RTD Expected to Slash Fees on Metro Rail Tax Appeals

Bowing to growing pressure from businesses, the Southern California Rapid Transit District board is expected today to sharply reduce the large and much-criticized fees it charges to those who appeal new Metro Rail tax increases on downtown properties.

Property owners stung by recent tax bill increases of 500% or more to help pay for construction of the subway have bitterly criticized the non-refundable appeal fees, which can add up to several thousand dollars.

Property owners, who have been organizing and calling on elected officials for relief from the tax and the fees, noted that there is no charge for appealing the rest of their property tax bills. They have charged that the fees--ranging from $200 to $5,000--are unfair and intended to discourage appeals.

Even if the RTD has miscalculated the assessment, property owners say, they are charged the fee if they pursue corrective action.

After a review ordered by the RTD board last week, the transit agency’s staff has recommended that the filing fee be cut to a flat $50 per parcel and that there be no charge for preliminary staff review of an assessment.

“We are not insensitive to what people are saying about the cost of appeals,” said Leo Bevon, an RTD planner who is overseeing the so-called “benefit assessment” program. “What they are saying is logical.”

Bevon, who only a few days ago was strongly defending the fees, said, “We are not perfect. . . . We will, of course, adjust the process to have it make sense as we go along.”

Sam Rubinfeld, a property owner who has been organizing opposition to the tax increases, said, “It’s a start. . . . At least it brings (the appeal fee) down within reason so we can at least start the process for the people.”

Rubinfeld, noting that there is no recommendation to eliminate a separate fee of $1,000 or more to appeal the staff decisions to the RTD board, said, however, that the entire appeal process should be free. “It’s bad enough that you have to hire an attorney,” he said.

Petitions Prepared

Meanwhile, Rubinfeld said the newly formed Downtown Property Owners Assn., which is fighting the Metro Rail assessment, has collected signatures from owners of about a third of the affected properties to demand an election on the tax. The legal deadline for filing such petitions passed last year, but the group plans to present the petitions to the RTD board at its Dec. 4 meeting.

Also, the Los Angeles County Board of Supervisors asked the RTD board Tuesday to hold new hearings on the controversial assessments, which are designed to raise $130 million, or about 11% of the $1.25 billion cost of constructing the first 4.4-mile subway segment from Union Station to MacArthur Park. The justification for the added tax is that the properties will increase in value because of their proximity to Metro Rail stations.

Supervisor Deane Dana opposed any new hearings, saying property owners had adequate notice of the taxes and would reap benefits.

Supervisor Mike Antonovich, who authored the motion, said, however, that some property owners apparently knew nothing of the tax increases and are facing “financial disaster.”

Bevon said there would be no purpose of new hearings, which would imply that the tax might be rescinded, unless some other source of funds for Metro Rail is identified.

Times staff writer Ted Vollmer contributed to this article.