City & County of San Francisco v. Flying Dutchman Park, Inc.

I.

Introduction

Respondent and cross-appellant Flying Dutchman Park, Inc. (Flying Dutchman) provides commercial parking and valet parking services alleged by appellant and cross-respondent City and County of San Francisco (CCSF) to be subject to its parking tax (S.F. Mun. Code, §§ 601-615). The parking tax imposes a tax of 25 percent (§§ 602, 602.5) on “rent” paid for “occupancy” of a space for parking a motor vehicle in a “parking station” (§§ 601, 602A).

CCSF’s appeal arises out of a successful defense by Flying Dutchman to an enforcement action brought by CCSF to collect in excess of $800,000 in parking tax arrearages. The trial court agreed with Flying Dutchman’s contention that the parking tax was unconstitutional as violating the state’s guarantee of equal protection (Cal. Const., art. I, § 7, subd. (a)) because CCSF had no rational basis for subjecting Flying Dutchman to the parking tax requirements, while exempting certain other groups. We conclude that there exist rational bases for the exemptions allowed in the parking tax ordinance, and, therefore, its enforcement against Flying Dutchman does not violate equal protection. Accordingly, the trial court erred…