CA town overpaid officials with $3 million in illegal property taxes

Robert Jablon

The tiny blue-collar city that granted huge salaries to its top officials may have to repay nearly $3 million in illegal property taxes, a state official said Friday. 

An audit showed that the Los Angeles suburb exceeded a state cap when it raised its property tax rate in 2007 to pay for pension obligations, California Controller John Chiang said.

Chiang sent a letter Friday to the Los Angeles County auditor-controller, instructing the agency to reduce the tax rate. The drop would mean a $250-a-year reduction on the tax bill for a $275,000 home, Chiang’s office said.

The county apportions the property taxes collected by local governments.