Redevelopment

SB 1156 (Steinberg) – Support in Concept
As Amended June 27, 2012

SB 1156, by Senate President Pro Tem Darrell Steinberg, would create a structure for continuing economic development activities similar to redevelopment in certain areas, mainly transit priority areas.

The foundation of any support is allowing counties the option whether to financially participate in tax increment financing. CSAC believes in an approach that encourages collaboration between counties and cities to provide the kind of economic development envisioned by SB 1156. This approach would not only allow counties appropriate control over their own general funds, but necessitates discussions about what kinds of development benefits the community as a whole.

CSAC’s chief area of concern is about the governance structure. The bill as currently drafted is not clear about whether a county’s permission is required before the creation of a Sustainable Communities Investment Authority. Likewise, for governance options where the county is not a fully equal partner with a city, the required permission should include specific minimum information about how the tax increment funds will be used and for how long the funds will be diverted. Any changes to that basic information should also require the permission of any entities whose money is being diverted for those purposes.

A new structure for community development and affordable housing should give counties and cities working together the power to not only spur economic development, but at the same time provide the public infrastructure that would help ensure truly sustainable communities. This infrastructure should include transitional housing for people entering or reentering the workforce after incarceration or a childhood spent in the foster system, as well as others who need transitional and supportive housing. It should include the child care facilities that allow parents to work, or the clinics that keep those housed locally healthy, working, and out of emergency rooms.

The author has worked diligently with CSAC and other stakeholders as the bill has moved through the process, and hopefully those continuing discussions will result in a bill that counties can fully support.

The Assembly Local Government Committee will consider SB 1156 on Monday, July 2, 2012.

Property Taxes

AB 2643 (Ma) – Support
As Amended May 29, 2012

AB 2643, by Assembly Member Fiona Ma, would make a number of clarifications to property tax administration.

Property taxes are already the most efficiently administered of all California taxes, and the clarifications and improvements contained in AB 2643 will help make it more so. The bill would allow treasurer-tax collectors to issue refunds promptly when they are due, and likewise clarify that taxpayers must pay their taxes when due. It would allow overpayments to be charged against underpayments on the same property, and gives county officials a little more time to calculate and report pool rates to the State Controller.

The Senate Governance and Finance Committee passed AB 2643 from its consent calendar at its hearing on Thursday, June 28. The bill now moves to the Senate Consent Calendar.

Transactions and Use Taxes

AB 1126 (Calderon) – Support
As Amended January 4, 2012

AB 1126, by Assembly Member Charles Calderon, would ensure that counties and cities can ask voters to raise transactions and use taxes in one-eighth cent increments instead of one-quarter cent increments. AB 686, passed last year, first permitted this smaller increment. AB 1126 would make the change in two sections left out of last year’s bill.

The Senate Governance and Finance Committee passed AB 1126 at its hearing on Thursday, June 28.