The County Can’t Keep the Taxpayers’ Money & the City Can’t Sign Away Taxpayer Money Paid to Provide Services.
Riverside County Master Property Tax Agreements
In the State of California Homeowners pay 1% Property Taxes, which is collected to provide Services such as Fire and Safety Protection.
When the property is located in the county, the county receives the property taxes because they are providing the Services. When the property is located in the city the city receives the property taxes because the city is providing the Services.
And when property is Annexed from the County to the City the Property Taxes should also be transferred from the County to the City for all of the Services that the City must from then forward provide.
Riverside County illegally withholds 75% of the 1% Tax from the cities in Riverside County when they request Annexation of Land and they have for a long long time.
Riverside County and the City of Beaumont entered into Master Property Tax Transfer Agreement in the late 1970’s and early 1980’s. The Agreements state that of the 1% Property Tax Allocation; the City will receive 100% of the Funds allocated for Fire Services, but will:
“..assume the responsibility for all other general municipal services to the area to be annexed as are required by law or presently provided throughout the City, and for such service assumption shall receive 25% of that portion of the property tax revenue generated within the territory to be annexed under the Ad-Valorem Tax..”
California Revenue and Taxation Code does provide for a Master Property Tax Transfer Agreement, but the County can’t keep Taxpayer Money without providing Services and the City has no right to sign away the Taxpayers’ money.
California Revenue and Taxation Code 99 (8) In the case of a jurisdictional change that consists of a city’s qualified annexation of unincorporated territory, an exchange of property tax revenues between the city and the county shall be determined in accordance with subdivision (e) if that exchange of revenues is not otherwise determined pursuant to either of the following:
(A) Negotiations completed within the applicable period or periods as prescribed by this subdivision.
(B) A master property tax exchange agreement among those local agencies, as described in subdivision (d).
(d) With respect to adjustments in the allocation of property taxes pursuant to this section, a county and any local agency or agencies within the county may develop and adopt a master property tax transfer agreement.
The agreement may be revised from time to time by the parties subject to the agreement.