Santa Barbara County Taxpayers Ass'n v. Board of Supervisors

The Santa Barbara County Taxpayers Association (TPA) poses two questions regarding county actions under article XIII B of the California Constitution: 1. May the Santa Barbara County Board of Supervisors (Board) recalculate its article XIII B base year (1978-1979) appropriations limitation using an accepted accounting method that is different from the one it originally used? Yes, it may. 2. Do franchise fees fall within the definition of “ ‘proceeds of taxes’ ” under article XIII B, section 8, subdivision (c), to be counted towards the appropriations limit? No, they do not.

Facts

TP A filed this suit to challenge the Board’s recalculation of the county’s 1978-1979 base year appropriations limit under article XIII B of the California Constitution,which is also known as Proposition 4 or as the Gann Initiative. TPA also challenges the Board’s determination that franchise fees, received for the use of rights of way, do not constitute “ ‘proceeds of taxes’ ” under article XIII B, section 8, subdivision (c).

Article XIII B limits the amount of tax revenues a government entity may spend each year. Annual appropriations which are subject to limitation may not exceed an…