March 3, 2016
Issue #20

Editor's Note

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Court of Appeal Holds that Proposition 22 Protects City Sales Tax and Property Tax from Being Reallocated by the Legislature

In a long-awaited opinion, the Third District Court of Appeal ruled today in League of California Cities v. Cohen (Case No. C076075) that AB 1484 violates Proposition 22 (2010), a statewide initiative to protect local tax revenues that was co-sponsored by the League of California Cities®, to the extent it allows the Department of Finance (DOF) to order sales and use tax revenues and property tax revenues to be withheld from cities and distributed to other local taxing entities. The Court’s opinion also covered similar issues raised in the case of City of Bellflower v. Cohen.

Economic Development, Redevelopment
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