AB 1849

Bill Subjects

Abstract

Existing property tax 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. This bill would, for the 2011–12 fiscal year and for each fiscal year thereafter, authorize a city to elect to exchange amounts of its general funds equal to the city exchange amount, as defined, for the ad valorem property tax revenues of the school districts located within that city. This bill would require the auditor of the county in which a city that makes this election is located to perform specified duties with respect to the allocation of ad valorem property tax revenues and transfers from the city's general fund to school districts of the city exchange amount. This bill would also require a city that makes this election to report specified information to the auditor in order to assist the auditor in determining the city exchange amount for purposes of making the allocations and transfers specified above. By imposing new duties upon county auditors, this bill would impose a state-mandated local program. Existing law requires the county superintendent of schools to determine a revenue limit for each school district in the county and requires the amount apportioned to each school district to not include the sum of specified amounts. This bill would include within the sum not apportioned to each school district amounts, if any, received by each school district from a city's general fund as a result of the exchange of revenues described above. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.