Cox Cable San Diego, Inc. v. County of San Diego

Are the rights to use and occupy, both overhead and underground, public rights-of-way conferred on a cable television system by a city or county franchise or license subject to property tax assessed against the franchisee or licensee by the county assessor? The trial court held, among other things, those rights are not subject to property tax as there was no possessory interest subject to taxation. The trial court therefore ordered refund of taxes to Cox Cable San Diego, Inc. (Cox), paid on 1980-1981 assessments for possessory interests on property rights acquired in franchises or licenses originally issued to Cox in the 1960’s by the County of San Diego (County) and the seven cities of San Diego, Chula Vista, El Cajon, La Mesa, National City, Lemon Grove and Imperial Beach. By agreement, Cox’s action for refund (Rev. & Tax. Code, § 5140 et seq.) was divided into three phases, with phase I involving the issues of possessory interest, constitutionality, federal preemption and double taxation. On stipulated facts, consisting primarily of the record of proceedings before the assessment appeals board, the trial court decided only the possessory interest issue. We reverse and…