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SB-1563 Local government finance: property tax revenue allocations.(1995-1996)



Current Version: 07/22/96 - Chaptered

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SB1563:v97#DOCUMENT

Senate Bill No. 1563
CHAPTER 211

An act to add Section 96.15 to the Revenue and Taxation Code, relating to local government finance, and declaring the urgency thereof, to take effect immediately.

[ Filed with Secretary of State  July 22, 1996. Approved by Governor  July 20, 1996. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 1563, Wright. Local government finance: property tax revenue allocations.
Existing law generally requires the county auditor, in each fiscal year, to allocate property tax revenues to local jurisdictions in accordance with specified formulas and procedures, and generally requires that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction’s portion of the annual tax increment, as defined. Existing property tax law also requires a county auditor to make certain property tax revenue allocations to “qualifying cities,” as defined, in accordance with a specified Tax Equity Allocation (TEA) formula and to make corresponding reductions in the amount of property tax revenue that is allocated to the county.
This bill would, in the case in which a “qualifying city” becomes the successor agency to a special district as a result of a merger with that district as described in a specified statute, require the county auditor to additionally allocate to that successor “qualifying city” that amount of property tax revenue that otherwise would have been allocated to that special district pursuant to general allocation requirements.
This bill would also state the intent of the Legislature in enacting these provisions. This bill would declare that it is to take effect immediately as an urgency statute.

The people of the State of California do enact as follows:


SECTION 1.

 Section 96.15 is added to the Revenue and Taxation Code, to read:

96.15.
 (a)  Notwithstanding any other provision of this chapter, in the event a qualifying city as defined in subdivision (d) of Section 98 or subdivision (f) of Section 98.02 becomes the successor agency to a special district as a result of a merger described in Section 57087.3 of the Government Code, the auditor shall allocate to that qualifying city, in addition to any other amount of ad valorem property tax revenue required to be allocated to that city pursuant to this chapter, the amount of ad valorem property tax revenue that otherwise would be allocated to that district pursuant to this article.
(b)  It is the intent of the Legislature in enacting this section to confirm and clarify a county auditor’s duty and authority, established by subdivision (d) of Section 57087.3 of the Government Code, to allocate to a qualifying city the ad valorem property tax revenue of a subsidiary district that has been merged with the city.

SEC. 2.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to timely clarify and confirm the right of cities to avail themselves of the existing funding sources for those public services for which those cities have assumed responsibility pursuant to mergers with local special districts, it is necessary that this act take effect immediately.