Judge Rejects Bid to Block Subway Tax Assessments

Property owners near the stops along the route of the proposed Los Angeles Metro Rail lost their bid Friday to block the first of more than $255 million in new property tax assessments designed to help pay for the first 4.4-mile segment of the subway.

Superior Court Judge Warren Deering refused to issue a temporary restraining order blocking the assessments, which property owners argued will raise some tax bills by as much as 1,000%.

The tax increases, designed to assess businesses near downtown Metro Rail stations where officials say land values will increase, are budgeted to pay 11% of the construction costs as well as bond interest and other finance costs on the $1.25-billion first phase of the transit line.

Attorneys for 33 property owners who have sued the Southern California Rapid Transit District challenging the tax hikes said they fear that with no court order restraining the collection of the first assessments due on Wednesday, property owners may never be able to recover their money.

But Deering, who scheduled a Dec. 30 hearing for a more comprehensive review of the case, said property owners can pay the assessments under protest and appeal to the RTD board.