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Calif. Town Telephone Tax Constitutional, Appeals Court Says

Law360, New York (December 5, 2017, 7:56 PM EST) -- A California state appeals court affirmed a Los Angeles County court decision Monday, confirming the constitutionality of the city of Norwalk’s 5.5 percent tax on various types of telephone services.

The appeals court disagreed with the taxpayers, a class of residents in the Los Angeles suburb, finding that the modification of Norwalk’s Municipal Code Section 3.36.060 in 2007 removing reference to a federal Internal Revenue Code section — after federal courts narrowed its application in 2006 — did not violate Propositions 62 or 218, which require...
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