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Adopt a resolution rescinding Resolution 2000-72 and authorize the termination of the Master Property Tax Agreement with the seven cities
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
It is recommended that the Board of Supervisors:
1. Adopt a resolution rescinding Resolution 2000-72 and authorizing the termination of the Master Property Tax Agreement with the seven cities; and
2. Direct the County Administrator to begin negotiations with the seven cities on a new master agreement for tax revenue sharing in response to future city annexations.
SUMMARY:
On April 4, 2000, your Board adopted Resolution 2000-72 authorizing the execution of a Master Property Tax Transfer Agreement ("Agreement') for allocations of property tax between the County of Solano and the seven cities in the county upon jurisdictional change pursuant to Revenue & Taxation Code section 99(d). The Agreement has not been modified nor reviewed in the 24 years since its adoption. Revenue & Taxation Code does allows for a master property tax transfer agreement, but it is not a requirement. Staff is recommending that the current Agreement be terminated, and future annexations be addressed on a case by case basis until a new master tax agreement can be negotiated among the parties.
FINANCIAL IMPACT:
The cost associated with preparing this item is included in the FY2024/25 Working Budget. Any future annexations would be subject to the terms of a subsequently negotiated property tax transfer agreement.
DISCUSSION:
Revenue and Taxation (R&T) Code section 99 requires that before a jurisdictional change such as a city annexation of territory can occur, the affected local public agencies must come to an agreement regarding the amount of property tax to be exchanged. This section establishes a process when an application for annexation is filed with LAFCO, LAFCO requests the County Assessor provide t...
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