Roy E. Hanson Jr. Mfg. v. County of Los Angeles

The County of Los Angeles appeals from a judgment awarding plaintiff taxpayer a refund of taxes paid on property assessed on the 1978-1979 unsecured tax roll. The sole issue is whether the tax rate limitation established by article XIII A of the California Constitution, adopted by the voters in June 1978 as Proposition 13, is applicable to the unsecured roll for the tax year 1978-1979.

For the reasons stated in Board of Supervisors v. Lonergan (1980) ante, page 855 [ 167 Cal.Rptr. 820 , 616 P.2d 802 ], we conclude that article XIII A does not apply to the 1978-1979 unsecured roll. We do so after considering in this case an alternate theory presented by the respondent.

Taxpayer contends the application of the 1 percent rate limitation established by Proposition 13 to the 1978-1979 unsecured tax roll is mandated by article XIII, section 12, subdivision (b) of the California Constitution. 1 That provision states: “In any year in which the assessment ratio is changed, the Legislature shall adjust the rate described in subdivision (a) to maintain equality between property on the secured and unsecured rolls.” According to taxpayer, subdivision (b) furnishes an exception to…