BILL NUMBER: AB 676	CHAPTERED
	BILL TEXT

	CHAPTER   94
	PASSED THE ASSEMBLY   JUNE 28, 1999
	PASSED THE SENATE   JUNE 24, 1999
	AMENDED IN SENATE   MAY 27, 1999
	AMENDED IN ASSEMBLY   APRIL 19, 1999

INTRODUCED BY   Assembly Member Brewer

                        FEBRUARY 23, 1999

   An act relating to property taxation, and declaring the urgency
thereof, to take effect immediately.

      e law without Governor's signature.  Filed with
Secretary of State July 13, 1999.)


	LEGISLATIVE COUNSEL'S DIGEST


   AB 676, Brewer.  Property taxation:  Legislative Analyst:  study.
   Under existing law, the revenues from property taxes are
apportioned to counties based on a specified formula.
   This bill would require the Legislative Analyst to prepare a
report to the Legislature presenting alternatives for restructuring
the property tax allocation system in a manner consistent with
specified goals.
  The bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) California's property owners pay over $20 billion
each year in property taxes, making the property tax the third
largest nonfederal tax in the state.
   (b) While most California cities, counties, special districts,
redevelopment agencies, and schools are highly reliant upon property
taxes, the state's system for allocating these revenues to local
governments is seriously flawed.
   (c) Specifically, California's system for allocating property
taxes does not reflect (1) modern needs and preferences of local
communities, or (2) the relative need for funding by cities,
counties, special districts, redevelopment agencies, and schools to
carry out their mandated and discretionary services.
   (d) In addition, the current system centralizes control over
property tax allocation in Sacramento and gives the state full
authority to reallocate property taxes to offset state education
funding obligations.
   (e) The Legislature wishes to revamp the current system of
property tax allocation to do the following:
   (1) Increase taxpayer knowledge of the allocation of property
taxes.
   (2) Provide greater local control over property tax allocation.
   (3) Give cities and counties greater fiscal incentives to approve
land developments other than retail developments.
   (f) To assist the Legislature in this effort, the Legislative
Analyst shall prepare a report, by December 31, 1999, presenting at
least two alternatives for restructuring the property tax allocation
system in a manner consistent with these goals.  In developing these
alternatives, the Legislative Analyst shall consider the option of
establishing a minimum percentage of the property tax to be allocated
to each California county.
   (g) The Legislature recognizes that any effort to restructure the
allocation of property taxes would result in some local governments
gaining property taxes and some local governments losing property tax
revenues.  In order to minimize the local fiscal impact of these
changes, the Legislature intends to consider allocating an
unspecified amount in additional revenues available to cities,
counties, and special districts.
  SEC. 2.  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 obtain needed information to correct inequities in the
property tax formula at the earliest possible time, it is necessary
for this act to take effect immediately.