AB 949

Under current law, local levy increase limits are applied to the property tax

levies that are imposed by political subdivisions in December of each year. Current

law prohibits a political subdivision from increasing its levy by a percentage that

exceeds its “valuation factor," which is defined as the greater of either 0 percent or

the percentage change in the political subdivision's equalized value due to new

construction, less improvements removed.

Under this bill, a political subdivision must reduce its allowable levy by the

estimated amount of revenue generated by any transportation user fee imposed by

the political subdivision. The bill defines “transportation user fee” as “a fee or special

charge imposed by a political subdivision upon a property owner or highway user for

use of the highways of the political subdivision or for benefits conferred upon a

property by the highways of the political subdivision.” The bill specifies that the term

does not include special assessments or certain special charges.