Central Manufacturing District, Inc. v. State Board of Equalization

SHENK, J.

This is an application for a writ of

mandamus.

The petitioner, Central Manufacturing District, Inc., is a private nonpublic utility corporation. It is the owner in fee of certain real property and improvements situate in the city of Los Angeles. The improvements consist of railroad tracks, rights of way, buildings, structures and appliances suitable to the operation of a railroad. The petitioner,

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Los Angeles Junction Railway Company, is a public utility railroad corporation having its principal office and carrying on a common carrier interstate and intrastate railroad business in Los Angeles County. On October 10, 1925, the petitioner Central Manufacturing District, Inc., leased to the petitioner Los Angeles Junction Railway Company said real property and improvements on a stipulated annual rental,, and said lessee is using, and since the execution of said lease, has used, the real property and improvements exclusively in the conduct of its public utility business. The surface of said real property is entirely occupied by the railroad property and improvements so used, and the lessor has, during the existence of said lease, no possession or control, or right to exercise possession or control, of said real property and improvements. The lessee is required under said lease to pay all taxes lawfully assessed against the railroad tracks, rights of way, building and structures placed upon said real property.

On April 10, 1931, the lessee public utility corporation duly filed with the respondent State Board of Equalization a report of all of its operative property for the year ending December 31, 1930. A copy of this report was served on the county assessor of Los Angeles County on April 9, 1931. This report contained a description of all of the real property and improvements covered by said lease, and set forth that all of said property was necessary to and was used exclusively in the operation of its said public utility railroad business. On April 28, 1931, the county assessor of Los Angeles County addressed a communication to the State Board of Equalization objecting and excepting to said report on the ground that the interests of the railway company were limited to the value of the leasehold on and in said property as of the first Monday in March, 1931; “that such value cannot and does not comprise the total worth of the aforesaid properties, as there is an interest in each property existing as of said first Monday in March, not embraced within the limited rights to the use thereof, as evidenced by the said lease, viz.: the reversionary interest therein; that said reversionary interests as of said first Monday in March, comprise taxable property, as defined by the Constitution and laws of this state, which, on said first Monday in March, was not, nor is it now, either owned or used by said railway