In The News

Successful Challenge of Los Angeles Business Tax Conferred Significant Public Benefit, Court Rules

By Dakessian Law | April 12, 2019

CalTaxletter (April 12, 2019):  A taxpayer’s successful challenge of Los Angeles’ application of a business gross receipts tax “resulted in the enforcement of an important right affecting the public interest – namely compelling the City to adhere to the Municipal Code and to abandon its practice of misclassifying businesses,” a Los Angeles County Superior Court judge ruled this month, approving the taxpayer’s request for attorney fees under the private attorney general statute.

The underlying dispute in Green Farms Inc. v. City of Los Angeles was decided in favor of the taxpayer, represented by Dakessian Law Ltd., after a trial in September.

The trial court found that the city had a longstanding and systematic policy of misclassifying wholesale businesses as retailers…

 

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