A California appeals court held that taxpayers challenging city fees as unconstitutional without seeking a refund need not exhaust their administrative remedies. The taxpayers alleged that the City of Azusa’s sewer and trash franchise fees violated Proposition 218, Article XIII D of the California Constitution because the fees exceeded the cost of providing those services and the overage was transferred to the City’s general fund. The district court dismissed the taxpayers’ claim for failure to exhaust their administrative remedies, which required the taxpayers to pay the fees under protest and file a refund claim.

The appeals court reversed, holding that the taxpayers’ challenge to the fees sought relief outside of the statutory claims procedure for refunds because the taxpayers only sought mandate and declaratory relief. The taxpayers sought a writ of mandate directing the City to cease further imposition and collection of excessive solid waste service fees and to return all franchise fees transferred to its general fund during the past three years. They also sought a declaration that the City’s solid waste service fees violated and continue to violate Proposition 218. Accordingly, the taxpayer’s action did not involve any issue subject to determination through the administrative refund remedy.

Carachure v. City of Azusa, No. 22STCP03478 (Cal. App. 2025).