FORSTER SHIPBLDG. CO. v. COUNTY OF L.A.

Docket No. L.A. 25668.

54 Cal.2d 450 (1960)

353 P.2d 736

6 Cal. Rptr. 24

FORSTER SHIPBUILDING COMPANY, INC. (a Corporation) et al., Appellants, v. COUNTY OF LOS ANGELES et al., Respondents.

Supreme Court of California. In Bank.

July 8, 1960.


Attorney(s) appearing for the Case

Holbrook, Tarr & O'Neill, W. Sumner Holbrook, Jr., Francis H. O'Neill, O'Melveny & Myers, George F. Elmendorf, Bennett W. Priest, Lillick, Geary, McHose, Roethke & Myers, John C. McHose, John F. O'Hara, Luce, Forward, Hamilton & Scripps, James O. Hewitt, Ralph D. Sweeney, Howard H. Taylor, J. Kerwin Rooney, Port Attorney (Oakland), and Robert G. Cockins, City Attorney (Santa Monica), for Appellants.

Harold W. Kennedy, County Counsel, and Alfred Charles DeFlon, Deputy County Counsel, for Respondents.

Stanley Mosk, Attorney General, James E. Sabine and Dan Kauffmann, Assistant Attorneys General, and Ernest P. Goodman, Deputy Attorney General, as Amici Curiae on behalf of Respondents.


TRAYNOR, J.

This appeal tests the constitutionality of section 107.1 of the Revenue and Taxation Code, which prescribes methods for evaluating the possessory interests of lessees of tax-exempt property. L.W. Blinn Lbr. Co. v. County of Los Angeles, 216 Cal. 474 [14 P.2d 512], held that when such interests are evaluated by the capitalization of income method, deductions should be made from gross income for rentals to become due under the lease and for...

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