Lynch v. State Board of Equalization

This coordinated proceeding concerns the meaning and validity of article XIII A of the California Constitution, adopted by the electorate as Proposition 13 at the June 1978 primary election, as it applies to the assessment of oil and gas properties. Although there are numerous parties to this proceeding, they fall into three main groups. First, the oil and gas interests insist that article XIII A is fully applicable to oil and gas properties, and that such properties have been consistently overvalued since the adoption of article XIII A. Second, a number of county government interests assert that article XIII A does not apply to oil and gas properties, and that these properties have been consistently undervalued since the adoption of article XIII A. Third, the California State Board of Equalization (Board) and other respondents contend that the Board’s rule (Cal. Admin. Code, tit. 18, § 468), which might be termed an intermediate position, is the proper interpretation of article XIII A as it applies to oil and gas properties. The trial court upheld the Board’s rule and the parties asserting each of the other positions appeal. We agree with the trial court and therefore…