HomeMy WebLinkAboutAB483 - Local Gvrnmnt Taxes Fees Assessmnt CITY OF PALM DESERT
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OFFICE OF THE CITY MANAGER
STAFF REPORT
REQUEST: APPROVE THE PALM DESERT LEGISLATIVE REVIEW
COMMITTEE'S RECOMMENDATION TO PROVIDE A LETTER OF
SUPPORT FOR AB 483 (TING).
SUBMITTED BY: Stephen Y. Aryan, Risk Manager
DATE: September 12, 2013
CONTENTS: Proposed Legislation Text
Recommendation
By Minute Motion, authorize the Mayor to send a letter of support for AB 483 (Ting).
Committee Recommendation
On August 30, 2013, the Palm Desert Legislative Review Committee recommended that the
City Council approve a letter of support for AB 483 (Ting).
Back�round
The Palm Desert Legislative Review Committee recommended that the City of Palm Desert
send correspondence indicating its support for the following proposed legislation:
AB 483 (Ting): SUPPORT
Existing law allows local officials to charge benefit assessments to property owners to pay for
public works and public services. Proposition 218 (1996) requires owners of real property to
approve benefit assessments in a weighted ballot election. Property owners vote in
proportion to their proposed assessments, which reflect how much their property benefits
from the proposed public works or public services.
State law also allows local officials to create an assessment district, often called a business
improvement district (BID), to levy assessments on business owners to pay for specified
types of physical improvements or activities that benefit businesses within the district. One
type of business assessment-based district is a tourism marketing district (TMD). TMDs are
typically formed to assess hotels and other lodging businesses to pay for marketing and other
activities that promote tourism within the district and increase visitors' use of the hotels and
lodging facilities. The courts have said that assessments on businesses, as opposed to real
property, are not subject to Proposition 218's provisions.
This bill would define the terms "specific benefit," and "specific government service" for
purposes of the Proposition 218 Omnibus Implementation Act.
Staff Report: AB 483 (Ting)
September 12, 2013
Page 2 of 2
According to the author, "AB 483 would support Galifornia's important tourism industry by
ensuring that local governments may continue to establish and renew Tourism Marketing
Districts (TMDs) and other Business Improvement Districts (BIDs). TMDs and BIDs are
effective non-profit entities electively formed by businesses in partnership with local
governments, whereby businesses impose an assessment on themselves to privately fund
tourism promotion efforts. This bill clarifies definitions that govern these districts, allowing
them to operate more efficiently and bolster economic development and job growth
throughout the state."
Please note that the Greater Palm Springs Convention & Visitors Bureau, the Palm Spring
Bureau of Tourism, and many more similar organizations have indicted their support of this
bill. The only verified opposition to this bill is from the California Taxpayers Association. Staff
respectfully recommends sending a letter of support for AB 483 (Ting).
Fiscal Analvsis
There is no direct fiscal impact related to the City's support of this bill.
Submitted By:
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Stephe . an, Ris M ager RECEIVED
OTHER
Approval: MF;ETING DATE -/� �f:13
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ABSENT: ��,n e�
I3STA[N:
n M. Wohlmuth, City Manager VF,RIFIED BY:
Original on File with City Clcrk's fficc
AMENDED IN SENATE SEPTEMBER 4,2013
AMENDED IN SENATE AUGUST 13,2013
AMENDED IN SENATE JUNE 26,2013
CALIFORNIA LEGISLATURE-2013-14 REGULAR SESSION
ASSEMBLY BILL No. 483
Introduced by Assembly Member Ting
(Coauthors:Assembly Members Atkins and lan Calderon)
(Coauthor: Senator Hueso)
February 19, 2013
An act to add Section 53758 to the Government Code, relating to
local government, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 483, as amended, Ting. Local government: taxes, fees,
assessments,and charges: definitions.
Article XIII C of the California Constitution generally requires a
majority vote of the electorate for a local government to impose,extend,
or increase any general tax and a 2/, vote of the electorate to impose,
extend,or increase any special tax,and permits the use of the initiative
to affect local taxes, assessments, fees, and charges. Article XIII C of
the California Constitution also defines a local tax and sets out the
categories of charges that are excluded from that definition.'Z'II CI�IG
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�tea� Existing law, the Proposition 218 Omnibus Implementation
Act,prescribes specific procedures and parameters for local jurisdictions
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AB 483 —2—
to comply with�es Article XIII C-��B of the California
Constitution,and defines various terms for these purposes.
This bill would add a provision to the Proposition 218 Omnibus
Implementation Act to additionally define the terms"specific benefit;'
and"specific government service"for purposes of
Article XIII C of the California
Constitution.
This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
The people of the State of California do enact as_follows:
1 SECTION 1. The Legislature finds and declares all of the
2 following:
3 (a) Business improvement districts and tourism marketing
4 districts are important to California's economy, and provide a
5 number of tourism-related services to California's tourism industry,
6 including marketing of assessed businesses, tourism promotion,
7 and special events to attract tourists.
8 (b) Business improvement district and tourism marketing district
9 assessrrtent revenues are intended only to provide benefzts or
10 services directly to those businesses paying the assessment, and
11 business improvement district and tourism marketing district
12 assessment revenues cannot be diverted to support general
13 governmental programs.
14 (c) The purpose of this bill is to clarify that business
15 improvement district and tourism marketing district assessments
16 are not tcrxes within the meaning ofArticle XIII C of the California
17 Constitution merely because they might generate indirect,
18 secondary benefits for nonpayors, provided that those indirect,
19 secondary benefzts occur incidentally and without cost to the
20 payors of the assessment.
21 r�nm�T
22 SEC. 2. Section 53758 is added to the Government Code, to
23 read:
24 53758. For purposes of�ek:s Article XIII C�� of
25 the California Constitution and this article:
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—3— AB 483
1 (a) "Specific benefit"means a benefit that is provided directly
2 to a payor and is not provided to those not charged.�4�er
3
4 .
5 « �,
6 , ,
7 , , ,
g . A
9 spec�c benefit is not excluded fi�om class�cation as a "specific
10 benefit"merely because an indirect benefit to a nonpayor occurs
11 incidentally and without cost to the payor as a consequence of
12 providing the spec�c benefit to the payor.
13 (b) "Specific government service" means a service that is
14 provided by-a�--agene� a local government directly to the payor
15 and is not provided to those not charged. A spec�c government
16 service is not excluded from class�cation as a "spec�c
17 government service" merely because an indirect benefit to a
18 nonpayor occurs incidentally and without cost to the payor as a
19 consequence of providing the spec�c government service to the
20 payor. A "specific government service" may include, but is not
21 limited to,-sR€e� maintenance, landscaping, marketing, events,
22 , and promotions. " �`� �'"a�`'
23 " "
24 , ,
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26
27 ��e�e�:
28 (c) The local government bears the burden of proving by a
29 preponderance of the evidence that a levy, charge, or other
30 exaction imposed for a spec�c benefit or spec�c government
31 service is not a tax, that the amount is no more than necessary to
32 cover the reasonable costs to the local government in providing
33 the spec�c benefit or spec�c government service, and that the
34 manner in which those costs are allocated to a payor bear a fair
35 or reasonable relationship to the specific benefits or specific
36 government services received by the payor.
37 JL'"�
38 SEC. 3. This act is an urgency statute necessary for the
39 immediate preservation of the public peace,health,or safety within
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AB 483 —4—
1 the meaning of Article IV of the Constitution and shall go into
2 immediate effect. The facts constituting the necessity are:
3 In order to ensure compliance with the California Constitution
4 it is necessary that this act take effect immediately.
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