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CC Resolution No. 13-024 Senate Bill 629-Tax Equity Allocation (TEA)RESOLUTION NO. 13-024 A RESOLUTION OF THE CUPERTINO CITY COUNCIL SUPPORTING SENATE BILL 629 —TAX EQUITY ALLOCATION WHEREAS, when Proposition 13 passed in 1978, it decreased property takes by assessing property taxes at their 1975 levels and restricted annual increases of assessed value of real property to n inflation actor, not to exceed % per year; and WHEREAS, in 1979, the California State Legislature passed Assembly Bill AB , which included a provision to bring all "no --lour tax" cities share of the property tax up to %.; and WHEREAS, subsequent legislation sponsored by Senator Vascon.cellos reduced the share of the AB 8 property tax distribution for the cities of Cupertino, Los Altos gills, Monte Sereno, and Saratoga; 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, this legislatign changed the Educational Revenue Augmentation Fund (ER AF) shares for Cupertino, Los Altos_ Hills, Monte Sereno, and Saratoga fr' om .07 to .04 and these cities lost their p p n. ro rtio share of ERAS' based-'on what they received in property tax at that tine; and WHEREAS, the E AF gate that the County was remitting was 47.7%, compared to the rate for the f uir separate cities, which ranged from 7.53% to 17,05 %; and WHEREAS, all other no -and low - property tax cities received TEA. allocations and were not subject to ERA F deductions; and WHEREAS, Senate Bill 629 introduced by Senator Jill Beall, Jr., would finally resolve the inequality of property tae allocations by treating Cupertino, Los Altos Hills, Monte Sereno, and Saratoga like all other no -and low - property tax cities; NOW, THEREFORE, 1 E, BE IT RESOLVED that the City Council of the City of Cupertino endorses Senate 'Bill 629 introduced by State Senator Jim Beall, Jr. Passed and Adopted at a regular meeting of the City Council of the City of Cupertino held on the 191' clay of larch 2013, by the following vote: Vote Members of the Citv Council ACES: Mahoney, Wong, Chang, Santoro, Sinks NOES: None ABSENT: None ABSTAIN: Moue ATTEST. APPROVE VELA • Grace Schmidt, City Clerk grin Mahoney, Mayor, City of Cupertino