AB 754

This bill makes changes to the laws administered and enforced by the

Department of Revenue.

shared revenue

Reimbursement amounts

Under current law, the state reduces the shared revenue payments to counties

and municipalities for various purposes, including for the collection of penalties and

the reimbursement for other amounts. However, current law is not consistent with

regard to which components of shared revenue are reduced for these purposes. This

bill provides that all such reductions are from the payment of all shared revenue

components that the counties and municipalities receive on the fourth Monday in

July and the third Monday in November.

Expenditure restraint payments

Under current law, counties and municipalities receive 15 percent of their

shared revenue payments on the fourth Monday in July and the remainder on the

third Monday in November, except that municipalities receive the entire amount of

their payment under the expenditure restraint program on the fourth Monday in

July. The bill allows municipalities to receive their entire expenditure restraint

before the fourth Monday in July, upon certification by DOR.

Under current law, the inflation factor used to compute a municipality's

expenditure restraint payment is a percentage equal to the average annual

percentage change in the U.S. consumer price index for all urban consumers, U.S.

city average, as determined by the U.S. Department of Labor, for the 12 months

ending on September 30. The bill modifies the consumer price index provision so that

it is for the 12 months ending on August 31.

property

Omitted property

Current law requires a taxation district clerk to annually submit to DOR a

listing of the taxes on property omitted from assessment in any of the previous two

years that are to be included in the next assessment. However, the clerk reports the

omitted taxes only if those taxes exceed $5,000. The bill modifies that $5,000

threshold so that the clerk reports the omitted taxes that are $250 or more for any

single description of property. The bill also provides that the clerk may not list an

omitted tax that was levied on property within a tax incremental district unless the

current value of the district is lower than the tax incremental base.

Objections

Current law requires a person who files an objection to the assessment of the

person's manufacturing property to pay a $45 fee. The bill increases the filing fee to

$200.

License fees

Current law imposes license fees instead of property taxes on certain public