Appeal Court Again Axes Part of School Parcel Tax

Reaffirming a decision issued in December, the California Court of Apeal ruled Wednesday the Measure H parcel tax for Alameda schools passed by voters in 2008 is partially invalid.

The court sent the case back to Alameda County Superior Court, which had originally upheld the tax in a lawsuit filed in 2008 by George Borikas. Borikas asserted that the tax violated state law requiring school district taxes to "apply uniformly" to all taxpayers and property. Measure H applied different rates to residential and commercial properties.

The school district has said that the Court of Appeal position could result in a substantial financial loss of $7.4 million.

Following the similar ruling by the Court of Appeal on Dec. 6, school district Superintendent Kirsten Vital said, "If the trial court orders refunds of tax revenues already collected and spent, this decision has the potential to be a significant blow to our budget with many negative consequences for our students, teachers and staff. The decision also has significant public policy and budget implications for school districts across the state."

The Alamedan reported today, Thursday, that Vital said the district is reviewing the decision and will discuss the next steps with the school board at its next meeting.

The attorney for Borikas and other plaintiffs who joined the suit, David Brilliant, said in a statement today said his clients in this case are "very pleased" with the decision, as are his clients in subsequent parcel tax cases he filed Alameda, Contra Costa, Los Angeles and Yolo counties.

"At this point," Brilliant said, "the case will either return to Alameda County Superior Court for hearings on the refund amount and interest due to the taxpayers or move to the California Supreme Court. As we know, the Board of Trustees voted 4-1 in December to move this case to the Supreme Court. We will know their next move within 40 days. Taxpayers should be pleased with this result but again I caution that we are still far away from the potential large refunds due to taxpayers.” 

Measure H expired after three years and was replaced by Measure A, which has withstood legal challenge and is not threatened, according to the district.

The ruling, if sustained, would not pose as large a financial threat to West Contra Costa Unified School District schools, said West Contra Costa board member Charles Ramsey.

Ramsey said it would apply only to Measure G, passed by voters in November and not set to take effect until next year. And the only part of the measure that could be affected, he said, is the different treatment of vacant property, meaning a potential loss of about $200,000 out of estimated annual revenues of about $10 million.

The Wednesday Court of Appeal ruling, written by Justice James Marchiano, said, "Measure H has laudatory goals to provide critically needed additional school financing for the Alameda Unified School District; but we cannot rewrite an enabling statute, nor enlarge or contract it, where the words do not allow any other plain meaning."