Council to Appeal ‘View Tax’ Ruling

There’s no end in sight for the drawn-out legal battle over Port Hueneme’s nationally notorious “view tax.”

The City Council voted 3 to 2 Wednesday to seek a review by the California Supreme Court of an appeal court decision that ordered the city to pay more than $1 million to 1,252 oceanfront homeowners and their attorneys.

The order stemmed from what a succession of courts have described as an illegal tax because it was partly based on the view the property owners enjoyed, even though all city residents received benefits from the tax.

City officials contended that what should rightly be called an assessment district was justifiable because some residents’ property values benefited from their proximity to Hueneme Beach Park, which the fees were used to maintain.

City Manager Dick Velthoen said a majority of council members support a further appeal. “I think the majority of the council felt it was a prudent decision, a cost-effective decision,” he said. “There’s a million dollars on the line here.”

Still, the chance of the state Supreme Court agreeing to review the case is slim, Velthoen conceded. The panel reviews fewer than 3% of the cases submitted to it, said Ventura attorney Glen Reiser, who represents the plaintiffs.

“I continue to be surprised that the city is spending money chasing after this illegal tax,” he said.

Although the city is chronically short of cash, Velthoen said its reserves are adequate to pay the judgment if necessary.

Reimbursement of the original tax would cost about $600,000, plus another $250,000 in interest. Attorney fees are expected to push the final bill to more than $1 million.