United Artists Communications, Inc. v. City of Montclair

United Artists Communications, Inc., Vista Theaters, Inc., and General Cinema Theatre Corporation of California (plaintiffs) have appealed from a judgment in favor of the City of Montclair (City) and Ned Crutcher, City’s director of finance (collectively defendants), which was entered following a trial to the court of plaintiff’s action for declaratory and injunctive relief related to the constitutionality of the City’s admissions tax.

Facts

In October 1986, the City of Montclair passed Ordinance No. 86-630, which added article 5 to chapter 5 of title 3 of the Montclair Municipal Code.

Article 5, known as the “Admissions Tax Law of the City of Montclair,” imposes a 6 percent tax on the price of “an admission ticket for the privilege of admission to any event held.” (§ 3-5.504.)

Events are defined as “motion pictures, theatrical performances, musical performances, operas, athletic contests, exhibitions of art or handicrafts or products, lectures, speeches, fairs, circuses, carnivals, menageries, or any other activity conducted for which an admission ticket is sold for the privilege of viewing such activity.” (§ 3-5.503(2).)

Events conducted for the benefit of…