AB 213 — Local government finance: property tax revenue allocations: vehicle license fee adjustments.

Summary

Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue to local jurisdictions in accordance with specified formulas and procedures, and generally provides that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction's portion of the annual tax increment, as defined. Existing property tax law also requires that, for purposes of determining property tax revenue allocations in each county for the 1992–93 and 1993–94 fiscal years, the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. It requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for allocation to school districts, community college districts, and the county office of education. Beginning with the 2004–05 fiscal year and for each fiscal year thereafter, existing law requires that each city, county, and city and county receive additional property tax revenues in the form of a vehicle license fee adjustment amount, as defined, from a Vehicle License Fee Property Tax Compensation Fund that exists in each county treasury. Existing law requires that these additional allocations be funded from ad valorem property tax revenues otherwise required to be allocated to educational entities. Existing law, for the 2006–07 fiscal year, and for each fiscal year thereafter, requires the vehicle license fee adjustment amount to be the sum of the vehicle license fee adjustment amount for the prior fiscal year, if specified provisions did not apply, and the product of that sum and the percentage change from the prior fiscal year in the gross taxable valuation within the jurisdiction of the entity. Existing law establishes a separate vehicle license fee adjustment amount for a city that was incorporated after January 1, 2004, or on or before January 1, 2012. This bill, for the 2019–20 fiscal year, would instead require the vehicle license fee adjustment amount to be the sum of the vehicle license fee adjustment amount in the 2018–19 fiscal year, the product of that sum and the percentage change in gross taxable assessed valuation within the jurisdiction of that entity between the 2018–19 fiscal year to the 2018–19 fiscal year, and the product of the amount of specified motor vehicle license fee revenues that the Controller allocated to the applicable city in July 2010 and 1.17. This bill, for the 2020–21 fiscal year, and for each fiscal year thereafter, would require the vehicle license fee adjustment amount to be the sum of the vehicle license fee adjustment amount for the prior fiscal year and the product of the amount as so described and the percentage change from the prior fiscal year in gross taxable assessed valuation within the jurisdiction of the entity. By imposing additional duties upon local tax officials with respect to the allocation of ad valorem property tax revenues, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Bill Text

Action History

1. August 30, 2019

   In committee: Held under submission.

2. August 19, 2019

   In committee: Referred to APPR. suspense file.

3. July 08, 2019

   In committee: Set, first hearing. Hearing canceled at the request of author.

4. June 26, 2019

   From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 26). Re-referred to Com. on APPR.

5. June 06, 2019

   Referred to Com. on GOV. & F.

6. May 24, 2019

   In Senate. Read first time. To Com. on RLS. for assignment.

7. May 23, 2019

   Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 1859.)

8. May 20, 2019

   Read second time. Ordered to third reading.

9. May 16, 2019

   From committee: Do pass. (Ayes 18. Noes 0.) (May 16).

10. April 10, 2019

    In committee: Set, first hearing. Referred to APPR. suspense file.

11. April 04, 2019

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (April 3). Re-referred to Com. on APPR.

12. April 04, 2019

    Coauthors revised.

13. March 18, 2019

    In committee: Set, first hearing. Hearing canceled at the request of author.

14. February 04, 2019

    Referred to Com. on L. GOV.

15. January 16, 2019

    From printer. May be heard in committee February 15.

16. January 15, 2019

    Read first time. To print.

Sponsors

• Eloise Gómez Reyes · Primary
• Rebecca Bauer-Kahan · Cosponsor
• James Gallagher · Cosponsor
• Smith · Cosponsor
• Chu · Cosponsor
• Obernolte · Cosponsor
• Rodriguez · Cosponsor
• Waldron · Cosponsor
• Mathis · Cosponsor
• James C. Ramos · Cosponsor

Votes

Subjects