What is the test for establishing a valid possessory interest tax on a property that is not subject to taxation?
California, United States of America
The following excerpt is from Scott-Free River Expeditions, Inc. v. County of El Dorado, 203 Cal.App.3d 896, 250 Cal.Rptr. 504 (Cal. App. 1988):
Finally, as noted above, People v. Shearer holds that it is unimportant how the exclusive possession of the property is acquired; as long as there is possession and valuable use of tax exempt property, a possessory interest subject to tax may be established. (30 Cal. at pp. 656-658.)
In order for a valid possessory interest tax to be levied, it must be shown the right of possession or exclusive use is independent, durable and exclusive of rights held by others in the property. (See Freeman v. County of Fresno (1981) 126 Cal.App.3d 459, 463, 178 Cal.Rptr. 764; Lucas v. County of Monterey, supra, 65 Cal.App.3d at pp. 955-956, 135 Cal.Rptr. 707.) Plaintiffs argue all three elements are lacking here.
Exclusivity
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