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<br />29 <br />allocated a total of $1,073,537 to the West San Leandro/MacArthur Boulevard Project Area for <br />fiscal year 2013-14. The Auditor-Controller did not allocate any value for utilities in the Plaza <br />Project Area for fiscal year 2013-14. <br /> <br />Article XIIIA of the State Constitution <br /> <br />Article XIIIA limits the amount of ad valorem taxes on real property to 1% of “full cash <br />value” of such property, as determined by the county assessor. Article XIIIA defines “full cash <br />value” to mean “the County Assessor’s valuation of real property as shown on the 1975-76 tax <br />bill under ‘full cash value,’ or, thereafter, the appraised value of real property when purchased, <br />newly constructed, or a change in ownership has occurred after the 1975 assessment.” <br />Furthermore, the “full cash value” of all real property may be increased to reflect the rate of <br />inflation, as shown by the consumer price index, not to exceed 2% per year, or may be reduced. <br /> <br />Article XIIIA has subsequently been amended to permit reduction of the “full cash value” <br />base in the event of declining property values caused by substantial damage, destruction or <br />other factors, and to provide that there would be no increase in the “full cash value” base in the <br />event of reconstruction of property damaged or destroyed in a disaster and in other special <br />circumstances. <br /> <br />Article XIIIA (i) exempts from the 1% tax limitation taxes to pay debt service on (a) <br />indebtedness approved by the voters prior to July 1, 1978 or (b) bonded indebtedness for the <br />acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of <br />the votes cast by the voters voting on the proposition; (ii) requires a vote of two-thirds of the <br />qualified electorate to impose special taxes, or certain additional ad valorem taxes; and (iii) <br />requires the approval of two-thirds of all members of the State Legislature to change any State <br />tax laws resulting in increased tax revenues. <br /> <br />The validity of Article XIIIA has been upheld by both the California Supreme Court and <br />the United States Supreme Court. <br /> <br />In the general election held November 4, 1986, voters of the State approved two <br />measures, Propositions 58 and 60, which further amended Article XIIIA. Proposition 58 <br />amended Article XIIIA to provide that the terms “purchase” and “change of ownership,” for the <br />purposes of determining full cash value of property under Article XIIIA, do not include the <br />purchase or transfer of (1) real property between spouses and (2) the principal residence and <br />the first $1,000,000 of other property between parents and children. This amendment to Article <br />XIIIA may reduce the rate of growth of local property tax revenues. <br /> <br />Proposition 60 amended Article XIIIA to permit the Legislature to allow persons over the <br />age of 55 who sell their residence and buy or build another of equal or lesser value within two <br />years in the same county, to transfer the old residence assessed value to the new residence. As <br />a result of the Legislature’s action, the growth of property tax revenues may decline. <br />Legislation enacted by the Legislature to implement Article XIIIA provides that all taxable <br />property is shown at full assessed value as described above. In conformity with this procedure, <br />all taxable property value included in this Official Statement is shown at 100% of assessed <br />value and all general tax rates reflect the $1 per $100 of taxable value (except as noted). Tax <br />rates for voter-approved bonded indebtedness and pension liabilities are also applied to 100% <br />of assessed value. <br />