Cukierman
City of Berkeley v. Cukierman
Opinion
Opinion
Anderson, J.
Defendant and cross-complainant Moshe E. Cukierman (appellant) appeals from the trial court’s judgment awarding relief to plaintiff and cross-defendant City of Berkeley (City or respondent) in an action brought to collect unpaid taxes under the Berkeley Business License Tax Ordinance.
I. Factual and Procedural Background
A. Regulatory Scheme
In 1977 the City enacted a Business License Tax Ordinance (Ordinance) which requires that certain businesses (including hotels) pay annual business license taxes. The Ordinance, periodically amended since 1977 to reflect increases in the tax rates, is contained in the Berkeley Municipal Code, section 9.04.005 et seq. Under the Ordinance, the business license tax is computed based upon the gross receipts of the business, multiplied by a tax factor which varies depending on the type, nature and projected profitability of the targeted business activity. A failure to pay the business license tax in a timely fashion gives rise to imposition of penalties and interest in addition to the tax itself. (§§ 9.04.110, 9.04.120.)
In addition to taxing numerous other business activities, the Ordinance imposes an annual license tax on rental of…