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HOME BUSINESS TAX SUIT SURVIVES.


Byline: Patrick McGreevy Daily News Staff Writer

A judge Friday denied a bid to dismiss a lawsuit challenging the city's home business ordinance A law, statute, or regulation enacted by a Municipal Corporation.

An ordinance is a law passed by a municipal government. A municipality, such as a city, town, village, or borough, is a political subdivision of a state within which a municipal corporation has been
, setting the stage for a trial on whether it violates Proposition 218 by creating new taxes without voter approval.

Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  Superior Court Judge Edward Ross ruled against the city's motion to dismiss the lawsuit by the Howard Jarvis Taxpayers Association Howard Jarvis Taxpayers Association helped sponsor Proposition 13, the property tax-cutting initiative in California in 1978 which slashed property taxes by fifty-seven percent and initiated a national tax revolt. It was founded by California republican Howard Jarvis. .

Richard Fine, an attorney for the taxpayer group, said he hopes a trial can be held in a year on the group's claim that the ordinance's requirements that home-based businesses pay a $25 annual registration fee and pay city business taxes violate Proposition 218.

Fine said he may file for a preliminary injunction A temporary order made by a court at the request of one party that prevents the other party from pursuing a particular course of conduct until the conclusion of a trial on the merits.

A preliminary injunction is regarded as extraordinary relief.
 to block the ordinance pending the trial, but that the city still could repeal The Annulment or abrogation of a previously existing statute by the enactment of a later law that revokes the former law.

The revocation of the law can either be done through an express repeal
 the tax or put it on the ballot.

``If they take this out to the voters, they could cure this lawsuit immediately,'' he said. ``My feeling is that I don't think the city wants to expose this type of thing to the wrath wrath  
n.
1. Forceful, often vindictive anger. See Synonyms at anger.

2.
a. Punishment or vengeance as a manifestation of anger.

b. Divine retribution for sin.

adj.
 of the voters.''

Councilwoman Laura Chick said she would rather repeal the $25 fee than subject it to a complicated ballot measure.

Deputy City Attorney Judith Reel did not return calls for comment.

Fine said the judge rejected the city's claim that the ordinance is only a zoning statute and doesn't extend the business tax.

``The city argued that the tax that the people pay is not really a tax,'' he said. ``They said it's voluntary because the people elect to work at home.

``Using that type of an analogy, it means that the federal income taxes that we pay are also voluntary because all of us elect to work instead of not working.''
COPYRIGHT 1998 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Daily News (Los Angeles, CA)
Date:Jan 24, 1998
Words:288
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