City of Los Angeles v. County of Los Angeles

Opinion

KINGSLEY, J. We granted a rehearing in the above entitled case in order to give further consideration to the city’s argument that it qualified under section 214.8 of the Revenue and Taxation Code. We conclude that [970]it does not, and, therefore, re-adopt our opinion as originally filed with some additions.

This is an action brought by the City of Los Angeles to recover local property taxes paid to the County of Los Angeles, The taxes were levied by the county, certain special districts, and a school district on property consisting of a youth camp (Decker Canyon Youth Camp) owned by the city outside of its territorial boundaries. Both the city and county agree that the property is not entitled to the government exemption contained in article XIII, section 1 of the California Constitution.1 The city contends that it is eligible for the welfare exemption found in article XIII, section 1c of the California Constitution and in Revenue and Taxation Code section 214. The county submits that the tax was correctly levied and collected, in that the city does not qualify for the welfare exemption. The city duly filed its claim for welfare exemption which claim was denied. A timely claim for refund was filed and that claim was denied and the present action for a refund of $1,501.96 in taxes followed.

Both the city and the county filed motions for summary judgment in the trial court. The court denied the county’s motion, struck its answer and entered a summary judgment in favor of the city. The county appeals from that judgment. For the reasons set forth below, we reverse the judgment and remand with directions to grant the motion made by the county.

The facts in this case are undisputed. In 1967 the city was, and still is, the owner of a parcel of property located in the Malibu area of the unincorporated territory of the County of Los Angeles. Said property is known as the Decker Canyon Youth Camp, having been obtained by the city by grant deed. The camp is operated by the recreation and parks department of the city exclusively for the purpose of furnishing a camp site to persons and organizations located both inside and outside the city limits. A nominal charge is made, designed to cover approximately one-third of the operating expenses of the camp, not including departmental overhead.

The welfare exemption contained in article XIII, section 1c of the California Constitution authorizes the Legislature to grant exemptions to charitable organizations. Section 1c provides: “In addition to such exemptions as are now provided in this Constitution, the Legislature may exempt