Bill Text: CA AB191 | 2011-2012 | Regular Session | Introduced
Bill Title: Local government finance: property tax revenue
Sponsorship: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB191 Detail]
Download: California-2011-AB191-Introduced.html
BILL NUMBER: AB 191 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Members Bill Berryhill and Galgiani
(Principal coauthor: Assembly Member Olsen)
(Principal coauthors: Senators Berryhill and Cannella)
JANUARY 26, 2011
An act to repeal and add Section 96.11 of the Revenue and Taxation
Code, relating to local government finance, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 191, as introduced, Bill Berryhill. Local government finance:
property tax revenue allocations: negative sum counties.
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 law requires, for purposes of property tax revenue
allocations for the 2011-12 and 2012-13 fiscal years, 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 instead require, for the 2010-11 fiscal year, the
county auditor for a county for which a negative sum was calculated
as described above, to increase the total amount of ad valorem
property tax revenues deemed allocated to the county in the
immediately preceding fiscal year by an amount equal to the absolute
value of the negative sum calculated for the county, and the
proportional share of any growth in assessed valuations of property
attributable to that negative sum through the 2009-10 fiscal year.
This bill would also require, for the 2011-12 fiscal year and for
each fiscal year thereafter, the amount of property tax revenue
deemed allocated to a county in the immediately preceding fiscal year
include the full amount of any increase implemented by the auditor,
as so described, in that fiscal year, and would require that amount
to be reduced from the total amount of ad valorem property tax
revenue deemed allocated to the county's Educational Revenue
Augmentation Fund.
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, 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 96.11 of the Revenue and Taxation Code is
repealed.
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 96.11 is added to the Revenue and Taxation Code,
to read:
96.11. (a) Notwithstanding any other provision of this article,
for the 2010-11 fiscal year the 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 do
both of the following:
(1) Increase the total amount of ad valorem property tax revenue
deemed allocated to the county in the immediately preceding fiscal
year by an amount equal to the absolute value of the negative sum
calculated for the county pursuant to subdivision (a) of former
Section 97.75 as that section read on September 19, 1983, and the
proportional share of any growth in assessed valuations of property
attributable to that negative sum through the 2009-10 fiscal year.
For purposes of this paragraph, "proportional share of any growth in
assessed valuation of property attributable to that negative sum"
means that amount that results in a fiscal year from the annual
compounding of the absolute value of the previously calculated
negative sum amount, from fiscal year to fiscal year, by the
application of the relevant proportional share of the county's amount
of annual tax increment as determined in accordance with Section
96.5, or any predecessor to that section.
(2) Reduce the total amount of ad valorem property tax revenue
deemed allocated to the county's Educational Revenue Augmentation
Fund by the amount of the increase described in paragraph (1).
(b) For the 2011-12 fiscal year and for each fiscal year
thereafter, the amount of the increases and reductions required by
subdivision (a) shall be fully reflected in the application of
paragraph (1) of subdivision (a) of Section 96.1 and Section 96.5, or
any successor to either of those provisions.
SEC. 3. 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. 4. 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 timely provide vital fiscal relief to counties
suffering from unusually acute fiscal difficulties, it is necessary
that this act take effect immediately.
