Negative Bailout Comes to an End
Septmember 23, 2016 - - Assemblymember Adam C. Gray (D-Merced) today applauded Governor Brown for signing SB 107 which puts an end to a flawed property tax formula, which has cost Stanislaus County residents more than $70 million, known as negative bailout.
“While our local representatives have pushed this issue for decades, no prior administration has put in the time and effort to fix this problem,” said Gray. “This year we brought all parties together early, and today it has paid off.”
Stanislaus County was one of a handful of counties that were penalized by a new property tax formula implemented after the passage of Prop 13. Stanislaus has been forced to give up between $3 million to $6 million in property taxes every year since.
“It never should have taken over 30 years to find a solution,” continued Gray. “But today we can finally put negative bailout behind us. This time Stanislaus County has come out on top.”