The city of Tustin has filed suit against the state of California seeking $42 million in property tax money that was lost when the state abolished redevelopment agencies.
“It’s a money grab by the state,” Mayor Chuck Puckett said in a statement Wednesday. “Instead of repaying the funds so they can be used for vital local projects in Tustin where the taxes were paid, the Department of Finance is trying to redirect those funds, ultimately to increase the state’s revenue at cities’ expense.”
Gov. Jerry Brown and state lawmakers abolished redevelopment agencies as part of the 2011 budget. The property tax money that was set aside for economic development was redistributed to schools and counties.
The Ornage County Register reports, “Courts in other cases have already rejected that stance from the state, Tustin officials argue, including a Jan. 16 decision in favor of the city of Watsonville. The state is appealing that ruling.
The state hadn’t been served in the Tustin case as of Wednesday, Jim Evans with the governor’s office said, so officials had no comment.
“The city met with (the Department of Finance) and made every effort to allow the city to be repaid,” City Manager Jeff Parker said in a statement. “Unfortunately the only way left to protect the taxpayers’ $42 million from being snatched away by the state is to ask a court to order the Department of Finance to comply with the law.”