The California Court of Appeal has upheld Santa Clara County’s Measure A sales tax, rejecting a legal challenge that sought to block the voter-approved increase. This decision, published on September 23, affirms the county’s ability to collect revenue from the sales tax, which was approved by voters in November 2025.
The appeals court concluded that the Santa Clara County Board of Supervisors acted reasonably when declaring a fiscal emergency, which was used to justify placing the sales tax measure on the ballot. Specifically, the court found the board’s decision to include Measure A on the November 4, 2025 special election ballot to be valid. This ruling upholds an August 2025 lower court order that had also denied the petition to block the referendum. Furthermore, the appeals court determined that the county is entitled to the payment of court costs from the challenging parties.
Measure A introduces an increase of five-eighths of a cent for every dollar spent on taxable goods and services within Santa Clara County. This adjustment to the sales tax rate is projected to generate approximately $330 million in annual revenue for the county. The measure received strong public support, passing with a 57% to 43% margin in the November 2025 election.
The county’s justification for the temporary sales tax increase stemmed from a declaration of a fiscal emergency by the Board of Supervisors. This emergency was declared in anticipation of a significant financial shortfall, estimated to exceed $1 billion in funding losses within five years. These projected losses were linked to President Trump’s “Big Beautiful Bill.” The appeals court reviewed this declaration and confirmed that the board’s determination of an emergency was reasonable under the circumstances.
Following the Court of Appeal’s decision, County Executive James R. Williams and County Counsel Tony LoPresti released a joint statement. They emphasized that the ruling confirms the Board of Supervisors' appropriate actions in both declaring a fiscal and public health emergency and in placing Measure A before voters on the November 2025 ballot. The county officials described the outcome as a "major victory" for Santa Clara County. They highlighted the benefit to residents who depend on the county for essential healthcare and other critical safety net services. They also acknowledged the voters who overwhelmingly supported Measure A. Williams and LoPresti added that, with this key legal question resolved, the county is progressing towards ending challenges that they characterize as meritless and which threaten services vital to the community.
