Campbell faces a lawsuit regarding Measure K, a sales tax increase approved by 72% of voters to alleviate financial strain. This measure, which raises the sales tax from 9.375% to 9.875%, is based on Assembly Bill 3259, claimed to be unconstitutional by the Silicon Valley Taxpayers Association and resident David Wolen. Their legal argument focuses on the bill's violation of California's constitutional requirement for uniform tax policies. The city is preparing a legal defense, asserting the tax's legitimacy to address fiscal challenges and fund community infrastructure and safety needs.
It's one thing to say the city of Campbell has a fiscal crisis right now, but it's quite another to say we need money in perpetuity.
Measure K aims to help stabilize Campbell through anticipated deficits after facing a roughly $5 million shortfall for fiscal year 2024-25.
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