Redevelopment Agency v. County of Los Angeles

This appeal arises out of a tug-of-war between defendant and appellant Los Angeles County (the County) and plaintiff and respondent Redevelopment Agency of the City of Long Beach (the Redevelopment Agency) over incremental tax revenues generated by county property taxes on properties within the area subject to the redevelopment project. The trial court below ordered the County to lower its base tax rolls for the measuring year, effectively transferring to the Redevelopment Agency the incremental property taxes, above the readjusted base, within the redevelopment area for all succeeding years.

The County appeals, contending the trial court improperly ordered the base year tax rolls reduced. Based on our construction of the relevant provisions of the California Constitution, the Revenue and Taxation Code, and the Health and Safety Code, we conclude that the trial court improperly ordered the alteration to the base year tax rolls. Accordingly, we reverse.

Facts and Procedural History

Background of Redevelopment Projects and Tax Increment Financing

A constitutional provision for financing redevelopment projects to relieve urban blight was originally adopted in California…