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Cities challenge state change in RDA tax law

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POSTED September 24, 2012 8:00 p.m.

SACRAMENTO. (AP) — California cities are challenging a law that gives state finance officials the power to take local tax revenue as community redevelopment agencies are being dismantled.

The League of California Cities filed a lawsuit Monday against the state Department of Finance, the Board of Equalization and the state controller.

Executive Director Chris McKenzie says the law that passed earlier this year giving state finance officials the power to take and withhold tax revenue from cities is unconstitutional.

He says finance officials have not followed basic administrative procedures.

Finance spokesman H.D. Palmer says the state will defend AB1484, which was designed to distribute more money to schools and counties.

Gov. Jerry Brown planned on receiving $3.1 billion from the elimination of about 400 community redevelopment agencies to help close California's budget deficit.

 

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