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