Glovis Am., Inc. v. Cnty. of Ventura

*65 When a lease of federal lands includes an option to extend its term and the tax assessor reasonably concludes that the option will likely be exercised, the value of the leasehold interest is properly based on the extended term. In this case, Glovis America, Inc., 1 appeals from the judgment of dismissal entered after the trial court sustained without leave to amend the County of Ventura's (the County) demurrer to Glovis's complaint for refund of property taxes. Glovis contends the County's Assessment Appeals Board (the Board) erred when it determined that: (1) Glovis's lease with the U.S. Navy includes an option to extend its term of possession of Navy lands, and (2) it was reasonable to assume that the option would be exercised, thereby justifying a higher tax valuation. We affirm.

FACTUAL AND PROCEDURAL HISTORY

In 2007, Glovis began to lease land from the Navy to provide vehicle inspection and processing services at the Port of Hueneme. In 2013, Glovis and the Navy signed a five-year lease that is exempt from federal contract term limits. (See 10 U.S.C. § 2667 .) Paragraph 2 of the lease states:

(Italics added.) Paragraph 3.2 specifies Glovis's annual rent for the initial…