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54 <br /> MAJOR GENERAL FUND REVENUES <br /> PROPERTY TAXES <br /> Property Tax revenues are the City's second largest General Fund revenue source. <br /> Real Property Taxes <br /> Under the State Constitution, Real Property Taxes (Property Taxes) are applied to all <br /> taxable real and personal property (i.e., possessory interest, and other personal property <br /> considered to be permanently attached to the property), and are set at 1% of the assessed <br /> value. The Alameda County Assessor maintains property tax assessment rolls that <br /> account for all property. Property Taxes are adjusted based on the following: <br /> The assessed value of real property that has not changed ownership increases by <br /> the change in the California Consumer Price Index up to a maximum of 2% per <br /> year. <br /> Property that changes ownership; is substantially altered; is newly constructed; <br /> "state-assessed" rather than "local-assessed" property; and personal property(i.e., <br /> possessory interest, and other personal property considered to be permanently <br /> attached to the property), is assessed at the full market value in the first year, and <br /> subject to the 2% cap, thereafter. <br /> In 1979, in order to mitigate the loss of Property Tax revenues after approval of <br /> Proposition 13, the State legislature approved AB 8. This action was approved to provide <br /> a permanent method for allocating the proceeds from the 1% property tax rate, by <br /> allocating revenues back to local governments based on their historic shares of property <br /> tax revenues. As part of the State's 1993-94 budget, the AB 8 formula was altered <br /> requiring another ongoing shift in City Property Tax revenue to K-12 schools and <br /> community colleges (Education Revenue Augmentation Fund or ERAF). <br /> Proposition 1A, enacted in November 2004 and Proposition 22, enacted in November <br /> 2010, provides protection for local property taxes, sales taxes, and Vehicle In-lieu <br /> Tax/License Fees (VLF) revenues by prohibiting the State Legislature from taking any <br /> action that would: <br /> Reduce the local Bradley-Burns Uniform Sales and Use Tax rate or alter its <br /> allocation. <br /> Decrease VLF revenue from the 0.65% rate without providing replacement <br /> funding. <br /> Shift property taxes from cities, counties or special districts. <br /> The City's Property Tax is collected by Alameda County. The City currently receives <br /> approximately 12% of the 1% countywide real property tax levied, and most of the <br /> revenue is received in December and April. <br /> w m <br /> whn , <br />