When the City of Los Angeles implemented its complex overhaul of the waste management system in 2017 known as “recycLA” or “Zero Waste”, it implemented new special taxes and fees on thousands of corporate and residential property owners. Local governments are notorious for abusing their authority with regard to special taxes and fees.
In recognition of this in 1996, California voters approved an addition to the state constitution to protect against these unfair and unpredictable increases in their costs of living. The approved amendment requires that municipalities and local governments acquire voter approval for any new special taxes and fees. The City of Los Angeles’ Zero Waste program is in clear violation of this amendment.
When the program was created, the City claimed that prices would be reasonable and even lower than the previously existing system, but in actuality it has caused financial damages for large numbers of city residents. The Zero Waste plan not only adds fees for services that had previously been free but also grants monopolies to the 7 businesses that it tasks with overhauling the city’s waste program.
These limitations reduce residents’ previous ability to negotiate with multiple vendors and seek the best rates. When Californians voted to protect themselves in 1996 through an addition to the state constitution, they were choosing to add protections from the kinds of abuse of authority exemplified by the recycleLA/Zero Waste program.
Our team of class action lawsuit lawyers is fighting back. We have brought a lawsuit to cease all illegal fees and taxes, as well as to compensate residents for all the financial damages they have suffered as a result. Our team of class action attorneys is passionate about defending the public from illegal taxation – to learn more about our work in this area and pursue a similar case, contact us today.
What Harm Has RecycLA/Zero Waste Caused?
It can be easy to underestimate the harm caused by programs like recycLA and Zero Waste. The taxes and fees can appear minimal when taken at face value, but the reality is that these illegal levies add up fast. Collectively, city residents are likely to suffer several millions of dollars in damages each year. These financial damages are due to:
- Stifled competition. The 7 franchises that have been granted city contracts under Zero Waste are monopolies and therefore have no incentive to offer appealing rates to individual residents. Negotiations of their rates were conducted in secret with the city.
- Annual tax increases. Annual tax increases will account for regularly increasing financial damages.
- Extra collection fees. Fees assessed under Zero Waste for extra collection and hauling create fees for a service that previously was free under certain contracts.
- Penalties for failure to segregate waste. Residents can be assessed fines for failing to segregate trash and recycling, which again creates the possibility for damages that had not previously existed.
- Restricting the freedom of choice. Under Zero Waste, city residents are denied the opportunity to seek more affordable alternatives to the 7 monopolistic companies granted contracts.
- False advertising. The program was presented as affordable, which prevented challenges to the program before it was enacted. This marketing delayed the public’s full understanding of the financial burden of Zero Waste, which resulted in further financial damages.
The harm caused by Zero Waste springs from this diverse set of unfair and illegal factors. It is crucial that the city be held accountable for this undemocratic action that flies in the face of the California Constitution. Our RecycLA class action lawyers are seeking compensation for all those who have suffered financial damages under this city program.
If you have suffered under a similar tax or special fee in the state of California that you were not granted the opportunity to vote on, your rights have been violated and you should contact our class action attorneys today.
Why Are Special Taxes and Fees without Voter Approval Illegal in California?
The voters’ movement to prevent abuse of taxing powers began in 1978 and continues to this day. Thanks to these efforts, there are clearly defined protections for Californians to prevent exactly the kind of abuse that has taken place under Zero Waste. These legal protections include:
- Article XIII C of the California Constitution. This article requires that any new general taxes or special taxes be approved by a ⅔ majority of voters.
- Article XIII D of the California Constitution. Under this article, any new fees related to property must also receive support from a ⅔ majority of voters.
These two Articles establish a clear requirement for voter approval of new taxes and property-related fees. Zero Waste is in clear and apparent violation of these Articles. The contracts under recycLA and Zero Waste and the specifics of the fees were negotiated in secret – the public was denied any say.
As a result, the City of Los Angeles made a decision that directly caused extensive financial damages to voters for which they deserve compensation. Our class action attorneys are working to secure financial damages under all illegal taxes and fees – contact our RecycLA class action lawyers today to take the first step toward pursuing compensation if you have suffered similar damages.
What Is a Class Action Lawsuit?
A class action lawsuit allows numerous plaintiffs to pursue a lawsuit collectively if they share the same damages from the same cause. They can seek to form a group known as a class, which must be authorized by a judge. Any compensation secured from a class action lawsuit, whether by verdict or settlement, is divided amongst members of the class.
In the case of those who have suffered damages as a result of the recycLA and Zero Waste programs, the class is seeking compensation for all the damages listed above.
Our team of class action attorneys specializes in this type of lawsuit. Class actions allow us to pursue justice on behalf of thousands of harmed parties – we are incredibly proud of the work that we do. If you suspect that you may have suffered damages that you share with numerous others, contact our team of RecycLA class action lawyers to take the first step toward securing justice and the compensation you deserve.
