SB 817 Summary

• Modifies property tax allocation formulas for cities that incorporated between January 1, 2004 and January 1, 2012, effective for the 2016-17 fiscal year and thereafter, by calculating their vehicle license fee adjustment amount based on population and countywide adjustments rather than historical formulas.

• Changes the vehicle license fee adjustment amount calculation for all jurisdictions starting in the 2016-17 fiscal year to use year-over-year changes in assessed valuation rather than cumulative changes from 2004-05.

• Increases the County of Orange's vehicle license fee adjustment amount by $53,000,000 for the 2013-14 fiscal year, with subsequent calculations reflecting this one-time increase.

• Requires county auditors to reduce Educational Revenue Augmentation Fund allocations by the vehicle license fee adjustment amount, with any shortfall passed through as reductions to school district and community college district allocations.

• Establishes that if the Commission on State Mandates determines the bill creates state-mandated local program costs, reimbursement shall be made pursuant to existing statutory procedures.