Court OKs June Vote on Builders’ Tax for Schools

A three-judge state appeals court has refused to halt a June 2 tax election that could force land developers in the fast-growing Santa Clarita Valley to pay millions of dollars for school construction.

The propositions would tax developers an average of $6,000 for each new house in the five school districts that serve the valley. Revenues would be divided between four local elementary school systems and the valley’s one high school district.

A lawyer for the builders vowed to take the fight to the state Supreme Court if a new hearing cannot be obtained in a lower court.

“We feel it’s important enough to be decided before the election,” said Max Halfon, a lawyer for the California Building Industry Assn. and the Building Industry Assn. of Southern California. “We’ve decided this is not just of local or county interest, but it’s an issue of statewide importance.”

Builders say the proposed Santa Clarita Valley construction tax is illegal because it violates a 4 1/2-month-old state law that limits such levies to a maximum of $1.50 per square foot.

The developers maintain that most new homes being built in the area have about 1,500 square feet, which should require no more than about $2,250 in school fees under the existing statute.

But Santa Clarita Valley school officials argue that this amount is too low to pay for the estimated 25 new schools that must be built within the next 20 years, at a cost of about $300 million, to accommodate new residents.

Los Angeles County planners project that 30,000 new homes will be built in the valley during that period, increasing local enrollment by 20,000 students.

Schools’ Position

Educators contend that the 1978 Proposition 13 tax-reform measure authorized communities to increase local tax rates with a two-thirds vote of their citizens.

The proposed June school-tax measures are identical to six ballot propositions that narrowly failed in last November’s Santa Clarita Valley election. They received 61% of the vote.

The housing-construction fees are being sought by the William S. Hart Union High School District, the Castaic Union School District, the Saugus Union School District, the Newhall School District and the Sulphur Springs Union School District.

“I think all of the measures will probably pass this time,” Terry Dixon, a lawyer who is representing four of the school districts, said Friday.

‘A Perceived Need’

“There is a perceived need now for the tax in terms of the dramatic residential development that’s going on out there.”

Dixon said that some crowded schools are using portable classrooms that do not meet earthquake-safety standards and that others have run out of space on their campuses for additional temporary buildings.

Halfon said he was unable to reach Building Industry Assn. officials after receiving the ruling on Friday from the Second District State Court of Appeal. He said they will discuss Monday whether to refile the suit in a lower court or appeal it to the Supreme Court.