Howard Jarvis taxpayers drops lawsuit against Ukiah sales tax

The influential Howard Jarvis Taxpayers Association on Tuesday dropped its legal challenge to a new Ukiah sales tax, freeing up an estimated $600,000 already collected for city roads and other infrastructure improvements that was being held in an escrow account pending resolution of the lawsuit.

The lawsuit, filed in January, was dismissed by Mendocino County Superior Court Judge Jeanine Nadel on April 28. The taxpayers group decided this week not to file an appeal.

City officials said they are looking forward to the imminent release of the money.

“The funds generated from the general tax measure are critical for the repair and improvement of Ukiah’s infrastructure,” City Manager Sage Sangiacomo said.

In filing the lawsuit, the Howard Jarvis group contended the half-cent sales tax, approved by a majority of voters in November, was an illegal attempt to circumvent election laws.

It claimed Measure Y was a special tax posing as a general tax in order to make it easier to gain approval. A special tax requires a two-thirds vote while a general tax requires a simple majority. The tax measure received just under 52 percent of the vote.

The city last November placed two companion measures on the ballot: a general tax aimed at raising an estimated ?$2.5 million annually for the city and an unenforceable advisory measure asking city officials to spend the money primarily on roads.

Howard Jarvis officials said they launched the lawsuit because they wanted to stop the growing use of such double ballot measures, which they view as skirting the law.

City officials said the measures were legal because the advisory measure is non-binding.

You can reach Staff Writer Glenda Anderson at 707-462-6473 or glenda.anderson@pressdemocrat.com. On Twitter @MendoReporter.