HomeMy WebLinkAboutSR - SCA5 - Local Govrnmnt Finance/SHEILA R. GIkLIGAN
ACM/COMMUNITY SERVICES
REQUEST:
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CITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE
ACTION ON SCA5 (MC CLINTOCK) AT ITS MEETING OF APRIL
24, 2007
DATE: May 10, 2007
CONTENTS: SCA5 Language
RECOMMENDATION:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of April 24, 2007, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to SCA5 (McClintock) relative to local government finance.
EXECUTIVE SUMMARY:
Passage of SCA5 would amend the approval formula for local taxes.
BACKGROUND:
The California Constitution defines, for purposes of local taxation, a "general tax" as a tax
imposed for general governmental purposes and a "special tax" as a tax imposed for
specific purposes. SCA5 would establish, for purposes of both State and local taxation, a
constitutional definition of a "tax" as any monetary exaction imposed by a governmental
entity but would exclude from this definition monetary exactions that meet certain criteria.
The language of SCA5 changes the definition of some locally collected " et-s,"
business licensing, building assessments, developer fees, etc., to "taxes," whic-i s;oul
effect, make these funds eligible for a "take" by the State of California as thee spe
sources of revenue are not prohibited under the provisions of Proposition 1 A.
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Therefore, the Legislative Review Committee recommends that the City Co anvil olnp Asa
SCA5 and direct staff to prepare a letter stating that position to appropriate Lrg sI atc fcr
the Mayor's signature. -
CFEV PAUL GIBSON o I
ENT ANALYST DIRECTOR OF FINANt/
CITY TREASURER Q
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CARLOS L. ORTEGA A A' '" 's
CITY MANAGER U ct
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