Title
Staff Report for a City of San Leandro City Council Resolution Supporting Proposition 15, Otherwise Known as the "The California Schools and Local Communities Funding Act of 2020" that will appear on the November 2020 statewide ballot
Staffreport
SUMMARY & RECOMMENDATION
Per a request from the City Council at the September 8, 2020 City Council meeting, staff recommends that the City Council consider adopting a Resolution in support of Proposition 15, which will appear on the upcoming November 2020 statewide ballot.
BACKGROUND
California local public agencies, including cities, counties, schools, and special districts, levy property taxes on property owners based on the value of their property. Property taxes raise around $65 billion annually for local governments, about $2 billion of which is attributable to business personal property. Furthermore, about 60 percent of statewide property tax revenue is allocated to cities, counties, and special districts, while the remaining 40 percent is allocated to schools and community colleges. The taxable value of property throughout the state is determined by locally elected County Assessors, with County tax collectors billing property owners, and County auditors typically distributing the revenue to local government agencies. Each property owner's annual property tax bill is equal to the taxable value of their property multiplied by their property tax rate.
Since the passage of Proposition 13 in 1978, property tax rates are generally capped at 1 percent throughout California. The county assessor assigns an assessed value to the property, typically based on its purchase price. Each year thereafter, the property' s taxable value may increase by 2 percent or the rate of inflation, whichever is lower. This process continues until the property is sold and again is taxed at its purchase price. In most years, the market value of most properties grows faster than 2 percent per year. As a result, under this system ...
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