CC Resolution No. 12-030 Assembly Bill 1816 - Tax Equity Allocations RESOLUTION NO. 12-030
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
SUPPORTING ASSEMBLY BILL 1816—TAX EQUITY ALLOCATION
WHEREAS, when Proposition 13 passed in 1978., it decreased property taxes by assessing property
taxes at their 1975 levels and restricted annual increases of assessed value of real property to an inflation
factor, not to exceed 2% per year; and
WHEREAS, in 1979,the California State Legislature passed Assembly Bill (AB) 8,which included a
provision to bring all "no-low tax" cities share of the property tax up to 7%; and
WHEREAS, subsequent legislation sponsored by Senator Vasconcellos reduced the share of the AB 8
property tax distribution for the cities of Saratoga, Los Altos Hills, Cupertino, and Monte Sereno; and
WHEREAS, AB 117 sponsored by Assembly Member Rebecca Cohn in 2006, restored a portion of the
Tax Equity Allocation(TEA)to the four cities; and
WHEREAS, AB 117 changed the Educational Revenue Augmentation Fund (ERAF) requirements
for Saratoga, Los Altos Hills, Cupertino, and Monte Sereno and these cities lost a proportion of the restored TEA
through increased ERAF requirements; and
WHEREAS, all other no-and low-property tax cities received TEA allocations and were not subject to
ERAF deductions; and
WHEREAS, AB 1816 introduced by Assembly Member Jill Beall, Jr., would finally resolve the
inequality of property tax allocations by treating Saratoga, Los Altos Hills, Cupertino, and Monte Sereno like all
other no-and low-property tax cities;
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of Cupertino endorses Assembly
Bill 1816 introduced by State Assembly Member Jim Beall, Jr.
The above and foregoing resolution was passed and adopted at a regular meeting of the Cupertino City Council
held on the 3`d day of April 2012 by the following vote:
Vote Members of the City Council
AYES: Santoro, Mahoney, Chang, Sinks, Wong
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: APPROVED:
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Grace Schmidt, Acting City Clerk Mark Santoro, Mayor, City of Cupertino