added to the Revenue and Taxation Code,
to read:
97.81. (a) Notwithstanding any other provision of law, for the
2011-12 fiscal year and for each fiscal year thereafter, the auditor
of a qualified county shall do both of the following:
(1) Increase the total amount of ad valorem property tax revenue
that is otherwise required to be allocated to that county by the
county equity amount.
(2) (A) Decrease the total amount of ad valorem property tax
revenue that is otherwise required to be allocated to the county
Educational Revenue Augmentation Fund by the county equity amount.
(B) If, for any fiscal year, 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 in the county for that fiscal year by an amount
equal to the difference between the county equity 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 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 bears to the total amount of ad valorem property tax revenue
that is otherwise required to be allocated to all school districts
in a county. For purposes of this subparagraph, "school districts" do
not include any districts that are excess tax school entities, as
defined in Section 95.
(C) Any reduction in the amount of ad valorem property tax
revenues deposited in the county's Educational Revenue Augmentation
Fund as a result of subparagraph (A) shall be applied exclusively to
reduce the amounts that are allocated from that fund to school
districts and county offices of education, and shall not be applied
to reduce the amounts of ad valorem property tax revenues that are
otherwise required to be allocated from that fund to community
college districts.
(b) For purposes of this section:
(1) "Qualified county" means the county that, of all the counties
in the state, was allocated the second lowest percentage of the sum
of both of the following for the 2006-07 fiscal year:
(A) The countywide ad valorem property tax revenue.
(B) The less than countywide ad valorem property tax revenue.
(2) "County equity amount" means one hundred thousand dollars
($100,000) in the 2011-12 fiscal year, and two hundred thousand
dollars ($200,000) in the 2012-13 fiscal year and each fiscal year
thereafter.
(c) For the 2011-12 fiscal year and for each fiscal year
thereafter, ad valorem property tax revenue allocations made pursuant
to Sections 96.1 and 96.5 shall not incorporate the allocation
adjustments made by this section.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
this act provides for offsetting savings to local agencies or school
districts that result in no net costs to the local agencies or school
districts, within the meaning of Section 17556 of the Government
Code.