Wrather Port Properties, Ltd. v. County of Los Angeles

The issues in this case are: (1) whether an amendment to a lease of tax-exempt real property extending the term of possession from 40 to 66 years is a “change in ownership” under Revenue and Taxation Code, section 61, subdivision (b) thereby permitting a reassessment of the property for property tax purposes; (2) if so, does section 61, subdivision (b) violate the property tax reassessment provisions or the equal protection clause of the California Constitution?

We have determined under the facts of this case the extension of the term of possession of leased tax-exempt real property was not a “change in ownership” under Revenue and Taxation Code, section 61, subdivision (b). Therefore, we do not reach the constitutional questions presented.

Facts and Proceedings Below

In October 1980, the City of Long Beach (City) leased the Queen Mary and appurtenant real property to Wrather Port Properties, Ltd. (Wrather). At the time the lease was executed, 40 years was the maximum term permitted under the Long Beach City Charter for the lease of City real property. However, Wrather and the City were aware a charter amendment would appear on the November 1980 ballot which, if…