California IN BRIEF : SAN DIEGO : Sales Tax Hike Not Legal, Court Affirms

The 4th District Court of Appeals in San Bernardino affirmed a ruling that a half-cent sales tax hike in San Diego County was unconstitutional but left the possibility that some of the $380 million collected might still be used to build courts and jails. The court struck down a plan to refund the money through a sales tax cut and indicated instead that consumers should get refunds from the state Board of Equalization. That could require presenting sales slips for purchases from January, 1989, to February, 1992. Any money left unclaimed after three years could conceivably be used for the purposes for which it was collected. The tax was approved by 50.6% of voters in November, 1988, but, invalidated by the state Supreme Court because it violated the Proposition 13 requirement that tax increases be approved by a two-thirds majority. San Diego County retailers then dropped the sales tax from 8.25% to 7.75% and were ready to drop it further as a refund method.