Last Gun Shop in Oakland Closing Steep tax ruined profits, owner says
Janine DeFao, Chronicle Staff Writer
Thursday, July 13, 2000 ©2000 San Francisco Chronicle
URL:
http://www.sfgate.com/cgi- bin/article.cgi?file=/chronicle/archive/2000/07/13/MN89677.DTL
OAKLAND -- Mara Siegle has fired her last shot in her battle against Oakland's increasingly tough gun laws. After 57 years, she is closing the doors to her family's gun shop, the last one standing in Oakland.
A few miles south, in neighboring San Leandro, the owner of Traders fears his store, the largest gun outlet in Northern California, could meet the same fate. But Anthony Cucchiara is determined to keep fighting.
Yesterday, as Siegle rang up going-out-of-business bargains for a long line of customers under a sign decrying Oakland's ``illegal'' gun tax, an Alameda County Superior Court Judge dismissed Cucchiara's lawsuit over a similar tax in San Leandro.
But Cucchiara's lawyers said he will appeal the ruling on the tax, which, they say, was designed to drive Traders out of business -- the same claim the owner of Siegle's Guns makes.
Voters in both cities approved special taxes on gun sales and shops in June 1998. City leaders argued that those who sell guns should help pay for their costs to society, an estimated $32,000 for every gunshot wound treated.
San Leandro's tax, approved narrowly, requires a seller to pay the city 3 percent of the proceeds from the sale of concealable firearms and their ammunition.
Oakland's measure, which was approved by a wide margin, is farther reaching. Any store that sells guns or ammunition must pay the city $24 for every $1,000 made on any merchandise sold, from guns to fishing rods to books.
Prior to the tax's approval, such businesses paid $1.20 for every $1,000 in receipts.
``It's a business-destruction tax,'' Siegle said yesterday as customers, new and old, crowded her store on West MacArthur Boulevard at Telegraph Avenue for her three-week closeout sale.
The tax measures in Oakland and San Leandro were part of a campaign by officials in East Bay cities to control the sale of guns. Money from the taxes is used to fund gun- violence prevention programs.
In addition, many of the cities have approved bans on the sale of so- called junk guns. Earlier this year, Oakland became the first city in the nation to ban the sale of pocket-size handguns known as ``ultracompacts'' - - a move that targeted Siegle's Guns.
Oakland has ``strategically and selectively targeted Siegle's,'' said Siegle, who took over the North Oakland sporting goods store after her husband's death seven years ago. He had inherited it from his father, the founder.
``They wanted me gone,'' she said. ``They got their wish.''
City Councilman Henry Chang, who championed the tax, denied that was the city's intent, saying that Siegle's has been a responsible business and never the subject of complaints.
``We didn't do that to hurt her. It's to protect the young people who get hurt by gun violence,'' Chang said.
Siegle's was the only store in Oakland subject to the tax because Super K- Mart opted to stop selling ammunition rather than pay it. Chang said Siegle's could have reduced the effect of the tax by opening a second store for nonfirearm sporting goods.
But ``if you profit from guns, you need to pay part of the costs, too,'' he said.
Siegle's customers called the tax unfair and warned it could backfire.
``If a person really wants a gun, they'll use illegal means to get one,'' said Roland Horn, a San Francisco target shooter.
In Traders' lawsuit against San Leandro yesterday, Superior Court Judge James A. Richman threw out the case. Among Traders' arguments was that the city invalidly placed the tax measure on the ballot.
Attorney Jack Leavitt, who represents the gun store, said he will appeal to the Court of Appeal in San Francisco.
``With the 2 percent profit margin Traders makes on most transactions, a 3 percent tax can essentially put it out of business. . . . Our position is the city is less interested in raising revenue than in putting Traders out of business,'' he said.
San Leandro Assistant City Attorney Liane M. Randolph said the city intends to use the money toward crime prevention and anti-violence programs.
But because of the lawsuit, Traders had not paid the city the money owed - - $110,000 over two years -- until recently.
The law does affect an additional six or seven smaller gun sellers, including pawnshops, in the city, officials said.
Randolph said city officials do hope the tax will ``discourage the sale of handguns in San Leandro.''
E-mail Janine DeFao at jdefao@sfgate.com.