SR-212-006
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Council Meetlng: May~, 1983
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Santa Monica, Ca11fornia } 1_ H
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MAY 2 4 1983
TO: Mayor and City Council
FROM: City Manager
SUBJECT: County Tax Over-Allocation to Clty
The County of Los Angeles presently collects property taxes and
then d1stributes these funds to cities accordlng to a certain
formula.
The County this week has determ1ned that its formula
since 1978 (the passage of Propositlon 13 on Property Tax Reform)
was in error and that overpayments of tax funds have been made to
16 cities throughout the County. Santa Monica is one of these
cities, wlth the County stat1ng a debt of $5.1 million is due for
the previous five years.
A staff report on options for the City regarding this matter 1S
being developed and will be made available to Councll members at
the earliest opportunity prlor to the May 24,
1983 Council
meeting.
Prepared by: John H. Alschuler
C1.ty Manager
1l-1-1
HAY 2 4 1981
JNFOR\1ATlON
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Santa~jnica~ California, September 28.
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TO: Mayor and City Council
FROM; Acting City Manager
SUBJECT: 1978-79 Fiscal Year P!opert~ Tax Revenue
Introduction
This report discusses 1978-79 Fiscal Year Property Tax Revenue as determined
by the Proposition 13 implementation legislation (5B 154 and SB 2212) and
briefly discusses the implications of this property tax revenue formula.
Back~ound
In the April 26, 1978 analysis of the rival property tax reform measures
(i.e.. 58! and Prop. 13). C~ty staff was required to make certain assumptions
concerning Proposition 13 in order to arrive at conclusions about the effect
of that measure on City property tax revenues. These assumptions were
necessary because: 1) Proposition 13 had not yet passed; 21 the State
Legislature had not yet considered the required implementation legislation. and
3) pendancy of City budget adoption.
One of the pr1mary assumptions necessary to arrive at any property tax revenue
effect est1mate was that property tax revenue would be distributed by the
County in proportion to the City's 1975-76 fiscal year tax rate w~th allowapce
for the Prop 13 2% per year allowable inflation factor since 1975-76.
As noted in the April 26. 1978 report, the City's 1975-76 portiol. of the total
tax rate levied in Santa Monica was 10.945%. The estimated property tax
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