AB 1112: Tax Equity Allocation.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing property tax law requires the auditor of each county with qualifying cities, as defined, to make certain property tax revenue allocations to those cities in accordance with an established Tax Equity Allocation formula. In any fiscal year in which a qualifying city is to receive a distribution under these provisions, existing law requires the auditor to reduce the actual amount distributed to the qualifying city by the sum of specified amounts, including any amount of property tax revenues that has been exchanged pursuant to specified law between the City of Rancho Mirage and a community services district.

This bill would remove the above-described property tax revenues from the reductions to the actual amount distributed. By changing the duties on local officials to administer Tax Equity Allocation, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

By removing the above-described property tax revenues from the reductions to the actual amount distributed, this bill would change the pro rata shares in which ad valorem property tax revenues are allocated among local agencies in a county, within the meaning of paragraph (3) of subdivision (a) of Section 25.5 of Article XIII of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.

Sponsors

Sponsors by party (alphabetical): Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 31, 2026Chaptered by Secretary of State - Chapter 165, Statutes of 2026.
2. August 31, 2026Approved by the Governor.
3. August 24, 2026Enrolled and presented to the Governor at 4:30 p.m.
4. August 17, 2026In Assembly. Ordered to Engrossing and Enrolling.
5. August 17, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 5494.).
6. June 29, 2026Read second time. Ordered to third reading.
7. June 25, 2026Ordered to second reading.
8. June 25, 2026From inactive file.
9. August 29, 2025Ordered to inactive file at the request of Senator Ochoa Bogh.
10. August 20, 2025Read second time. Ordered to third reading.
11. August 19, 2025From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
12. July 16, 2025From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 16). Re-referred to Com. on APPR.