ITT World Communications, Inc v. County of Santa Clara

ITT World Communications, Inc. appeals from summary judgments dismissing complaints by which it sought from respondent counties of San Francisco, San Mateo, Santa Clara and Los Angeles, refunds of property tax for the fiscal years 1975-1976 and 1976-1977. The complaints also sought a determination that respondent State Board of Equalization had not correctly valued appellant’s property.

Appellant, a public utility, owns property in the Counties of San Francisco, San Mateo, Santa Clara, and Los Angeles. This property is assessed by the State Board of Equalization. The board has considered three indicators of value in assessing the property: historical cost less depreciation, reproduction cost new less depreciation (RCNLD), and capitalized earning ability.

In 1969 the board issued a publication entitled “Assessment Practices of the State Board of Equalization Relating to Public Utilities,” which stated that the valuation of state-assessed utility property could not exceed its RCNLD: “[Reproduction cost new less depreciation is not considered to be an important indicator of value for unitary state-assessed property. However, this indicator is regarded as a ceiling for…