Forced to pay service industry tax while we were not allowed to perform services Jarid Keeran asked 2 years ago
Forced to pay service industry tax while we were not allowed to perform services

I own a tattoo shop in the city of Artesia. On March 13th 2020 the city of Artesia shut my business down for 23 months for quarantine because they said we were phase 4. The city of Artesia also owns the property that I lease and they still charged me rent and measure V taxes for those 24 months they kept us closed.

Measure V is tax per square foot for businesses that are in the service industry and don’t sell taxable products.

Is the city allowed to charge us taxes for services rendered if they did not allow us to render services?

Secondarily, is it a conflict of interest for the city to charge us rent for 23 months on a property that the city owns while the city was not allowing our business to operate for that 23 months?

2 Answers
Sandra L. Moriarty Sandra L. Moriarty Expert answered 2 years ago
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Hi Jarid,

Thanks for your question and for reaching out to UP. I am sorry to hear about your difficulties. Unfortunately, your question does not relate to insurance, so we are unable to assist. I would recommend consulting with your tax professional, or an attorney.

Sorry not to be of assistance for this question.

Answer for Forced to pay service industry tax while we were not allowed to perform services United Policyholders Staff answered 2 years ago
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Hi Jarid,

It seems unusual that a city could legally prevent the use of property and then charge both rent and use taxes for it anyway. We recommend that you contact a landlord tenant attorney who knows commercial leasing. There have to be restrictions on what the landlord can do, even if they are a public entity. The lease may also provide guidance here.

Hope that helps.