Scott-Free River Expeditions, Inc. v. County of El Dorado

In this case we reject a challenge to the El Dorado County Assessor’s determination that appellants’ exclusive and profitable use of the South Fork of the American River (river) for commercial rafting constitutes a taxable possessory interest.

Appellants (plaintiffs) are commercial rafting outfitters who operate on the river. Prior to 1981, defendant County of El Dorado (County) became concerned about the increasing use of the river by rafters, both commercial and noncommercial. (See People ex rel. Younger v. County of El Dorado (1979) 96 Cal.App.3d 403, 405-407 [ 157 Cal.Rptr. 815 ].) In January 1981, County established a use permit process to regulate the commercial use of the river. The permit system created a special class of users for profit who enjoy exclusive commercial use of the river. Plaintiff's are the members of that class.

When County first began to regulate the use of the river, it limited commercial use to those who could demonstrate previous commercial use of the river. Only those rafting outfitters who were qualified received permits, valid for one year but renewable annually. Since 1981 when the original permits were issued, plaintiffs’ permits have…