Judge Rules City Owes ‘View Tax’ Legal Fees

The city of Port Hueneme must pay more than $265,000 in legal fees and costs associated with a successful lawsuit residents filed against the infamous municipal “view tax” that received national attention in 1991, a judge has ruled.

The decision by Ventura County Superior Court Judge Ken W. Riley mandates a far smaller amount than the $559,000 the plaintiffs’ attorneys had sought, but more than the $69,000 the city had offered to pay.

The money will not be paid pending the outcome of the city’s appeal of the “view tax” case itself.

However, the legal fees plus the $600,000 Riley ordered the city to reimburse 1,252 property owners after he ruled the tax illegal last year--including 10% interest that accrues until the case is resolved--means the financially strapped city is on the hook for more than $1 million, said appellate attorney Glen Reiser.

“It backfired in a very bad way for them,” he said. “They were trying to fund local government with this illegal view tax and not only did they not accomplish that, they wound up with a court order telling them to pay back more than $1 million to taxpayers and lawyers.”

Municipal officials have previously said such judgments could have serious financial implications for a city struggling to pay for such basic services as police.

“It’s not good news,” said Mayor Tony Volante, declining substantive comment.

The City Council is expected to meet later this week to decide its next move, although officials have previously said an appeal was likely if the judge awarded more money than the city offered.

But an appeal of the award would be based more on political grounds than any legal basis since appeals courts are loath to tamper with such rulings, Reiser said.

The case arose from a “view tax” the city levied on oceanfront residents using the rationale that they benefited more from the municipal beach than taxpayers elsewhere in the community and therefore should pay more for its maintenance. Port Hueneme has since instituted a citywide park district.