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<br />9A <br />Page 13 <br /> <br />Federal Eminent Domain Legislation <br /> <br />Last December, an amendment to the Senate's Food and Energy Security Act of 2007 was <br />defeated that would have preempted state and local land use laws by prohibiting any state or local <br />government from exercising eminent domain authority over any "farmland or grazing land for the <br />purpose of a park, recreation, open space, conservation, preservation view, scenic vista or similar <br />purpose." <br /> <br />While little action is expected on eminent domain this session, three measures have been <br />introduced on the issue: the Private Property Rights Protection Act of 2007 (HR 3053/S 48) and <br />the Strengthening the Ownership of Private Property Act of 2007 (HR 926). <br /> <br />The Internet Tax Freedom Amendments Act of 2007 <br /> <br />The President signed the Internet Tax Freedom Amendments Act of 2007 (P.L. 110-108) in <br />October, which extended the moratorium on internet access taxes that expired in November of <br />2007 until 2014. The legislation also amended the definition of Internet access to make clear that <br />the moratorium applies only to the service that connect a user to the Internet and not to goods and <br />services sold over the Internet. No additional legislation is expected on this issue this session. <br /> <br />State Controller Issues Advisory Letter on Property Tax Administrative Charges <br /> <br />The audit division of the State Controllers Office issued a letter Jan. 7 clarifying its recent legal <br />opinion on the appropriate method for calculating property tax administrative charges related to the <br />triple flip and property tax in lieu of Vehicle License Fees (VLF). <br /> <br />In recent months, numerous city officials have voiced concerns about a significant increase in <br />property tax administrative charges related to the administration of the triple flip and property tax in <br />lieu of VLF. The triple flip is the mechanism by which the state reimburses cities and counties with <br />property tax for local sales tax taken to payoff the Economic Recovery Bonds under Proposition 57 <br />(2004). Property tax in lieu ofVLF is the additional property tax revenue cities and counties <br />receive since the VLF for Property Tax Swap of 2004. <br /> <br />These concerns raised an issue requiring legal interpretation. Under the law, beginning in FY <br />2006-07, a county may impose a fee for administrative costs of implementing the triple flip and <br />property tax in lieu ofVLF, but the fee, charge, or other levy may not exceed the actual cost of <br />providing these services. County auditors had been redistributing the total costs of property tax <br />administration in proportion to the distributions of triple flip and property tax in lieu of VLF, resulting <br />in substantially larger additional charges than actual cost. <br /> <br />Interested cities should visit http://www.californiacitvfinance.comJ#PROPTAXADMINFEES <br />to review the letter from the audit division of the State Controllers Office. <br /> <br />Sustainable Cities Feature Launches <br /> <br />This week Priority Focus runs the first sustainable cities feature with a profile of Palo Alto Green, <br />the city's program that enables residents to purchase renewable energy. The sustainable cities <br />series highlights innovative practices California cities are using to promote sustainability. <br /> <br />We are now collecting stories for this new series and want to hear about what your city is doing to <br />be more sustainable. Has your city recently converted its vehicle fleet, installed solar on city buses <br />or perhaps developed a public awareness campaign to encourage city residents to conduct an <br />energy audit at home? These are the kinds of stories we want to hear. <br /> <br />Questions and submissions should be sent to League Communications Director Eva Spiegel at <br />as pi eo e l@cacities. or~. <br /> <br />6 <br />