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Nossaman LLP

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C.A. Upholds Ruling on Lack of Standing to Challenge Tax

06/27/2014 Metropolitan News-Enterprise

Nossaman Partners Bill Pellman and Steve Wiman were mentioned in the Metropolitan News-Enterprise article, "C.A. Upholds Ruling on Lack of Standing to Challenge Tax," regarding their representation of Los Angeles County in a suit challenging the collection of hotel bed taxes.

According to the article, the plaintiff claimed in a class action complaint that a two percent increase in the tax violated the voter approval requirements of Proposition 62 and that he was entitled to a refund because the Board of Supervisors did not submit the increase to voters in 1991.  The Court rejected the challenge stating that the plaintiff's corporation, of which he was the sole officer and shareholder, paid the tax and he lacked standing to sue.  The ruling saved the county from having to refund $40-50 million in tax collections.

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