Dear CSMFO members:
If your city currently shares sales tax with the County (i.e., as part
of an annexation property tax exchange agreement), I would appreciate
your feedback regarding the circumstances surrounding the exchange. I
offer these questions as guidance:
What is the percent shared?
Do you share existing sales tax, new sales tax, or both?
What did your city get "in return" (e.g., increased property tax share)
Was the exchange the result of a consultant's study or otherwise?
Do you regret the exchange, or feel that it has been beneficial?
etc!
We are currently negotiating a master tax exchange agreement with our
county. We jointly funded a study that indicates that the city incurs a
larger deficit than the county as a result of annexation (through simple
property tax exchange), but the county insists that they want sales tax
("revenue sharing"). Needless to say, this would harm our fiscal
situation even more.
Any other related comments and opinions are more than welcome.
Steve Kroeger
Director of Administrative Services
City of Yuba City
ph# 530.822.4620
fax# 530.822.4694
