Palm Springs Spa, Inc. v. County of Riverside

On March 6,1968, plaintiff filed a complaint to recover taxes against the defendant county. The complaint alleged the following: Since July 1, 1963, plaintiff was the owner of a leasehold interest in certain specified land in the City of Palm Springs held in trust by the United States for the benefit of the Agua Caliente Band of Mission Indians. In consequence of applicable federal law, the interest of the Indians in this land had been granted tax exempt status. Nevertheless, since July 1, 1963, the defendant county had annually assessed a tax against plaintiff’s leasehold possessory interest in the tax exempt property. Plaintiff has paid these assessments under protest, and has applied to the county board of supervisors for a refund which request has been denied.

The action, of the board of supervisors in assessing this possessory interest tax upon plaintiff’s leasehold was asserted to be violative of the Constitutions of the United States and the State of California. The complaint prayed for the refund of some $264,000 in assessed possessory interest taxes paid to defendant subsequent to July 1, 1963. The complaint was subsequently amended to name the City of Palm…