Industrial Indemnity Co. v. City & County of San Francisco

Opinion

CHANNELL, J.

In this case of first impression, we hold that a true sale and leaseback of real property—one that is not a financing transaction— constitutes a change in ownership within the meaning of Proposition 13, triggering reassessment of the property. (See Cal. Const., art. XIII A, § 2, subd. (a).)

I. Facts

In 1984, appellant Industrial Indemnity Company owned real property and improvements at 255 California Street in San Francisco. For the 1984-1985 tax year, respondent City and County of San Francisco had assessed property taxes against this property based on a full-value…