Tax
Mar. 19, 2024
Los Angeles beats class challenge to utility tax hike
The plaintiff, represented by Haffner Law, disagreed with the ruling and plans to appeal. The city argued that the increase did not violate state statutes barring tax raises without voter approval.
The City of Los Angeles prevailed against a putative class action that claimed an increase on utility taxes violated state law. The city successfully argued that an electrical rate increase approved in 2016 did not violate state statutes barring tax raises without voter approval pursuant to California Propositions 218 and 62.
“As the city notes, the tax base of the utility tax is not alleged to have changed,” Judge Yvette M. Palazuelos wr...