Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Revenue and Taxation Code

Property Taxation

Part 0.5. Implementation of Article XIII A of the California Constitution

Chapter 6. Allocation of Property Tax Revenue

Article 3. Revenue Allocation Shifts for Education

Section 97.80

97.80. Property tax revenue allocation computations — Orange County. (a) Notwithstanding any other provision of law, for the 2009–10 fiscal year and for each fiscal year thereafter, the auditor of a qualified county shall do both of the following:

(1) Increase the total amount of ad valorem property tax revenue that is otherwise required to be allocated to that county by the county equity amount.

(2) (A) Decrease the total amount of ad valorem property tax revenue that is otherwise required to be allocated to the county Educational Revenue Augmentation Fund by the county equity amount.

(B) If, for any fiscal year, there is not enough ad valorem property tax revenue that is otherwise required to be allocated to a county Educational Revenue Augmentation Fund for the auditor to complete the allocation reduction required by subparagraph (A), the auditor shall additionally reduce the total amount of ad valorem property tax revenue that is otherwise required to be allocated to all school districts in the county for that fiscal year by an amount equal to the difference between the county equity amount and the amount of ad valorem property tax revenue that is otherwise required to be allocated to the county Educational Revenue Augmentation Fund for that fiscal year. This reduction for each school district in the county shall be the percentage share of the total reduction that is equal to the proportion that the total amount of ad valorem property tax revenue that is otherwise required to be allocated to the school district bears to the total amount of ad valorem property tax revenue that is otherwise required to be allocated to all school districts in a county. For purposes of this subparagraph, "school districts" do not include any districts that are excess tax school entities, as defined in Section 95.

(C) Any reduction in the amount of ad valorem property tax revenues deposited in the county's Educational Revenue Augmentation Fund as a result of subparagraph (A) shall be applied exclusively to reduce the amounts that are allocated from that fund to school districts and county offices of education, and shall not be applied to reduce the amounts of ad valorem property tax revenues that are otherwise required to be allocated from that fund to community college districts.

(b) For purposes of this section:

(1) "Qualified county" means the county that, of all the counties in the state, was allocated the lowest percentage of countywide ad valorem property tax revenue for the 2006–07 fiscal year.

(2) "County equity amount" means thirty-five million dollars ($35,000,000) for each of the 2009–10 and 2010–11 fiscal years, and fifty million dollars ($50,000,000) for the 2011–12 fiscal year and each fiscal year thereafter.

(c) For the 2009–10 fiscal year and for each fiscal year thereafter, ad valorem property tax revenue allocations made pursuant to Sections 96.1 and 96.5 shall not incorporate the allocation adjustments made by this section.

History.—Added by Stats. 2009, Ch. 4 of the Third Extraordinary Session (SB 8), in effect February 20, 2009.

Note.—Section 33 of Stats. 2009, Ch. 4 of the Third Extraordinary Session (SB 8), provided that the Legislature finds and declares the following:

That a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution, and that a special statute is necessary because of the unique inequities experienced from fiscal year to fiscal year by the county that, of all of the counties in the state, was allocated the lowest percentage of countywide ad valorem property tax revenues for the 2006–07 fiscal year.

Section 34 thereof provided that it is the intent of the Legislature that a qualified county dedicate the revenues the county receives under this act for public health and public safety purposes.

Section 35 thereof provided that this act addresses the fiscal emergency declared by the Governor by proclamation on December 19, 2008, pursuant to subdivision (f) of Section 10 of Article IV of the California Constitution.

Section 36 thereof provided that no reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because this act provides for offsetting savings to local agencies or school districts that result in no net costs to the local agencies or school districts, within the meaning of Section 17556 of the Government Code.

Section 37 thereof provided that this act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:

In order to make the necessary statutory changes to achieve cash savings at the earliest possible time, it is necessary that this act take effect immediately.