A state appeals court has upheld a lower court ruling that this city northeast of Sacramento illegally charged its utility customers a 5% tax.
City officials say cutting the tax -- the city's third-largest source of revenue -- could open up a $8.8-million gap in its general fund budget of $86 million.
The Howard Jarvis Taxpayers Assn. sued the city on behalf of the community group Friends of Roseville, alleging the tax was illegal because it wasn't approved by voters. The city lost the case in Placer Superior Court, and its appeal was rejected Tuesday.