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

I.

Introduction

The taxpayer, Flying Dutchman Park, Inc. (Flying Dutchman), brought an action for injunctive, mandatory, and declaratory relief against the City and County of San Francisco (San Francisco) and local tax officials challenging the imposition of a parking tax on constitutional as well as other grounds. The trial court dismissed Flying Dutchman’s lawsuit after sustaining a demurrer without leave to amend, because Flying Dutchman failed to pay the disputed tax before filing its action. We affirm, holding that Flying Dutchman’s challenge to San Francisco’s tax is subject to the “pay first, litigate later” rule. This well-recognized principle of tax law requires Flying Dutchman to pay the disputed tax first, and then sue for a refund, rather than being permitted to delay payment while the validity of the tax assessment is litigated.

II.

Facts and Procedural History

In reciting the facts, we are guided by well-settled principles governing appellate review after the sustaining of a demurrer without leave to amend. “ ‘We treat the demurrer as admitting all material facts properly pleaded, but not contentions, deductions or conclusions of fact or law.…