Smith v. State Bd. of Equalization

In this case we decide that an owner of a leasehold condominium, who otherwise qualifies, is entitled to the $7,000 real property tax “homeowners exemption” created by article XIII, section 3, subdivision (k) of the California Constitution and section 218 of the Revenue and Taxation Code (the exemption).

I

Facts

The facts are not in dispute. The City of Oceanside (City) leased unimproved land owned by City to the Oceanside Small Craft Harbor District (District). In 1972 the District subleased a portion of the land to a developer. The developer constructed a 67-’¿nit building and other improvements on the land and conveyed by sublease leasehold interests in the land and improvements to members of the public. Each sublease conveyed a leasehold interest in a separate air space unit described on a recorded condominium plan and a leasehold interest in an undivided l/67th fractional interest in the common area.

In August 1985 Gary T. and Shirley J. Benton (Bentons) purchased an assignment of a sublease for approximately $174,500 and acquired a leasehold interest in the land and improvements. In September 1991 William F. and Norma S. Belliston (Bellistons) purchased an…