Howard Jarvis Taxpayers Ass'n v. City of Los Angeles

Appellant Howard Jarvis Taxpayers Association (hereinafter, the Association) brought a taxpayer suit challenging the Home Occupations Ordinance (L.A. Ord. No. 171427) (hereinafter, the Ordinance). The Association alleged that the Ordinance, enacted by respondent City of Los Angeles (hereinafter, the City), extended the City’s business tax to persons engaged in home occupations in the City who previously were not required to pay the tax, and created an annual $25 registration fee (later rescinded) for persons engaged in home occupations. The Association urges that both the former registration fee and the City’s policy of imposing its business tax ordinance on those engaged in business in their homes violate Proposition 218.

The trial court granted summary judgment in favor of the City. The court found that the lawsuit was barred by the statute of limitations (former Gov. Code, § 65009, subd. (c)(2), now renumbered by Stats. 1999, ch. 968, as § 65009, subd. (c)(1)(B)), and by the failure to raise first the issue at public hearings held prior to enactment of the Ordinance (Gov. Code, § 65009, subd. (b)(1)). The court further held that persons seeking a refund of taxes must…