San Francisco, CA; July 14, 2008:  Santa Clara County’s fee on property owners to pay for
unspecified purchases of open space violates the California Constitution, according to a ruling
today by the California Supreme Court.  The Court’s reasoning was consistent with arguments
filed by Pacific Legal Foundation, the nation’s leading legal watchdog for property rights and
limited government.

Over the past seven years, more than $55 million has been raised by the open-space fee, which
assesses more than 300,000 property owners in Santa Clara County at a flat rate of $20 annually.
The County levied an “assessment” on property owners, rather than a general tax, so that it would
not have to win 2/3 approval of the general electorate, as Proposition 13 requires on taxes for
“special” purposes.

“The County tried to camouflage a general-benefit program as one that would help homeowners
uniquely,” said PLF attorney Harold Johnson.  “This ploy was unconstitutional – it violated
Proposition 218, the Taxpayers’ Right to Vote Act, as the Supreme Court recognized.”

“The constitution was violated in two ways,” Johnson continued.  “First, the County did not
show, with any specificity, how the open-space purchases would benefit homeowners more than
anyone else.  Indeed, the County couldn’t make this showing, because it didn’t identify the
specific open-space areas that it intended to buy.”

“Second, the County failed to measure the degree to which different properties would be
benefitted by open-space purchases,” Johnson continued.  “Instead, the County imposed a
one-size fits all fee on hundreds of thousands of homes.”

“Today’s ruling is a victory for honesty and fairness in government financing,” said Johnson.
“Property owners should not be singled out to pay for special programs that have the effect of
benefitting everybody.  The cost of programs that have a general benefit should be shared by the
community as a whole.”

“The case is the first big vindication of Proposition 218 by the California Supreme Court,” said
PLF Director of Litigation Jim Burling.  “This will finally take away the blank checks that local
governments have been using for years to impose unlawful taxes disguised as assessments.”
The case is Silicon Valley Taxpayers Association v. Santa Clara County Open Space Authority.
The ruling may be found at:  http://www.courtinfo.ca.gov/cgi-bin/opinions.cgi?Courts=S.

About Pacific Legal Foundation

Pacific Legal Foundation (www.pacificlegal.org) is the oldest and most successful public interest
legal organization that litigates for property rights and limited government in courts across the
country.