HomeMy WebLinkAboutItem 6.2 Oppose Assembly Bill 4 Local Taxes r ,
66
0
M E M O R A N D U M
T0 : City Council
FROM: City Manager
SUBJECT: Written Communication from Richard Robinson,
Assemblyman, re AB4
DATE : November 23 , 1983
The City has received a letter from Richard Robinson, Chairman of
the Assembly Majority Caucus re Assembly Bill #4 which he has
recently introduced. AB4 would authorize counties and in the
absence of action on the part of the county, cities to impose a
local. option 1C sales tax effective July 1, 1984 . Those state
discretionary subventions which the City now receives would be
repealed on that date . The State, in turn, would reduce its
state sales tax by 1G if all 58 counties adopt the local tax.
The State would reduce the sales tax an additional 2� in 1984-85
if the Governor certifies that there will be a 3% reserve in the
State ' s budget at. the end of that fiscal year.
According to the legislative analyst Estimates which arE= attached
to the letter from Assemblyman Robinson dated November 7 , 1983 ,
the City of Dubl:_n would stand to gain approximately $50 , 000 over
and above the subventions it presently receives from the State if
this piece of legislation was approved.
It also should be pointed out that the City has received a notice
from the League of California Cities that the Senate Local
Government Committee will be holding an interim hearing on the
subject of Local Government Finances in San Francisco on
Thursday, December lst. The League of California Cities is
urging cities to have a member of the Council attend the meeting
and, if possible, have a r?ritten statement available which can 1,e
given to the Committee for Entry into the record. The League of
California Cities has endorsE-d the new partnership task force
recommendations as they apply to cities with only minor
differences .
Since it appears that Assembly Bill #4 may receive a lot of
support in bath the Senate and the Assembly, it is appropriate
that City Council should discuss this Bill and direct Staff to
write a position letter which could be presented at the
December lst hearing ',�o be held by the Senate Local Government
Committee . Staff will be prepared to discuss this Bill in more
depth at the City Council meeting.
ITEM NO . �•
STA 7p
ty Q.
Awirmbill
fiffo 0 C T 19>3.ift i � r ig i 1t t a e CITY Op
❑ SACRAMENTO ADDRESS
STATE CAPITOL
SACRAMENTO 95814
TELEPHONE:(916)4457333
❑ DISTRICT OFFICE RICHARD ROBINSON
CIVIC CENTER OFFICE BUILDING
11400 STANFORD AVENUE.SUITE B ASSEMBLYMAN.SEVENTY-SECOND DISTRICT
GARDEN GROVE.CALIFORNIA 92640
TELEPHONE!(714)530-7200 DEMOCRATIC CAUCUS CHAIRMAN
October 24 , 1983
Sacramento, California
Mayor
City of Dublin
P.O. Box 2340
Dublin, CA 94568
Dear Mayor:
Enclosed please find a copy of my recently introduced Pre-
print Assembly Bill No. 4 which authorizes counties , and in the
absence thereof, cities , to impose a local option 1G sales tax
effective July 1 , 1984 . Current state discretionary subventions
to local governments are also repealed on that date. When all 58
counties have adopted the local tax, the state' s sales tax is
reduced 1/2� , and an additional 1/2G of the state sales tax is
reduced in 1984-85 if the Governor certifies there will be a 3%
reserve in the state ' s budget at the end of that fiscal year.
The bill is in print for discussion purposes, primarily to
gather input from local government officials, such as yourself,
to determine both the feasibility and amount of support for the
concept outlined in the legislation.
It is my strong desire to end the annual budget debate at the
state level over how much revenue should be subvened to cities,
counties and special districts. This situation has caused insta-
bility and uncertainty for both of us. It is now time to
restructure state and local financing such that the jurisdiction
which spends the money also raises the revenue and is held
accountable. Your ability to structure and adopt annual budgets
would be greatly enhanced if you can depend on a long-term local
stable source of revenue.
While there are those who believe that my bill may provide
too much money to local government, I recognize the fact that
October 24 , 1983
Page two
local governments have not been made whole since the passage of
Proposition 13. Over the last three years the state has been
forced to reduce AB 8 funding, and in many areas of the state
local services have deteriorated due to a lack of revenue.
Realignment of state/county programs is not addressed, however, I
am open to suggestions.
I would appreciate receiving from you and your colleagues any
and all comments regarding the bill. If you find it unsatisfac-
tory, please submit alternative proposals. There may be a better
alternative to solve our mutual problem than the one I propose.
Please forward your comments to my Sacramento office at the
address indicated on my letterhead. I look forward to a continu-
ing dialogue with you on the issue of state and local government
finance.
Since ely,
RIC O N
Chairman
Assembly Majority Caucus
RR:kb
STA T,
.1 � LIVLD
�•x� .o �
Tatt-fornia 4rie tslat e �� � ®� D1,fl; e>
❑ SACRAMENTO ADORESS
STATE CAPITOL
SACRAMENTO 95814
TELEPHONE:(916)445-7333
❑ DISTRICT OFFICE RICHARD ROBINSON
CIVIC CENTER OFFICE BUILDING ASSEMBLYMAN.SEVENTY-SECOND DISTRICT
11400 STANFORD AVENUE.SUITE B
GARDEN GROVE.CALIFORNIA 92640
TELEPHONE:17141 530-7200 DEMOCRATIC CAUCUS CHAIRMAN
November 7, 1983
Sacramento, CA 95814
Mayor
City of Dublin
P.O. Box 2340
Dublin, CA 94568
Dear Mayor:
A week ago, I sent you a copy of Preprint AB 4 relating to local government
finance. Please find enclosed a computer run which estimates for each city,
county, and special districts in the state how much sales tax revenue each
entity might receive in 1984-85 if the bill were to be enacted in early 1984.
The estimates are based on the assumption that a local 1� sales tax will
generate around $2 billion. In reading the computer run, columns 1, 2 and 3
show haw much the subventions which are repealed in the bill are worth in
1984-85, with the total reduction in the 4th column. The fifth colon shows the
amount of sales tax to be allocated to each entity based on the formula con-
tained in the bill, and the last column shows the amount of money gained or lost
over and above the full value of subventions lost. If you have any questions,
please call my Sacramento office at (916) 445-7333.
Responses to my first letter are beginning to came in. I appreciate the
effort that is being made to thoroughly review the bill.
Thanks once again for your input.
cerely,
RICHARD ROBINSON
Chairman.
Assembly Majority Caucus
RR:kb enclosure
J
CALIFORNIA LEGISLATURIr193.3—M REGULAR SESSION
PREPRINT.ASSEMBLY BILL No. 4
.... . ..:...:.
Proposed by-Assemblyan Robinson
m
t 5 ,
+ October 6, 1983 -
+. f t / r. f ts,7•yt:l tit. . %;� - q Sys
• . t': — :i..; y 1ti• ) �iK i..lit tJls1ty .+. - a l _ .!
.Ani act to repeal Chapterj l 5 .(colnmencmg with Section '
16110) of Part 1 of Division 4 of Title'2 :of.the`Government
;Code;`and'to`arren'd`Sections 7203 5,'11000;`and.30462`of,'to
Sections!6051.9 '6051:102 6201.9, 6201:10;aril 30462.5 toy to
r:;. . . -. ;:..
;add Gh'apter 2.(.corrlmeliciilg with Secti on X290)`to.. art 1.7 of
Division,2 of,..arid.to repeal Secti6hi.100.5'arid 100.7 of; the
`Revenue 'and Taxation Code, relating to public:finance; and
declaring'the urgency thereof, to take effect unrriediately..
•' LEGISLATIVE•COUNSELS,DIGEST
"Preprint AB..4, :as.proposeid, Robinson: Public Finance.
1 Exishrg'law;,.provides-;`for state.subventions to counties;'
�+c. ,,, ,
cities,special districts,'and school entities for the revenue lost !
" by'.:them as a"iesult of Ahe,:exemption of various :kinds of
.pe'rsonal property .from;property taxation:
�'.f t This bill wouldt eliminate these subventions as of tJuly 1,
,1984 ,+, v i ,,
y E� :.�., �- ��i�� .. _ ,\ .-. t-.ty. •.;. .1, i
Ezistirig Cigarette Tax Law provides for the'distribution of
u...
revenues from that tax, pursuant to prescribed formulas, to 9
counties`'fid 'cities. s t- '; f r - =
:This billywouldfelimiriate,the distribution of those revenues
lrto'coiiii`ties and=clues as of.July , 1984.
,.t Ezistirig law require§the distribution to cities and counties,
i
:yy
,.
pursuant 'to" prescribed ;formulas, �o specified amounts of
money.con ained in-the,Motor Veh_icle•License Fee Account
in Transportation:Tax,Fund.
This bill would eliminate the distribution of.those moneys .
to counties and cities as of July 1,-1984.".'.
Existing law provides for the reduction of certain amounts
99 40
P 4 —2=
of state financial assistance to'counties, cities, special districts,-
and school entities in certain circumstances.
This bill yvould eliminate tho'se'reduciions of state financial
assistance as of July 1;"1984. -?r
Existing':provisions ;of the Bradley-Burns Uniform Local
Sales ;'and Use Tax t I,aw permits counties, cities; and
redevelopment agencies to impose'sales and use taxes on the '
sale;':use, storage or other consurripHori of tangible personal
Y u
proper y., retail in`substantlal conformity with existing
= provisions or law imposing state sales and use taxes.
'Phis':bill would;:'errMt counties;`.4h in .the.:absence of
countyamposition, cities to impose.,an additional'sales and use
f ax at the rate of 1% on and after:July 1;` 1984:`The taxes
uthorized would be imposed.and administered similarly to
stiri r'to"cal sale's` and'use -'taxes' .however 'this bill"would '
1 g:: l ,
pr'o' Vide for the allocation of the revenues from'the'additio''nal
sales and use tax, in accordance with prescribed formulas, to
counties imposing the„tax,-cities,and ;districts,';other than
school districts which have expressly,supported imposition of
r , s_ t'•
the'tax;:and school districts
Existing Califorrua Sales and Use Tax-Law provides for the
imposition _of a`state tax on.the sale; storage, use, or other .
consumption in*this state of tangible personal prop_ `r.y. The
-
taxis impose at the rate;6
h"with`provtsion;in certain. ;
circumstances, for its'increase or=decrease .for a specified'
period. +,
t Thin bill would reduce.ther'state sales and use tax rate,
r whether imposed 'af the`434% rate or `any increased .or
decreased rate,by 1/2%•in the event that all counties'adopt the
` 'additional 11 o local sales and use tax
bill'would reduce the state sales°an d use tax'rate by an
additional.1/2% if,.in;addition the:.Department of Finance
"during the. 1984�85 fiscal�Y"ear Fdetermines`and certifies to the.
State Board of Equalization that the Contingency Reserve for
Economic Uncertainties, allowing ==:for,the initial .1/2% rate
reduction provided f rr by:this.bill, exceeds by at least 3% the
amount of estimated state expenditures for that fiscal year.
This ,bill-:would take_:effect::immediately'as' an urgency_
statute: ,.1;-,: r_;.
Vote: 3 ., Appropriation: ,no. Fiscal committee: yes.
99 60
., -3 — pAB 4 .
i. ..
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'State-mandated local program: no.,
The people'of the.State'of California"do enact as follows:
1 -SECTION 1 1 rChapter 1.5.:(c mm
encing wi4i Section
D.i.
'.-2 -`16110) `of Part`l of Division 4 of Title 2 of the�Government
3 Code is x6pealdd
Section 100.5 of the. Revenue and Taxation
-="5 Code`'is lepealed
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"::32 :'SEC. 73 :Section:100.7 of`f "'`Revenue`and Taxation
33 Code is repealed
34
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28 -TaxaEion �Code;'to read .Y t ' ,
= ; 'o.'.. ae;r.
..7.29 6051.9.' (a) Notwitlstanding any:: h . ..
provision of
30 laW,-,the;'rate of, tax imposed for.;the:privilege of selling• .
' ~ 31 :-tarigible personal property at retail in this``stat'.whether
32 imposed pursuant to Section 6051,,6051.'5;"or"6051.7, shall
33..,be ':reduced by <1%2 =percenf :ifs the: :State:;Board 'of
s ' 34 'i Equalization receives from each county within the'state
35 ..a notification of its imposition of a'sales'taz'pursuant to
....h - T
`36 :`the':provisions=of.Chapter 2 (cornmencing with Section
°`37 :7290) 'of Part 1.7. . _
38 ` (b) 'The rate reduction prescribed in subdivision (a)
39 shall `become operatiJe on the first 'day of the first
'40 "calendar month commencing more than 30 days after the
99 210
PAB 4 = 10=::
1 date on which the -StateMf Board of Equalization has
2 received�the:.notifications xspecified in sub rvision . a
:.3 ' from all counties within the state
w°:Section 605110 is added to the Revenue and
4
5: Tazatlon Code `to read h" ;`
' In addition tot a reduction m the rate of
.. � .
7 tax imposed for the privilege of selling tangible personal
8., property .at_-retail -in this'state:which is prescribed in
9; :Section :60519;.;the;:rate ;of tax imposed pursuant. to
q. 10.,;Section;,6051;:6051:5,4 or 60517, as.::.reduced by:Section
11. 60519,
additional shall be reduced bylan :'/2 percent +if
' 12 'both`of the following conditions;are:„met:=-
1 rovisions of:Sechor 6051:9 are operative
i3 �'�:O 'The P
0'' and4 after July= if 1984, ;the:'.Department :of
15 Tinance, .on.tl e 15th day.of any calendar month during
16 . the.'1984-$5_fiscal year, deterrtunes;and certifies to t e.
17 State Board of Equalization that the Yestimated amount of
18 he Contingency :Reserve for Economic Uncertainties,
F
19 after''.the 'calculation' of ariy:'
actua -and : estimated
20 .reductions.in revenue :
s resu�ti ng:from the operation of +'
21^.Section;6051.9, exceeds by at.:least 3 percent estimated
22 expenditures for the 1984-854isca1 year..-:
23 (b) The rate reduction prescnbed in subdivision (a)
.24 shall:;become;operative on first :day of 'the-:first
>.25-=;calendar ; quarter ,commencing ,more .than `:30 ;days
26 : 'the certification; }o the State ,Board of;z
27. Equalization jwhich ,is specified 'jn
ara a h �(2) of
28 subdivision (a) .,
yp. p
29 '.SEC: 6. Section'6201.9 is added to the Revenue and
3 Code'-A6 read-
0 :Taxation.!
31 `..,6201.9. 'Not any other provision of law,
A. .
32 ;;the rate of excise, ax imposed on the"storage,use;or other
33 .. consumption in this'state of tangible;personal property
34_::purchased from'.ariy„retailer,Fwhether.imposed pursuant
35. .to Section 6201;-6201:5, iii 6201^7,`.shall.be reduced by '/2
36-: percent if the'State'Board.of,Equalization receives from :=
37 each c uhty within this ',state' a .:notification of its
38 imposition of .a .use talc pursuant to the provisions of
39 Chapter 2 (commencing with Section 7290) of Part_
40 (b) The rate reduction prescribed in subdivision (a)
99 240
—i1— pAB 4
shall ;become;;operatiye pn the :first day of..the ;first
. .
n
2 ;calendar month commencig more than 30 days after the.':
3 -:date on::which ;the; State Board :-of_ Equalization .has'
4 :received.the noiificatioris specified ,iri subdivision...:(a) ;
5;;from all counties within.the state.; . s
-' x �-
:6 SEC�7 ;;Section 6201 .is added to:the Revenue and ,
;7<: Taxation Code,;to read: r
8 6201 10 ..(a� ..In addition to the reduction in the'rate of
,.
9 ::excise tax imposed: on the ;:storage, .use,:-;or ;,o.ther:;
;.. P '_
10: consum tion in: this state3'of tangible:personal property,:;
ui chased-;.from any rqt aler which.:is E prescribed:,by
?' 12:, Section�62019, the:rate ofiexcise. tax imposed.pursuant to
13;< Section;.6201;'62015; or�,6201;7,;*as -reduced by;Section .,.
6201.9, shall be reducedAby an additional %2 :percent. if
,�.
15.;both of the following conditions are.met
1.::16 ;r'; .(1) The provisions b, Section 6201.9 are::operatwe :: ;
17 �::.(2): Ori,and,;after'Julys 1, . 19842 _the. Department of
�18:�:Finance, .on the l5th:.day of any calendar_month during
19,:;the.;1984-85;fiscal.yeardetermines:and ;certifies .to.ahe; .
20.: State Board of E tion qualiza that the.estimated amount of. t
21
the Contingency;Reserve.for Economic Uncertainties,
22 after
`.the calculation �of� any,-.actual and , estimated
23_ reductions m revenues resulting from the operation-of
2 Section 6201.9, exceeds by -at least.3,:percent;estimated.
�25 expenditures` for.,the 1984=85. fiscal year ;
' t `Section_:7203.S,of.the;Revenue.,and Taxation; ,.
27. Code 'is amended to rea d ; 5 <<:
28 7203.5. The State ,Board of-Equalization shall not
' 29 ,';,administer and shall.terminate,its contract to administer. ,
fdr-
30 ,an sales or,,ruse";-taz �ordinance..;,of- a `,city, ,:'.county,:=,=
y : ,.�:
redevelopment.'agency or cityand county, if such city,
32 county,_.°.redevelopment_agency, or._.city.,and.-:county
33 imposes:a sales'or.use taro addition to the s ales and use
f� �.
34 :.waxes,,imposed .under anf;ordinarice conforming:to .the
35. provisions'of Sections 7202 and 7203 or Sections..7291 ar�d
36
37...: .-.The board shall give such city, county,.redevelopment
r 38.' agency; or.city and county written notice of termination,
39.. stating the reasons therefor and the effective date of the
40 'termination, which shall be not earlier than the first day
99 270
p AB 4 12tt:,
: 1 A:of the first calendar uarter commencing at least 30 days,
q ,F.,�, g
:...2 after`:the 'mailing" of: the 1'riofice to the :city, county,
3 .redevelopment agency,`or;city.and county. If the cause
A for termination is not curedtwithin the time specified:in
5 the notice;the board shall not administer the ordinance
6 ;until "the cause for;;teriiiindii6ii�*is removed and a`new;
:7 :contract :;for, the . administration :of:: the ordinance°
`8 executed °Su'ch :contract shall lie:operative no ear
te ..
9 ;'=than the: first':r:day:.-of ' th re y first ::.calendar :.quarter`:
10 ;.;commencing'after`its execution During the period of_,.
11 time'that the board is not admmisdtering the sales and use
.12 .tax ordinance of a city;coun & evelopment agency,or
>.13:!':"'- y and county,ono ordinance of such city;-'county,':
14 redevelopment agencyt orcYty aril `countyshall be."
15 icons�dered to be an -of dmar�ce enacted m accordanceY
16 with`this part 1�;'
,.17 Nothing in this'
econstru as o i
s`echori_shallbed prhbiting
18 ..ahe`levy or:collection by a city; county; redevelopment
19 agency;.or `city and countywof,any°other. substantially.
20 `different tax authorized by the°Constitution of California
21 or by'statute or by the cha"rter:-;of any chartered city.".
22 ;:;SEC. 9. : Chapter 2 (commencing with Section 7290) is
23 :added to Tait-:1.7 of :Divas ion a 2 of the Revenue*,and
247-Taxation Code, to read C -
�f�i
25 r
i
26 CHAPTER 2. LOCAL OPTION SALES AND USE TAXES
} �r t
,27
28 . t -.Article 1 imposition ' {
E. �
30 1:=..7290. (a) b'n` and after.�the ;effective' date 'of this
31. ':chapter, in'addition to the tax levied pursuant to Part 1.5
32 ::(commencing with_Section 7200); any county or city and z
::,:
33 ;county.may, by,majority, :vote of,the membership of its
34 .•.goyernirig bodyAmpose by ordinance.an additional sales
.35 .and use tax on a countywide basis m accordance with this
36 .:.chapter f'r
37 :°a.'Whenever .a :county»;imposes a :.tax •pursuant to this
38 subdivision,'the county shall 66-deemed to have imposed
39 the tax on behalf of itself, .each city and each district,;
40 other than a school district, located in whole or in part,
99 290
- 13= pAB 4
1 within the :,county':-,!which has: ;,transmitted to the
2 ,governing body',of that county a 'resolution supporting
A 3 - the adoption of ihe'tax;'a'd each school district located
4 =in whole:or in part within the county
5 Whenever a city
and. -:county imposes a tax pursuant to
6 . this subdivision;°the:city-.and county shall be deemed to
7 have imposed the tax on`b}6half of itself and.each district,
8:' other'-:thari`a'-school'distnct'` within the ct • and count
1.
- Y` Y
9 .j;xvhich_has_transmitted tTt� e governing body of that city '
10 ':aiid county a..resolution^supporting the .adoption.-of.the
f
3� 11`j_ tax;-and each'school distract located iri whole.`or.in :part
12 :within'the'city :and county`
13 -c:;(b) :On orbefore`Apnl l; 1984, the"governing body:of" `
14 ";'; any"city or of any-districf;�other.than a-school district;`ma '
15: 'submit;` �iri-'`addition '?? y'
tothe ; resolution:..specified '�in'`='
:_ ..
16 subdivision-(a) :"A resoliit0i to'the governing body"of thee'-
of 17-.county or city:and countyin which'the city,:or'_aistrict.is
r. 18 located, in whole: or .m^part,'which requests 'that the
- 19 :=county'or,city and couniyadopt an ordinance pursuant to
a 20;:.this chapter ° ;;.�r.. r .,
` 21 In the :case;of.the 'sub fission of'Ia resolution by the
22- °governing;body of a city, the resolution may also'state =
r. 23 that'iri` the event:ahat =.t1e county=:fails':.to.?adopt
24:,ordinance;the-city.will adopt an_ordinarice`iriaccordaiice
25`,with-this:chapter 1 s i . � tt `' - -t
26 = .' (c) 'At tlie time`of submitting the`resolution specified
27 :iri'=subdivision='(b),l.to`-the',county's 'goveri irig body; fhe_
=_�.4;
28 :''governing body`:of the';city shall transmit-a copy--of that
j 29 _resolution to' the='State f Board. of Equalization.-=•If the
�.2:
.30 governing body.,of;the.,county has -not.previously-taken- :-
: z 31":action`to`adopt or-reje6f1h ordinance imposing:the tax,
32 :upon;the°receipt:by th6l g'overnirig body of resolutions
`," 33 'from th'e`governing bodie8 of not less than. a majority of = .
f V.
-34`ahe:cities in'the'county�`and representing'not less'than a'
3. �,..:
35 -majority of ahe .county s total population,'the governing
36.'body of the county shall,rio later than April 15, 1984,vote
; 37_-.to, adopt , or':.:reject-..?an ordinance ',imposing :`.the :.tax.`,
38 •authorized by this part on a countywide basis.`
39 (d) In the. event.ahat the .governing body, of the
' 40 county, on or before'Aph 15, 1984, votes to adopt an
99 310
P AB 4
:h
1...ordinance imposing the taxAt shall transmit a copy of the
2 :ordinance to the.State Boaicl of Equalization.The receipt
3 ;by. 'the ;State .Board of-:Equalization of-a .copy of;the
4 :county's :ordinance`„shall� supe'rsede•:::any; :resolution
5 submitted.:by a city within that county. :: ;-
6 (e In the t event_;;that a'the overnirig body of the
g i
7 county;following the receipt of the re.quisite.number.of.
8.:resolutionsspecified in subdivision (c);=either fails to take:
9 action regarding the adoption:;:_or rejection .,of ;an
10 :ordinance;or:vofes to reject.tlieadoption of an ordinance1
11 ,b : A ril::15 T 1984,-ari cit within .the ;county may, ,by
Y, ..P Y
12::majority vote of the. membrsliip,of its governing body;-
xu�
13 impose fby ordina'rice; made;hori.:to ahe ,;tax;.levied
14 .:pursuant to Part 1.5'(commenculg with Section.7200),'an.
f 15 additional sales an use tax within.the:city in accordance,.
16 ;with this chapter Upon. e�doptiori, an-ordinance,:the'
17 :governing body:of the city shall notify-the State Board of
18 Equalizati on`of its action '
ry
19".. a`Jo,. Notwithsfanding :the'adoption of an ordinance by
20 - pursuant tosubdivisio'n;(e); the county in which,
21 .:that;cityas located..may thgreafter :adopt, an ordinance
22 : .pursuant ao subdivision (a)a ,Upon the adoption of the
23. county's ordinance; the. governing body ,of:the.. 'ounty
24` .'shall "notify.the StateBoard of,Equalization of its action:
25. Upon :the.'.State; Board_of Equalization's•receipt of ahe;
>_26 . count 's notification,the authors
y ty.;of any;city within that:
27 -;county to impose the tax pursuant'to this chapter shall be
x .
28 ';terminated. �� t
29 i 7290.5.,,,The sales:tax authorized by Secti on 7290 shall
30 be imposed->;y` a county„cty'and county, or. city, as
31 applicable;upoij'the'privilege,ofselling tangible personal
32 ;property'at retail w thin the,,ppnty, city and county,:or '
33 city..The sales tax authoriz&d by; Section ;7290 shall :be
34 ; imposed at.the ,rate of,l percent:of,the gross receipts of
retailers within-.the,.levying jurisdiction. .:
36 7290 6 .:.The use tax authonzed by Section 7290 shall be;
i. :.37 •imposed,;by a. county,:;city,,and•:-.county, or city;_ as
38 .applicable, as a complementarytax upon the storage,use,:
'39 or other consumption,in the county, city and county, or
40 city.of tangible :personal property purchased from any
99 330.
—`15— P AB '4
1 retailer for`storage,use,or Ether consumption within' the
2 'county, city'arid county;-or city. The' use tax'authorrzed
3 'by:Sectiori'7290 shall be-imposed at the:rate of 1 percent
`4 ' of the sales price of tlie;property whose'sforage;°useor:
,.
5 '.other""consumption is subject to;the tax
'7291 `':The sales tax portion of Any' �ordinance adopted ..
>7 pursuant to SecEion'7290 shall,'to the.extent practicable,
8 'be identical to'`any ord�narice adopted in accordance with
< ':9 "Section'7202 1}�y,
10 ' L 7291.5: The use tax portion of any:ordrnance'adopted
11 :pursuant'to Section`7290aha11; to the'extent:practrcable,
A
12 'be ident ical to any`ordinance adopted in accordance with '
' '13.' Sectron'7203
14 j� i� X ! _ t.0 rt�SSY i YY raj tt�r� � j�'._ tit -i! T i J-• � �2.- � t .
15 ."Article 2 "%Administration of the'
` .'16 r
•1 l � Y^ ! j.�L
17 °7292 '(a) `.Every-county or city '
and county ,which
18 adopts an ordinance imposing the V-3 taz pursuarit to Section;
a 19 :7290, shall notify;the State Board of.:Equalization`of its
20 'action as soon as possible'thereafter;:buttm"tno event less`,
.21 -ahari 30 days 'preceding the date Iipon_-which .-the`tax
22 imposed by.the ordinance is to become operative
k :23 (b) 'Every:'citywhrch�adopts an�ordiriarce imposing
24 the' tax_pursuant to' ection 7290,''shall notify the'State
` . 25 ' Board `of E iialization �ofY its action soon ash possible .
r 26 `:thereafter;''but rn no'event less than 30 days preceding':
X27 "'the date`upon whrcli.the"` ax imposed by th_e ordrnarice is
28 =to become P
`o er'"ative
.> -... J
29 . ' '-7292,1. ::`.'As soon as possible following the notification of
30 the:State Board of Equalization ofi its chon;a county,city
31 - an county,`=,or city levying the tax-.aiithorrzed by this
32 4 D c hapter;;.; shall contracts '.with the;-board for {'the -
i
33 =°admrnrstratiosi''of the taN�The board shall"be reimbursed
34 'for'its cost'in'the administration of:the
35 To";th6.bx en t�practi fable;"°the board shall administer .
36 `the tax in conformity with the administration of the.aaz
37 imposed pizisuant to`part;1:5 (commencing with•Section
38 7200) a `.. ;.,
39 7292.2. The State Board of Equalization 'shall adopt �!
40 'the necessary rules and regulations to administer the tax. '
j - ,N
99 330
p .' .
1 -_. :7292.3:::;After deductirigr its" ost in administering th
2 aax, the State Board of Equalization shall transmit the ne
.3 ,-;revenues.
,to;=each county,;;crty:and .county,` or ;city, -as
4. applicable;as pr'omptly.as'possible:The transmittals shall
5 .be made at least twice in-.each calendar'quarter
7 �; ; ,,. ', Article 3 `Dispositlon of Proceeds =c,
9 .'x`:;7292.5.'. (a) :Upon the receipt by a county .of ne
10: evenues which'ate'collectedto_n.1 s behalf by the Stan '
- ;.:h .
11 Board of Equalization"t :e,count'y :auditor shall allocat
12 those:revenues fto>zthe county;<to each-city and eac
13 :district; other. than a school cstrict;`located in .whole 0-4
14 'in, art within the`count : which `has transmitted a
i 15 `resolution to the'`county s ppoitiig the adoption`of th
d L -f .P
°16 "tax 'and to each-school district-located iri whole or in par
17: :within'the'coun '. '
18 b) :For the 1984-85 fiscal:year;the county auditor shal
,._ .
19 allocate those revenues.as,TQUows:.
20 :. (1)..To,the coup y,:an`amount equal to 100 percent o
21 the count s 983=84 fiscal year-share of those subvention
_ y y�„
22 distributed pursuant=to°..Chapter_1.5 (commencing wit
�...
.23.,.Section 16110)<<of~part �l of*Division .4.of Title.2 of th
24 Go�erriment Code�aiid Chapter 5 .(commencing'.with
.25 ;7Sectiori 11001 of:Part 5 and Chapter•9.-(commencin
�.
d_u_
26 ;with'Section 30461) of;Part�13 of Division 2 of.this code;
27 ' plu's:100 percent of the amount of the reductions in.those
r 28 ,subventions which were required by.Chapters .323 .an
29 ,983•of the'Statutes of.1983. hF�
30 (2) To'each city an amount equal to 110 percent of the
. , .. .. •
31 '--;city's I..1983-84 fiscal year_ s,#hare,:.;of.;those subvention
32 ;distributed pursuant to Chaptet-1.5. (commencing with
33 ,'Section``6110) of=ParE :1.;:of,D�i<<ision.4 'of:Title 2 .of th
34 Government Code,and::Chapter.5 ,(commencing .with
.-35':_Section'11001)"'-of Part'5. and Chapter 9 :(commencing
,, ..
36 -<with Section'30461 :of Part�13-:of Division 2 of this code;
37 plus 110 percerit;of the amount of the reductions in those
.d,
38 subventions which were required by Chapters 323 and
i 39 : 983 of the Statutes of 1983.=t ?
40 =.(3) To'each multicounty:special district, an amount
99 370
i
P AB 4
C 1.- equal to 100 percent.,of;the';county's distribution to the_
2 district of its 1983-84 fiscal year share of those subventions
3 :.;distributed .pursuant::to..Chapter.1.5 (commencing with
4 .'Section' 16110) :.of •Part"I`of:Division`.4 of Title:2..of the
5 Goverriinent Code 'f
6 }; (4) ;To each`special district, other than a mulhcounty
i. 7 special district, the allocation shall be made as provided
8 m this paragraph ,� �tJ i-I
9 , (A) .The courity auditory shall determine the'"' ounty's .
10 ,1983-84 .fiscal Y
ear: hare ;,of :subventions:distributed
F 11 u"rsuant. to Cha ter t15 }i(commencm with'�Section
P g
12 6110) of Part l of Division 4 of Title 2 of the Government
;Code whichwas.allocated to'all special.districts,_other 1 .
14 than-multicounty distr>cts �twithin the.county;i 15 f ?(B):;The j amount determined m subparagraph (A)
.shall be deposited by athe.county auditor:in the Special
17.; District°Augmentation Fund ..r T I
'18 :.`:.?.:(C)''F.r6n;the'moneysrin the-fund r0, resenting..the
19 ..-amount determined uz subparagraph ,.(A),,the.;county
P' 20 auditor.shall allocate:,to;each special district an amount
21 ;determined by the.boardof supervisors::
s't
s 22 (5) ,:To'each elementary;high school,or,unified school_,
23 district,located m whole or,in part within.the county, the
A 24 allocation shall be.made as;provided in:this paragraph ,
Th'e'county; auditor shall-determine..the_,assessed
: mss'€.... _
26 valuation of business inventories in each•redevelopment
27 ; project area`withiri the county for the 1979-$0 fiscal year. ;
28., :(B) The`amourit deter mined in subparagraph:"(A):for--:
29. each,project ;area shall:be:multiplied by the quotient
30 ','.derived,b� 'dividiri ' :four} dollars :',($4) .by the',tax. rate > .
Y ,: g : •..:...
31 applicable within the project area for the=1979.,80 fiscal _
32
ACi 33 ; (C) :The amount determined in subparagraph (B),for
-34 ,,each project area shall_be,increased for.each..successive
35 ;fiscal year through'the 1983-84 fiscal year.by a percentage
36 .`equal .to. the.,State Reimbursement.for:Inventory;Tax 1
37 .:Factor, :,as .,defined m former .Section ._:16113 :of :the
38 .Government..Code. r,
39 • (D) The amount determined in subparagraph (C) for ;
40 each project area shall.,.,,be multiplied by the..tax rate
99 TSO
pAB'-4 — 18-
1 applicable within that project area for the 19845 fisc
2 :year.
:3` .;iihount'determined in subparagraph'(E) o
4 each project area shall be summed for all project area
t :` l.. i 4
5 within the county.
The amount calculated in subparagraph (E)'aha
f 1, grid iinifie
a�
7 e to lach elementh y,high schoo
`8 hool 'distract' ocated in w ole or iri part within tli�
9 bounty--in`,proportion to,eacl? district's `average dash}
10 attendance 'for the:' 84:. 8Yfiscal year ;which'
11 ' att'ributable`to:"stud'
ents residing within the county; '
of the ne
4 1- 12 F ti `'(b):;To;`;the; county, any excess;I f any
-13 revenues after the Yriakiiig ofhe allocations required li
} X11..
r �:14 ' Paragraphs':( 1) to .(5)-,2inclus.1ye
15 =`For 'the F 1985-86'-fiscal ryear and fiscal .'year
' " the allocations required by'pairagraphs'.(:1)
16 thereafter, , ��,
17 `'(2);'and`:(3) ��of subdivision (b) -for`each entity shall be
.:.:,.
18 ' I.. .. Ito its'allocation computed for the prior fiscal yea
t
19 multiplied by-the'percen t' -change in-cost of living fo
20 the calendar year in wh the ich fiscal year begins,plus th
..t
21 'percentage change in t h e population of that entity for the
22 `calendar year preceding the`„beginning of the fiscal yea,
23 "forhich the allocation is`to be determined. For the
24 985-86 ,fiscal year ` arid `ffiscal `years thereafter;'=th
.25 -%; l locations required by'para graph`(4)'of subdivision (b :
=26 shall be equal to Eh6lotal available allocation compute
27 ':for the prior .fiscal ye}ar, multiplied "by'the 'percentage
__ . ..
28' change in cost of living for the;calendar year in which th
lus_ the :j e&6eritage change in thA
29 scal year begins, p ,1 , ..
30'`population of all special districts within the county; othe
31. `.than multicounty special districts, for' the calendar:year
32 "preceding the.beginning ofthe;fiscal year for which the i
33 'allocation is to be determined..For the 1985-86 fiscal year
y ..
- 34 and fiscal years thereafterSAthe''allocatiori required b . ,4
35'"paragraph'_(5)'of subdivision (b)ti.for each school district
36 shall be`equal to -its allocaton:computed for the prior
37 `fiscal:year; multiplied by Yhe,percentage change'in cost;
38 of li�)ing for the calendar year in which the_fiscal year;
39 :begins; plus the percentage :change in average daily
40 attendance for that entity for the fiscal year preceding
99 400
19 p AB: 4
. 1 ..the beginning of..the fiscal year for,which the allocation`
2 his to'be determined." .......,.'
3 : 7292.6....--,-.(a) ;Upon theLreceipt by a city and.county of.
4 ,;net._revenues .which,::are;;collected on its:behalf by .the ..
5 ;State;;Board-::of;,.Equalization the county auditor shall.:,;
6,.:,;allocate..those revenues ,to the.city,and county; to each
7 _,district,.other:ahan a school,district,.located.iri.whole;or
8 iri part withinjhe city ,and county,which has transmitted
9 a resolution to the city andfcounty supporting the,tax,and T
10 ;';to eacli school,district located m whole or m part.within ;
city.and county r. y, tr y i r ,$ t k f
- • 12..,x;:,,.. ) r,the 1984-85 fi scal year,the county auditor
(b Fo shall ;
13 ::make the allocations required_.by j'subdiv_ision
fir' 14 F. accordance with the, rovisons of. ara ra hs 1 (3),
P siori of.SectionP g p O, t
: . .` 15 ; ofsubdivi4b)., :72925.;�4,
year and:, fiscal , years. it
>17 thereafter, the allocations;made pursuant to'subdi
; vision
18 :;(b)
..'shall }fie:adjusted as"_ pvided .in subdivision (c) of.
S
19
(C 20 .:, 7292.7. Upori th&.,receipt.by~.a city of net revenues,;:,
21 .which :are.collected' ,on its behalf.,by.the State_Board:of
22, .Equalization, .::the.;:city;.may., allocate:.or..pxpendl.those„<,
23 revenues.as the city coui,q,. may.provide.",.
, xaton, t105of the Revenue d- S24 ' 0 ri l ct
25 Code`is a pghged,to
26 11005 ,.Afte-r;payment of refunds therefrom and after �i
_ .... .. .
:.27 making the deductions authorized by.,Seetiori,11003.and t
28 reserving such;amount.:asls..determiried,.by the_Pooled i
29 Mon6y.Iriyestment'•Board_=;to be.necessary-to meet:,the
30 :,transfers ordered or ro osed to.be ordered.pursuant to II
p p;._ . 81.25 percent.of jl
31:....Secti6n 16310 of;the.Government Code,
32.;.Ahe.balance of all motor,veh cle license.fees and any other:.;;
33 money,appropriated.bylaw for expenditure pursuant to
'r 34�•.,.this;section and deposited to the ;credit ,of;the.Motor
35 :Vehicle License,Nee Account in theITraiisportation Tax
36 :_Fund and remaining unexpended therein`at the.:close of
37;::;business on the last .day of,the calendar month shall be
38 ' .43y eke by.:the . :, :, t,e.
39 matk: xke. p l
40
S 99 4:30
p ABA —20'.
=s
a clef 1e the
2 } s e€ #fie
3 e # ee€s �fee ire _
eett
5 e e "ert `ate eetrx 9't-6
' ` eft} a}}ewes a ewes ,.
y' y2c �'+.•`
'..Llll. ` ,, .,f _ .l J TJ� LlAi�A�•51 11; ti .
8 ,F4`#fie
tL
g
;11 eel ,� �
i2.:. res
13 e
14 e€#fie zees a
X15 sew.: -
_
= � _
ef
20 ees
21 e€ r°° °
22
"23 , �o#ire eeg
24 . . ease ' Aft"
eel & `
27 e€Fina
(' [ �� it . &g
28 #fie _ . €e�e� �
29 re
30 } eF:ewe� e ,
31 X87-3 e€ e: ee�9 Hig }€ �e
33 e€ `wee twe
34 4t€ 6p the e€s �e e
#tee ss eke, . 1
36 '. Ems' i
rr S��tI�NT ,
37 .:
38 ;e vim 't,-,e
e€
39 r ��e e€ tie
i 40 ei
99 450
--21= pAB.4 _
1 =:tie &�. � a :-ie€ e. espeetive .eies ,as
.
2 .a.�. ,.a b- the haat del eeesus', ef..e
3.: -ese4eh
5, .�� .. .. t;l�e�ea€sl�ll k�e PAZQ�e eke-��"
°:per: . .
eites:arrd eaees;e ,# re srte. r_the.f)fe e4eR.t
i
(07 .
71r tie ,e€eaeh,ee
S 8
_ - ..Y,� :J SL�LI2-CSI•LiiIZL.`,Cf.,Tizri,:- ..,Cri.;:2'ZIZLIIZCZ'
l l .�. trree e€t19 ;'tie pe e€e�k eery
.13:C'�;a ; eels by eke
14 �e€r
• 15_i_ ,_;,.:.:,� {�_Seetie�i`�_ 98a:Fr. �..rt �•zr :� •l _e. J ` r -
{e}.' ke_E to eies a f
17 t.eeiin ts: s seetie� . e- €e�
`r
18 ;:.:ei` ei�t}.yeses: `., eced.net ,.he
19..:i}se .€eP pis.e€-ge
20. St e Y <r;-7 qty , . .,, . �_�:a: s�
j 21-. :. iet ee ee s feral�eees�s e
22 :a'_ ee s`:.d �p-Aire . e€:
:. 23:_ .wall_ easeeeee :
24-. eere�.re. at,tl3e e€ e };ei}a eeee
26 r e."r�ee ear tie rrst c�ay.e€;t ie k
27 =�eee e€-sne � r a.r deposited, nl"the_.G:
28-:Fund
29 :�..,.(b) The amendments t6�this section,by,the act,adding.'
30 , this,subdi vision ahall:become operati ve;on July:a,_1984.
31 SEC:Vl 1. ;.Section'30462�of the Revenue and Taxation,;?
.,.32„Code:is 'amended to read ...'
(( 0 33 . 30462.?.-I.All money ;deposited in the.-Cigarette Tax
%fir ` 34 Fund:under.this.part,is:hereby appropriated, subject to::; I
ahe provisions of.any.budget bill heretofore.or:.hereafter.,.
36 _enacted-and.Section.11006 of the;Government Code;"and
.37 : shall,..-upon,.order:of,:tthe., State Con troller,:-be.:drawn
38 ,-;therefrom and.allocated for the following purposes: ::....
(a) -To..pay,the_refunds;'authorized by this_par
E.__
40 :(b) Te tl�e..r��- tller �t ell to 39 pmt
f
99 470
1
r
p AB 4 —22
1 e€ the.ffieitey in #ire fttfi4
hieh is de�ee .
2 :.,"Zftp esO ,eft lfffMl gf-ef Gef4bi4 1: • %7 Less.30 flef eent,
3-.#ire .eest ef.4df� sj4j `#�s.par - seer ffie
4..,:e re. � of e e .
5
ei�a�eel-�skis stye��re.fe� e ALL
8 a� e�3i 9L3aLL •fftJC,-�f&;i&d
9 ;H ;ewe � Lre eilies a cvciircie3 aL cviiirciv�i
10 19 state a4id t
efte .# e;er re9.e€.mss state. � e I
, 11 � eke!�.e€= ..
-1.
13 � ` .�.:#L is 'state .in .Ai
14eL3a sees
15 ,t6 r r:�ee39iee : eer8&}.
;e Yew a -iii 0i
17 :. i'�'-�`e€a eel�ea�1e t-L3e f E
sUe
18 seei3e
19 ., 6ensidef --aft
I 20 ,.A_V II a ee e€eke des ,
_
21'. ire eery st.&= ifr Pkeesp el I pet=-en, o rs
22 : -1-A r�7288}e€1
23 The a lie eaeLr ee ate a 51�
a ea ,
�`_ of
r -28 ate 1e r
this
i 29..
30 respeet
fisea
&t3�`
33i 'e iehee
34 #ire 1,.•.b
�e.ice:e a ee -. beeft iR
shall b(
9�reL3 Z 222J ; �}}
37, 9F9; the k r A_-==`-�o�
38. '�zrse�'�����n�r� ��H�e�ease�
rsvar-r�ry year-
:the
39 :.sL�L b-e deii�ed� #ire re�ee�res depesited if
40 . the .r'Q e .� � the pefied �
99 490
_:23,_ P AB 4
k� �ng-r,
�8-2 nr7e r'
3 '.. � `a e�4segear'#ke
' .��e�ar��feven �e�es�e�-ice 1'ke
4x 4; Qq6W
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6
s 7:- e=''- :ate=
10 i n inn ; 9�te2 3
ts ffi Z e I I Ml 'Cke .� '
1 12
lei
13 � { °e€; 1.. _ ,' e ee#fie i
14 = iek se eity.�ye�
15 : 's �e"aaee� e sie _e `eek` e '
is
16 , .� e xaeee 11 Ing es�E�r `eres` `
18 "=:ei#-y leC22#tee ese e
�� ?', 3
19 :' eee s g _..€e 'tee a�. °'gin. '_4his
®: -:,20 ' =age-= .. eit :.: ek has �ia
Ahereafte�jihe
22' o�to s`
€.e ; es eF
e€.'.. s
28 .. :{2-}
29
30,`:s to s:'a ble a ire
31''x' ffffe
32 : f e
:.fie
eei'. e eae v to the
35 :-f i!i-.ftt:. .a Vie' ae'; re"ees;
36 a
a eearei <<. #fie
37;;.per Vie; e€'eae e e 'ei#-y beais te'-
38 tke � e e a '.> saleeeeig
39 alleea-tien titid6f..#-mss f as dez..,,,._....ine b-y the
' 40 r, en Fft- :..fie use 4 this sebdivisiae the '
99 520
p AB 4 =24— I
1 P� e of eeek
: 2
Seetien }99 'e€ s eec4e
{�} The balance remaining in the fund sh'
�#
trans,erred to the General.Fund e€ e ;
T
6 YT q=ke alleea en p fe s� belvisieT3 r be in Qet 9 .. u
ee ii
10 .dp ��p^
� LV
of
13
geee } eresl:au ' 64i 6 A t"4�6-t
C . :SEC. 12 'Section 30462 5 is addeJd to.the Revenue'
;15
Taxation Code, to read: AYE r r
16 :30462.5 SIf a"city, county, or city and county irri
: 17 a "selective '°local:aax:--on; orF'with :respect to theP
18 distribution,use;consumption,or holding of cigarette
19..any;other tobacco:product, there shall be'transfe-eel
'20 the'achool -:entities=share of. tax revenues
21 :amount equal to that city's,county's, or cityand coup
22 '"state assistance payments,'"as defined in Section'
23
amount is
provided that 'greater''than zero.',
24 If a^city does not receive.``stafe assistance paymen
as defined ui'Secticin 95, MAP amount greater than z
'- `:26`1 en that ci
ty..sliall not receive its share of�i-even
27_'= pursuant to Sechori`7292
28 ;:SEC. 13 t'Unless otherwise indicated, the provision
29 `this act shall:become operative on July
30 =SEC. act is an urgency statute necessary
31 '-: the'immediate preservation of the public peace heal
32 ` or, safety';,within ,:the meanin g
of Article IV�''of
.:.
33. :Constitution and shall go'into immediate effect: The fai
34 constituting the.necessity`are
35 = In order toTeliminate the use'of state funds,as a mea
36 of dealing "with
an6 al '?problems: of -lo('
37 governments aril to`permit the use of a new reveni
38 source�by local governments�to deal with those probler:
39' .as.soon as possible, it is necessary that this act go in
40 immediate effect. = r; ,.
O.
99 s
r-
7: ®®IF iZECtfVED
® League of California Cities NC)V 1
California Cities November 14, 1983
Work Together
TO: CITY MANAGERS, OR CITY CLERKS IN NON-MANAGER CITIES, IN THE REDWOOD
EMPIRE DIVISION AND EAST BAY DIVISION OF THE LEAGUE
URGENT N0TICE -
On Thursday, December 1 , the Senate Local Government Committee will be holding an
Interim Hearing on the subject of Local Government Finances in San Francisco. Attend-
ance from your city is urgently needed!
This Interim Hearing is being held to: ( 1 ) seek solutions to the problem of local
government finances, and (2) determine the level of interest among local governments
in this problem. We urge you to do the following:
First, arrange for the Mayor and/or other Council Members to attend this meeting (de-
tails on back) . Have written statements available which can be given to the Committee
for entry into the record.
Second, to the extent possible, have Police, Fire, Business, Community, and Public
Employee groups in attendance at the Hearing to present written statements for entry
into the Hearing record.
Third, please issue a press statement saying that city and other local officials will
be attending the Interim Hearing. Encourage the press to attend the Hearing.
Fourth, if you are interested in presenting testimony, call Peter Detwiler of the Senate
Local, Government Committee staff to arrange for a place on the Hearing Agenda at (916)
445-9748.
It is important that the League offer a strong message to the Committee. Please refer
to the October 24 memo from Don Benninghoven, Executive Director, League of California
Cities, and the enclosures when writing your statements. If time allows, a joint state-
ment from the City, Chamber, and Public Employee Groups would be especially helpful .
Thank you for your help. Don't hesitate to call the League's Sacramento office. if you
have any questions.
SEE OTHER SIDE FOR MEETING DETAILS
Enclosures :
( 1 ) League Position Statement For Fall 1983 Interim Hearings on Local Government
Finance .
(2) Questions Which Legislators Most Commonly Ask About Task Force Recommendations
CONFERENCE REGISTRATION OFFICE HEADQUARTERS SOUTHERN CALIFORNIA OFFICE
HOTEL CLAREMONT, BERKELEY 94705 1400 K STREET, SACRAMENTO 95814 900 WILSHIRE BLVD.,SUITE 606. LOS ANGELES 90017
(415)843-3083 (916) 444-5790 (213)624-4934
SENATE LOCAL GOVERNMENT COMMITTEE
INTERIM HEARING
PLEASE ATTEND, ALONG WITH OTHER BUSINESS AND LABOR OFFICIALS .
ORAL TESTIMONY NEED NOT BE PRESENTED.
TIME/PLACE :
10 :00 A. M. , THURSDAY, DECEMBER 1
BOARD OF SUPERVISORS CHAMBERS
SAN FRANCISCO CITY HALL
400 VAN NESS AVENUE
SAN FRANCISCO
1
THREE QUESTIONS MOST COMMONLY ASKED BY LEGISLATORS ABOUT TASK FORCE RECOMMENDATIONS
AND LOCAL GOVERNMENT LONG-TERM FINANCE
(Questions from Hearings in Los Angeles and San Diego, November 1983)
1 . State vs. Local Questions. Why should local governments' revenues be guaranteed
when the state's revenues are not similarly guaranteed? Why should local govern-
ment finance enjoy predictability at the state's expense?. Should local. govern-
ment finance have more predictability than state government? . Should we (State
Legislature) give local government a "permanent" fiscal solution regardless of
the state's fiscal position? .
Answers:
(a) We are seeking a guarantee of revenue sources, not a guaranteed level of
revenue.
(b) Currently, local government finance is significantly less stable than
state government. We are seeking approximately equal predictability in
revenue sources and not less.
.(c) After six years of uncertainty following the passage of Proposition 13,
local agencies desperately need a long-term solution. Whether the state
.can afford it or not is beside the point because we are not seeking sig-
nificant new revenues from the state, but rather stability.
2. Other Alternatives. Question: In addition to a sales tax shift (Task Force
recommendation) artd a Constitutional subvention guarantee (SCA 23) , what other
alternatives should also be considered? .
Answer:
Another possibility is to transfer a share of the property tax as a replace-
ment for transfering subventions (VLF, cigarette tax, business inventory re-
imbursement) from local government to the state. Such a property tax shift
would have to come from the schools' share.
3. Predictability vs. Accountability. Question: While the goal of guaranteed
revenues for local government is obviously advantageous, is it in conflict with
the equally desirable goal of accountability of revenue raising to local voters/
taxpayers? .
Answer:
It may be, but we are at a loss to suggest a perfect solution. We know of no
additional local tax which could generate $500 million, enough to offset a sub-
vention shift to the state, except a local option sales, local option property
tax, or local option income tax.
(over)
Page 2
A local option sales tax would create new problems of competition and confusion
between cities with different sales tax rates. A local option property tax is
prohibited by Proposition 13. A local option income tax, on top 'of a state and
federal tax, lacks political support or acceptance.
While we are open to any suggestions for resolving this conflict, our paramount
goal is greater stability in local finance.
i 0,1 ,�
• or
f12®®m
1 NM® League ®f California Cities
`$ ® November 1983
Calitornia Cities
Work Together
LEAGUE POSITION STATEMENT
FOR FALL 1983 INTERIM HEARINGS ON
LOCAL GOVERNMENT FINANCE
1 . The League endorses the New Partnership Task Force recommendations, as they '
apply to cities, with only a single disagreement (see Item 5 below) .
2. Long-term local government financing is the League's top priority in 1984.
The League is committed to work with the Legislature, the Administra-
tion, the Governor's New Partnership Task Force, allied associations
and the media to establish independent long-term financing in 1984. If
long-term financing cannot be accomplished in the Legislature in 1984,
then the League would support a constitutional amendment providing for
long-term relief.
3. Local Government fiscal relief.
The League supports repeal of the AB 8 deflator and removal of all sub-
vention reduction formulas from the statutes (Task Force recommendation) .
Without these changes, no financing plan would be long-term or permanent.
4. Stable revenue source.
a. The League's first choice is to exchange state subventions at the 1983-
84 entitlement level (before reductions) for an equivalent share of the
state sales tax (Task Force recommendation) .
b. This new and additional share of the state sales tax should be distri-
buted on the basis of population but would hold harmless each city in
order to assure that each local government would receive at least as
much as the agency lost when subventions were transferred to the state
(Task Force recommendation) .
c. Growth in this additional share of the sales tax should equal the state-
wide growth of the sales tax (Task Force recommendation) .
d. By 1986 such an exchange of subventions for sales tax should be guaran-
teed by a constitutional provision (Task Force recommendation) .
e. The League's second choice is a constitutional guarantee of current sub-
ventions as proposed by SCA 23 (Ayala) (Task Force recommendation) .
f. The existing local tax bay must be maintained and protected, especially
the local sales and property tax and the authority of cities to levy a
variety of other local taxes.
(over)
CONFERENCE REGISTRATION OFFICE HEADQUARTERS SOUTHERN CALIFORNIA OFFICE
HOTEL CLAREMONT, BERKELEY 94705 1400 K STREET, SACRAMENTO 95814 900 WILSHIRE BLVD.,SUITE 606. LOS ANGELES 90017
(415)843-3083 (916) 444-5790 (213)624-4934
5. County revenue raising authority.
The League does not support authorization for a county-wide tippler's
tax for county services only because the tippler's tax was initially
levied by a city and was struck down as inconsistent with state law.
City law enforcement needs are great and such a new local revenue
source should be shared by cities and counties. Discussions to resolve
this disagreement between cities and counties should not take place
without also discussing other city-county fiscal disputes, including
annexation property tax exchange agreements, redevelopment pass-through
agreements and property tax overrides for voted pension debt.
6. "No property tax" cities.
The League supports granting the authority for "no property tax"
cities to share in future property tax growth within each city. When
property tax revenue authority applies to future growth within the no-
property tax city, property tax revenues to neighboring cities are
not affected. (Task Force recommendation) .
7. General obligation bond authority.
The League supports placing a constitutional amendment on the ballot
allowing voters to authorize local general obligation bonds by a two-
thirds vote (Task Force recommendation) .
8. State mandates
The League supports a new constitutional requirement that all state-
mandated costs be reimbursed and that if such mandated costs are not
funded, the mandate would immediately become optional (Task Force
recommendation) .
w
-2-
f
Legislative Analyst _ ESTIMATED IMPA�T OF PROPOSED
10/31 5 : 00 pm -LOCAL GOVERNMENT SALES TAX/DEFLATOR PLAN-
- ON CITIES AND COUNTIES IN 1984-85
VEHICLE
LICENSE BUSINESS CIGARETTE SALES GAIN (+)
FEE INVENTORY TAX TOTAL TAX OR
City/Caanta REDUCTION REDUCTION REDUCTION REDUCTION ALLOCATION LOSS (-1
***a*****a
ALAMEDA COUNTY 19,661,062 9,770,424 417,772 29,849,258 29,849,258 1
COUNTY EXCESS FUND 0 0 0 0 19,469,652 19,469,652
SPECIAL DISTIICTS 0 4,403,000 0 4,403,000 4,403,000 0
ALAMEDA 1,492,060 487,260 166,022 2,147,343 2,362,077 214,734
ALBANY 344,035 82,425 41,963 468,423 515,265 46,842
BERKELEY 2,349,532 1,D09,755 320,711 3,678,997 4,146,B97 367,900
DUBLIN 430,032 0 67,807 497,839 547,623 49,784
EMERYVILLE 89,431 93,523 62,641 245,596 270,155 24,560
FREMONT 3,101,406 591,161 380,509 4,073,076 4,480,384 407,308
HAYYARD 2,161,234 563,245 366,607 3,091,086 3,400,194 319,109
LIVERMORE 1,114,509 198,567 125,815 1,438,890 1,582,779 143,889
NEWARK 738,822 203,122 104,505 1,046,449 1,151,094 114,645
OAKLAND 7,843,331 3,670,435 1,160,549 12,574,315 13,831,747 1,257,432
PIEDMONT 238,710 155,906 19,118 413,733 455,107 41,373
PLEASANTON 804,900 232,150 103,451 1,140,401 1,254,441 114,040
SAN LEANDRO 1,479,827 297,931 338,433 21116,190 2,327,809 211,619
UNION CITY 951,177 204,705 106,032 1,261,914 11388,106 126,191
ALPINE COUNTY 21,011 4,513 4,864 30,378 31,378 1
COUNTY EXCESS FUND 0 1 0 0 157,B15 157,815
SPECIAL DISTIICTS 0 1 0 0 O 1
AMADDR COUNTY 360,685 131,421 19,268 511,373 511,373 1
COUNTY EXCESS FUND 0 1 0 0 294,199 294,199
SPECIAL DISTIICTS 0 8,000 0 8,000 B4O00 1
AMADDR 3,092 217 324 3,633 3,997 363
ION[ 51,776 3,412 5,761 60,949 67,043 6,095
JACKSON 57,463 6,385 11,993 75,861 83,447 7,`5 06
PLYMOUTH 16,076 1,291 1,715 19,082 20,990 1,908
SUTTER CREEK 39,565 3,108 5,572 48,246 53,170 4,B25
BUTTE COUNTY 2,649,110 4'75,002 145,744 3,269,856 3,269,856 1
COUNTY EXCESS FUND 0 1 0 0 3,142,466 3,24fmbi
SPECIAL DISTIICTS 0 246,000 0 246,000 246,000 +'
Niter This ran sssohes a 1 cent local sales tax and a 1101 city net loss quaraotee,