CA AB2277

Modifies property tax revenue allocation formulas for cities that incorporated between January 1, 2004 and January 1, 2012, beginning with the 2016-17 fiscal year.

For newly incorporating cities, establishes a vehicle license fee adjustment amount based on the city's population as a proportion of all cities in the county for fiscal year 2016-17.

Beginning in 2017-18 and thereafter, the adjustment amount for newly incorporating cities is calculated by taking the prior year amount and multiplying it by the percentage change in the city's assessed valuation.

Requires county auditors to reduce ad valorem property tax revenue allocated to Educational Revenue Augmentation Funds by the vehicle license fee adjustment amount, with shortfalls spread among school and community college districts.

Recognizes this bill as a state-mandated local program requiring reimbursement pursuant to Government Code Part 7 if the Commission on State Mandates determines it contains state-mandated costs.