Laserfiche WebLink
11 <br /> <br />Property tax revenues among local governments are, of course, also <br />dramatically affected by differences in the assessed value of properties <br />among jurisdictions. A ten percent share in a community of average <br />property values will result in less revenue than in a similar size wealthy <br />bedroom community, or a community that also has a sizable <br />business/industrial area. <br />Property Tax in Lieu of Vehicle License Fee <br />In addition to their regular apportionment of property taxes, cities and <br />counties receive property tax revenues in lieu of Vehicle License Fees <br />(VLF). In 2004, the Legislature permanently reduced the VLF rate from <br />two percent to 0.65 percent and compensated cities and counties for <br />their revenue loss with a like amount of property taxes, dollar-for-dollar. <br />Each agency’s property tax in lieu of VLF allocation increases annually <br />in proportion to the growth in gross assessed valuation in that city or <br />county. <br />What is “ERAF?” <br />The property tax revenues <br />received by school districts <br />in each county include <br />amounts from the county <br />“Educational Revenue <br />Augmentation Fund” <br />(ERAF) created by the <br />California Legislature in <br />1991 as a way to reduce <br />state general fund spending <br />on schools. These funds <br />receive some property tax <br />that was previously <br />allocated to counties, cities <br />and special districts. <br />Since 2004, California’s <br />Constitution has prohibited <br />the Legislature from <br />increasing the amount of <br />property tax shifted from <br />counties, cities and special <br />districts to ERAF or similar <br />schemes. The state <br />Constitution requires a two- <br />thirds vote of the Legislature <br />to change the allocation of <br />property tax among the <br />county, cities and special <br />districts within a county. <br /> <br /> <br />Page 29 of 109