Service America Corp. v. County of San Diego

The subject of this case is the proper method to be used in valuing, for property tax purposes, a possessory interest held by a franchisee selling food and beverages at San Diego’s Jack Murphy Stadium. The interest was reassessed in 1983 because of an amendment to the existing concession agreement between the City of San Diego (City) and Service America Corporation (Service America). Service America sought revision of the 1983, 1984 and 1985 assessments before the Assessment Appeals Board (Board). The Board held hearings in March 1986 and confirmed the assessor’s valuations. Service America then paid the taxes under protest and brought an action in superior court for a refund.

The superior court ruled that the appraisal methodology utilized by the appraiser was incorrect and the resulting assessed value of Service America’s possessory interest was excessive. With commendable deference to the administrative board, the judge admitted he was “not prepared to declare the correct methodology,” but issued a writ of mandamus to the Board requiring it to “set aside its decision ... to reconsider its action . . . and to take any further action specially enjoined on it by law.”…