Bill > AB1112

This bill modifies the Tax Equity Allocation (TEA) formula for certain qualifying cities by removing specific property tax revenue exchanges between the City of Rancho Mirage and a community services district from the reductions in tax distributions. The bill changes how property tax revenues are calculated and distributed for qualifying cities, which are defined as cities that incorporated before June 5, 1987, and received less than 7% of their expected property tax revenue in the 1988-89 fiscal year. Specifically, the bill removes language that would reduce a qualifying city's tax distribution by the amount of property tax revenues exchanged with the county. This change affects the pro rata shares of ad valorem property tax revenues allocated among local agencies, which requires a two-thirds approval in both legislative houses. The bill also includes a provision that if the Commission on State Mandates determines the bill creates state-mandated local costs, those costs will be reimbursed according to existing statutory procedures. The technical modifications are primarily focused on the Santa Clara County's method of allocating property tax revenues, gradually reducing the reimbursement percentage to zero over five fiscal years, with some exceptions for school district funding calculations.

Budget and Finance, Government Affairs

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1112