California Court of Appeal Finds Proposition 62 Does Not Apply to Revised Sales Tax Exemption

The California Court of Appeal reversed the trial court ruling that Proposition 62, concerning the electorate’s right to vote on local taxes, does not apply and that the revision of the jet-fuel sales tax exemption by the legislature was automatically incorporated in the county ordinances. The taxpayer sought a sales tax refund, which was denied. The trial court agreed with the taxpayer’s argument that the revision did not apply because it was not submitted to the voters nor adopted by implementing local ordinances. The Court of Appeal disagreed, finding that the revised exemption was not itself a tax, and accordingly ...