HomeMy WebLinkAboutCity Council - 2001-19 RESOLUTION NO. 2001-19
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF HUNTINGTON BEACH
EXTENDING THE TIME TO FILE
TAX REFUND CLAIMS AND LAWSUITS IN CONNECTION WITH
THE CASE ENTITIED
HOWARD JAR VIS TAXPAYERS ASSOCIATION V.
COUNTY OF ORANGE AND REAL PARTY IN INTEREST
CITY OF HUNTINGTON BEACH
ORANGE COUNTY SUPERIOR COURT CASE NO. 818780
WHEREAS, the City first contracted with the California Public Employees Retirement
System ("PERS") in 1945 in order to provide retirement benefits to City employees; and
As part of the City Charter elections of 1966, and later, 1978,Huntington Beach voters
authorized a property tax override to pay for employee retirement benefits; and
Since at least 1966, the City has levied a property tax override to pay for employee
retirement benefits; and
Since 1981-82, the City of Huntington Beach has levied a property tax override in the
amount of 0.0493 percent of assessed value to support its employee retirement system; and
The Orange County Superior Court declared pursuant to a judgment filed on April 2,
2001 in the case entitled Howard Jarvis Taxpayers Association v. County of Orange and Real
Party in Interest City of Huntington Beach, Orange County Superior Court Case No. 818780
("Case No. 818780")that the City's property tax override violates Proposition 13 "to the extent
that the tax exceeds the City's employer contribution for PERS retirement benefits that were in
effect prior to July 1, 1978"; and
The City Council has authorized an appeal of the judgment in Case No. 818780; and
It is likely that the appellate process will not be completed in less than three years, and
even longer, should any party seek Supreme Court review; and
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Many property owners already have filed refund claims based upon the Superior Court
judgment in Case No. 818780; and
Section 5097 of the Revenue and Taxation Code of the State of California provides that
refund claims may be submitted within four years of having paid the property tax. Further,
Section 5141 provides that if a refund claim is made, and denied by the City, the claimant has six
months to file a lawsuit based upon the claim. Failure to file such a lawsuit results in forfeiture
of the claim; and
The City Council wishes to establish an orderly procedure so that any claims filed can be
addressed after all appellate proceedings in Case No. 818780 have been completed;
NOW, THEREFORE, the City Council of the City of Huntington Beach hereby resolves
as follows:
SECTION 1. Notwithstanding Section 5097 of the Revenue and Taxation Code, a
property tax refund claim may be filed with the City Clerk to include any property tax payments
made after July 1, 1997 to the present provided the claim for a refund is filed no later than within
90 days following issuance of a remittitur by an appellate court affirming, modifying or
reversing the judgment of the trial court in Case No. 818780 ("the Remittitur").
SECTION 2. Notwithstanding Section 5141 of the California Revenue and Taxation
Code, any person having filed a claim for refund after January 1, 2 00 1, based upon the judgment
in Case No. 818780 may commence such action within 180 days after issuance of the Rmmittitur.
SECTION 3. Should the Re><nittitur either affirm or modify the April 2, 2001 judgment
in Case No. 818780, declaring that a portion of the property tax override violates Proposition 13,
it is the intent of the City Council of the City of Huntington Beach to refund within a reasonable
time all property taxes paid from July 1, 1997 to the present consistent with the Remittitur upon
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presentation of a refund claim in compliance with the California Revenue and Taxation Code.
Any person issued a refund based upon the final judgment shall be entitled to interest pursuant to
Section 5151 of the California Revenue and Taxation Code at the greater of three percent (3%)
per annuin or the County pool apportioned rate,when that interest is Ten Dollars ($10.00) or
more. The interest computation period will commence as of April 1, 2001.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 16th day of April , 2001.
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Mayor
ATTEST: APPROVED AS TO FORM:
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City Clerk 0
1-1
1"01 City Attorney
REVIEWED AND APPROVED: INITIATED AND APPRO
CityAdministrator Director o Administrative Services
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Res. No. 2001-19
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of
the City of Huntington Beach, and ex-officio Clerk of the City Council of said
City, do hereby certify that the whole number of members of the City Council
of the City of Huntington Beach is seven; that the foregoing resolution was
passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at a regular meeting thereof held on the 16th
day of April, 2001 by the following vote:
AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff,
Bauer
NOES: None
ABSENT: None
ABSTAIN; None
City Clerk and ex-officio C erk of the
City Council of the City of
Huntington Beach, California