Kathrein v. City of Evanston, Ill.
Federal 7th Circuit Court
Civil Court
Section 1983 Action
Dist. Ct. erred in granting defendant-City's motion for summary judgment in section 1983 action challenging constitutionality of defendant's Affordable Housing Demolition Tax ordinance requiring plaintiffs-property owners to pay $10,000 for demolishing residential building on their premises where Dist. Ct. found that it lacked subject-matter jurisdiction due to applicability of Tax Injunction Act (TIA), 26 USC section 7421(a). TIA did not apply where instant payment to defendant did not qualify as tax, but rather qualified as regulatory device that did not have primary purpose of raising revenue. Moreover, plaintiffs had standing to challenge instant ordinance where record showed that potential buyer of plaintiffs' property refused to buy property unless plaintiffs would sell it for lower price to offset cost of ordinance.