HomeMy WebLinkAboutMINUTES - 04242001 - C.68 oil
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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.
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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
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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
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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
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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.
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