COMMITTEES
ELECTIONS. REAPPORTIONMENT
WILLIAM P. BAKER AND CONSTITUTIONAL
ASSEMBLYMAN. FIFTEENTH DISTRICT AMENDMENTS
VICE CHAIRMAN COMMISSION ON STATE
COMMITTEE ON WAYS AND MEANS FINANCE
October 23 1987
MEMO TO:Members of the Assembly Republican Caucus
FROM: Bill Baker
SUBJECT: No/ Low Property Tax City Revenues (SB 709)
Attached is the 10—year revenue impact projection by the Legislative Analyst's Office for no and low property tax cities pursuant to Senate Bill 709 (Chapter 1211, 1987).
This projection is still being reviewed by the Department of Finance, which has already identified one controversial assumption: the assessed property value is determined in 1987—88 and is not recalculated until the 10—year phase—in is completed.
This would have the impact of reduced revenues to the cities because the methodology does not reflect any appreciation of value during the 10—year period. Unless this issue is otherwise resolved, clean—up legislation may be required to clarify the methodology.
Other issues which should be considered in clean—up legislation include :
a. Consideration of revenue received for services performed by cities that incorporated after 1979.
b. Schedule for phase—in of revenue shifts to low property tax cities.
c. Schedule for discontinuance of Motor Vehicle License Feerevenues to no property tax cities.
We are expecting a detailed analysis of the provisions of SB 709 from the Legislative Analyst within the next month. Please contact
STATE CAPITOL
P.o. BOX 9428a9 WAYS AND MEANS
SACRAMENTO. CA 94249-0001
SUBCOMMITTEE ON PUBLIC
DISTRICT OFFICE
Assembly EMPLOYEES AND BONDED
1 676 NORTH CALIFORNIA BLVD. INDEBTEDNESS
SUITE 690
WALNUT CREEK. CA 94596 California
Legislature
JOINT BUDGET COMMITTEE
GOVERNMENTAL
ORGANIZATION
Shannon Hood of the Minority Ways and Means Committee staff (445— 6817, ATSS 485—6817) if you need assistance in working with the attached chart.
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