§ 57419 Disincorporated City Tax Exemption

• •If a city shuts down, people living outside its old borders don't have to pay its old debts.
• •Only the area that was part of the city before it closed can be charged for its leftover bills.
• •New areas added later won’t get stuck with the old city’s money problems.

A small town called Sunnyville shuts down because it ran out of money. It still owes $100,000 for old road repairs.

People living in farms or neighborhoods that were never part of Sunnyville don’t have to pay that $100,000. Only the houses and streets that were inside Sunnyville’s old borders can be asked to help pay it back.