High Court Won’t Block Santa Clarita Tax Election

The state Supreme Court has refused to block a June 2 election that could force developers to pay millions of dollars in taxes for Santa Clarita Valley school construction.

But an attorney for the two groups that filed a civil lawsuit against the five school districts with tax measures on the ballot said Tuesday the battle over the election’s legality is far from over.

Max Halfon said his clients, the California Building Industry Assn. and the Building Industry Assn. of Southern California, will return to Los Angeles Superior Court to attempt to have the tax election declared invalid if the measures are successful.

“This is an issue of statewide importance,” Halfon said. “Next time, we’ll proceed with a full-blown hearing.”

Halfon said he was notified Monday of the court’s decision not to review a state Court of Appeal ruling to allow the election to proceed.

$6,000 Per Unit

At issue are proposals to tax developers approximately $6,000 for each housing unit they build. The Santa Clarita Valley’s four elementary school districts--Newhall, Saugus, Castaic and Sulphur Springs--have proposed one ballot measure each, while the William S. Hart Union High School District has two measures.

Developers claim the election is invalid because, under state law, school districts do not have independent authority to pass special taxes. They also claim that a statewide school-financing plan approved by voters last year set a maximum of $1.50 per square foot on charges school districts can impose on housing developers.

Terry Dixon, attorney for the school districts, said the state financing plan, which went into effect Jan. 1, does not preclude districts from levying more taxes to build schools. For example, he said, a special tax for school construction was passed March 3 by voters in the Etiwanda School District.

Dixon maintains that the 1978 Proposition 13 tax-reform measure authorized school districts and other taxing agencies to impose taxes for special purposes if approved by two-thirds of the voters.

He said the Supreme Court’s decision reinforces his claim that the courts rarely interfere with an election before it takes place.

Expects Developers to Fight

“The time to challenge its validity is afterward,” Dixon said. He expects the developers to attempt to have the election declared invalid, he said.

Halfon said the court challenge was an attempt to save taxpayers the expense of an election.

School officials say the $1.50-per-square-foot fee that current law allows would bring in about $2,000 for the average Santa Clarita Valley home, an inadequate amount to build enough schools for a student population that is expected to double by the year 2000. At least 25 new schools must be built at a cost of $300 million in the fast-growing area within the next 20 years, officials said.

All school districts already are at or over capacity because of rapid growth, Dixon said.

The June tax measures are identical to six ballot propositions that narrowly failed in the Santa Clarita Valley last November when they received 61% of the vote. A two-thirds vote in favor of the measures was required. Builders contributed $270,000 to Santa Clarita Valley Citizens Against Unfair Taxes, a group formed to defeat the measures.