ELR Citation: ELR 20715
No(s). C-71-366 (N.D. Cal. Apr 12, 1973)

Contractors authorized by the Forest Service to harvest designated trees in a national forest may be taxed on the value of their possessory interest in the land and timber. This interest derives from the plaintiffs' right to use the federally owned land for commercial purposes and from their ownership interest in the standing timber. The court does not decide whether each of these two rights, standing alone, would permit taxation. Although the county could not constitutionally tax federal property, plaintiffs' interest is sufficiently remote from that of the government to be taxable. The 1906 federal law by which 25 percent of all sums received from national forests are returned to the states for schools and roads in the appropriate counties does not imply that taxation of possessory interests in national forests is foreclosed. The court finds that county appraisers did not act arbitrarily in their valuation of plaintiffs' interests.

Counsel for Plaintiffs
Andrew Kopperuid
Cooley, Drowley & Caither
The Alcoa Bldg.
One Maritime Plaza
San Francisco, CA 94111

Counsel for Defendants
Bagshaw, Martinelli, Corrigan & Jordan
1010 "B" Street
San Rafael, CA 94901