Sharma

This dispute is over who is entitled to real property “tax increment” revenue after the statutory dissolution of the San Jose Redevelopment Agency. The trial court held that tax increment revenue from a real property tax imposed to raise funds for the pension obligations of Santa Clara County is properly distributed to the Redevelopment Property Tax Trust Fund to pay the debts of the former redevelopment agency. Santa Clara County, with its Director of Finance Vinod K. Sharma, contends on appeal that this holding was erroneous. The trial court also held that statutes dissolving the former redevelopment agency require that certain tax increment revenue be passed through from the Redevelopment Property Tax Trust Fund to Santa Clara County instead of being used to meet the enforceable obligations of the former redevelopment agency. The City of San Jose, as the successor of the redevelopment agency, contends on appeal that this holding was erroneous. Thus, both parties appeal.

We conclude that the trial court did not err.

BACKGROUND

Some history of real property taxation, public finances, and redevelopment in California and Santa Clara County will provide the framework for…