San Diego officials say they hope to get a windfall of up to $40 million sometime this year from a lawsuit that challenges how the county divides up property tax collected by the city’s former redevelopment agency.

The Third District Court of Appeal in Sacramento is expected to rule this year in the 2014 case, which could set a precedent across California for how counties dole out money still being collected by former redevelopment agencies.

The state Legislature in 2012 dissolved redevelopment agencies, which local governments had created since the 1940s to help generate economic activity in blighted areas.

Once a local government created a redevelopment agency, it was allowed to keep any incremental growth in property tax revenue instead of sending that money to the state.