Letterman Digital Arts Ltd. v. City & County of San FranciscoAnnotate this Case
The Presidio, formerly a military base, is now a National Park, within San Francisco's Golden Gate National Recreation Area. It is an exclusive federal enclave. The 1940 Buck Act (4 U.S.C. 105–110.) authorizes states and local jurisdictions to impose income taxes on activities in federal areas, or on residents of such federal areas, to the same extent and with the same effect as though such land was not a federal area. The 1996 Presidio Trust Act created a wholly-owned government corporation to manage the Presidio, exempt from certain federal laws and regulations. In 2000, section 103(c)(9) was amended to read: “The Trust and all properties administered by the Trust and all interest created under leases, concessions, permits and other agreements associated with the properties shall be exempt from all taxes and special assessments of every kind by" California, and its political subdivisions. Letterman paid the city business registration fees and gross receipts taxes. Letterman later sought refunds totaling $76,880.52, plus interest, arguing that section 103(c)(9) exempts “rents earned by subletting real property leased from the Presidio Trust.”.
The court of appeal affirmed the dismissal of the suit. Section 103(c)(9) exempts a lessee of property in the Presidio only from the payment of property taxes; it does not purport to exempt any other party from the payment of an otherwise applicable tax other than a tax on the property itself.