Roscoe Terrace v. City of Los Angeles

*562 Opinion

The City of Los Angeles (City) appeals from a judgment granting refunds of City business taxes to thirteen general partnerships and two corporations (respondents). We reverse the judgment.

Facts

The parties entered into a stipulation of facts for trial, which established that Lawrence M. Silk and Alex GershunofF were the only partners of each of the 13 respondent partnerships, as well as the only stockholders in each respondent corporation. Each respondent partnership acquired and resold a single parcel of improved real property located within the City; each corporate respondent acquired and resold two such parcels. In each instance, the purchase price received by the respondent consisted in part of installment payments of principal and interest, amortized over a given term, and the respondent retained title to, or a security interest in, the subject property.

The identities of the respondents, the properties, and the financial arrangements made in connection with each sale, are set forth in the footnote which, by this reference, is incorporated into this opinion.

*563 Commencing in early 1973, the City conducted a series of audits which resulted in its…