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HomeMy WebLinkAboutMINUTES - 04242001 - C.68 oil � � TO: BOARD OF SUPERVISORS ``' CONTRA , .. .- ;• COSTA MOIL COUNTY FROM: John Sweeten, County Administrator DATE: April 24, 2001 Y'A'K V SUBJECT: AB 589 (Wesson) - Support SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION(S): 1. SUPPORT AB 589 (Wesson) which would reconfigure the existing Property Tax Administration loan program into a grant program, extend the sunset date to FY 06-07 and increase the grant amount for Contra Costa County. 2. REQUEST the County Lobbyist to appropriately communicate the Board's position on AB 589. BACKGROUNDIREASON(S) FOR RECOMMENDATION(S): The Contra Costa County 2001 Legislative Program includes the following platform position: Continue to support efforts to . . . reform the statellocal fiscal relationship. AB 589 (Wesson) reconfigures the current Property Tax Administration loan program to a grant program through FY 06-07. The authorization for the current program expires this fiscal year. In addition, it increases the maximum grant amount for Contra Costa. to $4,044,176. The current maximum loan is approximately$2 million. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR_RECOMMENDATION OF BOA ITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON April 24. 2001 APPROVED AS RECOMMENDED XX OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A XX UNANIMOUS(ABSENT Ty 1 TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ABSENT: ABSTAIN: ON MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: ATTESTED April 24, 2001 JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND 9OUNTY ADMINIST TOR cc: CAO Gus Kramer,Assessor B DEPUTY AB 589 Assembly Bill - Status Page 1 of 1 CURRENT BILL STATUS MEASURE : A.B. No. 589 AUTHOR(S) Wesson. TOPIC Property tax: loans for property tax administration. HOUSE LOCATION ASM TYPE OF BILL Active Non-Urgency Non-Appropriations Majority Vote Required Non-State-Mandated Local Program Fiscal Non-Tax Levy LAST HIST. ACT. DATE: 03/08/2001 LAST HIST. ACTION Referred to Com. on L. GOV. COMM. LOCATION ASM LOCAL GOVERNMENT HEARING DATE 04/18/2001 TITLE An act to add Section 95.35 to the Revenue and Taxation Code, relating to taxation. http://www.leginfo.ca.gov/pub/bill/asm/ab_0551-0600/ab_589_bill_20010411_status.html 4/12/01 AB 589 Assembly Bill - INTRODUCED Page 1 of 4 BILL NUMBER: AB 589 INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Wesson FEBRUARY 21, 2001 An act to add Section 95.35 to the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGEST AB 589, as introduced, Wesson. Property tax: loans for property tax administration. Existing property tax law authorizes eligible counties, as defined, to obtain a loan from the state pursuant to the State-County Property Tax Administration Loan Program for the funding of county property tax administrative costs. Existing law limits this loan program to the 1995-96 fiscal year to the 2001-02 fiscal year, inclusive, and establishes a loan amount for each county in accordance with a specified schedule. This bill would create the State-County Property Tax Administration Grant Program which would, for the 2002-03 fiscal year to the 2006-07 fiscal year, inclusive, provide grants to electing counties to assist them in funding property tax administration costs. This bill would set forth a grant amount for each county in a specified schedule. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 95.35 is added to the Revenue and Taxation Code, to read: 95.35. (a) The Legislature finds and declares that there is a significant and compelling state financial interest in the maintenance of an adequately funded system of property tax administration. This financial interest derives from the fact that 53 percent of all property tax revenues collected statewide serve to offset the General Fund obligation to fund K-12 schools, and extends not only to assessment and maintenance of the tax rolls, but also to all aspects of the system which include, but are not limited to, collection, apportionment, allocation, and processing and defending appeals. The Legislature further finds and declares that the combination of limitations on county revenue authority, increasing county financial obligations, and the shift of county property taxes to schools has created a financial disincentive for counties to adequately fund property tar. administration. This disincentive is most clearly evidenced by the fact that counties, on average, receive 19 percent of statewide property tax revenues while they are obligated to pay an average of 73 percent of the costs of administration. The Legislature also finds and declares that the State-County Property Tax Loan Program contained in Section 95.31 was in recognition of the state's financial interest, and the success of that program has demonstrated the appropriateness of an ongoing commitment of state funds to reduce the burden of property tax administration on county finances. Therefore, it is the intent of http://www.leginfo.ca.gov/pub/bill/asm/ab_0551-0600/ab_589_bill_20010221_introduced.html 4/12/01 AB 589 Assembly Bill - INTRODUCED Page 2 of 4 the Legislature, in enacting this act, to establish a grant program known as the State-County Property Tax Administration Grant Program that will continue the success of the State-County Property Tax Loan Program and maintain the commitment to efficient property tax administration. (b) Notwithstanding any other provision of law, in the 2002-03 fiscal year and each fiscal year thereafter to the 2006-07 fiscal year, inclusive, any county board of supervisors may, upon the recommendation of the assessor, adopt a resolution to elect to participate in the State-County Property Tax Administration Grant Program. Any resolution so adopted shall comply with the terms and conditions contained in paragraph (2) of subdivision (c) . If adopted, a copy of the resolution shall be sent to the Department of Finance, which will then transmit a copy of the resolution to the Controller. (c) (1) Any county electing to participate in this program shall be qualified to receive a grant for the applicable amount listed in paragraph (3) . However, the grant eligibility of a county may be terminated at the discretion of the Department of Finance for the fiscal year following a fiscal year in which that county did not meet the conditions specified in paragraph (4) . (2) The resolution to participate in this program shall include a detailed listing of the proposed uses by the county of the grant moneys, including, but not limited to: (A) The proposed positions to be funded. (B) Any increased automation costs. (C) The specific tasks and functions that will be performed during the fiscal year with these funds. (3) Upon transmittal of the electing resolution by the Department of Finance, the Controller shall, provided sufficient moneys have been appropriated by the Legislature for purposes of this section, provide a grant to the electing county for the applicable amount specified in the following schedule: Jurisdiction Amount Alameda . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,304, 858 Alpine . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,248 Amador . . . . . . . . . . . . . . . . . . . . . . . . . . . 161,730 Butte . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763, 912 Calaveras . . . . . . . . . . . . . . . . . . . . . . . . 219,794 Colusa . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,914 Contra Costa . . . . . . . . . . . . . . . . . . . . . 4, 044, 176 Del Norte . . . . . . . . . . . . . . . . . . . . . . . . 72,406 El Dorado . . . . . . . . . . . . . . . . . . . . . . . . 605,590 Fresno . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,330, 498 Glenn . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118,394 Humboldt . . . . . . . . . . . . . . . . . . . . . . . . . 421, 612 Imperial . . . . . . . . . . . . . . . . . . . . . . . . . 463,346 Inyo . . . . . . . . . . . . . . . . . . . . . . . . . . . 200, 160 Kern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,422, 636 Kings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277,306 Lake . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234,752 Lassen . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,398 Los Angeles . . . . . . . . . . . . . . . . . . . . . . 26, 903,340 Madera . . . . . . . . . . . . . . . . . . . . . . . . . . . 425, 982 Marin . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,580, 980 Mariposa . . . . . . . . . . . . . . . . . . . . . . . . . 92, 952 Mendocino . . . . . . . . . . . . . . . . . . . . . . . . 320, 870 Merced . . . . . . . . . . . . . . . . . . . . . . . . . . . 596, 008 Modoc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,044 Mono . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,556 Monterey . . . . . . . . . . . . . . . . . . . . . . . . . 1, 591, 638 hap://www.leginfo.ca.gov/pub/bilt/asm/ab-0 5 5 1-0600/ab5 99bill_20010221_introduced.html 4/12/01 AB 589 Assembly Bill - INTRODUCED Page 3 of 4 Napa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732, 040 Nevada . . . . . . . . . . . 468,584 Orange . . . . . . . . . . . . . . . . . . . . . . . . . . . 13, 652, 650 Placer . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,256, 094 Plumas . . . . . . . . . . . . . . . . . . . . . . . . . . . 161,212 Riverside . . . . . . . . . . . . . . . . . . . . . . . . 4, 716, 136 Sacramento . . . . . . . . . . . . . . . . . . . . . . . 3, 108,490 San Benito . . . . . . . . . . . . . . . . . . . . . . . 180, 816 San Bernardino . . . . . . . . . . . . . . . . . . . 4,279, 876 San Diego . . . . . . . . . . . . . . . . . . . . . . . . 10, 827, 886 .San Francisco . . . . . . . . . . . . . . . . . . . . 2, 026, 664 San Joaquin . . . . . . . . . . . . . . . . . . . . . . 1, 637,372 San Luis Obispo . . . . . . . . . . . . . . . . . . 1,472,576 San Mateo . . . . . . . . . . . . . . . . . . . . . . . . 4, 440,002 Santa Barbara . . . . . . . . . . . . . . . . . . . . 1, 853, 634 Santa Clara . . . . . . . . . . . . . . . . . . . . . . 8,427,278 Santa Cruz . . . . . . . . . . . . . . . . . . . . . . . 1, 130,656 Shasta . . . . . . . . . . . . . . . . . . . . . . . . . . . 684,798 Sierra . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,766 Siskiyou . . . . . . . . . . . . . . . . . . . . . . . . . 182,328 Solano . . . . . . . . . . . . . . . . . . . . . . . . . . . 938,414 Sonoma . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 070,098 Stanislaus . . . . . . . . . . . . . . . . . . . . . . . 1,732,310 Sutter . . . . . . . . . . . . . . . . . . . . . . . . . . . 294, 872 Tehama . . . . . . . . . . . . . . . . . . . . . . . . . . . 194,444 Trinity . . . . . . . . . . . . . . . . . . . . . . . . . . 49, 826 Tulare . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,003,814 Tuolumne . . . . . . . . . . . . . . . . . . . . . . . . . 252,134 Ventura . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 955,578 Yolo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556, 618 Yuba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177, 936 (4) The Department of Finance shall consider the following items in determining whether a county may continue to receive a grant under this section: (A) The county's performance as indicated by the State Board of Equalization's sample survey required by Section 15640 of the Government Code. (B) Any performance measures adopted by the California Assessors ' Association. (C) The county's reduction of backlogs of assessment appeals and declines in taxable value below adjusted base year value. (D) The county's compliance with mandatory audits required by Section 469. (E) The county's reduction of backlogs of determinations regarding new construction, changes in ownership, and supplemental assessments. (F) Any other measure, as determined by the Director of Finance and transmitted to a county prior to its receiving a grant. (c) (1) Funds appropriated for purposes of this section shall be used to enhance the property tax administration system. Amounts provided to any county as a loan pursuant to this section may not be used to supplant the current level of county funding for property tax administration, exclusive of funds received pursuant to the predecessor State-County Property Tax Loan Program. In order to participate in the State-County Property Tax Administration Grant Program, a participating county shall maintain a base staffing, including contract staff, and total funding level in the county assessor's office, independent of the grant proceeds provided pursuant to this section, equal to the levels in the 1994-95 fiscal year, exclusive of amounts provided to the assessor' s office pursuant to Item 9100-102-001 of the Budget Act of 1994. However, in a county in which the 1994-95 fiscal year funding level for the http://www.leginfo.ca.gov/pubibill/asm/ab_05 51-0600/ab_589_bi 11_20010221_introduced.html 4/12/01 AB 589 Assembly Bill - INTRODUCED Page 4 of 4 assessor's office was higher than the 1993-94 fiscal year level, the 1993-94 fiscal year staffing and funding levels shall be considered the base year for purposes of this section. If a county was otherwise eligible but was unable to participate in the State-County Property Tax Loan Program in the 1995-96 fiscal year because it did not meet the funding level and staffing requirements of this paragraph, that county shall maintain a base staffing, including contract staff, and total funding level in the county assessor's office equal to the levels in the 1995-96 fiscal year. (2) Prior to the assessor's recommendation for participation in the State-County Property Tax Administration Grant Program, the assessor shall consult with the county tax collector, and any other county agency directly involved in property tax administration, to develop an identifiable plan for the use of these funds during the period specified in the board resolution. This plan shall be subject to modification and approval of the board of supervisors. (d) A participating county may establish a tracking system whereby a work or function number is assigned to each appraisal or administrative activity. This tracking system should provide statistical data on the number of production units performed by each employee and the positive and negative change in assessed value attributable to the activities performed by each employee. (e) At the request of the Department of Finance, the board shall assist the Department of Finance in evaluating grants made pursuant to this section. http://www.leginfo.ca.gov/pub/bilUasm/ab_0551-0600/ab_589 bill_20010221_introduced.html 4/12/01