CORRECTED FISCAL YEAR 2025 TAX APPROPRIATIONS LIMIT
➢ Executive Summary
➢ Ten-Year History of Price and Population Factors and Tax Appropriations Limits
ATTACHMENT 2
Corrected Fiscal Year 2024/25 Tax Appropriations Limit
Executive Summary
In November 1979, California voters approved Proposition 4 (the Gann Initiative) and added Article XIIIB to the California State Constitution. In 1980, the State Legislature added Division 9 (commencing with Section 7900) to Title I of the Government Code to implement Article XIIIB. This legislation required the governing body of each local jurisdiction in California to establish a Tax Appropriations Limit (also referred to as the GANN Limit) on or before June 30 of each year for the following fiscal year. The Tax Appropriations Limit is based on actual appropriations during the State of California Fiscal Year 1978/79 and adjusted each year using population and inflation adjustment factors.
On June 5, 1990, California voters approved Proposition 111, amending Article XIIIB.
Proposition 111 allows local jurisdictions to choose among measures of inflation and population growth to compute and adjustment factors. The measures for inflation (price factors) include growth in California per capita income or growth in the City’s gross assessed valuation due to new non -residential construction, while measures for population growth include population growth within the county or city.
The proposed Tax Appropriations Limit for Fiscal Year 2024/25 is $ 613,036,431, not $613,522,010 as previously approved . The previously approved limit was calculated using incorrect ratios.
ATTACHMENT 2
Corrected Fiscal Year 2024/25 Tax Appropriations Limit
Ten Year History of Price and Population Factors & Tax Appropriations Limits for Fiscal Years 2015/16 through 2024/25
Fiscal
Year
Price
Adjustment
Population
Adjustment
Total
Adjustment
Appropriations
Limit
2015/16 1.0382 x 1.0094 = 1.0480
455,447,106
2016/17 1.0537 x 1.0203 = 1.0751
489,658,157
2017/18 1.0006 x 1.0369 = 1.0376
508,054,206
2018/19 1.0067 x 0.9972 = 1.0038
510,009,935
2019/20 1.0085 x 0.9999 = 1.0085
514,321,628
2020/21 1.0373 x 0.9943 = 1.0314
530,481,309
2021/22 1.0033 x 1.0048 = 1.0082
534,807,381
2022/23 1.0755 x 0.9902 = 1.0650
569,554,482
2023/24 1.0444 x 0.9908 = 1.0348 589,380,150
2024/25 1.0362 x 1.0038 = 1.0401 613,036,431
ATTACHMENT 2
ATTACHMENT 2
ATTACHMENT 2
ATTACHMENT 2