Legislature OKs Bill Giving Tax Money to Diamond Bar

The Legislature has given final passage to legislation earmarking about $1.2 million in property tax revenues to the city of Diamond Bar.

Assemblyman Frank Hill (R-Whittier) said the measure was necessary because under current law Diamond Bar, which incorporated last April, is not eligible to receive the property taxes until July 1.

Hill’s bill was approved by the Assembly without debate Thursday on a 69-0 vote and sent to Gov. George Deukmejian.

Earlier in the day, the Senate approved the measure by a 32-0 margin, then rushed it to the Assembly for consideration before the spring recess, which began Friday.

Supporters also sought quick passage because Hill is running for the Senate in a special election Tuesday. If he is elected, final action on the bill could have been delayed until another lawmaker was found to steer it through the Assembly.

Under existing law, Diamond Bar was required to be incorporated by Jan. 1, 1989, to receive property tax revenues during the current fiscal year, which ends June 30.

Hill’s bill would make the city immediately eligible for the money.

Without the change, the city would have been incorporated for 13 months without receiving its annual share of property taxes to offset costs of providing services, according to the Senate analysis of the proposal.

Los Angeles County officials objected to the bill, arguing that the city has other sources of revenue, such as sales taxes and motor vehicle license fees.

The Senate analysis quoted county officials as saying: “In the era of limited fiscal resources, the county’s local tax base is insufficient to finance local programs and state-mandated services. This bill would further aggravate the problem and increase the county’s fiscal dependency on the state.”

Diamond Bar officials said the city needs the money to pay for services. City officials estimated that at least 25% of the property tax revenues would go to law enforcement.

Mayor Phyllis Papen, who was in Sacramento to lobby for the legislation, described the passage of the bill as signaling the end of the transition of Diamond Bar from a county-controlled area to a city.