Property Taxation. Change In Base Year.

PROPERTY TAXATION. CHANGE IN BASE YEAR. INITIATIVE CONSTITUTIONAL AMENDMENT. Amends State Constitution to re-define full cash value as county assessor\u27s valuation of real property in tax year 1984-85, rather than 1975-76, for property and ad valorem taxes. Authorizes county assessors to make adjustment to 1984-85 values. New construction or construction on existing property occurring between March 1, 1984 and January 1, 1995, is permanently exempt from taxation. Commencing January 1995, full cash value may increase at inflationary rate or two percent, whichever is lower. Restricts receipt of property tax revenues to counties unless approved by majority vote. Effective immediately upon passage. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increases state\u27s Proposition 98 funding requirements for schools by approximately $11.6 billion. Increases state\u27s income tax collection by approximately $730 million annually. Counties would receive $5.6 billion in additional property tax revenues. Cities would lose more than $2 billion in property tax revenues, special districts would lose more than $1.4 billion, redevelopment agencies would lose up to $2 billion, annually. K-14 schools would lose $11.3 billion in property tax revenues, of which $11.2 billion would be replaced by funding from the state General Fund. School districts would also receive approximately $400 million from the General Fund as a result of increased state income tax revenues