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Sales Tax

California taxpayer group fighting sales tax hike in court

After losing in appellate court to block Santa Clara County's Measure A sales tax increase approved last year, the Silicon Valley Taxpayers Association is appealing the issue to the state Supreme Court.

After losing in appellate court to block Santa Clara County’s Measure A sales tax increase approved last year, the Silicon Valley Taxpayers Association is appealing the issue to the state Supreme Court.

In a June 25 filing, attorney Timothy Guster, representing the association, asks the court to review its case. The group argues that the county violated a 1996 voter-approved law that it contends requires proposed county tax increases to appear only on a ballot that has at least one contested Board of Supervisors seat up for election. There were no members of the board up for a vote in November.

In a unanimous ruling May 16, the 6th District Court of Appeal rejected the group’s arguments. The appeals court concluded that the state law, Proposition 218, would permit a county to place a tax measure on the ballot without a board election.

The decision left intact a one-eighth-cent sales tax increase over the next 10 years. It was supposed to have taken effect April 1 but has been on hold because of the ongoing litigation.

County Counsel Orry Korb said his office has 20 days from the date of the taxpayers group’s filing to present its opposition. He said the Supreme Court has 90 days from the June 25 filing date to decide whether it will hear the case.

In November, voters approved Measure A by a 56-44 percent ratio, raising the county’s sales tax rate to 8.75 percent, one of the highest in the state.

The tax revenue

is expected to raise about $50 million a year for programs such as the Santa Clara Valley Medical Center and public health and welfare.

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Copyright 2013 – San Jose Mercury News