California AB 1112: Foster youth.

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 Bill Text - AB-1112 Tax Equity Allocation. 

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 |Add To My Favorites |Track Bill | Version: 05/05/25 - Amended Assembly
 02/20/25 - Introduced

 AB-1112 Tax Equity Allocation. (2025-2026)

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 Date Published: 05/05/2025 02:00 PM

AB1112:v98#DOCUMENTBill Start

 Amended
 IN 
 Assembly
 May 05, 2025

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Assembly Bill

No. 1112

Introduced by Assembly Member Wallis

February 20, 2025

 An act to amend Section 98 of the Revenue and Taxation Code, relating to property taxation. 

LEGISLATIVE COUNSEL'S DIGEST

AB 1112, as amended, Wallis.
 Tax Equity Allocation. 

Existing property tax law requires the auditor of each county with qualifying cities, as defined, to make certain property tax revenue allocations to those cities in accordance with an established Tax Equity Allocation formula. In any fiscal year in which a qualifying city is to receive a distribution under these provisions, existing law requires the auditor to reduce the actual amount distributed to the qualifying city by the sum of specified amounts, including any amount of property tax revenues that has been exchanged pursuant to specified law between the City of Rancho Mirage and a community services district.

This bill would remove the above-described property tax revenues from the reductions to the actual amount distributed. By changing the duties on local officials to administer Tax Equity Allocation, this bill would impose a
 state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

By removing the above-described property tax revenues from the reductions to the actual amount distributed, this bill would change the pro rata shares in which ad valorem property tax revenues are allocated among local agencies in a county, within the meaning of paragraph (3) of subdivision (a) of Section 25.5 of
 Article XIII of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.

Digest Key

 Vote:
 MAJORITY2/3 
 Appropriation:
 NO 
 Fiscal Committee:
 YES 
 Local Program:
 YES 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 98 of the Revenue and Taxation Code is amended to read:

98.

 (a) In each county, other than the County of Ventura, having within its boundaries a qualifying city, the computations made pursuant to Section 96.1 or its predecessor section, for the 1989–90 fiscal year and each fiscal year thereafter, shall be modified as follows:

With respect to tax rate areas within the boundaries of a qualifying city, there shall be excluded from the aggregate amount of “property tax revenue allocated pursuant to this chapter to local agencies, other than for a qualifying city, in the prior fiscal year,” an amount equal to the sum of the amounts calculated pursuant to the TEA formula.

(b) (1) Except as
 otherwise provided in this section, each qualifying city shall, for the 1989–90 fiscal year and each fiscal year thereafter, be allocated by the auditor an amount determined pursuant to the TEA formula.

(2) For each qualifying city, the auditor shall, for the 1989–90 fiscal year and each fiscal year thereafter, allocate the amount determined pursuant to the TEA formula to all tax rate areas within that city in proportion to each tax rate area’s share of the total assessed value in the city for the applicable fiscal year, and the amount so determined shall be subtracted from the county’s proportionate share of property tax revenue for that fiscal year within those tax rate areas.

(3) After making the allocations pursuant to paragraphs (1) and (2), but before making the
 calculations pursuant to Section 96.5 or its predecessor section, the auditor shall, for all tax rate areas in the qualifying city, calculate the proportionate share of property tax revenue allocated pursuant to this section and Section 96.1, or their predecessor sections, in the 1989–90 fiscal year and each fiscal year thereafter to each jurisdi