1978-12 CRA - Laserfiche WebLink

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1 2 3 4 5 6 7 GALLEY 12 - 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 . 44 45 46 47 48 49 50 51 52 63 54 55 56 57 58 59 60 61 62 63 .64 65 66 67 68 69 70 71 72 13 74 75 , 8 Proof of Fobruary 16, 1978 SANTA ANA-7923 Bowne of San Francisco, Inc., 981-7882 tinue to operate until an appropriate system, not in violation of the California Constitution, can be placed into effect. Legislation has been enacted by the California legislature in response to Serrano v, Priest, This leg- islation significantly increases the amount of state money supplied to public school districts having a low local property tax basis, and provides for some equalization of tax moneys by redistributing some tax revenues of school districts having a high per- pupil property tax basis to school districts having a low per-pupil property tax basis" It is likely that further litigation will result to determine whether the enacted legislation satisfies the constitutional requirement pronounced in Ser- rano v, Priest, To the extent this decision and any future legislative or judicial action required to im- plement or enforce such decision may limit the ab;lity of schools to continue to levy ad valorem property taxes for the support of education, Tax Revenues may be reduced, adversely affecting the security of the Bonds, The total 1977/78 tax rate for public elementary and high schools within the Proj- ect subject to such decision is $3.5490 per $100 assessed vaJuation, of which an undetermined por- tion would be subject to such decision, Proposed Property Tax Limitation, Constitutional Amendment The Agency has been made aware of a proposed initiative measure entitled "Property Tax Limita- tion, Initiative, ConstitutionaJ Amendment", com- monly known as the "Jarvis Initiative," which has qualified for a place on the ballot at the June 6,1978 statewide election, The office of the Attorney General has provided the following summary of the measure: PROPERTY TAX LIMITATION, INITIATIVE, CONSTITUTIONAL AMENDMENT, Limits ad valorem taxes on real property to I % of value except to pay indebtedness previously approved by voters. Establishes 1975/76 assessed valuation as base value of property for tax purposes" Limits annual increases in value, Provides for reassess- ment after saJe, transfer, or construction" Requires ~ vote of Legislature to enact any change in state taxes designed to increase revenues. Prohibits im- position by state of new ad valorem, sales, or transaction taxes on reaJ property, Authorizes specified local entities to impose special taxes except ad valorem, sales and transaction taxes on real property, FinanciaJ Impact: Would result in the loss of local property tax revenues of $7 bil- lion to $8 billion annually and a reduction in state costs of about $700 million in 1978179 and $800 million annuaJly thereafter"