Mann

Appellants, students residing in university family housing located in Alameda County and owned by the University of California, Berkeley, sought a refund of taxes paid under protest on their possessoiy interests in the apartments arising from their leases thereto. The trial court held that the interests of the students were taxable. We hold that the possessoiy interests of the students are exempt from taxation under article XIII, section 3, subdivision (d) of the California Constitution and therefore we reverse.

On March 1, 1976, each of the appellants was residing in an apartment owned by the University of California under a lease agreement with the university. The university apartments are only available to married students and to single students with children, and the lessee must be a registered, full-time student at the university. A tax on appellants’ leasehold interests was first imposed by the County of Alameda for the 1976-1977 fiscal year. Appellants each paid the tax under written protest and filed this action for tax refund, declaratory and injunctive relief. The matter was certified as a class action, the class consisting of residents of family housing at the…