LOS ANGELES -- The California Supreme Court ruled Monday that cities cannot levy business license taxes on savings and loan associations, a decision that might spur Los Angeles to sell a $240 million bond issue to cover refunds.

Los Angeles and two dozen other municipalities had argued that so-called charter cities with home-rule powers could impose the tax, despite a 1979 state law prohibiting such levies on nonbank financial institutions. California's Supreme Court, however, held that state law takes precedence in a matter "of statewide concern."

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.