California 2017-2018 Regular Session

California Assembly Bill AB2954

Introduced
2/16/18  
Introduced
2/16/18  
Refer
3/8/18  
Refer
3/8/18  
Report Pass
4/24/18  
Report Pass
4/24/18  
Engrossed
4/30/18  
Engrossed
4/30/18  
Refer
4/30/18  
Refer
5/10/18  
Refer
5/10/18  
Report Pass
6/13/18  
Report Pass
6/13/18  
Enrolled
8/27/18  
Enrolled
8/27/18  
Chaptered
9/7/18  
Chaptered
9/7/18  
Passed
9/7/18  

Caption

School districts: special taxes: uniformity requirement: unimproved property.

Impact

The enactment of AB 2954 represents a significant shift in California's approach to school district taxation. By allowing for differential tax rates based on property improvements, the bill could facilitate greater funding for local schools without imposing an equal tax burden on all properties. School districts may find this advantageous, especially in areas where unimproved land constitutes a significant portion of the district's property base. However, this change could lead to complexities in tax assessments and necessitate adjustments in tax collection procedures.

Summary

Assembly Bill 2954, championed by Assemblymember Bonta, amends Section 50079 of the Government Code to allow school districts to impose qualified special taxes that do not have to apply uniformly across all properties within the district. Specifically, the bill permits unimproved properties to be taxed at a lower rate compared to improved properties. This legislative change aims to provide school districts with greater flexibility in their tax structures, potentially allowing them to generate more revenue based on the type of property within their jurisdiction.

Sentiment

General sentiment around AB 2954 appears to lean positively among supporters, particularly within educational and community development circles, who view the flexibility in taxation as a step towards better funding for schools. Conversely, there are concerns among some stakeholders regarding the fairness of tax differentials and potential unintended consequences, such as the possibility of discouraging property improvement. The discussion surrounding this bill emphasizes the need to balance funding requirements for educational institutions while maintaining equitable taxation practices.

Contention

Notably, the bill's provision to relax the uniformity requirement for special taxes has sparked discussions about equity in property taxation. Critics worry that allowing lower taxes on unimproved properties could create disparities in funding across districts if not carefully regulated. The requirement for school districts to provide exemptions for certain taxpayers, including those over 65 or those receiving disability benefits, adds another layer of complexity to the conversation, as it raises questions about who should ultimately bear the tax burden and the implications for community investment.

Companion Bills

No companion bills found.

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