AB CELLULAR LA, LLC v. City of Los Angeles

The power to tax is the power to oppress, and people have rebelled against that power ever since taxes have been imposed. The California voters are no different, and in November 1996, they passed Proposition 218, known as the “Right to Vote on Taxes Act.” They demanded, and received, the right to approve any increase of a local tax before it goes into effect.

At issue in this case is the right of voters in the City of Los Angeles (City) to approve or reject an increase in taxes imposed on the charges for the use of cell phones. In 1993, when the City amended Los Angeles Municipal Code (Municipal Code), chapter II, article 1.1, section 21.1.3 to add subdivision (a) and create a telephone users tax on cellular services (cell tax), the language of the ordinance reached all air time. But that ordinance was limited by the requirement in Municipal Code section 21.1.2 that the cell tax be construed so that it would not violate the United States Constitution. The City and plaintiffs AB Cellular LA, LLC, doing business as AT&T Wireless, Los Angeles SMSA Limited Partnership, doing business as Verizon Wireless, Richard Henson and Robbin Devine-Henry (collectively the carriers)…