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5A Public Hearings 2019 0603
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5A Public Hearings 2019 0603
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7/18/2019 3:45:40 PM
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5/29/2019 3:41:33 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Agenda
Document Date (6)
6/3/2019
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PERM
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Reso 2019-094
(Approved)
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\City Clerk\City Council\Resolutions\2019
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MAJOR GENERAL FUND REVENUES <br /> <br />PROPERTY TAXES, cont. <br /> <br />Personal Property Taxes <br />Personal Property Tax is assessed at the rate of 1% of the market value on a business’ <br />personal property, such as office furniture, machinery and other equipment. The tax is <br />billed by Alameda County in a single installment due August 31st, and most of the amount <br />due to the City is remitted in September and credited to the General Fund. <br /> <br />Analysis <br />Factors that affect the revenue generated by property taxes are: <br /> <br /> Changes in assessed values, which are caused by inflation adjustments up to 2% <br />of construction activity, sales of properties and Proposition 8 reassessments <br /> <br /> Economic growth in the Bay Area <br /> <br /> Supplemental Taxes are affected by sales of real property and/or new construction <br />in the City that occurs after the assessment lien date (of January 1 st) until the end <br />of the fiscal year (June 30th). <br /> <br /> Factors that have affected the revenue generated by VLF in the past include the <br />sales of new vehicles in California, DMV administrative costs, and the proportion <br />of San Leandro’s population to the total for the State and County. Starting in 200 5- <br />06, the rate of growth in the assessed values of properties also impacted VLF <br />revenues, as the amount of the VLF backfill paid decreased by the change in gross <br />assessed values of taxable properties. <br /> <br /> Factors that affect the revenue generated by taxes on pe rsonal property are <br />business capital expenditures growth, and the collection rate. The growth in <br />annual personal property tax revenues should generally be close to the growth in <br />annual assessed values, except for significant changes in collection rates. <br /> <br />Forecast <br />The revenue projection for Real Property Tax revenue is primarily based on the annual <br />County Assessor’s Office estimate of assessed values, which is provided before May 10 th <br />each year. The difference between the estimate in May and the actual cert ification in <br />August is generally small. <br /> <br /> <br /> <br />Description <br />(Dollars in thousands)2014 2015 2016 2017 2018 2019 <br />Taxable Assessed Value 10,456,620$ 10,422,022$ 11,194,017$ 12,449,448$ 12,415,830$ 13,215,881$ <br />$ Change Assessed Value 575,391$ (34,598)$ 771,995$ 1,255,431$ (33,618)$ 800,051$ <br />% Change Assessed Value 5.82% -0.33% 7.41% 11.22% -0.27% 6.44% <br />Changes in <br />Taxable <br />Assessed <br />Value <br />56 <br />78
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