Charter Communications Properties, LLC v. County of San Luis Obispo

It is the duty of a county tax assessor to value property at its fair market value. To arrive at the fair market value of a television cable franchise, the assessor must determine its reasonably anticipated term. Section 21, subdivision (d)(1) of title 18 of the California Code of Regulations provides for situations, as here, where the reasonably anticipated term of possession is longer than the stated term of possession.

Appellant Charter Communications Properties, LLC (Charter), contends that the assessor violated Rule 21 when it valued Charter’s unexpired cable franchises. 2 Charter challenges the use of a reasonably anticipated term of possession longer than the remaining years of the stated term of each franchise agreement. Charter further challenges the use of Rule 21, subdivision (d)(2) factors to value the unexpired franchises. In this case, the San Luis Obispo County Assessment Appeals Board (AAB), in compliance with Rule 21, found clear and convincing evidence of a mutual understanding between the County of San Luis Obispo (County) and the owner of franchises that the reasonably anticipated terms of possession of the franchises were longer than their stated…