Cerritos will receive its sales tax revenue

CERRITOS - The State Board of Equalization has withdrawn its order for the city of Cerritos' sales tax revenue to be withheld and sales tax revenue payments to Cerritos and all other agencies will be processed as normal, city officials announced this week.The Department of Finance's order reversal is in response to a Monday ruling by the Superior Court of California, which ruled that the taking of sales tax from agencies violated the state constitution. State finance officials alleged Cerritos owed $10.8 million in unused redevelopment money and had threatened to withhold sales tax revenue to pay off the debt. The court's ruling was for a lawsuit brought against the state by the League of California Cities, the city of Vallejo and the Successor Agency to the former Vallejo Redevelopment Agency. "The city of Cerritos has long argued that the taking of sales tax revenue is a violation of the California Constitution," said Cerritos Mayor Bruce Barrows. "We are pleased that our position has been vindicated by the Superior Court of California."

********** Published: Dec. 12, 2013 - Volume 12 - Issue 35

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