San Bernardino Sues California Agencies to Get Tax Money

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San Bernardino, the insolvent California city, sued the state’s tax and finance departments seeking to block them from withholding sales and property tax revenue owed to the city.

The city was told March 4 that unless $15 million is turned over to the state by a redevelopment successor agency, sales and use taxes owed to San Bernardino may be withheld and property taxes due to the redevelopment agency and the city may be held back, according to the city’s complaint filed yesterday in U.S. Bankruptcy Court in Riverside, California.