Santa Clara County wins legal challenge over sales tax increase

The California Sixth District Court of Appeal has invalidated a lawsuit challenging Santa Clara County’s Measure A sales tax increase. The ruling affirms the county Board of Supervisors’ decision to apply an emergency clause to the measure, which allowed the half-cent sales tax increase to be placed on the ballot during a non-general election year.

The legal challenge, brought by conservative and libertarian groups, argued that federal budget cuts did not constitute a sufficient emergency to justify the tax classification. However, the court upheld the county’s declaration of an emergency, noting that without the revenue, federal budget cuts could devastate California’s second-largest public hospital system, including critical facilities like the Valley Medical Center burn unit.

Measure A was passed by 57% of voters last November. By designating it as a general tax rather than a special tax, the county avoided the 66.7% voter approval threshold required for restricted spending, though the funds are intended to support the local public healthcare system and essential safety-net services.