August 19, 2009
San Diego Union-Tribune Interviews Tax Counsel Joseph Henchman on Legal Win Overturning Tax Disguised as “Fee”
"Landlords win round against city over rental tax fees"
By Helen Gao
San Diego could be forced to refund millions of dollars in fees the city charged to businesses for processing taxes, after a state appeals court found the practice unconstitutional.
Two landlords sued to overturn the fee, saying it amounted to an illegal tax increase.
In a ruling with statewide implications, the Fourth District Court of Appeal on Tuesday said the city's actions violated voter-approved tax-limiting measures. ...
"San Diego wanted more revenue. Rather than just going to voters, they chose to play this definitions game," said Joseph Henchman, tax counsel for the Tax Foundation in Washington, D.C., which filed a brief in support of getting rid of the fee. "To us, it's such an obvious issue of trying to mislabel something that is clearly a tax."
