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AB-1112 • 2026

Tax Equity Allocation.

Tax Equity Allocation.

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Wallis
Last action
Official status
Senate - Third Reading
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Tax Equity Allocation Changes

This law changes how property tax money is shared by stopping a specific reduction for cities that have exchanged taxes with community services districts.

What This Bill Does

  • Removes certain property tax revenue exchanges from the list of amounts taken away before distributing funds to qualifying cities.
  • Changes the duties of county auditors who calculate and send out Tax Equity Allocation payments.
  • Alters the share of property tax money that different local agencies in a county receive.
  • Requires state reimbursement if officials determine this law creates new costs for local governments.

Who It Names or Affects

  • County auditors who manage property tax distributions
  • Qualifying cities, including the City of Rancho Mirage
  • Community services districts that exchange taxes with qualifying cities

Terms To Know

Tax Equity Allocation
A formula used to share property tax revenue between counties and specific cities.
State-mandated local program
A new rule from the state that requires local officials to do work they did not have to do before.

Limits and Unknowns

  • The bill does not list a specific date when these changes will start.
  • It is unclear if the Commission on State Mandates will find costs requiring state reimbursement until it reviews the law.

Bill History

  1. California Legislative Information

    Senate - Third Reading

Official Summary Text

Tax Equity Allocation.