California restaurant owners are suing local counties and other state government bodies in light of the continued collection of permit fees and taxes during the lockdown caused by the current COVID-19 global pandemic.
Restaurant owners have decided to band together and sue the authorities for compensation after they were still forced to fulfill financial obligations to the government amidst the lockdowns and business shutdown orders mandated by the local authorities.
These shutdowns crippled operations and greatly affected their business operations and income.
As a result, two class action lawsuits were filed against different government departments by aggrieved restaurant proprietors.
Citing the move as a “significant government overreach,” the plaintiffs in the class action lawsuit launched by the Old Spaghetti Factory argued that several government agencies did not consider the current business situation and still forced owners to pay up fees and taxes during a tough time.
On the other hand, another class action filed by pastry shop Costeaux French Bakery sued Sonoma County for the same grievances.
They stressed that the lockdown orders were necessary to control the spread of the virus, but they vehemently objected to the county’s moves to continue charging them of their financial obligations during the time where businesses were down.
In light of businesses struggling to keep up with the continued collection of taxes and other fees during the pandemic, a local county in the state of California has decided to provide a fee credit to businesses located in their locality.
More than two thousand restaurant establishments located in Fresno County will be provided a free fee credit to avail themselves of when paying their taxes to the county.
The fee credit depends on the size of the business, but a restaurant owner has a guaranteed fee credit worth $205. A much bigger business may be entitled to receive a fee credit that can go as high as more than $300.
The California Restaurants Permit Fee Class Action Lawsuits are filed in the state of California’s courts.
Complaints are still in the process of being heard. We here at Consider The Consumer will carry on reporting on this matter. Stay tuned via our official website.
Editor’s Note on California Lockdown Taxes Class Action Lawsuit:
This feature aims to inform you of the latest proposed class action lawsuit filed against various government agencies by disgruntled California restaurant business owners after they were still forced to make payments amidst the negative economic implications brought upon by local lockdowns.
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Case Name(s) & No. (s): Costeaux French Bakery Inc. v. County of Sonoma, et al.; Case No. SCV-268167
Jurisdiction: Superior Court of the State of California for the County of Sonoma
Products/Services Involved: Business Taxes
Allegation(s): Government offices and counties continue to ask for fees from restaurants amidst the covid-19 lockdown.
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