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<br />32 <br />Unitary Property <br /> <br />Assembly Bill (“AB”) 2890 (Statutes of 1986, Chapter 1457) provides that, commencing <br />with fiscal year 1988-89, tax revenues derived from unitary property and assessed by the State <br />Board of Equalization are accumulated in a single Tax Rate Area for the County. The tax <br />revenues are then to be allocated to each taxing entity county-wide as follows: (i) each taxing <br />entity will receive the same amount as in the previous year plus an increase for inflation of up to <br />2%; (ii) if utility tax revenues are insufficient to provide the same amount as in the previous year, <br />each taxing entity's share would be reduced pro rata county wide; and (iii) any increase in <br />revenue above 2% would be allocated in the same proportion as the taxing entity's local <br />secured taxable values are to the local secured taxable values of the County. <br /> <br />AB 454 (Statutes of 1987, Chapter 921) further modified Chapter 1457 regarding the <br />distribution of tax revenues derived from property assessed by the State Board of Equalization. <br />Chapter 921 provides for the consolidation of all State-assessed property, except for regulated <br />railroad property, into a single tax rate area in each county. Chapter 921 further provides for a <br />new method of establishing tax rates on State-assessed property and distribution of property tax <br />revenue derived from State-assessed property to taxing jurisdictions within each county in <br />accordance with a new formula. Railroads will continue to be assessed and revenues allocated <br />to all tax rate areas where railroad property is sited. <br /> <br />The County includes the taxable value of utilities as part of the reported taxable values <br />of a project area. Consequently, the base year values of redevelopment projects are increased <br />by the amount of utility value that existed originally in the base year. The Successor Agency’s <br />unitary revenue is expected to be approximately $16,000 for fiscal year 2017-18 based on prior <br />years experience. <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 />137