City overtaxed cellphone users, appeals court rules
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From Times Staff and Wire Reports
A state appeals court ruled Wednesday that the city has been overtaxing cellphone users -- potentially costing the city millions of dollars in revenue each year.
The 2nd Appellate District of the Court of Appeal found that a 2003 tax increase was a violation of Proposition 218, which requires voter approval of such hikes.
There are several similar suits in courts around the state. Los Angeles officials have said in recent weeks that the city could forfeit up to $270 million a year in revenue if it loses all the court decisions.
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