Bill Text: CA SB975 | 2015-2016 | Regular Session | Chaptered
Bill Title: Tax increment: property tax override rates.
Spectrum: Slight Partisan Bill (Democrat 5-2)
Status: (Passed) 2016-07-01 - Chaptered by Secretary of State. Chapter 49, Statutes of 2016. [SB975 Detail]
Download: California-2015-SB975-Chaptered.html
BILL NUMBER: SB 975 CHAPTERED
BILL TEXT
CHAPTER 49
FILED WITH SECRETARY OF STATE JULY 1, 2016
APPROVED BY GOVERNOR JULY 1, 2016
PASSED THE SENATE APRIL 14, 2016
PASSED THE ASSEMBLY JUNE 23, 2016
AMENDED IN SENATE MARCH 29, 2016
AMENDED IN SENATE MARCH 10, 2016
INTRODUCED BY Committee on Governance and Finance (Senators
Hertzberg (Chair), Beall, Hernandez, Lara, Moorlach, Nguyen, and
Pavley)
FEBRUARY 8, 2016
An act to amend Sections 53369.30, 53396, 53398.30, 53398.75, and
62005 of, and to add Article 18.5 (commencing with Section 53993) to
Chapter 4 of Part 1 of Division 2 of Title 5 of, the Government Code,
relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
SB 975, Committee on Governance and Finance. Tax increment:
property tax override rates.
Existing law establishes procedures for the formation of
infrastructure financing districts, enhanced infrastructure financing
districts, infrastructure and revitalization financing districts,
and community revitalization and investment authorities, as
specified, to undertake various economic development projects,
including financing public facilities and infrastructure, affordable
housing, and economic revitalization. Existing law authorizes an
infrastructure financing plan or a community revitalization and
investment plan to provide for the division of taxes levied upon
taxable property, if any, between the affected taxing entities, as
defined, and the district or authority.
This bill, for the purpose of any law authorizing the division of
taxes, would prohibit the division of revenues derived from a
property tax rate approved by the voters pursuant to specified
provisions of the California Constitution and levied in addition to
the general property tax rate limited by the California Constitution.
The bill would specify that this limitation does not apply to the
allocation of property taxes pursuant to provisions relating to the
wind down of the affairs of redevelopment agencies and the activities
of successor agencies. The bill would also make various conforming
changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 53369.30 of the Government Code is amended to
read:
53369.30. Any infrastructure financing plan may contain a
provision that taxes, if any, levied upon taxable property in the
area included within the infrastructure revitalization financing
district each year by or for the benefit of the State of California,
or any affected taxing entity after the effective date of the
ordinance adopted pursuant to Section 53369.23 to create the
district, shall be divided, subject to the provisions of Section
53993, as follows:
(a) That portion of the taxes which would be produced by the rate
upon which the tax is levied each year by or for each of the affected
taxing entities upon the total sum of the assessed value of the
taxable property in the district as shown upon the assessment roll
used in connection with the taxation of the property by the affected
taxing entity, last equalized prior to the effective date of the
ordinance adopted pursuant to Section 53369.23 to create the
district, shall be allocated to, and when collected shall be paid to,
the respective affected taxing entities as taxes by or for the
affected taxing entities on all other property are paid.
(b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city and each affected
taxing entity which has agreed to participate pursuant to Section
53369.19 in excess of the amount specified in subdivision (a) shall
be allocated to, and when collected shall be paid into a special fund
of, the district for all lawful purposes of the district. Unless and
until the total assessed valuation of the taxable property in a
district exceeds the total assessed value of the taxable property in
the district as shown by the last equalized assessment roll referred
to in subdivision (a), all of the taxes levied and collected upon the
taxable property in the district shall be paid to the respective
affected taxing entities. When the district ceases to exist pursuant
to the adopted infrastructure financing plan, all moneys thereafter
received from taxes upon the taxable property in the district shall
be paid to the respective affected taxing entities as taxes on all
other property are paid.
SEC. 2. Section 53396 of the Government Code is amended to read:
53396. Any infrastructure financing plan may contain a provision
that taxes, if any, levied upon taxable property in the area included
within the infrastructure financing district each year by or for the
benefit of the State of California, or any affected taxing entity
after the effective date of the ordinance adopted pursuant to Section
53395.23 to create the district, shall be divided, subject to the
provisions of Section 53993, as follows:
(a) That portion of the taxes which would be produced by the rate
upon which the tax is levied each year by or for each of the affected
taxing entities upon the total sum of the assessed value of the
taxable property in the district as shown upon the assessment roll
used in connection with the taxation of the property by the affected
taxing entity, last equalized prior to the effective date of the
ordinance adopted pursuant to Section 53395.23 to create the
district, shall be allocated to, and when collected shall be paid to,
the respective affected taxing entities as taxes by or for the
affected taxing entities on all other property are paid.
(b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city or county and each
affected taxing entity which has agreed to participate pursuant to
Section 53395.19 in excess of the amount specified in subdivision (a)
shall be allocated to, and when collected shall be paid into a
special fund of, the district for all lawful purposes of the
district. Unless and until the total assessed valuation of the
taxable property in a district exceeds the total assessed value of
the taxable property in the district as shown by the last equalized
assessment roll referred to in subdivision (a), all of the taxes
levied and collected upon the taxable property in the district shall
be paid to the respective affected taxing entities. When the district
ceases to exist pursuant to the adopted infrastructure financing
plan, all moneys thereafter received from taxes upon the taxable
property in the district shall be paid to the respective affected
taxing entities as taxes on all other property are paid.
SEC. 3. Section 53398.30 of the Government Code is amended to
read:
53398.30. Any infrastructure financing plan may contain a
provision that taxes, if any, levied upon taxable property in the
area included within the infrastructure financing district each year
by or for the benefit of the State of California, or any affected
taxing entity after the effective date of the ordinance adopted
pursuant to Section 53398.20 to create the district, shall be
divided, subject to the provisions of Section 53993, as follows:
(a) That portion of the taxes that would be produced by the rate
upon which the tax is levied each year by or for each of the affected
taxing entities upon the total sum of the assessed value of the
taxable property in the district as shown upon the assessment roll
used in connection with the taxation of the property by the affected
taxing entity, last equalized prior to the effective date of the
ordinance adopted pursuant to Section 53398.20 to create the
district, shall be allocated to, and when collected shall be paid to,
the respective affected taxing entities as taxes by or for the
affected taxing entities on all other property are paid.
(b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city and each affected
taxing entity that has agreed to participate pursuant to Section
53398.19 in excess of the amount specified in subdivision (a) shall
be allocated to, and when collected shall be paid into a special fund
of, the district for all lawful purposes of the district. Unless and
until the total assessed valuation of the taxable property in a
district exceeds the total assessed value of the taxable property in
the district as shown by the last equalized assessment roll referred
to in subdivision (a), all of the taxes levied and collected upon the
taxable property in the district shall be paid to the respective
affected taxing entities. When the district ceases to exist pursuant
to the adopted infrastructure financing plan, all moneys thereafter
received from taxes upon the taxable property in the district shall
be paid to the respective affected taxing entities as taxes on all
other property are paid.
SEC. 4. Section 53398.75 of the Government Code is amended to
read:
53398.75. (a) Any infrastructure financing plan may contain a
provision that taxes, if any, levied upon taxable property in the
area included within the enhanced infrastructure financing district
each year by or for the benefit of the State of California, or any
affected taxing entity after the effective date of the ordinance
adopted pursuant to Section 53398.69 to create the district, shall be
divided, subject to the provisions of Section 53993, as follows:
(1) That portion of the taxes that would be produced by the rate
upon which the tax is levied each year by or for each of the affected
taxing entities upon the total sum of the assessed value of the
taxable property in the district as shown upon the assessment roll
used in connection with the taxation of the property by the affected
taxing entity, last equalized prior to the effective date of the
ordinance adopted pursuant to Section 53398.69 to create the
district, shall be allocated to, and when collected shall be paid to,
the respective affected taxing entities as taxes by or for the
affected taxing entities on all other property are paid.
(2) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city or county and each
affected taxing entity that has agreed to participate pursuant to
Section 53398.68 in excess of the amount specified in paragraph (1)
shall be allocated to, and when collected shall be paid into a
special fund of, the district for all lawful purposes of the
district. Unless and until the total assessed valuation of the
taxable property in a district exceeds the total assessed value of
the taxable property in the district as shown by the last equalized
assessment roll referred to in paragraph (1), all of the taxes levied
and collected upon the taxable property in the district shall be
paid to the respective affected taxing entities. When the district
ceases to exist pursuant to the adopted infrastructure financing
plan, all moneys thereafter received from taxes upon the taxable
property in the district shall be paid to the respective affected
taxing entities as taxes on all other property are paid.
(b) Notwithstanding subdivision (a), where any district boundaries
overlap with the boundaries of any former redevelopment project
area, any debt or obligation of a district shall be subordinate to
any and all enforceable obligations of the former redevelopment
agency, as approved by the Oversight Board and the Department of
Finance. For the purposes of this chapter, the division of taxes
allocated to the district pursuant to subdivision (a) of this section
or of subdivision (b) of Section 53396 shall not include any taxes
required to be deposited by the county auditor-controller into the
Redevelopment Property Tax Trust Fund created pursuant to subdivision
(b) of Section 34170.5 of the Health and Safety Code.
(c) The legislative body of the city or county forming the
district may choose to dedicate any portion of its net available
revenue to the district through the financing plan described in
Section 53398.63.
(d) For the purposes of this section, "net available revenue"
means periodic distributions to the city or county from the
Redevelopment Property Tax Trust Fund, created pursuant to Section
34170.5 of the Health and Safety Code, that are available to the city
or county after all preexisting legal commitments and statutory
obligations funded from that revenue are made pursuant to Part 1.85
(commencing with Section 34170) of Division 24 of the Health and
Safety Code. "Net available revenue" shall not include any funds
deposited by the county auditor-controller into the Redevelopment
Property Tax Trust Fund or funds remaining in the Redevelopment
Property Tax Trust Fund prior to distribution. Net available revenues
shall not include any moneys payable to a school district that
maintains kindergarten and grades 1 to 12, inclusive, community
college districts, county office of education, or to the Educational
Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision
(a) of Section 34183 of the Health and Safety Code.
(e) (1) That portion of any ad valorem property tax revenue
annually allocated to a city or county pursuant to Section 97.70 of
the Revenue and Taxation Code that is specified in the adopted
infrastructure financing plan for the city or county that has agreed
to participate pursuant to Section 53398.68, and that corresponds to
the increase in the assessed valuation of taxable property shall be
allocated to, and, when collected, shall be apportioned to, a special
fund of the district for all lawful purposes of the district.
(2) When the district ceases to exist pursuant to the adopted
infrastructure financing plan, the revenues described in this
subdivision shall be allocated to, and, when collected, shall be
apportioned to, the respective city or county.
(f) This section shall not be construed to prevent a district from
utilizing revenues from any of the following sources to support its
activities provided that the applicable voter approval has been
obtained, and the infrastructure financing plan has been approved
pursuant to Section 53398.69:
(1) The Improvement Act of 1911 (Division 7 (commencing with
Section 5000) of the Streets and Highways Code).
(2) The Municipal Improvement Act of 1913 (Division 12 (commencing
with Section 10000) of the Streets and Highways Code).
(3) The Improvement Bond Act of 1915 (Division 10 (commencing with
Section 8500) of the Streets and Highways Code).
(4) The Landscaping and Lighting Act of 1972 (Part 2 (commencing
with Section 22500) of Division 15 of the Streets and Highways Code).
(5) The Vehicle Parking District Law of 1943 (Part 1 (commencing
with Section 31500) of Division 18 of the Streets and Highways Code).
(6) The Parking District Law of 1951 (Part 4 (commencing with
Section 35100) of Division 18 of the Streets and Highways Code).
(7) The Park and Playground Act of 1909 (Chapter 7 (commencing
with Section 38000) of Part 2 of Division 3 of Title 4 of this code).
(8) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of this
title).
(9) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing
with Section 54703) of Part 1 of Division 2 of this title).
(10) The so-called facilities benefit assessment levied by the
charter city of San Diego or any substantially similar assessment
levied for the same purpose by any other charter city pursuant to any
ordinance or charter provision.
SEC. 5. Article 18.5 (commencing with Section 53993) is added to
Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code,
to read:
Article 18.5. Division of Property Taxes
53993. (a) Notwithstanding any other law, except as provided in
subdivision (b), for the purpose of any law authorizing the division
of taxes levied upon taxable property, including, but not limited to,
Sections 53369.30, 53396, 53398.30, 53398.75, and 62005, no revenues
derived from the imposition of a property tax rate approved by the
voters pursuant to subdivision (b) of Section 1 of Article XIII A of
the California Constitution and levied in addition to the property
tax rate limited by subdivision (a) of Section 1 of Article XIII A of
the California Constitution shall be divided.
(b) Subdivision (a) shall not apply to the allocation of property
taxes pursuant to Part 1.85 (commencing with Section 34170) of
Division 24 of the Health and Safety Code.
SEC. 6. Section 62005 of the Government Code is amended to read:
62005. (a) (1) The plan adopted pursuant to Section 62004 may
include a provision that taxes levied and collected upon taxable
property in the area included within the territory each year by or
for the benefit the taxing agencies that have adopted a resolution
pursuant to subdivision (d), shall be divided, subject to the
provisions of Section 53993, as follows:
(A) That portion of the taxes that would have been produced by the
rate upon which the tax is levied each year by or for each of the
consenting local agencies upon the total sum of the assessed value of
the taxable property in the territory as shown upon the assessment
roll used in connection with the taxation of the property by the
consenting local agency, last equalized prior to the effective date
of the certification of completion, and that portion of taxes by or
for each school entity, shall be allocated to, and when collected
shall be paid to, the respective consenting local agencies and school
entities as taxes by or for the consenting local agencies and school
entities on all property are paid.
(B) That portion of the levied taxes each year specified in the
community revitalization plan adopted pursuant to Section 62004 for
each consenting local agency that has agreed to participate pursuant
a resolution adopted pursuant to subdivision (d), in excess of the
amount specified in subparagraph (A), shall be allocated to, and when
collected shall be paid into a special fund of the authority to
finance the improvements specified in the community revitalization
plan.
(2) A consenting local agency may advance funds to the authority.
The authority shall use those advanced funds solely for the purposes
specified in the community revitalization plan and shall repay the
consenting local agency with revenue from the taxes received pursuant
to this subdivision.
(b) For purposes of this section, the following definitions apply:
(1) "Taxing agency" means a local agency as defined by subdivision
(a) of Section 95 of the Revenue and Taxation Code, and does not
include any school entity as defined in subdivision (f) of Section 95
of the Revenue and Taxation Code.
(2) "Consenting local agency" means a local agency that has
adopted a resolution of its governing body consenting to the
community revitalization and investment plan.
(3) "Territory" means the land that is contained within the
community revitalization plan.
(c) The provision for the receipt of tax increment funds shall
become effective in the tax year that begins after the December 1
first following the adoption of the plan.
(d) At any time prior to or after adoption of the plan, any city,
county, or special district, other than a school entity as defined in
subdivision (n) of Section 95 of the Revenue and Taxation Code or a
successor agency as defined in subdivision (j) of Section 34171, that
receives ad valorem property taxes from property located within an
area may adopt a resolution directing the county auditor-controller
to allocate its share of tax increment funds within the area covered
by the plan according to subdivision (a) to the authority. The
resolution adopted pursuant to this subdivision may direct the county
auditor-controller to allocate less than the full amount of the tax
increment, establish a maximum amount of time in years that the
allocation takes place, or limit the use of the funds by the
authority for specific purposes or programs, provided that 25 percent
of the amount of tax increment designated shall be allocated for
affordable housing pursuant to Section 62100. A resolution adopted
pursuant to this subdivision may be repealed and be of no further
effect by giving the county auditor-controller 60 days' notice;
provided, however, that the county auditor-controller shall continue
to allocate to the authority the taxing entity's share of ad valorem
property taxes that have been pledged to the repayment of debt issued
by the authority until the debt has been fully repaid. Prior to
adopting a resolution pursuant to this subdivision, a city, county,
or special district shall approve a memorandum of understanding with
the authority governing the authority's use of tax increment funds
for administrative and overhead expenses pursuant to subdivision (g)
of Section 62001.
(e) Upon adoption of a plan that includes a provision for the
receipt of tax increment funds according to subdivision (a), the
county auditor-controller shall allocate tax increment revenue to the
authority as follows:
(1) If the authority was formed pursuant to subparagraph (A) of
paragraph (1) of subdivision (b) of Section 62001, the authority
shall be allocated each year specified in the plan that portion of
the taxes levied for each city, county, city and county, and special
district that has adopted a resolution pursuant to subdivision (d),
in excess of the amount specified in paragraph (1) of subdivision
(a).
(2) If the authority was formed pursuant to subparagraph (B) of
paragraph (1) of subdivision (b) of Section 62001, the authority
shall be allocated each year specified in the plan that portion of
the taxes levied for each jurisdiction as provided in the joint
powers agreement in excess of the amount specified in paragraph (1)
of subdivision (a).
(f) If an area includes, in whole or in part, land formerly or
currently designated as a part of a redevelopment project area, as
defined in Section 33320.1 of the Health and Safety Code, any plan
adopted pursuant to this part that includes a provision for the
receipt of tax increment revenues according to subdivision (a) shall
include a provision that tax increment amounts payable to an
authority are subject and subordinate to any preexisting enforceable
obligation as that term is defined by Section 34171 of the Health and
Safety Code.
