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League’s Motion for Reconsideration in AB 1484 Litigation Granted

September 25, 2013
Sacramento County Superior Court Judge Michael Kenny on Tuesday granted the League’s motion for reconsideration in the litigation challenging the constitutionality of AB 1484’s clawback provisions.
In granting the motion, the court reversed its previous decision that the League’s lawsuit was not “ripe” because neither the League nor any of its members had suffered any harm or threat of imminent harm from implementation of the clawback provisions. The court, in its ruling, noted that the additional documentation the League provided in support of our motion showed that the Department of Finance (DOF) has utilized the challenged clawback provisions of AB 1484, and that it has begun to actually issue orders to the Board of Equalization for withholding of sales and use taxes from several cities and counties.

By granting reconsideration the court will now consider the merits of the League’s legal arguments that the clawback provisions in AB 1484 violate both Propositions 1A (2004) and 22 (2010). The court has requested additional briefing from the League and DOF on two additional questions. A hearing has been set for Friday, Nov. 15. The court’s ruling is available at www.cacities.org/ab1484lawsuit.
While encouraging, this is but one step in the process in securing a judicial determination that the legislature violated Props. 1A and 22 when it authorized the enforcement of AB 1484 against successor agencies through shifting the sales and property tax revenues of cities to other taxing entities.

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