HomeMy WebLinkAboutAgenda Statement 1985/03/12 Item 9 COUNCIL AGENDA STATEMENT
Item 9
Meeting Date 3/12/85
ITEM TITLE: Resolution: //,S Approving a negotiated property tax
exchange relating to the Palomar/Broadway annexation
SUBMITTED BY: Assistant City Manage (4/5ths Vote: Yes No )
REVIEWED BY: City Manager
Revenue and Taxation Code Section 99 requires local agencies to negotiate an
exchange of property tax revenue before any jurisdictional change can be
considered by LAFCO. The Palomar/Broadway annexation has been filed with
LAFCO for annexation of developed commercial properties in the Montgomery
area. The County Board of Supervisors will be considering the negotiated
property tax exchange at its Tuesday, March 12, 1985 Board meeting, with
County staff recommending approval of the negotiated exchange.
RECOMMENDATION: Adopt resolution approving tax exchange agreement.
BOARDS/COMMISSIONS RECOMMENDATION: N.A.
DISCUSSION:
Early this year, San Diego County cities and the County entered into a new
property tax agreement which provided for distribution of taxes between the
City and the County in most cases on a 41/59% distribution of all base taxes
and future incremental growth, except it excluded annexations where the
proposed annexation included territory that generated $10 million or more in
retail sales on an annual basis. It has been estimated retail sales generated
by this property are approximately $27.5 million annually.
The County of San Diego has agreed to a negotiated property tax settlement
allowing the County to retain all of its own property tax revenue and receive
all of the property tax revenue from the detaching special districts. The
City will receive all the sales tax taxes generated from these retail outlets
estimated to be approximately $275,000 on the estimated current retail sales.
FINANCIAL IMPACT: Based on estimated current retail sales generated on the
property, the City will receive approximately $275,000 annually in sales taxes
and a minimal amount ($250-500) in business license revenue.
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