City of Los Angeles v. Meyers Brothers Parking System, Inc.

The City of Los Angeles (hereafter City) appeals from a judgment denying it recovery of certain allegedly delinquent business taxes from Meyers Brothers Parking System, Inc. (hereafter Meyers), assessed upon Meyers’ management and operation under a management agreement with Century City, Inc. (hereafter Century City), of certain public parking facilities belonging to Century City during the calendar years 1967 through 1971. The appeal lies. (Code Civ. Proc., § 904.1, subd. (a).)

The controversy between the City and Meyers is over the proper measure for these business taxes — that is, whether Meyers’ gross receipts upon which the taxes were levied should include only Meyers’ management fees from Century City or should include as well Meyers’ general operating and payroll expenses which, pursuant to the aforementioned agreement with Century City, were reimbursed to it by Century City.

Meyers paid the business taxes at issue under Los Angeles Municipal Code section 21.190. Subdivision (a) of this section imposes a business tax upon an independent contractor, which all concede Meyers was, in its management and operation of Century City’s public parking facilities. The trial…