The Pines v. City of Santa Monica

Plaintiffs, eight condominium developers, challenge the validity of the Santa Monica Condominium Tax Law and seek refund of taxes paid in the amount of $138,000 plus interest. The ordinance imposes a one-time charge of $1,000 per salable unit.

The trial court ruled that the tax was invalid because subdivision development and construction are matters of statewide concern, preempted by the Subdivision Map Act (Map Act) (Gov. Code, § 66410 et seq.). We do not agree.

The ordinance (Santa Monica Mun. Code, art. VI, ch. 6B, § 6650 et seq.) is called a “condominium business license tax” and is “imposed solely for revenue purposes.” (Id., § 6651.) All monies raised go into the *659 general fund. The $1,000 charge applies to each new condominium or condominium-conversion unit but not to previously sold units. (Ibid.)

At the times relevant here the ordinance was enforced by requiring either payment or execution of a lien agreement before issuance of a condominium license. The license, in turn, was prerequisite to all necessary project approvals and permits, including subdivision approval. (Id., former § 6657.) It was unlawful to take any action to subdivide before the license…