California Court of Appeal Finds Tax Rates Not Applicable to Utility Property in Merced County

The California Court of Appeal Feb. 24 held that Section 19 of Article XIII of the California Constitution does not require the same tax rates be imposed on utility property as on non-utility property in Merced County. Appellants sought partial refunds of property taxes paid, arguing the taxes exceeded the permissible rate under the constitution. The Court found the language “subject to taxation to the same extent and in the same manner as other property” is intended as an enabling clause to make utility property taxable, not as a limiting clause requiring identical tax rates as other properties. The Court ...