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Home My WebLink AboutMINUTES - 04111995 - 1.32 TO: BOARD OF SUPERVISORS Contra FROM: Phil Batchelor, County Administrator _ � .;,. Costa County 7•! y;C DATE: April 6, 1995 s;;......:i; SUBJECT: LEGISLATION: AB 1544 (Hannigan) - DISTRIBUTION OF PENALTIES ON DELINQUENT PROPERTY TAXES AND ON DELINQUENT MELLO-ROOS ASSESSMENTS SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ADOPT a position in SUPPORT of AB 1`544 by Assemblyman Tom Hannigan which, as amended, would clarify the intent of the Legislature in the treatment of penalties on delinquent property taxes and on delinquent Mello-Roos assessments . BACKGROUND: At the request of the California State Association of Counties (CSAC) , Assemblyman Hannigan has introduced AB 1544 to correct an inconsistency in the treatment of penalties on delinquent property taxes and on delinquent Mello-Roos assessments which arose out of the holding of the California Court of Appeals in the case of City of Camarillo v. County of Ventura ( 1994 ) , 26 Cal . App. 4th 1351 . In 1994, the Court of Appeals found that a community facilities district which collects a special tax under the Mello-Roos Community Facilities Act was entitled to share in the proceeds of the revenue collected from penalties and delinquencies . This particular f inding. by the court was completely contradictory to the original intent of the law under Revenue and Taxation Code § 4653 . 6 which states that: "Amounts paid as delinquent penalties shall be distributed to the county general fund. " Assemblyman Hannigan, on behalf of CSAC, attempted to permanently clear this issue up in 1989 with the enactment of AB 2372 . ' Unfortunately, there still seems to be some ambiguity, because the Camarillo court took no notice of the distinction between revenues and delinquent penalties and a legislative history which goes back to 1951 . CONTINUED ON ATTACHMENT: YES SIGNATURE: &kzazez RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATU_RE(S): �//�(�fj]', ACTION OF BOARD ON APPROVED AS RECOMMENDED �S OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. ATTESTED APR 11 1995 Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF cc: See Page 2 SUPERVISORS AND COUNTY ADMINISTRATOR Ry �iCL�.lt,[�t/y _.,DEPUTY -2- AB 1544 would finally resolve this problem by specifically defining the term "penalty" to include penalties on all ad valorem taxes, special taxes, special assessments and benefit assessments, including Mello-Roos assessments, originally charged on the current secured roll . In addition, this legislation would make clear that these funds shall be deposited into the county general fund as required under Revenue and Taxation Code § 4653 . 6 . AB 1544 is an important bill to county government because it would firmly clarify the authority of counties to keep all delinquent penalties associated with the current secured roll. CSAC strongly encourages all counties to contact Assemblyman Hannigan' s office and express strong support for AB 1544 . cc: County Administrator Auditor-Controller County Counsel Tony Enea, Senior Deputy County Administrator Les Spahnn; Heim, Noack, Kelly & Spahnn r i. CALIFORNIA LEGISLATURE-1995-96 REGULAR SESSION ASSEMBLY BILL No. 1544 Introduced by Assembly Member Hannigan February 24, 1995 An act to amend Section 4653.6 of the Revenue and Taxation Code, relating to property taxation. LEGISLATIVE COUNSEL'S DIGEST AB 1544, as introduced, Hannigan. Property taxation. Existing property tax law provides that taxes shall be distributed to each fund on the basis of the tax rate established for the current secured roll on which they are charged and in the same proportion that the tax rate for each fund bears to the total tax rate applicable. Existing law also provides that amounts paid.as delinquent penalties shall be distributed to the county general fund. This bill would define penalties, for purposes of that distribution, to include penalties on all ad valorem taxes, special taxes, special assessments, and benefit assessments originally charged on the current secured roll, and penalties on any other ad valorem or special taxes, special or benefit assessments, and other charges of any kind added to the current secured property tax roll by any agency, county, city, city and county, special district, school district, or any other entity authorized to charge taxes, assessments, fees, or other amounts on the current secured roll. This bill would declare the Legislature's distinction between delinquency penalties and revenues and the Legislature's intent in enacting this bill to abrogate the 99 AB 1544 — 2 — holding 2 — holding of a specified decision of the California Court of Appeal. The bill would also declare that the provision is declaratory of existing law. This bill would also provide that the bill would not require any adjustments to allocations made during specified fiscal years. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the State of California do enact as follows.- 1 SECTION 1. Section 4653.6 of the Revenue and 2 Taxation Code is amended to read: 3 4653.6. Affietifits, Notwithstanding any other 4 provision of law, except as provided in Section 4708, 5 amounts paid as delinquent penalties on the current 6 secured roll shall be distributed to the county general 7 fund. The term ' `penalties, " as used in this section, 8 includes penalties on all ad valorem taxes, special taxes, 9 special assessments, and benefit assessments originally 10 charged on the current secured roll, including, but not 11 limited to, ad valorem basic levy and debt service taxes 12 levied pursuant to Section 93; special taxes levied 13 pursuant to the Mello-Roos Community Facilities District 14 Act of 1982; benefit assessments levied pursuant to the 15 Assessment District Acts of 1911, 1913, and 1915; 16 community redevelopment agency tax increments 17 allocated under the Health and Safety Code; and ¢ ° 18 penalties on any other ad'valorem or special taxes, special 19 or benefit assessments, and other charges of any kind 20 added to the current secured property tax roll by any 21 agency, county, city, city and county, special district, 22 school district, or any other entity authorized to charge 23 taxes, assessments, fees, or other amounts on the current 24 secured roll. 25 SEC. 2. The Legislature finds and declares that 26 delinquency penalties collected on the current secured 27 roll, regardless of the type of tax, general or special, 28 assessment, or charge on which those penalties are 29 collected, are separate and distinct from the revenues 99 - 3 — AB 1544 A of 1 attributable to those taxes, assessments, or charges. It is on is 2 the intent of the Legislature in enacting this act to 3 abrogate the holding of the California Court of Appeal in quire 4 the case of City of Camarillo v. County of Ventura (1994) , fiscal 5 26 Cal. App. 4th 1351. The Legislature also finds and 6 declares that this act is declaratory of existing law and no. 7 reflects the original intent of Section 4653.6 of the 8 Revenue and Taxation Code. 9 SEC. 3. Notwithstanding the amendments to Section ows: 10 4653.6 of the Revenue and Taxation Code made by this 11 act, the allocation of funds pursuant to Section 4653.6 of and 12 the Revenue and Taxation Code in fiscal years 1978-79 to 13 1994-95; inclusive, and in fiscal year 1995-96 to December ither 14 31, 1995, inclusive, shall be deemed correct, and no 1708, 15 reductions or increases in those allocations shall be -rent 16 required by reason of this act. Zeral tion, axes, pally f not faxes vied strict > the X915; gents and ecial kind any `riot, arge rent that .1red �cial, are :lues p 99 99