Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2012
 

Other Code Provisions

Education Code

TITLE 2. ELEMENTARY AND SECONDARY EDUCATION

DIVISION 3. LOCAL ADMINISTRATION

PART 24. SCHOOL FINANCE

Chapter 2. Determination of Minimum Level of Education Funding

Section 41204.1

41204.1. Legislative intent of allocation of revenues. (a) (1) Pursuant to paragraph (2) of subdivision (b) of Section 41204, the Director of Finance shall annually adjust "the percentage of General Fund revenues appropriated for school districts and community college districts, respectively, in the 1986–87 fiscal year" for purposes of applying paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, to reflect those property tax revenue allocation modifications required by the qualifying provisions in a manner that ensures that those modifications will have no net fiscal impact upon the amounts that are otherwise required to be applied by the state for the support of school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution.

(2) For purposes of this section, "qualifying provisions," means all of the following:

(A) The amendments made to Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code and Article 7 (commencing with Section 33680) of Chapter 6 of Part 1 of Division 24 of the Health and Safety Code during the 1991–92 Regular Session to the 2003–04 Regular Session, inclusive, and during any Extraordinary Session concurrently held during those session years, inclusive.

(B) Section 97.80 of the Revenue and Taxation Code.

(b) Notwithstanding any other provision of law, for the 2004–05 fiscal year and each fiscal year thereafter, "the percentage of General Fund revenues appropriated for school districts and community colleges districts, respectively, in fiscal year 1986–87," for purposes of paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, shall be deemed to be the percentage of General Fund revenues that would have been appropriated for those entities if the qualifying provisions had been operative for the 1986–87 fiscal year.

(c) It is the intent of the Legislature in enacting the act adding this section to ensure both of the following:

(1) That the changes required by the qualifying provisions in the allocations of ad valorem property tax revenues do not have a net fiscal impact upon school districts, as defined in Section 41302.5, or community college districts.

(2) That the changes required by the qualifying provisions in the allocations of ad valorem property tax revenues do not have a net fiscal impact upon the amounts of revenue otherwise required to be applied by the state for the support of school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution.

History.—Added by Stats. 1996, Ch. 1111, in effect January 1, 1997. Stats. 1999, Ch. 84 (AB 1661), in effect July 12, 1999, operative only upon amendment of the California Constitution in 2000, substituted "qualifying provisions" for "act adding this section" after "by the" in subdivision (a) and former subdivision (b) (1) and (2); deleted "in enacting the act adding this section" after "Legislature" in former subdivision (b); added subparagraph (2) to subdivision (a); added subdivisions (b) and (c); and relettered former subdivision (b) as (d). Amended by Stats. 2004, Ch. 211 (SB 1096), in effect August 5, 2004. Stats. 2009, Ch. 4 of the Third Extraordinary Session (SB 8), in effect January 20, 2009.

Note.—Section 10 of Stats. 1999, Ch. 84 (AB 1661), provided that the Legislature hereby finds and declares both of the following:

(a) None of the fiscal relief provided by this act should be construed to determine or otherwise affect any legal issue raised by an action in which a county, city, or special district, or any representative thereof, alleges that a state-mandated local program includes any state law requirement to shift ad valorem property tax revenues from local agencies in a county to an Educational Revenue Augmentation Fund.

(b) The Legislature does not intend that this act exemplify or limit the nature of any future act that affects state or local government finance.

Section 11 thereof provided that:

(a) Sections 1, 6, and 9 of this act shall not become operative unless an amendment to the California Constitution is placed on the ballot by the Legislature and is approved by the statewide electorate during the 2000 calendar year, to do both of the following:

(1) Specifically reference Sections 1, 6, and 9 of this act and state that those provisions shall not become operative unless the amendment is approved by the statewide electorate during the 2000 calendar year.

(2) Make a substantive legal change with respect to any, or any combination, of the following:

(A) The taxing powers of one or more classes of local governments.

(B) The manner in which state government revenues are subvened or otherwise allocated to local governments.

(C) The allocation in each county of ad valorem property tax revenues, local sales tax revenues, or any other local tax revenues.