Stanislaus County had been overcharging cities for fees collected for handling tax dollars. A court ruling could result $3.65 million in back taxes since 2006, and an ongoing reduction of $789,000 in annual County revenue.
The case hinges on an ongoing case in Southern California, where Los Angeles County was sued for charging administrative fees for collecting and distributing funds related to education. In previous rulings, revenue allocated from local governments to education is exempt from such collections.
In Stanislaus, preparations have been made in the county budget to reimburse cities for the revenues, but all parties are awaiting a final adjudication from the Supreme Court on the matter of Alhambra v. Los Angeles County. Once decided, Stanislaus could begin issuing refunds. The size of those refunds, however, will likely be a separate lawsuit.
According to the County’s CEO, county code sets a 90-day limit to appeal administrative fees. Cities, however, say that they are entitled to fees dating back to 2006. The state has previously enforced a four-year limit.
Read the full article at the Modesto Bee.