Host International, Inc. v. County of San Mateo

The issue on this appeal is the propriety of the method used by the San Mateo County assessor in evaluating plaintiff-appellant’s possessory interest under its lease of space for operation of the food and beverage concessions in the San Francisco International Airport terminals. In 1969, the assessor valued the possessory interests of airport tenants upon the capitalization of income approach rather than, as formerly, on replacement cost. The result was a substantial increase in the tax levied upon plaintiff’s possessory interest. Plaintiff sought adjustment of the After a full hearing, the assessment appeals board rejected the request. Plaintiff then brought this action for refund of more than $40,000 in taxes paid under protest for each of the tax years 1969-1970 and 1970-1971 (Rev. & Tax. Code, § 5103). The trial court awarded plaintiff a refund of $3,137.79 as a portion of its 1969-1970 taxes, but entered judgment for respondent county in all other respects. Plaintiff appeals.

The dirt fill used in constructing the airport in San Mateo County is an “improvement” (Const., art. XIII, § 1) and thus not taxable to San Francisco (City & Co. of S. F. v. County of San Mateo…