Wells National Services Corp. v. County of Santa Clara

Wells National Services Corporation, the taxpayer, appeals from an adverse judgment in its action to recover taxes paid under protest, contending that pursuant to the written agreements for providing television rental services to patients, its interest in the premises owned by the County Hospital District was not a taxable possessory interest, as defined by Revenue and Taxation Code section 107. We have concluded that the judgment in favor of the county must be affirmed.

The matter is before us on an agreed stipulation of facts that may be summarized as follows;

On January 31, 1966, taxpayer herein, Wells National Services Corporation, then known as Wells Television, Inc., referred to therein as “Concessionaire,” and El Camino Hospital District, referred to therein as “District,” executed a document denominated “Concessionaire Agreement.” This agreement, together with an addendum dated on or about April 6, 1966, was attached to the complaint incorporated therein in full by reference. On May 11, 1972, the same parties executed a further agreement, bearing the same denomination, likewise attached to the complaint, incorporated in full therein. The first agreement,…