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Supervisors approve tax exchange for hospital districts

In a roll call vote, members of the Plumas County Board of Supervisors voted unanimously to approve a resolution on the tax revenue exchange between the county and Plumas Hospital District annexing the Indian Valley Health Care District.

This step dissolves the entire Indian Valley Health Care District in the county, according to the resolution adopted July 9.

“This has been out there for a while,” said County Administrator Gabriel Hydrick.

Looking back to Proposition 13 adopted in 1978, the resolution explained that it put the responsibility of distribution of property taxes on each county’s board of supervisors throughout the state.

This part of the process must be approved before it can go on to LAFCo (Local Agency Formation Commission) to proceed with issuing a certificate of filing for a proposed jurisdictional change. The exchange of property tax revenue is negotiated between the agencies involved with the process.

At this point, LAFCo has jurisdiction to process the reorganization although a tax exchange is needed from Plumas County since the district involved is within the county.

A proposal has been filed with LAFCo, according to the resolution, and all of the area within IVHCD is annexed to the Plumas Hospital District.

The name change on the Refunding Revenue Bond to the newly formed district will take place at the end of the annexation. “And the procedure of servicing the bond by sending the AB-8 tax fund to the trustee,” would remain the same. In this case, the trustee is US Bank in San Francisco. Assembly Bill 8 concerns the California property tax apportionment system.

“The base property tax revenue currently allocated to the Indian Valley Health Care District shall be allocated to the Plumas Hospital District within the TRAs (Tax Rate Areas),” it is explained in the resolution.

“The base property tax revenue currently allocated to the Plumas County General Fund and all local taxing agencies within the TRAs … shall not be changed as a result of this reorganization excepting the exchange between the Indian Valley Health Care District to the Plumas Hospital District.”

In the resolution, it’s spelled out that the incremental property tax allocated to the general fund and all local taxing entities isn’t changed because of the reorganization.

Once LAFCo proceedings are completed, Plumas County Auditor Roberta Allen will distribute the property tax revenue in accordance with the approved resolution.

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