Countywide : Groups Seek to Void Tax Fund Transfer

Ten Ventura County organizations have filed suit asking the state Supreme Court to declare that it was unconstitutional for the state to redistribute property taxes previously allocated to special districts.

The Calleguas Municipal Water District, eight other special districts and a taxpayers group contend that the Legislature acted illegally when it transferred special district money to education to help balance the state budget in September. An official in the state controller’s office said the suit, filed Dec. 10, is the first to challenge authorization of the tax transfer.

Specifically, the suit asks the court to prevent Ventura County Auditor-Controller Norman Hawkes from withholding property tax funds that traditionally were allocated to special districts.

Dwayne McWaters, Hawkes’ chief deputy, said the suit is not really directed at the county. “They’re really suing the state and questioning the law itself,” he said.

Special districts are agencies formed by acts of the Legislature to provide such services as water, sewer connections, lighting and fire protection.

Donald R. Kendall, general manager of Calleguas, estimated losses to the nine special districts at more than $5.3 million per year.

“The tax shift is really a hidden tax,” Kendall said. “It results in an increase in rates or charges to district customers or a reduction in services to make up for the loss of tax revenue.”

Jere Robings, executive director of the Ventura County Taxpayers Assn., which is also a plaintiff in the suit, agreed. “It’s simply a tax increase under a different guise,” he said.