Bill Text: CA SCA5 | 2015-2016 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Local government finance.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2016-11-30 - From committee without further action. [SCA5 Detail]
Download: California-2015-SCA5-Amended.html
Bill Title: Local government finance.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2016-11-30 - From committee without further action. [SCA5 Detail]
Download: California-2015-SCA5-Amended.html
BILL NUMBER: SCA 5 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 8, 2015
AMENDED IN SENATE JUNE 9, 2015
INTRODUCED BY Senators Hancock and Mitchell
MARCH 26, 2015
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending
Section 2 of, and adding Section 3.1 to Article XIII
thereof, by adding Sections 2.5 and 8.8 to,
to Article XIII A thereof, by adding Sections 8.8
and Section 14 to Article XIII B thereof, and
by adding Sections 8.6 and 8.7 to Article XVI thereof, relating to
local government finance.
LEGISLATIVE COUNSEL'S DIGEST
SCA 5, as amended, Hancock. Local government finance.
The California Constitution provides that all property is taxable,
unless exempted by the California Constitution or by federal law.
The California Constitution authorizes the Legislature to classify
personal property for differential taxation or for exemption by means
of a statute approved by a 2/3 vote of the membership of each house.
This measure would exempt from taxation an amount up to $500,000
of tangible personal property used exclusively for business purposes.
This measure would prohibit the Legislature from lowering this
exemption amount or from changing its application, but would
authorize it to be increased consistent with the authority described
above. This measure would provide that this provision shall become
operative on January 1, 2019.
This measure, for owners of commercial and industrial property
subject to reassessment, who also operate a business or businesses on
that property, where the increase in assessed value as a result of
this measure exceeds 25% compared to the assessed value of the
property prior to the operation of this measure, would exempt that
portion of the assessed value that exceeds 25% as so described from
taxation for a period of 5 years if specified conditions are met.
The California Constitution generally limits ad valorem taxes on
real property to 1% of the full cash value of that property. For
purposes of this limitation, "full cash value" is defined as the
assessor's valuation of real property as shown on the 1975-76 tax
bill under "full cash value" or, thereafter, the appraised value of
that real property when purchased, newly constructed, or a change in
ownership has occurred.
This measure, commencing on the lien date for the 2018-19 fiscal
year, would require the full cash value of commercial and industrial
property, as defined, to be the fair market value of that property as
of the lien date. This measure, for the 2018-19 fiscal year, would
require only 50% of those properties that have not been reassessed at
fair market value, as specified, to be assessed at fair market
value, and by the 2019-20 fiscal year would require all other
properties that have not been brought to fair market value to be
assessed at fair market value. This bill
measure would require owners of property subject to
reassessment as so described to pay only a portion, as provided, of
any increase in property tax due in the first year and second years
after initial reassessment to fair market value.
This measure would establish the Local School and Community
College Property Tax Fund in the State Treasury, which would be
continuously appropriated for the support of school districts,
charter schools, schools operated by county offices of education, and
community college districts. The measure would require the
Controller to allocate 11% of the moneys in the fund to community
college districts based on an equal amount per unit of full-time
equivalent student receiving educational services, and 89% of the
moneys in the fund to school districts, charter schools, and county
offices of education. For school districts, charter schools, and
county offices of education, the measure would require the
Superintendent of Public Instruction to allocate the moneys based on
a formula that would include a base grant, a supplemental grant, and
a concentration grant, as specified. The measure would require moneys
from the fund to support the K-14 educational program for
instructional improvement and accountability, and would prohibit them
from being used to pay administrative costs. The measure would
require school districts, charter schools, and county offices of
education to demonstrate through their local control and
accountability plans that they are increasing or improving services
for unduplicated pupils in proportion to the increase in funds they
receive pursuant to those supplemental and concentration grant
allocations. The measure would prohibit moneys in the fund from being
subject to appropriation, reversion, or a transfer by the
Legislature, Governor, Director of Finance, or Controller for any
purpose other than those specified in the measure, or from being
loaned to the General Fund or any other fund of the state or any
local government fund. The measure would, among other things, provide
that moneys appropriated by the fund shall not be applied toward the
minimum funding requirements for school districts and community
college districts imposed by Section 8 of Article XVI of the
California Constitution, and that they shall not be considered for
purposes of calculations relating to the Budget Stabilization Account
or the Public School System Stabilization Account.
This measure, for each fiscal year beginning with the 2018-19
fiscal year to the 2020-21 fiscal year, inclusive, would require the
county assessor to make specified calculations to determine the total
"baseline assessed value" and the "incremental assessed percentage"
of commercial and industrial property, and to identify the "total
revised assessed value" of all commercial and industrial property in
the county as determined following the reassessment of commercial and
industrial property. This measure would require the county assessor
to make additional calculations using the total revised assessed
value and the incremental assessed value to determine the incremental
revenues available for distribution. This measure, beginning with
the 2018-19 fiscal year and for each fiscal year thereafter, would
require an amount equal to the reduction in revenues derived from the
taxes imposes imposed pursuant to the
Personal Income Tax Law and the Corporation Tax Law for each county
resulting from the higher property taxes due to the reassessment of
commercial and industrial properties and the lower property taxes due
to the exemptions described above as estimated by the Franchise Tax
Board, to be transferred by each county auditor to the state General
Fund and the Mental Health Services Fund, as provided. This measure,
beginning with the 2018-19 fiscal year to the 2020-21 fiscal year,
inclusive, would require the county auditor, after transferring the
amounts as so described to the state General Fund and the Mental
Health Services Fund, to make specified determinations and
calculations with respect to the remaining incremental revenues, and
to transfer specified amounts to the State
Controller for deposit in the Local School and Community College
Property Tax Trust Fund, for allocation and
distribution, as described above. This measure would require the
balance of the incremental revenues remaining after transferring the
amounts as so described to the Controller to be allocated among local
agencies. This measure would require the county auditor to report
the incremental revenues available for distribution and calculation
made, along with supporting documentation, to the Controller, and
would require the Controller to certify that the calculation was
properly made and to post the percentage figure for each county on
the Controller's Internet Web site. This measure, for the 2021-22
fiscal year, would require the county assessor to perform the
calculations described above, and would require the county auditor to
report the resulting percentage to the Controller. This measure, for
the 2021-22 fiscal year and each fiscal year thereafter, would
require the county auditor to make the determinations and calculation
described above, and to transfer the resulting property tax revenues
to the State Controller for deposit in the Local
School and Community College Property Tax Fund, and would require the
balance of the incremental revenues to be allocated among local
agencies.
This measure would require all local education agencies, community
colleges, counties, cities and counties, cities, and special
districts that receive funds from the new revenues
generated by the reassessment of commercial and industrial properties
to publicly disclose the amount of property tax revenues received,
as specified, and how those revenues were spent, and to publish
online all public disclosures, with a copy of each disclosure to the
Controller. This measure would require all annual public audits
required of local education agencies, community colleges, counties,
cities and counties, cities, and special districts that receive funds
from the new revenues generated by the reassessment of
commercial and industrial properties to disclose the amount of
property tax revenues received, as specified, and to confirm whether
the use of those revenues is consistent with the requirements of this
measure.
This measure would authorize expenses incurred by local education
agencies to comply with these audit and disclosure requirements to be
paid with funding from the Local School and Community College
Property Tax Fund.
The California Constitution prohibits the annual appropriations
subject to limitation of any entity of state or local government from
exceeding its adjusted annual appropriations limit. The California
Constitution defines "appropriations subject to limitation" as any
authorization to expend during a fiscal year the proceeds of taxes
levied by or for that entity, and defines "proceeds of taxes" to
include all tax revenues and the proceeds to an entity of government
from specified sources.
This measure would prohibit proceeds of taxes, and appropriations
subject to limitation of each entity of government, from including
tax revenues generated by the reassessment of commercial and
industrial property under this measure.
The California Constitution requires the state, whenever the
Legislature or a state agency mandates a new program or higher level
of service on any local government, to provide a subvention of funds
to reimburse the local government, with specified exceptions.
This measure would exclude the duty to collect the tax revenues
generated by the reassessment of commercial and industrial property
under this measure from being considered a new program or higher
level of service mandated by the state. This measure would, however,
authorize the board of supervisors of a county or city and county to
direct the county auditor to allocate to the county or city and
county an amount equal to the actual direct administrative costs
associated with the implementation of the reassessment of commercial
and industrial property.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
WHEREAS, The majority of commercial and industrial properties are
assessed at or close to their actual market value, and their owners
are paying their share of property taxes to help support schools and
other local services. But many other commercial and industrial
properties currently are assessed far below their actual
value. value; and
WHEREAS, According to a recent study by USC Dornsife researchers,
owners of these under-assessed underassessed
commercial and industrial properties are avoiding over $9
billion in local property taxes that should be going to support
schools, community colleges, and other community services such as
public safety, fire protection, libraries, and parks.
parks; and
WHEREAS, Proposition 13 was approved by voters in 1978 to protect
homeowners from skyrocketing property taxes. But since then,
under-assessment of commercial and industrial properties has
contributed to a tax shift that has substantially increased the share
of property taxes being paid by owners of residential properties,
including both homeowners and residential rental property.
property; and
WHEREAS, Since 1978 the residential share of assessed value
statewide has increased from 55% to 72% of the total while the
commercial, industrial, and agricultural share of assessed value has
decreased from 45% to just 28%. 28%; and
WHEREAS, The combination of Proposition 13 and the Williamson Act
have been effective tools in the preservation of agricultural land
and should be protected. protected; and
WHEREAS, When homeowners sell their homes, the property is
reassessed to the full market value of the property based on the
sales price. But many large corporations and wealthy individuals are
able to take advantage of loopholes and complex stock manipulations
to avoid reassessment when a commercial or industrial
property changes hands. For example, in one widely publicized
transaction, a wealthy CEO was able to structure the purchase of a
$200 million hotel property in a way that prevented reassessment,
avoiding more than $1.1 million a year in local property
taxes. taxes; and
WHEREAS, California's current system of taxing commercial and
industrial properties is an impediment to fair competition. It favors
under-assessed businesses over other businesses competing for the
same customers that are assessed at their actual value. It allows
owners of under-assessed properties to avoid paying their share of
taxes to support the local public services they benefit from just as
much as the fully assessed businesses that are paying their
share. fair share; and
WHEREAS, The current system of taxing commercial and industrial
properties also creates perverse incentives that discourage owners
from investing in improvements in order to avoid reassessment, while
these same under-assessed underassessed
owners are being unfairly advantaged over other
commercial and industrial property owners, starting up or expanding
an existing business, who are assessed at the full market value of
their property. property; and
WHEREAS, The current system of assessing commercial and industrial
properties has had the unintended consequence of encouraging sprawl
and discouraging "smart growth," working against more
efficient which is an inefficient use of scarce
resources such as energy, water, and land.
land; and
WHEREAS, While the property tax on business equipment and fixtures
is an irritating burden for small businesses, particularly for those
attempting to start up or expand, it also provides revenues that
support local services. Because this measure eliminates the
under-assessment of commercial and industrial properties and thereby
provides other revenue to support local services, it also
can provide businesses with an exemption of up to $500,000 for
equipment and fixtures. A $500,000 exemption helps all businesses,
and will eliminate the tax on equipment and fixtures entirely for 90%
of businesses whether they own and operate their own small business
or rent their place of business. business;
and
WHEREAS, If commercial and industrial properties pay their fair
share of taxes, more money will be available for our public schools,
which remain funded well below the national average. Because of the
unique interactions between property tax revenues and the Proposition
98 minimum funding guarantee, however, the best way to ensure that
all school districts benefit equally from these new property tax
revenues is to place them in a special fund outside Proposition 98
and distribute them based on enrollment, with more revenues going to
those districts that have higher proportions of low-income or English
learner students and foster youth. youth;
and
WHEREAS, If California were a country, it would have the eighth
largest economy in the world. California corporations are enjoying
record profits and many businesses are starting up, expanding, and
relocating here, even though some businesses do leave California. The
complaints of some businesses and their spokespersons about high
taxes are not an excuse for corporations and wealthy investors to
avoid paying their fair share of local property taxes as do other
businesses. Local communities are strengthened when everyone is
contributing to the common good by paying their share to support
schools, job training, public safety, fire protection, and other
local services. services; and
WHEREAS, Reforming commercial and industrial property assessments
to bring under-assessed properties up to their full value will remove
tax-induced disincentives to investment in commercial and industrial
property, provide a level playing field for businesses to compete,
and require owners of under-assessed properties to join with the
majority of businesses already paying their fair share to support
local schools and other community services.
services; and
WHEREAS, Proposition 13 limits property tax rates to 1% of
assessed value. Requiring assessors to bring assessments of
under-assessed commercial and industrial properties up to their
actual market value will not affect the 1% limitation on rates in any
way. Property tax rates on California businesses will continue to be
among the lowest in the country. country;
now, therefore, be it
Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 2015-16 Regular Session
commencing on the first day of December 2014, two-thirds of the
membership of each house concurring, hereby proposes to the people of
the State of California that the Constitution of the State be
amended as follows:
First-- That it is the intent of the people of the State of
California to do all of the following in this measure:
(a) Eliminate the inequities and impediments to economic growth
caused by current laws governing the assessment of commercial and
industrial properties, by requiring all commercial and industrial
properties to be assessed at their full market value and reducing the
property tax on business equipment and fixtures.
(b) Preserve in every way Proposition 13's protections for
homeowners and for rental residential properties. This measure only
affects the assessment of taxable commercial and industrial property.
(c) Make no change to existing laws affecting the taxation or
preservation of agricultural land.
(d) Make sure schools, community colleges, counties, cities and
counties, cities, and special districts are appropriately spending
any new revenues they receive from this measure by requiring that new
revenues and their expenditure be publicly disclosed and annually
audited and that all required disclosures and audits are easily
accessible online.
(e) Authorize the distribution among local governments
of any new revenues resulting from the implementation of this law in
the same manner as other property tax revenues.
(f) Ensure that the portion of any new revenues going to local
schools and community colleges is treated as new revenues that are in
addition to all other funding for schools and community colleges,
and are is allocated in a manner that
benefits all schools and community colleges consistent with
constitutional requirements. Accordingly, these additional funds for
schools and community colleges shall not be considered funds of the
State, shall not be subject to Proposition 98 or the Proposition 2
rainy day fund, and shall not be subject to appropriation by the
Legislature. The funds will be allocated to school districts and
community college districts based on enrollment. School districts
with higher proportions of low-income and English learner students
and foster youth will receive additional funds to provide more or
better services to those students.
(g) To assist Assist small
businesses, whether they own or rent their place of business,
reduce by reducing the business
tangible personal property tax on equipment and fixtures for each
business by exempting $500,000 of that property from taxation. This
would eliminate the tax on equipment and fixtures for about 90
percent of all California businesses. The Legislature would be
prohibited from lowering this exemption but would be authorized to
increase it.
(h) Provide for the phase in of the assessment of under-assessed
commercial and industrial properties to give county assessors time to
effectively implement the new law.
(i) Provide owners of under-assessed commercial and industrial
properties time to meet their obligations under the law by phasing in
assessment increases resulting from the initial implementation of
this law. Small business owners will be eligible for additional
assistance in complying with the law through an additional five-year
phase-in for small business owner-operators.
Second-- That Section 3.1 is added to Article XIII thereof, to
read:
SEC. 3.1. (a) For each taxpayer paying the tax on tangible
personal property used exclusively for business purposes, an amount
of up to five hundred thousand dollars ($500,000) is exempt from
taxation. Fixtures shall be included as tangible personal property
subject to this exemption, but aircraft and vessels shall not be
included. The Legislature shall not lower this exemption amount or
change its application but otherwise may increase it consistent with
the authority enumerated in Section 2.
(b) (1) For owners of property subject to reassessment under
Section 2.5 of Article XIII A who operate a business or businesses on
that property, where the increase in assessed value as a result of
this measure exceeds 25 percent compared to the assessed value of the
property prior to the operation of this measure, that portion of the
assessed value that exceeds 25 percent compared to the assessed
value of the property prior to the operation of this measure shall be
exempt from taxation for a period of five years following the
reassessment of the property as a result of this measure, provided
that all of the following conditions are met:
(A) The owner uses a majority of the property or
properties for their own business purpose.
(B) The total fair market value is less than three million dollars
($3,000,000) for the entire property, including land and buildings.
Property owners owning properties in a single county shall certify
under penalty of perjury that the aggregate fair market value of all
their properties in that county does not exceed three million dollars
($3,000,000) in order to qualify for this exemption. Property owners
owning properties in more than one county must certify under penalty
of perjury that the aggregate fair market value of all of their
properties statewide does not exceed three million dollars
($3,000,000) in order to qualify for this exemption.
(2) This exemption shall expire five years from its initial
application to a business commercial or
industrial property, at which time the property owner shall be
liable for the full amount of property taxes levied on the property
pursuant to the operation of this measure. However, property owners
who have realized a reduction in property taxes as a result of the
operation of this subdivision are not liable for the property taxes
exempted for the duration of the operation of this exemption.
Third-- That Section 2 of Article XIII A
thereof is amended to read:
SEC. 2. (a) The "full cash value" means the county assessor's
valuation of real property as shown on the 1975-76 tax bill under
"full cash value" or, thereafter, except as otherwise provided in
Section 2.5, the full cash value base of real property. For purposes
of this section, the full cash value base of real property is the
appraised value of real property when purchased, newly constructed,
or a change in ownership has occurred after the 1975 assessment. All
real property not already assessed up to the 1975-76 full cash value
may be reassessed to reflect that valuation. For purposes of this
section, "newly constructed" does not include real property that is
reconstructed after a disaster, as declared by the Governor, where
the fair market value of the real property, as reconstructed, is
comparable to its fair market value prior to the disaster. For
purposes of this section, the term "newly constructed" does not
include that portion of an existing structure that consists of the
construction or reconstruction of seismic retrofitting components, as
defined by the Legislature.
However, the Legislature may provide that, under appropriate
circumstances and pursuant to definitions and procedures established
by the Legislature, any person over the age of 55 years who resides
in property that is eligible for the homeowner's exemption under
subdivision (k) of Section 3 of Article XIII and any implementing
legislation may transfer the base year value of the property entitled
to exemption, with the adjustments authorized by subdivision (b), to
any replacement dwelling of equal or lesser value located within the
same county and purchased or newly constructed by that person as his
or her principal residence within two years of the sale of the
original property. For purposes of this section, "any person over the
age of 55 years" includes a married couple one member of which is
over the age of 55 years. For purposes of this section, "replacement
dwelling" means a building, structure, or other shelter constituting
a place of abode, whether real property or personal property, and any
land on which it may be situated. For purposes of this section, a
two-dwelling unit shall be considered as two separate single-family
dwellings. This paragraph shall apply to any replacement dwelling
that was purchased or newly constructed on or after November 5, 1986.
In addition, the Legislature may authorize each county board of
supervisors, after consultation with the local affected agencies
within the county's boundaries, to adopt an ordinance making the
provisions of this subdivision relating to transfer of base year
value also applicable to situations in which the replacement
dwellings are located in that county and the original properties are
located in another county within this State. For purposes of this
paragraph, "local affected agency" means any city, special district,
school district, or community college district that receives an
annual property tax revenue allocation. This paragraph applies to any
replacement dwelling that was purchased or newly constructed on or
after the date the county adopted the provisions of this subdivision
relating to transfer of base year value, but does not apply to any
replacement dwelling that was purchased or newly constructed before
November 9, 1988.
The Legislature may extend the provisions of this subdivision
relating to the transfer of base year values from original properties
to replacement dwellings of homeowners over the age of 55 years to
severely disabled homeowners, but only with respect to those
replacement dwellings purchased or newly constructed on or after the
effective date of this paragraph.
(b) The full cash value base may reflect from year to year the
inflationary rate not to exceed 2 percent for any given year or
reduction as shown in the consumer price index or comparable data for
the area under taxing jurisdiction, or may be reduced to reflect
substantial damage, destruction, or other factors causing a decline
in value.
(c) For purposes of subdivision (a), the Legislature may provide
that the term "newly constructed" does not include any of the
following:
(1) The construction or addition of any active solar energy
system.
(2) The construction or installation of any fire sprinkler system,
other fire extinguishing system, fire detection system, or
fire-related egress improvement, as defined by the Legislature, that
is constructed or installed after the effective date of this
paragraph.
(3) The construction, installation, or modification on or after
the effective date of this paragraph of any portion or structural
component of a single- or multiple-family dwelling that is eligible
for the homeowner's exemption if the construction, installation, or
modification is for the purpose of making the dwelling more
accessible to a severely disabled person.
(4) The construction, installation, removal, or modification on or
after the effective date of this paragraph of any portion or
structural component of an existing building or structure if the
construction, installation, removal, or modification is for the
purpose of making the building more accessible to, or more usable by,
a disabled person.
(d) For purposes of this section, the term "change in ownership"
does not include the acquisition of real property as a replacement
for comparable property if the person acquiring the real property has
been displaced from the property replaced by eminent domain
proceedings, by acquisition by a public entity, or governmental
action that has resulted in a judgment of inverse condemnation. The
real property acquired shall be deemed comparable to the property
replaced if it is similar in size, utility, and function, or if it
conforms to state regulations defined by the Legislature governing
the relocation of persons displaced by governmental actions. This
subdivision applies to any property acquired after March 1, 1975, but
affects only those assessments of that property that occur after the
provisions of this subdivision take effect.
(e) (1) Notwithstanding any other provision of this section, the
Legislature shall provide that the base year value of property that
is substantially damaged or destroyed by a disaster, as declared by
the Governor, may be transferred to comparable property within the
same county that is acquired or newly constructed as a replacement
for the substantially damaged or destroyed property.
(2) Except as provided in paragraph (3), this subdivision applies
to any comparable replacement property acquired or newly constructed
on or after July 1, 1985, and to the determination of base year
values for the 1985-86 fiscal year and fiscal years thereafter.
(3) In addition to the transfer of base year value of property
within the same county that is permitted by paragraph (1), the
Legislature may authorize each county board of supervisors to adopt,
after consultation with affected local agencies within the county, an
ordinance allowing the transfer of the base year value of property
that is located within another county in the State and is
substantially damaged or destroyed by a disaster, as declared by the
Governor, to comparable replacement property of equal or lesser value
that is located within the adopting county and is acquired or newly
constructed within three years of the substantial damage or
destruction of the original property as a replacement for that
property. The scope and amount of the benefit provided to a property
owner by the transfer of base year value of property pursuant to this
paragraph shall not exceed the scope and amount of the benefit
provided to a property owner by the transfer of base year value of
property pursuant to subdivision (a). For purposes of this paragraph,
"affected local agency" means any city, special district, school
district, or community college district that receives an annual
allocation of ad valorem property tax revenues. This paragraph
applies to any comparable replacement property that is acquired or
newly constructed as a replacement for property substantially damaged
or destroyed by a disaster, as declared by the Governor, occurring
on or after October 20, 1991, and to the determination of base year
values for the 1991-92 fiscal year and fiscal years thereafter.
(f) For the purposes of subdivision (e):
(1) Property is substantially damaged or destroyed if it sustains
physical damage amounting to more than 50 percent of its value
immediately before the disaster. Damage includes a diminution in the
value of property as a result of restricted access caused by the
disaster.
(2) Replacement property is comparable to the property
substantially damaged or destroyed if it is similar in size, utility,
and function to the property that it replaces, and if the fair
market value of the acquired property is comparable to the fair
market value of the replaced property prior to the disaster.
(g) For purposes of subdivision (a), the terms "purchased" and
"change in ownership" do not include the purchase or transfer of real
property between spouses since March 1, 1975, including, but not
limited to, all of the following:
(1) Transfers to a trustee for the beneficial use of a spouse, or
the surviving spouse of a deceased transferor, or by a trustee of
such a trust to the spouse of the trustor.
(2) Transfers to a spouse that take effect upon the death of a
spouse.
(3) Transfers to a spouse or former spouse in connection with a
property settlement agreement or decree of dissolution of a marriage
or legal separation.
(4) The creation, transfer, or termination, solely between
spouses, of any coowner's interest.
(5) The distribution of a legal entity's property to a spouse or
former spouse in exchange for the interest of the spouse in the legal
entity in connection with a property settlement agreement or a
decree of dissolution of a marriage or legal separation.
(h) (1) For purposes of subdivision (a), the terms "purchased" and
"change in ownership" do not include the purchase or transfer of the
principal residence of the transferor in the case of a purchase or
transfer between parents and their children, as defined by the
Legislature, and the purchase or transfer of the first one million
dollars ($1,000,000) of the full cash value of all other real
property between parents and their children, as defined by the
Legislature. This subdivision applies to both voluntary transfers and
transfers resulting from a court order or judicial decree.
(2) (A) Subject to subparagraph (B), commencing with purchases or
transfers that occur on or after the date upon which the measure
adding this paragraph becomes effective, the exclusion established by
paragraph (1) also applies to a purchase or transfer of real
property between grandparents and their grandchild or grandchildren,
as defined by the Legislature, that otherwise qualifies under
paragraph (1), if all of the parents of that grandchild or those
grandchildren, who qualify as the children of the grandparents, are
deceased as of the date of the purchase or transfer.
(B) A purchase or transfer of a principal residence shall not be
excluded pursuant to subparagraph (A) if the transferee grandchild or
grandchildren also received a principal residence, or interest
therein, through another purchase or transfer that was excludable
pursuant to paragraph (1). The full cash value of any real property,
other than a principal residence, that was transferred to the
grandchild or grandchildren pursuant to a purchase or transfer that
was excludable pursuant to paragraph (1), and the full cash value of
a principal residence that fails to qualify for exclusion as a result
of the preceding sentence, shall be included in applying, for
purposes of subparagraph (A), the one-million-dollar ($1,000,000)
full cash value limit specified in paragraph (1).
(i) (1) Notwithstanding any other provision of this section, the
Legislature shall provide with respect to a qualified contaminated
property, as defined in paragraph (2), that either, but not both, of
the following apply:
(A) (i) Subject to the limitation of clause (ii), the base year
value of the qualified contaminated property, as adjusted as
authorized by subdivision (b), may be transferred to a replacement
property that is acquired or newly constructed as a replacement for
the qualified contaminated property, if the
replacement real property has a fair market
value that is equal to or less than the fair market value of the
qualified contaminated property if that property were not
contaminated and, except as otherwise provided by this clause, is
located within the same county. The base year value of the qualified
contaminated property may be transferred to a replacement real
property located within another county if the board of supervisors of
that other county has, after consultation with the affected local
agencies within that county, adopted a resolution authorizing an
intercounty transfer of base year value as so described.
(ii) This subparagraph applies only to replacement property that
is acquired or newly constructed within five years after ownership in
the qualified contaminated property is sold or otherwise
transferred.
(B) In the case in which the remediation of the environmental
problems on the qualified contaminated property requires the
destruction of, or results in substantial damage to, a structure
located on that property, the term "new construction" does not
include the repair of a substantially damaged structure, or the
construction of a structure replacing a destroyed structure on the
qualified contaminated property, performed after the remediation of
the environmental problems on that property, provided that the
repaired or replacement structure is similar in size, utility, and
function to the original structure.
(2) For purposes of this subdivision, "qualified contaminated
property" means residential or nonresidential real property that is
all of the following:
(A) In the case of residential real property, rendered
uninhabitable, and in the case of nonresidential real property,
rendered unusable, as the result of either environmental problems, in
the nature of and including, but not limited to, the presence of
toxic or hazardous materials, or the remediation of those
environmental problems, except where the existence of the
environmental problems was known to the owner, or to a related
individual or entity as described in paragraph (3), at the time the
real property was acquired or constructed. For purposes of this
subparagraph, residential real property is "uninhabitable" if that
property, as a result of health hazards caused by or associated with
the environmental problems, is unfit for human habitation, and
nonresidential real property is "unusable" if that property, as a
result of health hazards caused by or associated with the
environmental problems, is unhealthy and unsuitable for occupancy.
(B) Located on a site that has been designated as a toxic or
environmental hazard or as an environmental cleanup site by an agency
of the State of California or the federal government.
(C) Real property that contains a structure or structures thereon
prior to the completion of environmental cleanup activities, and that
structure or structures are substantially damaged or destroyed as a
result of those environmental cleanup activities.
(D) Stipulated by the lead governmental agency, with respect to
the environmental problems or environmental cleanup of the real
property, not to have been rendered uninhabitable or unusable, as
applicable, as described in subparagraph (A), by any act or omission
in which an owner of that real property participated or acquiesced.
(3) It shall be rebuttably presumed that an owner of the real
property participated or acquiesced in any act or omission that
rendered the real property uninhabitable or unusable, as applicable,
if that owner is related to any individual or entity that committed
that act or omission in any of the following ways:
(A) Is a spouse, parent, child, grandparent, grandchild, or
sibling of that individual.
(B) Is a corporate parent, subsidiary, or affiliate of that
entity.
(C) Is an owner of, or has control of, that entity.
(D) Is owned or controlled by that entity.
If this presumption is not overcome, the owner shall not receive
the relief provided for in subparagraph (A) or (B) of paragraph (1).
The presumption may be overcome by presentation of satisfactory
evidence to the assessor, who shall not be bound by the findings of
the lead governmental agency in determining whether the presumption
has been overcome.
(4) This subdivision applies only to replacement property that is
acquired or constructed on or after January 1, 1995, and to property
repairs performed on or after that date.
(j) Unless specifically provided otherwise, amendments to this
section adopted prior to November 1, 1988, are effective for changes
in ownership that occur, and new construction that is completed,
after the effective date of the amendment. Unless specifically
provided otherwise, amendments to this section adopted after November
1, 1988, are effective for changes in ownership that occur, and new
construction that is completed, on or after the effective date of the
amendment.
Fourth-- Third-- That Section 2.5 is
added to Article XIII A thereof, to read:
SEC. 2.5. (a) (1) This section shall not apply to residential
property as defined in this section, whether it is occupied by a
homeowner or a renter. Residential property as defined in this
section shall be assessed consistent with Section 2 of Article XIII
A. This section shall also not apply to
real property used for commercial agricultural production as defined
in this section. Property used for commercial agricultural
production as defined in this section shall be assessed consistent
with Section 2 of Article XIII A.
(2) For Notwithstanding Section 2 of
Article XIII A, for the lien date for the
2018-19 fiscal year and each lien date thereafter, the "full cash
value" of commercial and industrial real property that is not used
for commercial agricultural production or is otherwise exempt under
the Constitution or a statute enacted pursuant to the
authority in Section 2 of Article XIII is the fair market
value of that property as of that date, except as provided in
subdivision subdivisions (b) and (c).
(b) (1) For the 2018-19 fiscal year only, the requirement that
those commercial and industrial properties subject to reassessment
under this section be assessed at fair market value shall apply only
to the 50 percent of such properties that have not been brought to
fair market value for any part of their property for the greatest
number of years prior to the 2018-19 lien date.
(2) For the 2019-20 and 2020-21 fiscal years only, the assessed
value of properties assessed at full market value pursuant to
paragraph (1) shall be increased by the rate of inflation, but not
more than 2 percent.
(3) Owners of property subject to this subdivision shall be
required to pay one-third of the amount of any increase in property
tax due and payable resulting from initial assessment to fair market
value in the first year upon receiving the new valuation required by
subdivision (b), paragraph (1),
two-thirds of the amount of any increase in property tax due and
payable in the second year, and the full amount of any property tax
due and payable in the third year after initial reassessment to fair
market value and in subsequent years thereafter. The balance of the
amounts due for the first and second years following initial
assessment to full market value shall be are
hereby forgiven.
(c) (1) All other commercial and industrial properties subject to
reassessment under this section shall be assessed at fair market
value by the lien date for 2019-20. 2019-20
lien date.
(2) For the 2020-21 fiscal year only, the assessed value of
properties assessed at full market value pursuant to paragraph (1)
shall be increased by the rate of inflation, but not more than 2
percent.
(3) Owners of property subject to this subdivision shall be
required to pay one-half of the amount of any increase in property
tax due and payable resulting from initial assessment to fair market
value in the first year upon receiving the new valuation required by
subdivision (b) paragraph (1) and the
full amount of any property tax due and payable in the year following
initial reassessment and in subsequent years thereafter. The balance
of the amount due for the first year following initial assessment to
full market value shall be are hereby
forgiven.
(d) For purposes of this section:
(1) "Commercial and industrial real property" means any real
property that is not residential property or not used for commercial
agricultural production.
(2) "Residential property" shall include both single-family and
multiunit structures, and the land on which such structures are
constructed, that are intended to be used and are used for long-term
residential occupancy, but shall exclude hotels, motels
motels, and similar structures that are used
primarily for transient and non-permanent
nonpermanent residence.
(3) "Real property used for commercial agricultural production" is
real property that is used and zoned for producing commercial
agricultural commodities and is real property for which either of the
following applies:
(A) The real property is an unimproved parcel to which both of the
following apply:
(i) The parcel is used and zoned for producing commercial
agricultural commodities.
(ii) The parcel does not contain a single-family residence or a
multifamily residence that was subdivided in accordance with the
Subdivision Map Act (Division 2 (commencing with Section 66410) of
Title 7 of the Government Code), or any successor to that law, or
that was described and conveyed in one or more deeds separating the
parcel from all adjoining property.
(B) The parcel of real property contains only living improvements.
Improvements other than those intended and used for habitation shall
be considered commercial and industrial property for purposes of
this section.
(e) Notwithstanding subdivision (a), it is the intent of the
voters in this section to provide a transition to fair market value
as provided in subdivision subdivisions
(b) and (c), for the purposes of assuring
ensuring a reasonable workload and implementation period for
county assessors and taxpayers.
Fifth-- Fourth-- That Section 8.8 is
added to Article XIII A thereof, to read:
SEC. 8.8. (a) All local education agencies, community
colleges, counties, cities and counties, cities, and special
districts that receive funds from the new revenues
generated by Section 2.5 of Article XIII A shall publicly disclose
each year, including in their annual budgets, the amount of property
tax revenues they received for that fiscal year as the result of
Section 2.5 of Article XIII A and how those revenues were spent.
(b) All annual public audits required of local education agencies,
community colleges, counties, cities and counties, cities, and
special districts that receive funds from the new revenues
generated by Section 2.5 of Article XIII A shall disclose the amount
of property tax revenues received for that fiscal year as the result
of Section 2.5 of Article XIII A and confirm whether the use of
those revenues is consistent with the requirements of this
act. measure.
(c) All local education agencies, community colleges, counties,
cities and counties, cities, and special districts receiving new
revenues generated by Section 2.5 of Article XIII A shall publish
online all public disclosures required by this measure,
section, with a copy of each disclosure to the
Controller.
(d) Expenses incurred by local education agencies receiving new
revenues generated by Section 2.5 of Article XIII A to comply with
the audit and disclosure requirement of this section may be paid with
funding from the Local School and Community College Property Tax
Fund, and shall not be considered administrative costs for purposes
of subsection subdivision (b) of
Section 8.7 of Article XVI.
Sixth-- Fifth-- That Section 14 is
added to Article XIII B thereof, to read:
SEC. 14. (a) For purposes of this article, "proceeds of taxes"
shall not include the revenues generated by Section 2.5 of Article
XIII A.
(b) For purposes of this article, "appropriations subject to
limitation" of each entity of government shall not include
appropriations of revenues generated by Section 2.5 of Article XIII
A.
(c) The duty to collect the revenues generated by Section 2.5 of
Article XIII A shall not be considered a new program or higher level
of service mandated by the State for purposes of this article. The
board of supervisors of a county or city and county, upon the
adoption of a method identifying the actual direct administrative
costs identified in Section 75.60 of the Revenue and Taxation Code,
as that section read on July 1, 2015, that are associated with the
implementation of Section 2.5 of Article XIII A, may direct the
county auditor to allocate to the county or city and county, prior to
any allocation of property tax revenues, an amount equal to the
actual direct administrative costs, but not to exceed 3 percent of
the revenues that have been collected as a result of the
implementation of Section 2.5 of Article XIII A. The amount
determined to provide reimbursement for the actual direct
administrative costs of implementing Section 2.5 of Article XIII A
shall be deducted proportionately from the allocations to be provided
to cities, the county, and special districts, but not deducted from
the school share of any increased allocation. The board of
supervisors shall identify the ongoing costs of
implementation of implementing Section 2.5
of Article XIII A annually.
Seventh-- Sixth-- That Section 8.6
is added to Article XVI thereof, to read:
SEC. 8.6. (a) For each fiscal year beginning with the 2018-19
fiscal year to the 2020-21 fiscal year, inclusive, county assessors
shall calculate the following:
(1) The total "baseline assessed value" of all commercial and
industrial property in the county subject to Section 2.5 of Article
XIII A. The total "baseline assessed value" shall be calculated as
follows:
(A) The county assessor shall identify the total assessed value of
commercial and industrial property as determined pursuant to Chapter
1 (commencing with Section 50) of Part 0.5 of Division 1 of the
Revenue and Taxation Code, as that chapter read on July 1, 2015, for
the 2017-18 fiscal year.
(B) The amount in subparagraph (A) shall be increased by the
amount for that fiscal year determined pursuant to Section 51 of the
Revenue and Taxation Code, as that section read on July 1, 2015.
(C) The county assessor shall add to the amount determined
pursuant to subparagraph (B) the incremental increase in assessed
value of commercial and industrial property resulting from the sale
or transfer of properties for purposes of the respective January 1
lien dates beginning with the 2018-19 fiscal year to the 2020-21
fiscal year, inclusive, provided the sale or transfer would have
triggered reassessment pursuant to Chapter 2 (commencing with Section
60) of Part 0.5 of Division 1 of the Revenue and Taxation Code, as
that chapter read on July 1, 2015.
(D) The county assessor shall add to the amount determined
pursuant to subparagraph (C) the incremental increase in assessed
value of commercial and industrial property resulting in new
construction for purposes of the respective January 1 lien dates
beginning with the 2018-19 fiscal year to the 2020-21 fiscal year,
inclusive, as determined pursuant to Chapter 3 (commencing with
Section 70) of Part 0.5 of Division 1 of the Revenue and Taxation
Code, as that chapter read on July 1, 2015.
(2) The county assessor shall identify the total "revised assessed
value" of all commercial and industrial property in the county as
determined following the reassessment required by Section 2.5 of
Article XIII A for each fiscal year beginning with the 2018-19 fiscal
year to the 2020-21 fiscal year, inclusive, except that for the
2018-19 and 2019-20 fiscal years, the amount of assessed value shall
be reduced to reflect the amounts actually due and payable pursuant
to subdivisions (b) and (c) of Section 2.5 of Article XIII A.
(3) For each fiscal year beginning with the 2018-19 fiscal year to
the 2020-21 fiscal year, inclusive, the county assessor shall
subtract the amount determined pursuant to subparagraph (D) of
paragraph (1) from the amount determined pursuant to paragraph (2).
(4) For each fiscal year beginning with the 2018-19 fiscal year to
the 2020-21 fiscal year, inclusive, the county assessor shall divide
the amount determined pursuant to paragraph (3) by the amount
determined pursuant to paragraph (2). The resulting percentage shall
be known as the "incremental assessed percentage" of commercial and
industrial property in the county subject to Section 2.5 of Article
XIII A.
(b) For each fiscal year beginning with the 2018-19 fiscal year to
the 2020-21 fiscal year, inclusive, county assessors shall multiply
the total revised assessed value by the incremental assessed
percentage and a tax rate of one percent to determine the incremental
revenues available for distribution as the result of Section 2.5 of
Article XIII A.
(c) For each fiscal year beginning with the 2018-19 fiscal
year and for each fiscal year thereafter,
year, all of the following shall apply:
(1) An amount equal to the reduction in revenues derived from the
taxes imposed pursuant to the Personal Income Tax Law (Part 10
(commencing with Section 17001) of Division 2 of the Revenue and
Taxation Code) and the Corporation Tax Law (Part 11 (commencing with
Section 23001) of Division 2 of the Revenue and Taxation Code), as
those laws read on July 1, 2015, for each county resulting from the
higher property taxes due to the implementation of Section 2.5 of
Article XIII A and the lower property taxes due to the implementation
of Section 3.1 of Article XIII, as estimated by the Franchise Tax
Board each year for that fiscal year, shall be transferred by May 15
of each year beginning with the 2018-19 fiscal year and each fiscal
year thereafter by each county auditor to the Controller for deposit
in the General Fund and the Mental Health Services Fund,
respectively.
(2) An amount equal to the reduction in property taxes resulting
from the exemption provided pursuant to subdivision (a) of Section
3.1 of Article XIII shall be calculated by the county auditor
beginning with the 2018-19 2019-20
fiscal year and each fiscal year thereafter. For purposes of
calculating the aggregate amount of personal property taxes exempted
under that subdivision for each fiscal year, the auditor shall apply
the average annual rate of growth of tangible personal property used
exclusively for business purposes for the period from the 2012-13
fiscal year to the 2017-18 fiscal year, inclusive, to the total
tangible personal property used exclusively for business purposes for
the prior fiscal year and subtract the amount of tangible personal
property used exclusively for business purposes not exempted for that
fiscal year.
(3) An amount equal to the value of foregone property tax revenues
pursuant to subdivision (b) of Section 3.1 of Article XIII shall be
calculated by the county auditor.
(d) For each fiscal year beginning with the 2018-19 fiscal year to
the 2020-21 fiscal year, inclusive, the county auditor shall do the
following with the incremental revenues remaining after deducting
from those revenues the amounts determined pursuant to subdivision
(c):
(1) Determine the combined weighted average tax rate in each
county for K-12 school districts, county offices of
education education, and community college
districts. The weighted average tax rate in each county for K-12
school districts, county offices of education
education, and community college districts shall be calculated
by the county auditor by averaging the effective combined tax rate
for all of the K-12 school districts, the county office of
education education, and all community college
districts in each tax rate area using weights for each tax rate area
determined by calculating the share of the total assessed value of
commercial and industrial property for each tax rate area of the
total assessed value of commercial and industrial property as
determined pursuant to Chapter 1 (commencing with Section 50) of Part
0.5 of Division 1 of the Revenue and Taxation Code, as that chapter
read on July 1, 2015, for the 2017-18 fiscal year for all tax rate
areas in the county.
(2) Multiply the incremental revenues remaining after deducting
the amounts determined pursuant to subdivision (c) by the combined
weighted average tax rate determined pursuant to paragraph (1).
Half One-half of the resulting amount
of property tax revenue shall be transferred by the county auditor to
the Controller on February 1 of each fiscal year and half
one-half of the resulting amount of property tax
revenue shall be transferred to the Controller on June 1 of each
fiscal year, and shall be deposited into the Local School and
Community College Property Tax Trust Fund for
allocation and distribution as set forth in Section 8.7 of Article
XIII A.
XVI.
(3) The balance of the incremental revenues remaining after
deducting the amounts determined pursuant to subdivision (c) and the
amount transferred pursuant to paragraph (2) shall be allocated to
local agencies pursuant to Chapter 6 (commencing with Section 95) of
Part 0.5 of Division 1 of the Revenue and Taxation Code, as that
chapter read on July 1, 2015.
(4) Report the incremental revenues available for distribution
determined pursuant to subdivision (b), the deductions attributable
to subdivision (c), and the combined weighted average tax rate in
each county for K-12 school districts, county offices of education,
and community college districts determined pursuant to paragraph (1),
along with supporting documentation, to the Controller who shall
certify that the calculation was properly calculated and post the
percentage figure for each county on the Controller's Internet Web
site.
(e) (1) For the 2021-22 fiscal year, the county assessor shall
perform the calculations specified in paragraphs (1) to (4),
inclusive, of subdivision (a) for that fiscal year. The county
auditor shall report the resulting percentage figure to the
Controller who shall certify that the calculation was properly
calculated and post the percentage figure for each county on the
Controller's Internet Web site.
(2) (A) For the 2021-22 fiscal year and each fiscal year
thereafter, the county auditor shall perform the calculation
specified in paragraph (2) of subdivision (d) using the result of the
calculation in paragraph (1) and the percentage determined in
paragraph (1) of subdivision (d) and shall transfer half
one-half the resulting amount of property tax
revenue to the Controller on February 1 of each fiscal year and
transfer half one-half of the resulting
amount of property tax revenue to the Controller on June 1 of each
fiscal year, for deposit in the Local School and Community College
Property Tax Fund for allocation and distribution as set forth in
Section 8.7 of Article XIII
A. XVI.
(B) The balance of the incremental revenues remaining after
deducting the amounts determined pursuant to subdivision (c) and the
amount transferred pursuant to paragraph
subparagraph (A) shall be allocated to local agencies pursuant
to Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1
of the Revenue and Taxation Code as that chapter read on July 1,
2015.
(C) In making the calculation in subparagraph (A), the county
auditor shall calculate the amount of total revised assessed value as
if no exemption of property taxes were being provided pursuant to
subdivision (b) of Section 3.1 of Article XIII.
Eighth-- Seventh-- That Section 8.7
is added to Article XVI thereof, to read:
SEC. 8.7. (a) The Local School and Community College Property
Tax Fund is hereby created in the State Treasury to be held in trust
for the purposes set forth below and is continuously appropriated for
the support of school districts, charter schools, schools operated
by county offices of education, and community college districts, as
follows:
(1) Eleven percent (11%) to community colleges.
Each year the Controller shall allocate the funds to each community
college district based on an equal amount per unit of full-time
equivalent student receiving educational services.
(2) Eighty-nine percent (89%) to school
districts, charter schools, and county offices of education for
schools operated by the county superintendent of schools.
(3) Each year the Controller shall allocate the funds to school
districts, charter schools, and county offices of education based on
the following formula, to be calculated annually by the
Superintendent of Public Instruction:
(A) A base grant based on an equal amount per enrolled student in
each school district or charter school, provided, however, that the
base grant shall be adjusted by grade span, as follows: no grade span
adjustment per enrolled student in grades kindergarten to grade 3,
inclusive; 1.5 percent more per enrolled student in grades 4 to 6,
inclusive; 4.5 percent more per enrolled student in grades 7 and 8;
and 21 percent more per enrolled student in grades 9 to 12,
inclusive. County offices of education shall receive a base grant per
student enrolled in schools operated by the county superintendent of
schools that is 33 percent more per enrolled student than the base
grant for school districts, but shall receive no grade span
adjustments to the base grant.
(B) A supplemental grant add-on for school districts and charter
schools equal to 20 percent of the base grant calculated pursuant to
subparagraph (A), multiplied by the percentage of unduplicated pupils
in that school district or charter school, and a supplemental
grant add-on for county
offices of education equal to 35 percent of the base grant calculated
pursuant to subparagraph (A), multiplied by the percentage of
unduplicated pupils enrolled in schools operated by the county
superintendent of schools.
(C) A concentration grant add-on for school districts and charter
schools equal to 50 percent of the base grant calculated pursuant to
subparagraph (A), multiplied by the percentage of unduplicated pupils
in that school district or charter school in excess of 55 percent of
the total enrollment in that school district or charter school, and
a concentration grant add-on for county offices of education equal to
35 percent of the base grant calculated pursuant to subparagraph
(A), multiplied by the percentage of unduplicated pupils enrolled in
schools operated by the county superintendent of schools in excess of
50 percent of the total enrollment in those schools.
(D) An amount equal to 10.4 percent of the base grant per enrolled
student in kindergarten and grades 1 to 3, inclusive, for school
districts and charter schools that maintain an average class
enrollment of not more than 24 students for each schoolsite in
kindergarten and grades 1 to 3, inclusive, unless a collectively
bargained alternative annual average class enrollment for each
schoolsite in those grades is agreed to by the school district or
charter school.
(E) The Superintendent of Public Instruction shall subtract from
the total of the amounts computed pursuant to subparagraphs (A) to
(D), inclusive, the amount of property tax revenue received by a
basic aid school district or basic aid charter school that exceeds
the total amount of funding it would have been entitled to that
fiscal year pursuant to the local control funding formula established
pursuant to Article 2 (commencing with Section 42238) of Chapter 7
of Part 24 of Division 3 of Title 2 of the Education Code, as that
section article read on July 1, 2015.
For purposes of this section, a school district or charter school
that does not receive an apportionment of state funds pursuant to the
local control funding formula shall be considered a basic aid school
district or a basic aid charter school.
(F) For purposes of this section, enrollment shall be measured in
units of average daily attendance or its equivalent, and
"unduplicated pupil" shall mean a student who is classified as either
an English learner, eligible for a free or reduced-price meal, or a
foster youth, as defined in Section 42238.01 of the Education Code,
provided that a student may only be counted once for purposes of
making supplemental and concentration grant adjustments, regardless
of whether she or he falls within more than one of these student
subgroups. Students shall not be counted as enrolled in a school
operated by a county superintendent of schools if they are otherwise
counted as enrolled in a school district for purposes of calculating
that school district's local control funding formula allocation.
(b) Moneys in the Local School and Community College Property Tax
Fund are dedicated to the support of the K-14 educational program for
instructional improvement and accountability, and shall not be used
to pay administrative costs. School districts, charter schools, and
county offices of education shall demonstrate through their local
control and accountability plans that they are increasing or
improving services for unduplicated pupils in proportion to the
increase in funds allocated pursuant to subparagraphs (B) and (C) of
paragraph (3) of subdivision (a).
(c) Notwithstanding any other law, the moneys deposited in the
Local School and Community College Property Tax Fund shall not be
subject to appropriation, reversion, or transfer by the Legislature,
the Governor, the Director of Finance, or the Controller for any
purpose other than those specified in this section, nor shall such
revenues be loaned to the General Fund or any other fund of the
state State or any local government
fund.
(d) Moneys allocated to community college districts, county
offices of education, school districts, or charter schools from the
Local School and Community College Property Tax Fund shall
supplement, and shall not replace, other funding for education. Funds
deposited into the Local School and Community College Property Tax
Fund and allocated from the Local School and Community College
Property Tax Fund shall not be deemed to be part of "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B and allocated local proceeds of taxes" for purposes of paragraphs
(2) and (3) of subdivision (b) of Section 8 or for purposes of
Section 21. Revenues derived from the taxes imposed pursuant
to generated by Section 2.5 of Article XIII A
shall not be deemed to be "General Fund revenues which may be
appropriated pursuant to Article XIII B" for purposes of paragraph
(1) of subdivision (b) of Section 8, Section 20, or Section 21, nor
shall they be considered in the determination of "per capita General
Fund revenues" for purposes of subdivisions (b) and (e) of Section 8.
Ninth-- Eighth-- This measure shall
become operative on January 1, 2018, except that subdivision (a) of
Section 3.1 of Article XIII shall become operative on January 1,
2019.
