Property tax revenue allocations: County of Los Angeles: residential infill development.

Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue to local jurisdictions in accordance with specified formulas and procedures, and generally requires that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction's portion of the annual tax increment, as defined. Existing property tax law also reduces the amounts of ad valorem property tax revenue that would otherwise be annually allocated to the county, cities, and special districts pursuant to these general allocation requirements by requiring, for purposes of determining property tax revenue allocations in each county for the 1992–93 and 1993–94 fiscal years, that the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. Existing property tax law requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for allocation to school districts, community college districts, and the county office of education. This bill would establish a pilot program, pursuant to which, for the 2021–22 fiscal year and each fiscal year thereafter, the auditor-controller of the County of Los Angeles would increase the total amount of ad valorem property tax revenue that is otherwise required to be allocated to specified cities within the county by the residential infill development amount, as defined, and to commensurately decrease the amount of ad valorem property tax revenue that is otherwise required to be allocated to the county Educational Revenue Augmentation Fund and, if necessary, the amount of those revenue otherwise required to be allocated to school districts. The bill would require that the residential infill development amount be equal to the total amount of ad valorem property revenue attributable to the application of the property tax rate limited by the California Constitution to each qualified residential infill development project, as defined, within the city, subject to certain limitations. By imposing new duties on the auditor-controller of the County of Los Angeles with respect to the allocation of ad valorem property tax revenues, this bill would impose a state-mandated local program. This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles. 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.