Metropolitan Water District v. County of Riverside

GIBSON, C. J.

— The Metropolitan Water District of Southern California, composed of thirteen member municipalities and a municipal water district, was organized under the Metropolitan Water District Act (Deering’s Gen. Laws, Act 9129, Stats. 1927, p. 694) for the purpose of developing, storing and distributing water for domestic and municipal uses. In the performance of its functions, it has acquired and devoted to such uses real property situated in the county of Riverside. This property is outside the boundaries of plaintiff district and was subject to tax by defendant county when it was acquired. Defendant has levied and collected taxes upon the property which plaintiff paid under protest and now seeks to recover in these consolidated actions. Demurrers to the complaints were sustained without leave to amend and plaintiff appeals from the judgments entered thereon.

The question is whether the property of plaintiff, located outside of its boundaries, and which was subject to tax at the time it was acquired, is taxable by defendant county in which the property is situated. The parties are in agreement that the determination of this question turns upon whether plaintiff district is a municipal corporation within the meaning of section 1, article XIII of the state Constitution, which provides that property “such as may belong to the United States, this State, or to any county, city and county, or municipal cor

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poration within this State shall he exempt from taxation,

except such lands and the improvements thereon located outside of the county, city and county or municipal corporation owning the same as were subject to taxation at the time of the acquisition of the same by said county, city and county, or municipal corporation.

...” (Italics ours.)

The exception contained in the italicized portion of the section was added by amendment in 1914. As disclosed by the printed argument submitted to the voters, the inducing cause of the amendment was the acquisition of large real property interests in Tuolumne, Mono and Inyo Counties for reservoir purposes by the two largest cities of the state. The purpose of the amendment was to protect and conserve the revenues of the invaded territory.