Forster Shipbuilding Co. v. County of Los Angeles

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 amortization of the cost of improvements by the lessee that would revert to the lessor. De Luz Homes, Inc. v. County of San Diego, 45 Cal.2d 546 [290 P.2d…