Bill Text: CA AB308 | 2009-2010 | Regular Session | Chaptered
Bill Title: Property tax revenue allocations: state-assessed
Spectrum: Slight Partisan Bill (Republican 9-3)
Status: (Passed) 2010-09-29 - Chaptered by Secretary of State - Chapter 433, Statutes of 2010. [AB308 Detail]
Download: California-2009-AB308-Chaptered.html
BILL NUMBER: AB 308 CHAPTERED
BILL TEXT
CHAPTER 433
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2010
APPROVED BY GOVERNOR SEPTEMBER 29, 2010
PASSED THE SENATE AUGUST 23, 2010
PASSED THE ASSEMBLY AUGUST 27, 2010
AMENDED IN SENATE AUGUST 19, 2010
AMENDED IN SENATE JUNE 23, 2010
AMENDED IN SENATE JUNE 9, 2010
AMENDED IN ASSEMBLY MAY 11, 2009
INTRODUCED BY Assembly Members Cook and Carter
FEBRUARY 17, 2009
An act to amend Sections 100, 100.95, 755, and 756 of the Revenue
and Taxation Code, relating to local government finance, and
declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 308, Cook. Property tax revenue allocations: state-assessed
property.
(1) The California Constitution requires the State Board of
Equalization to assess the property, other than franchises, of
companies transmitting or selling gas or electricity. Existing
property tax law provides for the valuation, as a unit, of properties
of a state assessee that are operated as a unit as a primary
function of that assessee, and for the allocation of the assessed
value of the unit among various counties in which the state-assessee'
s unitary property is located. Existing law also provides, pursuant
to specified formulas, for the application in each county of
specified tax rates to unitary assessed value, and for the allocation
among jurisdictions in that county of the resulting revenues.
This bill would, for the 2010-11 fiscal year and for each fiscal
year thereafter, require the assessed value of specified property
that is located within a redevelopment project area of a joint powers
authority be allocated exclusively to the county in which the
facility is located, and that the revenues derived from the
assessment of this property be allocated in the same percentage
shares as revenues derived from locally assessed property among the
jurisdictions in which the property is located, as provided. This
bill would authorize the State Board of Equalization to amend the tax
rolls for the 2010-11 fiscal year in order to provide these
allocations. This bill would also make conforming changes to related
provisions.
(2) This bill would make legislative findings and declarations as
to the necessity of a special statute.
(3) This bill would also incorporate additional changes in Section
100 of the Revenue and Taxation Code, proposed by SB 1398, to be
operative if SB 1398 and this bill are both enacted and become
effective on or before January 1, 2011, and this bill is enacted
last.
(4) By establishing new duties with respect to the annual
allocation of property tax revenues derived from state-assessed
property, this bill would create 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 these
statutory provisions.
(5) This bill would change the pro rata shares in which ad valorem
property tax revenues are allocated among local agencies in a
county, within the meaning of paragraph (3) of subdivision (a) of
Section 25.5 of Article XIII of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
(6) 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 100 of the Revenue and Taxation Code is amended
to read:
100. Notwithstanding any other provision of law, commencing with
the 1988-89 fiscal year, property tax assessed value attributable to
unitary and operating nonunitary property, as defined in Sections 723
and 723.1, that is assessed by the State Board of Equalization shall
be allocated by county as provided in Section 756, and the assessed
value and revenues attributable to that allocation shall be allocated
within each county as follows:
(a) Each county shall establish one countywide tax rate area. The
assessed value of all unitary and operating nonunitary property shall
be assigned to this tax rate area. No other property shall be
assigned to this tax rate area.
(b) Property assigned to the tax rate area created by subdivision
(a) shall be taxed at a rate equal to the sum of the following two
rates:
(1) A rate determined by dividing the county's total ad valorem
tax levies for the secured roll, including levies made pursuant to
Section 96.8, for the prior year, exclusive of levies for debt
service, by the county's total ad valorem secured roll assessed value
for the prior year.
(2) A rate determined as follows:
(A) By dividing the county's total ad valorem tax levies for
unitary and operating nonunitary property for the prior year debt
service only by the county's total unitary and operating nonunitary
assessed value for the prior year.
(B) Beginning with the 1989-90 fiscal year, adjusting the rate
determined pursuant to subparagraph (A) by the percentage change
between the two preceding fiscal years in the county's ad valorem
debt service levy for the secured roll, not including unitary and
operating nonunitary debt service.
(c) The property tax revenue derived from the assessed value
assigned to the countywide tax rate area pursuant to subdivision (a)
and pursuant to paragraph (2) of subdivision (a) of Section 100.1 by
the use of the tax rate determined in paragraph (1) of subdivision
(b) shall be allocated as follows:
(1) For the 1988-89 fiscal year and each fiscal year thereafter,
each taxing jurisdiction shall be allocated an amount of property tax
revenue equal to 102 percent of the amount of the aggregate property
tax revenue it received from all unitary and operating nonunitary
property in the prior fiscal year, exclusive of revenue attributable
to qualified property under Section 100.95 and levies for debt
service.
(2) If the amount of property tax revenue available for allocation
in the current fiscal year is insufficient to make the allocations
required by paragraph (1), the amount of revenue to be allocated to
each taxing jurisdiction shall be prorated based on a factor
determined by dividing the total amount of property tax revenue
available to all taxing jurisdictions from unitary and operating
nonunitary property in the current year, exclusive of revenue
attributable to levies for debt service, by the total amount of
property tax revenue received by all taxing jurisdictions from
unitary and operating nonunitary property in the prior fiscal year,
exclusive of revenue attributable to levies for debt service.
(3) If the amount of property tax revenue available for allocation
to all taxing jurisdictions in the current fiscal year from unitary
and operating nonunitary property, exclusive of revenue attributable
to qualified property under Section 100.95 and levies for debt
service, exceeds 102 percent of the property tax revenue received by
all taxing jurisdictions from all unitary and operating nonunitary
property in the prior fiscal year, exclusive of revenue attributable
to qualified property under Section 100.95 and levies for debt
service, the amount of revenue in excess of 102 percent shall be
allocated to all taxing jurisdictions in the county by a ratio
determined by dividing each taxing jurisdiction's share of the county'
s total ad valorem tax levies for the secured roll for the prior
year, exclusive of levies for qualified property under Section 100.95
and levies for debt service, by the county's total ad valorem tax
levies for the secured roll for the prior year, exclusive of levies
for qualified property under Section 100.95 and levies for debt
service.
(d) The property tax revenue derived from the assessed value
assigned to the countywide tax rate area pursuant to subdivision (a)
and pursuant to paragraph (2) of subdivision (a) of Section 100.1 by
the use of the tax rate determined in paragraph (2) of subdivision
(b) shall be allocated as follows:
(1) An amount shall be computed for each taxing jurisdiction and
shall be determined by multiplying the amounts required in the
current year pursuant to subdivisions (a) and (c) of Section 93 by
that percentage that shall be determined by dividing the amount of
property tax revenue the jurisdiction received in the prior year from
unitary property and operating nonunitary property by the total
amount of property tax revenue the jurisdiction received in the prior
year from all property.
(2) The amount of property tax revenue available for allocation
pursuant to this subdivision shall be allocated among taxing
jurisdictions in the proportion that the amount computed for each
taxing jurisdiction pursuant to paragraph (1) bears to the total
amount computed pursuant to paragraph (1) for all taxing
jurisdictions.
(3) If a taxing jurisdiction is levying a tax rate for debt
service for the first time in the current fiscal year, for purposes
of determining the percentage specified in paragraph (1), that
percentage shall be the percentage determined by dividing the amount
of property tax revenue received by that taxing jurisdiction in the
prior year pursuant to subdivision (c) from unitary and operating
nonunitary property by the total amount of property tax revenue
received by that taxing jurisdiction in the prior year from all
property within the taxing jurisdiction.
(e) For purposes of this section:
(1) "The county's total ad valorem tax levies for the secured roll"
means all ad valorem tax levies for the county's secured roll,
including the general tax levy, levies for debt service (including
land only and land and improvement rates), and levies for
redevelopment agencies.
(2) "The county's total ad valorem secured roll" means the county'
s local roll, after all exemptions except the homeowner's exemption,
and the county's utility roll.
(3) "Taxing jurisdiction" includes a redevelopment agency.
(4) In a county of the second class, for the 1992-93 fiscal year
and each fiscal year thereafter, "taxing jurisdiction" includes that
fund that has been designated by the auditor as the "Unallocated
Residual Public Utility Tax Fund." All revenues allocated to that
fund pursuant to this section shall be deposited in that fund and
shall be distributed as follows:
(A) For the 1992-93 fiscal year to the 1996-97 fiscal year,
inclusive, at the discretion of the county board of supervisors.
(B) For the 1997-98 fiscal year, 100 percent to the Orange County
Fire Authority.
(C) For the 1998-99 fiscal year and each fiscal year thereafter,
in accordance with the following schedule:
(i) Fifty-seven and forty-seven hundredths percent to the Orange
County Fire Authority.
(ii) Forty-one and forty-seven hundredths percent to the Orange
County Library District.
(iii) Forty-eight hundredths percent to the Buena Park Library
District.
(iv) Fifty-eight hundredths percent to the Placentia Library
District.
(f) The assessed value of the unitary and operating nonunitary
property shall be kept separate for each state assessee throughout
the allocation process.
(g) Each state assessee shall be issued only one tax bill for all
unitary and operating nonunitary property within the county.
(h) This section applies to the unitary property of regulated
railway companies only to the extent described in Section 100.1.
(i) This section does not apply to property that on July 1, 1987,
was undeveloped and owned by a utility and located within a city,
county, or city and county that adopts a resolution stating that the
property is subject to a development plan or agreement and that this
section shall not apply to that property, and the city, county, or
city and county transmits a copy of that resolution, including a
legal description of the property, to the State Board of Equalization
and the county's auditor-controller prior to January 1, 1988.
(j) (1) For property that on July 1, 1990, was undeveloped and
owned by a utility and that is located within a city, county, or city
and county that adopts a resolution stating that the property is
subject to a development plan or agreement and that this subdivision
applies to that property, and the city, county, or city and county
transmits a copy of that resolution, including a legal description of
the property, to the county auditor prior to August 1, 1991, the
allocation of property tax revenues derived with respect to that
property pursuant to Sections 96.1, 96.2, 97.31, 98, 98.01, and
98.04, shall be subject to the allocation required by paragraph (2).
(2) The county auditor shall annually allocate to a city, county,
or city and county, that has adopted and transmitted a resolution
pursuant to paragraph (1), the amount of property tax revenues
derived with respect to the property described in paragraph (1) that
would be allocated to that city, county, or city and county if that
property were subject to assessment by the county assessor. In order
to provide the allocations required by this paragraph, the county
auditor shall make any necessary pro rata reductions in allocations
to local agencies other than that city, county, or city and county
adopting and transmitting a resolution pursuant to paragraph (1), of
property tax revenues derived with respect to the property described
in paragraph (1).
(k) (1) For property subject to this section that is owned by a
utility that serves no more than two counties and is located within a
city, county, or city and county that adopts a resolution stating
that the property is subject to a development plan or agreement for
new construction and the city, county, or city and county transmits a
copy of that resolution, including a legal description of the
property, to the State Board of Equalization and the county auditor
prior to January 1, 2006, the allocation of property tax revenues
derived with respect to that property pursuant to Sections 96.1,
97.31, 98, 98.01, and 98.04, shall be subject to the requirements of
paragraph (2).
(2) If the city, county, or city and county has adopted and
transmitted a resolution pursuant to paragraph (1), the county
auditor shall annually allocate the property tax revenue attributable
to the new construction described in the development plan or
agreement, as if that new construction were subject to assessment by
the county assessor, according to the following formula:
(A) An amount of property tax revenue to school entities, as
defined in subdivision (f) of Section 95, equivalent to the same
percentage the school entities received in the prior fiscal year of
the property tax revenues paid by the utility in the county in which
the property described in paragraph (1) is located.
(B) An amount of property tax revenue to the county in which the
property is located equivalent to the same percentage the county
received in the prior fiscal year of the property tax revenues paid
by the utility in the county in which the property described in
paragraph (1) is located. The county shall distribute those property
tax revenues to the county general fund, the county library district,
the county flood control district, the county sanitation districts,
and the county service areas.
(C) The property tax revenue remaining after the allocations
described in subparagraphs (A) and (B) are made shall be distributed
to the city in which the property described in paragraph (1) is
located.
(3) In order to provide the allocations required by paragraph (2),
the county auditor shall make any necessary pro rata reductions in
allocations of property taxes attributable to the property specified
in paragraph (1) to jurisdictions other than those receiving an
allocation under paragraph (2).
(l) (1) For property subject to this section that is owned by a
utility that was constructed by a wholly owned subsidiary of the
utility prior to January 1, 2007, and placed in service by the
utility on or after January 1, 2007, and the property is located
within a redevelopment project area of a joint powers authority
comprised of cities and a county that adopts a resolution stating
that the property is subject to a redevelopment plan and the joint
powers authority transmits a copy of that resolution, including a
legal description of the property, to the State Board of Equalization
and the county auditor prior to January 1, 2011, the allocation of
property tax revenues derived with respect to that property shall be
subject to the requirements of subdivision (a) of Section 100.9.
(2) Notwithstanding any other law, the State Board of Equalization
may amend the tax rolls for the 2010-11 fiscal year in order to
provide the allocations required by paragraph (1).
(m) The amendments made to this section by the act that added this
subdivision apply for the 2007-08 fiscal year and for each fiscal
year thereafter.
(n) The amendments made to this section by the act that added this
subdivision apply for the 2010-11 fiscal year and for each fiscal
year thereafter.
SEC. 1.5. Section 100 of the Revenue and Taxation Code is amended
to read:
100. Notwithstanding any other provision of law, commencing with
the 1988-89 fiscal year, property tax assessed value attributable to
unitary and operating nonunitary property, as defined in Sections 723
and 723.1, that is assessed by the State Board of Equalization shall
be allocated by county as provided in Section 756, and the assessed
value and revenues attributable to that allocation shall be allocated
within each county as follows:
(a) Each county shall establish one countywide tax rate area. The
assessed value of all unitary and operating nonunitary property shall
be assigned to this tax rate area. No other property shall be
assigned to this tax rate area.
(b) Property assigned to the tax rate area created by subdivision
(a) shall be taxed at a rate equal to the sum of the following two
rates:
(1) A rate determined by dividing the county's total ad valorem
tax levies for the secured roll, including levies made pursuant to
Section 96.8, for the prior year, exclusive of levies for debt
service, by the county's total ad valorem secured roll assessed value
for the prior year.
(2) A rate determined as follows:
(A) By dividing the county's total ad valorem tax levies for
unitary and operating nonunitary property for the prior year debt
service only by the county's total unitary and operating nonunitary
assessed value for the prior year.
(B) Beginning with the 1989-90 fiscal year, adjusting the rate
determined pursuant to subparagraph (A) by the percentage change
between the two preceding fiscal years in the county's ad valorem
debt service levy for the secured roll, not including unitary and
operating nonunitary debt service.
(c) The property tax revenue derived from the assessed value
assigned to the countywide tax rate area pursuant to subdivision (a)
and pursuant to paragraph (2) of subdivision (a) of Section 100.1 by
the use of the tax rate determined in paragraph (1) of subdivision
(b) shall be allocated as follows:
(1) For the 1988-89 fiscal year and each fiscal year thereafter,
each taxing jurisdiction shall be allocated an amount of property tax
revenue equal to 102 percent of the amount of the aggregate property
tax revenue it received from all unitary and operating nonunitary
property in the prior fiscal year, exclusive of revenue attributable
to qualified property under Sections 100.95 and 100.96 and levies for
debt service.
(2) If the amount of property tax revenue available for allocation
in the current fiscal year is insufficient to make the allocations
required by paragraph (1), the amount of revenue to be allocated to
each taxing jurisdiction shall be prorated based on a factor
determined by dividing the total amount of property tax revenue
available to all taxing jurisdictions from unitary and operating
nonunitary property in the current year, exclusive of revenue
attributable to levies for debt service, by the total amount of
property tax revenue received by all taxing jurisdictions from
unitary and operating nonunitary property in the prior fiscal year,
exclusive of revenue attributable to levies for debt service.
(3) If the amount of property tax revenue available for allocation
to all taxing jurisdictions in the current fiscal year from unitary
and operating nonunitary property, exclusive of revenue attributable
to qualified property under Sections 100.95 and 100.96 and levies for
debt service, exceeds 102 percent of the property tax revenue
received by all taxing jurisdictions from all unitary and operating
nonunitary property in the prior fiscal year, exclusive of revenue
attributable to qualified property under Sections 100.95 and 100.96
and levies for debt service, the amount of revenue in excess of 102
percent shall be allocated to all taxing jurisdictions in the county
by a ratio determined by dividing each taxing jurisdiction's share of
the county's total ad valorem tax levies for the secured roll for
the prior year, exclusive of levies for qualified property under
Sections 100.95 and 100.96 and levies for debt service, by the county'
s total ad valorem tax levies for the secured roll for the prior
year, exclusive of levies for qualified property under Sections
100.95 and 100.96 and levies for debt service.
(d) The property tax revenue derived from the assessed value
assigned to the countywide tax rate area pursuant to subdivision (a)
and pursuant to paragraph (2) of subdivision (a) of Section 100.1 by
the use of the tax rate determined in paragraph (2) of subdivision
(b) shall be allocated as follows:
(1) An amount shall be computed for each taxing jurisdiction and
shall be determined by multiplying the amounts required in the
current year pursuant to subdivisions (a) and (c) of Section 93 by
that percentage that shall be determined by dividing the amount of
property tax revenue the jurisdiction received in the prior year from
unitary property and operating nonunitary property by the total
amount of property tax revenue the jurisdiction received in the prior
year from all property.
(2) The amount of property tax revenue available for allocation
pursuant to this subdivision shall be allocated among taxing
jurisdictions in the proportion that the amount computed for each
taxing jurisdiction pursuant to paragraph (1) bears to the total
amount computed pursuant to paragraph (1) for all taxing
jurisdictions.
(3) If a taxing jurisdiction is levying a tax rate for debt
service for the first time in the current fiscal year, for purposes
of determining the percentage specified in paragraph (1), that
percentage shall be the percentage determined by dividing the amount
of property tax revenue received by that taxing jurisdiction in the
prior year pursuant to subdivision (c) from unitary and operating
nonunitary property by the total amount of property tax revenue
received by that taxing jurisdiction in the prior year from all
property within the taxing jurisdiction.
(e) For purposes of this section:
(1) "The county's total ad valorem tax levies for the secured roll"
means all ad valorem tax levies for the county's secured roll,
including the general tax levy, levies for debt service (including
land only and land and improvement rates), and levies for
redevelopment agencies.
(2) "The county's total ad valorem secured roll" means the county'
s local roll, after all exemptions except the homeowner's exemption,
and the county's utility roll.
(3) "Taxing jurisdiction" includes a redevelopment agency.
(4) In a county of the second class, for the 1992-93 fiscal year
and each fiscal year thereafter, "taxing jurisdiction" includes that
fund that has been designated by the auditor as the "Unallocated
Residual Public Utility Tax Fund." All revenues allocated to that
fund pursuant to this section shall be deposited in that fund and
shall be distributed as follows:
(A) For the 1992-93 fiscal year to the 1996-97 fiscal year,
inclusive, at the discretion of the county board of supervisors.
(B) For the 1997-98 fiscal year, 100 percent to the Orange County
Fire Authority.
(C) For the 1998-99 fiscal year and each fiscal year thereafter,
in accordance with the following schedule:
(i) Fifty-seven and forty-seven hundredths percent to the Orange
County Fire Authority.
(ii) Forty-one and forty-seven hundredths percent to the Orange
County Library District.
(iii) Forty-eight hundredths percent to the Buena Park Library
District.
(iv) Fifty-eight hundredths percent to the Placentia Library
District.
(f) The assessed value of the unitary and operating nonunitary
property shall be kept separate for each state assessee throughout
the allocation process.
(g) Each state assessee shall be issued only one tax bill for all
unitary and operating nonunitary property within the county.
(h) This section applies to the unitary property of regulated
railway companies only to the extent described in Section 100.1.
(i) This section does not apply to property that on July 1, 1987,
was undeveloped and owned by a utility and located within a city,
county, or city and county that adopts a resolution stating that the
property is subject to a development plan or agreement and that this
section shall not apply to that property, and the city, county, or
city and county transmits a copy of that resolution, including a
legal description of the property, to the State Board of Equalization
and the county's auditor-controller prior to January 1, 1988.
(j) (1) For property that on July 1, 1990, was undeveloped and
owned by a utility and that is located within a city, county, or city
and county that adopts a resolution stating that the property is
subject to a development plan or agreement and that this subdivision
applies to that property, and the city, county, or city and county
transmits a copy of that resolution, including a legal description of
the property, to the county auditor prior to August 1, 1991, the
allocation of property tax revenues derived with respect to that
property pursuant to Sections 96.1, 96.2, 97.31, 98, 98.01, and
98.04, shall be subject to the allocation required by paragraph (2).
(2) The county auditor shall annually allocate to a city, county,
or city and county, that has adopted and transmitted a resolution
pursuant to paragraph (1), the amount of property tax revenues
derived with respect to the property described in paragraph (1) that
would be allocated to that city, county, or city and county if that
property were subject to assessment by the county assessor. In order
to provide the allocations required by this paragraph, the county
auditor shall make any necessary pro rata reductions in allocations
to local agencies other than that city, county, or city and county
adopting and transmitting a resolution pursuant to paragraph (1), of
property tax revenues derived with respect to the property described
in paragraph (1).
(k) (1) For property subject to this section that is owned by a
utility that serves no more than two counties and is located within a
city, county, or city and county that adopts a resolution stating
that the property is subject to a development plan or agreement for
new construction and the city, county, or city and county transmits a
copy of that resolution, including a legal description of the
property, to the State Board of Equalization and the county auditor
prior to January 1, 2006, the allocation of property tax revenues
derived with respect to that property pursuant to Sections 96.1,
97.31, 98, 98.01, and 98.04, shall be subject to the requirements of
paragraph (2).
(2) If the city, county, or city and county has adopted and
transmitted a resolution pursuant to paragraph (1), the county
auditor shall annually allocate the property tax revenue attributable
to the new construction described in the development plan or
agreement, as if that new construction were subject to assessment by
the county assessor, according to the following formula:
(A) An amount of property tax revenue to school entities, as
defined in subdivision (f) of Section 95, equivalent to the same
percentage the school entities received in the prior fiscal year of
the property tax revenues paid by the utility in the county in which
the property described in paragraph (1) is located.
(B) An amount of property tax revenue to the county in which the
property is located equivalent to the same percentage the county
received in the prior fiscal year of the property tax revenues paid
by the utility in the county in which the property described in
paragraph (1) is located. The county shall distribute those property
tax revenues to the county general fund, the county library district,
the county flood control district, the county sanitation districts,
and the county service areas.
(C) The property tax revenue remaining after the allocations
described in subparagraphs (A) and (B) are made shall be distributed
to the city in which the property described in paragraph (1) is
located.
(3) In order to provide the allocations required by paragraph (2),
the county auditor shall make any necessary pro rata reductions in
allocations of property taxes attributable to the property specified
in paragraph (1) to jurisdictions other than those receiving an
allocation under paragraph (2).
(l) (1) For property subject to this section that is owned by a
utility that was constructed by a wholly owned subsidiary of the
utility prior to January 1, 2007, and placed in service by the
utility on or after January 1, 2007, and the property is located
within a redevelopment project area of a joint powers authority
comprised of cities and a county that adopts a resolution stating
that the property is subject to a redevelopment plan and the joint
powers authority transmits a copy of that resolution, including a
legal description of the property, to the State Board of Equalization
and the county auditor prior to January 1, 2011, the allocation of
property tax revenues derived with respect to that property shall be
subject to the requirements of subdivision (a) of Section 100.9.
(2) Notwithstanding any other law, the State Board of Equalization
may amend the tax rolls for the 2010-11 fiscal year in order to
provide the allocations
required by paragraph (1).
(m) The amendments made to this section by the act that added this
subdivision apply for the 2007-08 fiscal year and for each fiscal
year thereafter.
(n) The amendments made to this section by the act that added this
subdivision apply for the 2010-11 fiscal year and for each fiscal
year thereafter.
SEC. 2. Section 100.95 of the Revenue and Taxation Code is amended
to read:
100.95. (a) Notwithstanding any other law, for the 2007-08 fiscal
year and each fiscal year thereafter, all of the following apply:
(1) The property tax assessed value of qualified property that is
owned by a public utility and that is assessed by the State Board of
Equalization shall be allocated entirely to the county in which the
qualified property is located.
(2) The tax rate applied to the assessed value allocated pursuant
to paragraph (1) shall be the rate calculated pursuant to subdivision
(b) of Section 100.
(3) The county auditor shall allocate the property tax revenues
derived from applying the tax rate described in paragraph (1) of
subdivision (b) of Section 100 to the qualified property described in
this section as follows:
(A) (i) School entities, as defined in subdivision (f) of Section
95, shall be allocated an amount equivalent to the same percentage
the school entities received in the prior fiscal year from the
property tax revenues paid by the utility in the county in which the
qualified property is located.
(ii) The county in which the qualified property is located shall
be allocated an amount equivalent to the same percentage the county
received in the prior fiscal year from the property tax revenues paid
by the utility in the county in which the qualified property is
located.
(iii) Special districts, other than an "enterprise special
district" as defined in paragraph (3) of subdivision (c), shall be
allocated an amount equivalent to the same percentage that these
special districts, other than enterprise special districts, received
in the prior fiscal year from the property tax revenues paid by the
utility in the county in which the qualified property is located.
(B) The balance of these revenues remaining after the allocations
made under subparagraph (A) shall be allocated as follows:
(i) Ninety percent shall be allocated as follows:
(I) If the qualified property is located in a city, to the city in
which that property is located.
(II) If the qualified property is located in an unincorporated
area of the county, to the county.
(ii) Ten percent shall be allocated as follows:
(I) If the qualified property is provided water services by a
water district that otherwise receives a property tax revenue
allocation under this chapter, to that water district. If the
qualified property is provided water services by more than one water
district that otherwise receives a property tax revenue allocation
under this chapter, those districts shall each receive an equal share
of this revenue.
(II) If the qualified property is provided water services by a
city, to that city.
(III) If the qualified property is provided water services by a
private water company or a water district that does not otherwise
receive a property tax revenue allocation under this chapter:
(aa) If the qualified property is located in a city, to the city
in which that property is located.
(ab) If the qualified property is located in an unincorporated
area of the county, to the county.
(4) The county auditor shall allocate the property tax revenues
derived from applying the tax rate described in paragraph (2) of
subdivision (b) of Section 100 to the qualified property described in
this section in accordance with subdivision (d) of Section 100,
except that school entities, as defined in subdivision (f) of Section
95, shall be allocated an amount equivalent to the same percentage
the school entities received in the prior fiscal year from the
property tax revenues paid by the utility in the county in which the
qualified property is located.
(5) In order to provide the allocations required by paragraphs (3)
and (4), the county auditor shall make any necessary pro rata
reductions in allocations of property taxes attributable to the
qualified property to jurisdictions other than those receiving an
allocation under paragraphs (3) and (4).
(b) (1) A special district that serves more than one county shall
spend property tax revenues allocated under this section within the
county that allocated the property tax revenues in or near
communities impacted by the qualified property.
(2) All other special districts that receive property tax revenues
under this section and that have qualified property located entirely
or partially within their jurisdiction shall spend the property tax
revenues in or near communities impacted by the qualified property.
(c) For purposes of this section, all of the following apply:
(1) "Qualified property" means all plant and associated equipment,
including substation facilities and fee-owned land and easements,
placed in service by the public utility on or after January 1, 2007,
and related to the following:
(A) Electrical substation facilities that meet either of the
following conditions:
(i) The high-side voltage of the facility's transformer is 50,000
volts or more.
(ii) The substation facilities are operated at 50,000 volts or
more.
(B) Electric generation facilities that have a nameplate
generating capacity of 50 megawatts or more.
(C) Electrical transmission line facilities of 200,000 volts or
more.
(2) "Qualified property" does not include either of the following:
(A) Additions, modifications, reconductoring, or equivalent
replacements to the plant and associated equipment made after the
plant and associated equipment are placed in service.
(B) Property that is subject to subdivisions (k) and (l) of
Section 100.
(3) (A) An "enterprise special district" means a special district,
other than a special district described in subparagraph (B), that
performs, as reported in the 2001-02 edition of the State Controller'
s Special Districts Annual Report, an enterprise function.
(B) An "enterprise special district" does not include any of the
following:
(i) A qualified special district, as defined in Section 97.34.
(ii) A district organized pursuant to the Local Health Care
District Law set forth in Division 23 (commencing with Section 32000)
of the Health and Safety Code.
(iii) A transit district.
(4) A public utility shall provide to the State Board of
Equalization a description of the qualified property that is subject
to this section in the form prescribed by the board. The State Board
of Equalization shall transmit to the auditor of each county in which
qualified property is located the information necessary to identify
that property and the corresponding assessed value data necessary to
make the property tax revenue allocations required by this section.
SEC. 3. Section 755 of the Revenue and Taxation Code is amended to
read:
755. (a) On or before July 15, the board shall transmit to each
county auditor an estimate of the total unitary value and operating
nonunitary value of state-assessed property in the county and of
nonunitary state-assessed property in each revenue district in the
county. An estimate need not be made for a revenue district that did
not levy a tax or assessment during the preceding year unless the
board receives on or before January 1 preceding the fiscal year for
which the levy is to be made a notice in writing of the proposed
levy. The estimate shall be regarded as establishing the total
assessed value of state-assessed property in the county and each
revenue district in the county for the purpose of determining tax
rates, subject only to those changes as may be transmitted on or
prior to July 31. All information furnished pursuant to this section
is at all times during office hours open to inspection by any
interested person or entity.
(b) Notwithstanding subdivision (a), in making the estimate
referred to in subdivision (a), the value of property described in
paragraph (1) of subdivision (a) of Section 100.1 and the nonunitary
value of the property of regulated railway companies, property
subject to subdivisions (i), (j), (k), and (l) of Section 100, and
property subject to Section 100.9 shall be allocated by revenue
district.
(c) The amendments made to this section by the act that added this
subdivision apply for the 2007-08 fiscal year and for each fiscal
year thereafter.
SEC. 4. Section 756 of the Revenue and Taxation Code is amended to
read:
756. (a) On or before July 31, the board shall transmit to each
county auditor a roll showing the unitary and operating nonunitary
assessments made by the board in the county and the nonoperating
nonunitary assessments made by the board in each city and revenue
district in the county; provided, however, that the roll need not
show the assessments made by the board in a revenue district which
did not levy a tax or assessment during the preceding year. The roll
is at all times, during office hours, open to the inspection of any
person representing any taxing agency or revenue district, or any
district described in Section 2131. If the roll does not show the
assessments in a revenue district as herein provided and a notice of
a proposed levy is furnished to the board in writing, on or before
January 1 preceding the fiscal year for which the levy is to be made,
the board shall furnish an estimate of the total assessed value of
nonoperating nonunitary state-assessed property in the district and
shall transmit thereafter to the county auditor a statement of roll
change showing the nonoperating nonunitary assessments made by the
board in the district.
(b) Notwithstanding subdivision (a), in making the roll referred
to in subdivision (a), the value of property described in paragraph
(1) of subdivision (a) of Section 100.1 and the nonunitary value of
the property of regulated railway companies, property subject to
subdivisions (i), (j), (k), and (l) of Section 100, and property
subject to Section 100.9 shall be enrolled by revenue district.
(c) The amendments made to this section by the act that added this
subdivision apply for the 2007-08 fiscal year and for each fiscal
year thereafter.
SEC. 5. The Legislature finds and declares that a special law is
necessary, and that a general law cannot be made applicable within
the meaning of Section 16 of Article IV of the California
Constitution, in order to ensure that the Inland Valley Development
Agency receives sufficient tax increment funding to repay loans, or
moneys advance to, or indebtedness incurred by, the redevelopment
agency to finance or refinance redevelopment projects.
SEC. 6. Section 1.5 of this bill incorporates amendments to
Section 100 of the Revenue and Taxation Code proposed by both this
bill and SB 1398. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2011, but
this bill becomes operative first, (2) each bill amends Section 100
of the Revenue and Taxation Code, and (3) this bill is enacted after
SB 1398, in which case Section 100 of the Revenue and Taxation Code,
as amended by Section 1 of this bill, shall remain operative only
until the operative date of SB 1398, at which time Section 1.5 of
this bill shall become operative.
SEC. 7. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
SEC. 8. 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 ensure that the Inland Valley Development Agency
receives sufficient tax increment funding to repay loans, or moneys
advanced to, or indebtedness incurred by, the redevelopment agency to
finance or refinance redevelopment projects, it is necessary that
this act take effect immediately.
