Title
Adoption of Resolution Supporting the Schools and Local Communities Funding Act on the November Ballot. (City Manager 2110)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The California Schools and Local Communities Funding Act is Proposition 15 on the November ballot. If approved by a simple majority of voters, the Measure would change the rate of the property tax levied on commercial and industrial properties from one percent of assessed value to one percent of market value, generating $10.9 billion dollars in additional revenues.
The City of Alameda's (City) annual Legislative Agenda includes support for legislation that promotes social equity and enhances the quality of life and health of Alameda residents and legislation that ensures a positive financial impact on the city.
Staff recommends the City Council adopt a resolution supporting the Schools and Local Communities Funding Act on the November ballot.
BACKGROUND
The State of California's property tax system has not been substantially changed in 40 years. Commercial and industrial properties include offices, retail, manufacturing facilities, hotels, and vacant commercial and industrial land. Not included are agricultural land uses and residential land uses. Currently, property taxes on commercial and industrial properties are one percent of their assessed value. Properties are generally reassessed only when they are sold, so their assessed value is typically less than market value. If the California Schools and Local Communities Funding Act passes, 78 percent of revenues will be coming from six percent of commercial properties.
DISCUSSION
In California, 40 percent of new property tax revenues go to local schools. If the California Schools and Local Communities Funding Act is approved by voters, it will provide significant revenues to Alameda's public schools and to the College of Alameda.
The remaining 60 percent of property tax revenues go to c...
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