§ 57481 City Consolidation Tax Limits

Government Code·California

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Key Takeaways

•If two cities merge, the property in one city usually can't be taxed to pay off the other city's old debts.
•This rule applies unless the cities agree to something different when they merge.
•Old debts from before the merge stay with the city that owed them.

Example

City A and City B decide to become one big city.

If City A owed money for a big project before merging, the people in City B don’t have to pay extra taxes to help cover City A’s old debt. Unless the cities made a special deal when they merged.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 57481 City Consolidation Tax Limits

Unless otherwise provided in the terms and conditions of the consolidation, the property in cities consolidated pursuant to this chapter shall not be taxed to pay any indebtedness or liability of any other city contracted or incurred prior to, or existing at, the time of consolidation. (Added by Stats. 1985, Ch. 541, Sec. 3. Effective September 9, 1985. Operative January 1, 1986, by Sec. 5 of Ch. 541.)

Last verified: January 22, 2026

Key Terms

liability agreement merger property contract consolidation effective september operative january

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 57481.

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Key Takeaways

Example

Key Terms

Related Statutes

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