California state officials sued Orange County on Thursday to recoup $73.5 million in property taxes, the latest development in a feud stemming from last year's state budget.
Since its 1994 bankruptcy filing, Orange County received an enhanced share of state car taxes to help regain its footing, the Department of Finance contends. Last year, state lawmakers redirected that share $48 million to pay counties for new responsibilities they assumed from the state.
Orange County lawmakers tried to have the state restore the car tax money. In its place, Orange County has withheld property taxes this year that normally pay for K-12 schools and community colleges money that the county believes is its own.