Under AB 1484, the penalty for the city, county or city and county that sponsored the redevelopment agency is the discontinuation of sales and use tax revenue distributions scheduled for July 18, or any subsequent distribution until the required payment was satisfied. However, according to HdL Companies, BOE has confirmed that July 18 distributions will proceed normally because AB 1484 did not allow for enough time for BOE staff to make adjustments for the penalties. It is expected that adjustments will be applied to the August distribution instead.
Reacting to the news of the delay in possible penalties, League Executive Director Chris McKenzie remarked: “This is welcome news since all parties always needed more time to determine whether the computed amounts of the July ‘true-up’ payment were correct. We urge the Department of Finance to take the time to hear the appeals and information from city officials that the original July billing, payment and penalty dates did not allow. This is no consolation, however, to those successor agencies that paid on time — some under protest. This legislation has been full of unreasonable, punitive and unnecessary deadlines since the start. Time will likely show that the decision to dissolve redevelopment agencies was not just imprudent but deeply harmful to the California economy.”
For more information about AB 1484, please visit the League’s website.