Carlson

In this appeal, the City of San Jose (City) challenges a determination by the superior court that short-term users of City facilities hold a taxable “possessory interest” in the facilities when they obtain use permits upon more than one occasion. We conclude that these uses were correctly found to be taxable possessory interests within the meaning of Revenue and Taxation Code section 107. Accordingly, we will affirm the judgment.

Background

The City owns and operates the San Jose McEnery Convention Center and Cultural Facilities (facilities). Respondent Alfred E. Carlson was the Santa Clara County Assessor at the time the action was filed. The parties jointly submitted a petition to the court outlining the facts underlying their dispute.

The convention center is used by hundreds of persons and organizations for short-term programs or events such as conventions, trade shows and parties, which last an average of one to six days. The cultural facilities include the Center for the Performing Arts and Montgomery Theaters, which hold performing arts and community events. Some occupants use the facilities one time only. Others use them two or more times per year, once a year…