Taxpayer Protection Suit Filed Against LA County’s Illegal Paper Bag Tax
Last November, FR friend Joel Fox over at his Fox & Hounds website was prescient in his blog post saying that the action by the Los Angeles County Board of Supervisors to both ban plastic shopping bags and impose a tax on paper bags would be challenged on the grounds that it violates newly-passed Proposition 26. Well today Hilex Poly, a large-scale producer of plastic grocery bags filed just that lawsuit. Under the state constitution, a tax on paper bags clearly would need to go to a vote of the people. However advocates are trying to say that because the ten-cent per bag tax is mandated by the government, but not collected by the government (grocers apply the fee and are then forced to spend the funds at the direction of the county), then it is not actually a tax. Of course that argument is ludicrous on its face.
“Los Angeles County’s bag ‘charge’ on consumers violates Proposition 26, which clearly requires local taxes be approved by a two-thirds vote. The ten-cent tax imposed on bags was never approved by voters much less by a… Read More