SAN JOSE (KCBS) – San Jose city officials have accused Santa Clara County of defying a state order to pay millions of dollars in property tax revenue that state officials ruled has been improperly withheld.

The dispute stems from property tax money that used to be collected by local redevelopment agencies. State Controller John Chiang on Friday ordered the county to stop prioritizing the repayment of bonds and instead distribute what would have been redevelopment money to the local authorities that have since succeeded them.

KCBS’ Mike Colgan Reports:

San Jose City Councilman Sam Liccardo said the city was entitled to $86.5 million under Chiang’s decision, but has received a check for just $70 million from the county.

“We’re still grappling with spreadsheets to understand why $16 million of the disbursement was withheld,” he said.

Liccardo said the lawsuit being argued before a judge in Sacramento on Thursday seeks a temporary restraining order to force Santa Clara County to pay the remaining money immediately.

A spokesman for the county declined to comment because the litigation was pending.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)


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