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League Board Authorizes Staff to Implement Plans to Challenge AB 1484, Redevelopment Budget Trailer Bill

July 20, 2012

Meeting in Manhattan Beach on July 20, the League board of directors unanimously authorized the commencement of litigation in the League's name on behalf of the cities of California to challenge the constitutional validity of AB 1484, the controversial state budget trailer bill that authorizes the state Department of Finance to "claw-back" city sales taxes and city property taxes to satisfy the state's funding demands imposed on legally separate redevelopment successor agencies by AB 1484. The authorization covered possible intervention in an action filed by member city/cities or successor agency/agencies or the filing of a separate legal action.


In the roughly 24 hours between the publication and enactment of AB 1484, the League staff advised the legislature that its sales and property tax "claw-back" provisions clearly violated multiple provisions of the state constitution that were adopted by the voters of California in 2004 (Proposition 1A) and 2010 (Prop. 22). League Executive Director Chris McKenzie said: “the board of directors of the League took this action because AB 1484 represents a clear and present threat to the ability of cities to meet the public safety and other vital public service needs of the city resident of California. We also strongly believe the sales tax and property tax "claw-back" provisions violate the constitution and are inconsistent with other parts of AB 1484 that declare that redevelopment successor agencies are separate and apart from city governments." League attorneys will report back to the League board on the specific plans for implementing the litigation authorization.

Note: The July 20 version of this article incorrectly stated the sales taxes subject to the “claw-back” were voter- approved. AB 1484’s sales tax “claw-back” provisions apply to the Bradley-Burns sales tax levied by cities for general government purposes such as police, fire, EMS, libraries, parks, senior services, and other vital services. 

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