- 18 - 8/31/91. Therefore the full $274,980 must be deducted in that year. Lucas v. Ox Fibre Brush Co., 281 U.S. 115, 120 (1930). Issue 2: Accumulated Earnings Tax Background Like many adult entertainment businesses, petitioner operated in the face of intense and unremitting hostility from residents of the local community and local government authorities. Exclusionary zoning, stringent enforcement of building code requirements and licensing requirements, indecency ordinances and criminal prosecution are weapons commonly deployed to contain the growth of such businesses or eradicate them altogether. The authorities of San Bernardino County used this full arsenal against petitioner. The history of this conflict and of petitioner’s other legal problems bears directly on the question of the extent of petitioner’s expected and actual needs for funds during the years at issue. Trouble with the local authorities dates back to 1985, the year in which petitioner commenced operations. In that year the county adopted Ordinance No. 2940, which prohibited adult entertainment businesses from locating in the area where petitioner was currently operating and where a new building was being constructed for its use. Petitioner sought an injunction against enforcement of the ordinance on the ground that it was unconstitutional. The lawsuit concluded in 1987 with a decisionPage: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
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