The city of Galt has learned from the Sacramento County Auditor-Controller Division that it will be receiving a refund of property tax administration fees this week. The amount is estimated to be $135,272, according to City Manager Jason Behrmann.
This is a result of a recent state Supreme Court ruling that found that some counties had incorrectly charged administrative fees on specific taxes.
In 2010, the city of Galt submitted a claim to Sacramento County for refund, and the Galt City Council authorized an agreement with the county for retroactive amounts charged to the city for administrative costs beginning in fiscal year 2006-07 and continuing since, according to Behrmann.
Last year, prior to the court ruling, the county proposed a settlement agreement of 50 percent of the amount due, but the city did not accept the offer.
The revenue will be deposited into the city's general fund. As a result, in the future, the property tax administration fees amount charged by the county will be reduced by about $30,000 each year, Behrmann said.