DocketNumber： S044279
Judges： Arabian, Kennard
Filed Date： 4/8/1996
Status： Precedential
Modified Date： 10/19/2024
Opinion
Here we determine whether California’s ad valorem tax system is subject to challenge under former 49 United States Code Appendix section 1513(d) (former section 1513(d)),
We conclude that the airlines do have a private right of action under former section 1513(d). In considering whether the airlines have stated a claim for relief under that statute, we note that the airlines assert two bases on which they claim former section 1513(d) has been violated. We conclude that they have stated a claim for relief under former section 1513(d) on the first basis by alleging unequal enforcement of California’s facially neutral tax laws. We further conclude, however, that the airlines have failed to state a claim for relief under former section 1513(d) on the second basis, that is, by alleging that the assessment ratio for railroad personal property is lower than that for airline personal property. Finally, we conclude that the 42 United States Code section 1983 claim is not properly before us. We therefore reverse the judgment of the Court of Appeal.
Ten commercial airlines
The Counties asserted below that the purpose of their motion for summary judgment was to determine whether the Airlines had stated a cause of action. “A defendant’s motion for summary judgment necessarily includes a test of the sufficiency of the complaint. (Centinela Hospital Assn. v. City of
“Accordingly, for purposes of this opinion, we treat the properly pleaded allegations of [the Airlines’] complaint as true, and also consider those matters subject to judicial notice. (Sullivan v. County of Los Angeles (1974) 12 Cal.3d 710, 714-715, fn. 3 [117 Cal.Rptr. 241, 527 P.2d 865]; Hunt v. County of Shasta (1990) 225 Cal.App.3d 432, 440 [275 Cal.Rptr. 113]; April Enterprises, Inc. v. KTTV (1983) 147 Cal.App.3d 805, 815 [195 Cal.Rptr. 421].) ‘Moreover, the allegations must be liberally construed with a view to attaining substantial justice among the parties.’ (Guild Mortgage Co. v. Heller (1987) 193 Cal.App.3d 1505, 1508 [239 Cal.Rptr. 59].) ‘Our primary task is to determine whether the facts alleged provide the basis for a cause of action against defendants under any theory.’ (Ibid.)” (Alliance Mortgage Co. v. Rothwell (1995) 10 Cal.4th 1226, 1232 [44 Cal.Rptr.2d 352, 900 P.2d 601].)
The Airlines’ second amended complaint against Los Angeles County is representative of their refund causes of action. It alleges, in pertinent part:
“This action is brought pursuant to the applicable provisions of the California Revenue and Taxation Code and other related provisions of state and federal law to obtain refunds of taxes which were paid by [the Airlines] to [Los Angeles County] . . . and which were illegally and erroneously collected from [the Airlines] in violation of [former] 49 U.S.C. Section 1513 for the 1985, 1986, 1987, 1988 and 1989 tax years. . . .
“Pursuant to California law and practice, all commercial and industrial property, other than air carrier transportation property, is assessed at amounts substantially below true market value of that property.
“All of [the Airlines’] property used in interstate air transportation in the County of Los Angeles is assessed each year at amounts equal to or in
“This disparity in tax treatment causes [the Airlines’] property to be assessed at a value bearing a higher ratio to its true market value than the ratio that the assessed value of other commercial and industrial property in the county has to its true market value in violation of [former] 49 U.S.C. Section 1513.
“This discrimination is not less than forty-seven percent (47%) of the ad valorem property taxes paid to this county for the 1985 [through 1989] tax year[s].
“[The Airlines] are therefore entitled to a refund of at least forty-seven percent (47%) of the ad valorem property taxes paid to this county for the 1985 [through 1989] tax year[s].
“This disparity also imposes an unreasonable burden on and discriminates against interstate commerce in violation of Article I, Section 8 of the United States Constitution violating the supremacy clause of the U.S. Constitution, Article VI, and denies plaintiffs due process and equal protection of the law in violation of U.S. Constitution, Amendment XIV, Section l.”
The Counties filed a motion for summary judgment “on the grounds that there is no triable issue of material fact as to [the Counties] because [the Airlines] have failed to state a cause of action under [former] 49 U.S.C. section 1513(d), the Commerce Clause (U.S. Const., Art. I, § 8), the Supremacy Clause (U.S. Const., Art. VI), or the Fourteenth Amendment (U.S.
The trial court granted the Counties’ motion on the following grounds: “1. Based on the current assessment and taxing systems of airline property in California, the [Airlines] cannot, as a matter of law, state a cause of action under [former] 49 U.S.C. Section [1513]. *][ 2. The [Airlines] must show a prima[]facie case of discrimination which they have not, and cannot do factually. 13. There is no private right of action under [former] 49 U.S.C. section [1513(d)].”
The Court of Appeal affirmed and denied the Airlines’ petition for rehearing. We granted the Airlines’ petition for review.
II. Discussion
A. Background
1. Former Section 1513(d)
Pursuant to its plenary commerce clause power, Congress has enacted three statutory schemes that prohibit tax discrimination against interstate carriers, the Railroad Revitalization and Regulatory Reform Act of 1976, former 49 United States Code section 115038 (4-R Act), the Motor Carrier
The pertinent parts of the AAIA, the 4-R Act, and the Motor Carrier Act are strikingly similar. The differences between the statutes are highlighted as
Given the strong similarity in statutory language and purpose between the three acts, cases interpreting one act are often relied on to interpret a different act. Moreover, because of this similarity, and the express reference in the legislative history of former section 1513(d) to the Motor Carrier Act (see ante, fn. 10) the legislative history of the 4-R and the Motor Carrier Acts is, as the parties agree, appropriately used to interpret former section 1513(d). (Western Air Lines v. Board of Equalization, supra, 480 U.S. at p. 131 [94 L.Ed.2d at pp. 120-121] [relying on legislative history of 4-R Act in interpreting former § 1513(d)]; Arkansas-Best Freight System, Inc. v. Lynch (4th Cir. 1983) 723 F.2d 365, 366, fn. 3 [“the parties’ reliance upon . . . the legislative history of the 4-R Act [in construing Motor Carrier Act] is correct”]; Sen.Rep. No. 97-494, 2d Sess., p. 37, supra, reprinted in 1982 U.S. Code Cong. & Admin. News, at pp. 781,1188,1484 [§ 1513(d) extends to air carriers same protections given to motor carriers].) In Western Air Lines v. Board of Equalization, supra, 480 U.S. at page 131, a case construing former section 1513(d), the high court examined the purpose behind the
In general, under the Tax Injunction Act
2. California Tax System
California imposes an ad valorem tax upon all personal property within its jurisdiction, except property granted an express exemption. (Rev. & Tax. Code, § 201.) An ad valorem tax is a tax levied on property in proportion to its value, as determined by assessment or appraisal. (Rev. & Tax. Code, § 2202 [“ ‘Ad valorem property taxation’ means any source of revenue derived from applying a property tax rate to the assessed value of property”]; Black’s Law Diet. (6th ed. 1990) p. 51.) “The ‘assessed value’ of property is the amount to which the tax rate is applied in order to compute the tax.” (Amdur, Telecommunications Property Taxation (1994) 46 Fed. Comm. L.J. 219, 262.) The comparison of the assessed value to the full market value is called the “ ‘assessment ratio.’ ” (Ibid.) “Adjustment of assessment levels of various categories of property to a uniform percentage of full value is called ‘equalization.’ ” (Ibid.; State Bd. of Equal, v. American Airlines, Inc., supra, 773 P.2d at p. 1042.)
In California, property taxes on certificated aircraft having a tax situs in multiple jurisdictions are allocated according to a prescribed formula. (Rev. & Tax. Code, §§ 1150-1156; American Airlines, Inc. v. County of San Diego (1990) 220 Cal.App.3d 164, 167-168 [269 Cal.Rptr. 372]; County of Alameda v. State Bd. of Equalization (1982) 131 Cal.App.3d 374, 379 [182
In contrast, under the California Constitution, railroad property, as a utility, has for decades been centrally assessed by the State Board of Equalization under a unitary standard. (Cal. Const., art. XIII, § 19; Rev. & Tax. Code, § 721 et seq.; see ITT World Communications, Inc. v. City and County of San Francisco (1985) 37 Cal.3d 859, 866 [210 Cal.Rptr. 226, 693 P.2d 811].) “[U]nit taxation is properly characterized not as the taxation of real property or personal property or even a combination of both, but rather as the taxation of property as a going concern." (ITT World Communications, Inc. v. City and County of San Francisco, supra, 37 Cal.3d at p. 864, italics in original; 2 Ehrman & Flavin, Taxing Cal. Property, supra, § 17:07, p. 20; see Rev. & Tax. Code §§723, 723.1 [“In the case of regulated railway companies, there shall be only two classifications of property for purposes of this code, unitary and nonunitary.”].) “The essence of the unitary valuation concept is the determination of the value of an enterprise as a whole without regard to the value of the individual assets making up the enterprise.” (Bertane, The Assessment of Public Utility Property in California (1973) 20 UCLA L.Rev. 419, 426.) The value of such property “depends on the interrelation and operation of the entire utility as a unit. Many of the separate assets would be practically valueless without the rest of the system. Ten miles of telephone wire or one specially designed turbine [or ten miles of track] would have a questionable value, other than as scrap, without the benefit of the rest of the system as a whole.” (Id. at p. 433; ITT World Communications, Inc. v. City and County of San Francisco, supra, 37 Cal.3d at p. 863.) “Unit taxation prevents real but intangible value from escaping assessment and taxation by treating public utility property as a whole, undifferentiated into separate assets (land, buildings, vehicles, etc.) or even separate kinds of assets (realty or personalty).” (ITT World Communications, Inc. v. City and County of San Francisco, supra, 37 Cal.3d at p. 863.)
“[U]nitary valuation is not limited to the valuation of public utilities nor is it synonymous with centralized state assessment. In theory, the unitary valuation concept is applicable to any combination of property and can be applied, with equal propriety, either by a local assessor or by a central assessing agency.” (Bertane, The Assessment of Public Utility Property in California, supra, 20 UCLA L.Rev. at p. 426.) However, “[i]n centralized assessments, the valuation ordinarily is made by the unit method.” (Amdur, Telecommunications Property Taxation, supra, 46 Fed. Comm. L.J. at p. 222.)
Private railroad cars are considered personal property and are subject to a separate tax under California’s Private Railroad Car Tax Law. (Rev. & Tax. Code §§ 11201, 11401; Trailer Train Co. v. State Bd. of Equalization (9th Cir. 1983) 697 F.2d 860, 863.) “The tax rate for private railroad cars is the average rate of general property taxation for the preceding year.” {Trailer Train Co. v. State Bd. of Equalization, supra, 697 F.2d at p. 863; Rev. & Tax. Code, § 11401.) The private railroad car tax “is based on the value of the cars, the length of time they remain in the state, and the average statewide
In California, assessors have a statutory duty to “assess all property subject to general property taxation at its full value.” (Rev. & Tax. Code, § 401; see Rev. & Tax. Code, § 1361 et seq.) If an assessor discovers property has “escaped assessment,” i.e., has been underassessed or unassessed, he or she has a constitutional duty to levy retroactive assessments. (Rev. & Tax., Code §§ 531-531.7; 1 Ehrman & Flavin, Taxing Cal. Property, supra, §§ 14:01, p.l, 14.02, 14.03, pp. 6-9.) Moreover, the “assessor must apply a penalty assessment if the taxpayer willfully or fraudulently fails to report in [its] property statement tangible personal property used in a profession, trade or business or if [it] willfully or fraudulently reports the costs of [its] personal property inaccurately.” (1 Ehrman & Flavin, Taxing Cal. Property, supra, § 14:09, p. 21; Rev. & Tax. Code, §531.4; see also Rev. & Tax., Code §§ 482, 483, 485, 502, 504.) “Any taxpayer having the necessary knowledge may file with the board of supervisors an affidavit, alleging that certain property has escaped taxation through the wilful failure or neglect of the assessor, and giving the best description of the property that he can.” (Rev. & Tax. Code, § 1362.)
During the tax years at issue, the auditor was required to audit at least once every four years the books and records of any profession, trade, or business with locally assessable trade fixtures and business tangible personal property with a full value of $200,000 or more. (Rev. & Tax. Code, § 469.) “The provisions regarding mandatory audits do not prevent any assessor from conducting any other authorized audit.” (Cal. Taxes (Cont.Ed.Bar 1993 2d ed.) § 1.140, p. 122.)
The law generally “presumes that an assessor has performed [his or her] duty and has assessed all properties fairly and on an equal basis. The taxpayer has the burden of proving otherwise.” (2 Ehrman & Flavin, Taxing Cal. Property, supra, § 27:10, p. 18; see McDonnell Douglas Corp. v. County of Los Angeles (1974) 42 Cal.App.3d 59, 61 [116 Cal.Rptr. 759].)
B. Airlines’ Claims
The Airlines assert that the Court of Appeal erred in holding that there is no private right of action directly under former section 1513(d), and in concluding that the Airlines had failed to state a claim for relief under either former section 1513(d)(1)(A) or 42 United States Code section 1983. We address these arguments in turn.
In determining whether a federal statute creates a private right of action, we apply the now familiar test established by the United States Supreme Court in Cort v. Ash (1975) 422 U.S. 66 [45 L.Ed.2d 26, 95 S.Ct. 2080].
These factors are not accorded equal weight. (Touche Ross & Co. v. Redington (1979) 442 U.S. 560, 575 [61 L.Ed.2d 82, 95-96, 99 S.Ct. 2479].) Rather, “[t]he central inquiry [is] whether Congress intended to create, either expressly or by implication, a private cause of action. Indeed, the first three factors discussed in Cort—the language and focus of the statute, its legislative history, and its purpose . . . —are ones traditionally relied upon in determining legislative intent.” (Id. at pp. 575-576 [61 L.Ed.2d at p. 96].) “[W]hat must ultimately be determined is whether Congress intended to create the private remedy asserted . . . .” (Transamerica Mortgage Advisors, Inc. v. Lewis (1979) 444 U.S. 11, 15-16 [62 L.Ed.2d 146, 152, 100 S.Ct. 242].)
“Accordingly, we begin with the language of the statute itself.” (Transamerica Mortgage Advisors, Inc. v. Lewis, supra, 444 U.S. at p. 16 [62 L.Ed.2d at p. 152].) As noted above, former section 1513(d)(1)(A) proscribes, in part, state assessment of “air carrier transportation property at a value that has a higher ratio to the true market value of the air carrier transportation property than the ratio that the assessed value of other commercial and industrial property of the same type in the same assessment jurisdiction has to the true market value of the other commercial and industrial property,” and states that such an act “unreasonably burden[s] and discriminate[s] against interstate commerce.”
Second, there is evidence of legislative intent to create a private remedy. As noted earlier, other than the language expressly granting railroads and motor carriers jurisdiction in federal as well as state court, the 4-R and Motor Carrier Acts are in all relevant respects identical to former section 1513(d)(1)(A). A statute that is modeled on another, and that shares the same legislative purpose is in pari materia with the other, and should be interpreted consistently to effectuate congressional intent. (See Oscar Mayer & Co. v. Evans (1979) 441 U.S. 750, 756 [60 L.Ed.2d 609, 616, 99 S.Ct. 2066] [“Since the ADEA and Title VII share a common purpose, the elimination of discrimination in the workplace, since the language of § 14(b) is almost in haec verba with § 706(c), and since the legislative history of § 14(b) indicates that its source was § 706(c), we may properly conclude that Congress intended that the construction of § 14(b) should follow that of § 706(c).”].) Defendants concede both the 4-R and the Motor Carrier Acts grant plaintiffs a private right of action. (Cf. Cannon v. University of Chicago, supra, 441 U.S. at pp. 695, 696 [60 L.Ed.2d at pp. 574-575] [title IX and title VI “use identical language to describe the benefited class” and “when Title IX was enacted, the critical language in Title VI had already been construed as creating a private remedy”].) Thus, while Congress did not include an express exemption to the Tax Injunction Act in former section
Third, a private right of action is “consistent with the underlying purposes of the legislative scheme.” As evident from the statutory language and its legislative history, Congress enacted former section 1513(d) to prohibit property tax discrimination against airlines. Enabling airlines to bring an action challenging an allegedly discriminatory ad valorem tax furthers this legislative goal.
Finally, while taxation is an area “traditionally relegated to state law” and “basically the concern of the States,” in enacting former section 1513(d), Congress intended to interfere with state taxation. It expressly limited the states’ authority with respect to airline property taxation, deeming discriminatory taxation an impermissible burden on interstate commerce. (See Cannon v. University of Chicago, supra, 441 U.S. at p. 708 [60 L.Ed.2d at p. 582] [fourth Cort factor not implicated “by a prohibition against invidious discrimination of any sort”].)
The Counties contend that Congress did not intend to grant the Airlines a private tight of action under former section 1513(d) because it placed this section in the Federal Aviation Act (FAA). (Former 49 U.S.C. Appen. § 1301 et seq.) They rely on Air Transport Ass’n v. City of Los Angeles (C.D.Cal. 1994) 844 F.Supp. 550, 554-555, which appears to be in the minority in concluding that there is no private right of action under the AHTA, former 49 United States Code section 1513(a). (Cf. Northwest Airlines, Inc. v. County of Kent, Mich. (6th Cir. 1992) 955 F.2d 1054, 1058, affd. on other grounds, 510 U.S. 355, 365 [127 L.Ed.2d 183, 194, 114 S.Ct. 855, 862 (1994) [finding private right of action under AHTA]; Interface Group, Inc. v. Mass. Port Authority (1st Cir. 1987) 816 F.2d 9, 16 [finding
Moreover, former section 1513(d) does not refer to the “Secretary” or contain any other language demonstrating a “Congressional wish for an element of administrative expertise at the enforcement stage.” (Interface Group, Inc. v. Mass. Port Authority, supra, 816 F.2d at p. 14; id., at p. 16 [“absence of the word ‘Secretary’ from [former § 1513(a)] suggests that Congress did not consider it especially important to employ administrative expertise in the statute’s enforcement.”].) In contrast, former section 1513(e), added in 1990, makes numerous reference to the Secretary of Transportation, and sets forth an elaborate administrative scheme for imposing passenger facility charges. Had Congress intended that former section 1513(d) also be enforced administratively, it would have expressly so provided.
We therefore conclude that the Airlines have a private right of action under former section 1513(d), and that the trial court erroneously entered summary judgment on this ground.
2. Airlines’ Claim for Relief Under Former Section 1513(d)
We now turn to whether the Airlines have stated a claim for relief under former section 1513(d). As noted above, “ ‘[o]ur primary task is to determine whether the facts alleged provide the basis for a cause of action against defendants under any theory.’ ” (Alliance Mortgage Co. v. Rothwell, supra, 10 Cal.4th at p. 1232.)
The Airlines assert that they have stated a claim for relief under former section 1513(d) on the dual theories that 1) despite the facial neutrality of California’s taxation system, they suffer de facto discrimination because other commercial and industrial property is underassessed or goes entirely unassessed, and 2) railroad personal property is assessed at a lower percentage of full market value than the Airlines’ personal property. We address these arguments in turn.
a) Inclusion of Underasessessed or Unassessed Property in the Comparison Class
The Airlines concede that under California law, all personal property is to be taxed at 100 percent of its fair market value. They contend,
De facto discrimination arises when state law is facially neutral, but its application nevertheless results in a disparity. (Clinchfield R. Co. v. Lynch (1981) 527 F.Supp. 784, 785, fn. 3, affd., Clinchfield R. Co. v. Lynch (4th Cir. 1983) 700 F.2d 126, 130; Discriminatory Demands, supra, 39 Vand. L. Rev. at p. 1119.) Such discrimination has been found to occur, for example, when a state’s reassessment procedures require railroad property to be assessed annually, but other forms of commercial or industrial property to be assessed less frequently, such as every five years. (Clinchfield R. Co. v. Lynch, supra, 700 F.2d at p. 130.) “As a consequence of this process, the interstate carriers pay higher taxes than most other commercial and industrial taxpayers because their assessments reflect current increases in true market value while delayed assessment of other property delays increases in their tax assessments.” (Discriminatory Demands, supra, 39 Vand. L.Rev. at pp. 1119-1120; Clinchfield R. v. Lynch, supra, 700 F.2d at p. 130.)
By contrast, “de jure” discrimination is typically created by state classification systems, i.e., when different classes of property are assessed at different percentages of full value. (Atchison, Topeka & Santa Fe Ry. v. State ofAriz. (D.Ariz. 1983) 559 F.Supp. 1237, 1243; Burlington Northern R. Co.. v. Lennen (10th Cir. 1983) 715 F.2d 494, 497; Discriminatory Demands, supra, 39 Vand. L.Rev. at p. 1119 [“State property tax classification systems are typical forms of de jure discrimination.”]; Amdur, Telecommunications Property Taxation, supra, 46 Fed. Comm. L.J. at p. 262.)
The Counties do not dispute the Airlines’ claim that former section 1513(d) prohibits both de facto and de jure discrimination. We agree. (See Burlington No. R. Co. v. Okla. Tax Comm’n (1987) 481 U.S. 454, 461-463 [95 L.Ed.2d 404, 412-413, 107 S.Ct. 1855]; Discriminatory Demands, supra, 39 Vand. L. Rev. at p. 1119 [former § 1513(d) “prohibits] both de jure and de facto discrimination”].) The question we consider, therefore, is whether unassessed and underassessed property is properly part of the comparison class of “other commercial and industrial property of the same type in the same assessment jurisdiction.” (Former § 1513(d)(1)(A).)
We are guided in our analysis by the high court’s opinion in Department of Revenue of Ore. v. ACF Industries, Inc., supra, 510 U.S. at pp. 342-344
The railroad argued that it would be “nonsensical for Congress to prohibit the States from imposing higher tax rates or assessment ratios upon railroad property than upon other taxed property, while at the same time permitting the States to exempt some or all classes of nonrailroad property altogether.” (Department of Revenue of Ore. v. ACF Industries, Inc., supra, 510 U.S. at p. 346 [127 L.Ed.2d at p. 177, 114 S.Ct. at p. 851].) The court rejected this argument, observing in part that “this is not a case in which the railroads— either alone or as part of some isolated and targeted group—are the only commercial entities subject to an ad valorem property tax. Cf. Burlington Northern R. Co. v. City of Superior, 932 F.2d 1185 (CA7 1991) (occupation tax on owners and operators of ‘iron ore concentrates docks,’ in practical effect, applied only to docks owned by one particular rail carrier). If such a case were to arise, it might be incorrect to say that the State ‘exempted’ the nontaxed property. Rather, one could say that the State had singled out railroad property for discriminatory treatment.” (Ibid.)
Here, the Counties assert that “[l]ike exempt property, personal property that inadvertently escapes taxation (notwithstanding the good faith efforts of the assessor) is not ‘taxed property’ and therefore should not be included as part of the comparison class.” This is not entirely correct. Escaped property, unlike exempt property, is by definition taxable; however, that tax has not been assessed or paid.
However, contrary to the Airlines’ assertion, we conclude that discrimination under former section 1513(d) is not demonstrated merely by the existence, through no fault of the assessor, of escaped commercial and
Moreover, any claim of de facto discrimination based on the unequal enforcement of otherwise neutral tax laws must consist of some practice or policy on the part of the assessor that has a discriminatory impact or effect. In this time of shrinking local revenue bases, county assessors may simply lack the resources necessary to discover or assess all items of taxable personal property in their jurisdiction. They are therefore compelled to make difficult decisions about the allocation of enforcement resources. As with legislation exempting specific personal property, so long as those enforcement decisions are reasonable, and are neither targeted to disadvantage nor have a disparate effect on a particular group such as the Airlines, we do not believe that Congress intended to condemn the resulting assessment ratios as acts that “unreasonably burden and discriminate against” interstate commerce within the meaning of former section 1513(d). (See Burlington No. R. Co. v. Okla. Tax Comm’n, supra, 481 U.S. at p. 463 [95 L.Ed.2d at p. 413] [former 49 U.S.C. § 11503(b) prohibits “systematic undervaluation of other commercial and industrial property”]; CSX Transp. v. Tennessee State Bd. of Equalization (M.D.Tenn. 1992) 801 F.Supp. 28, 32 [evidence shows local assessors doing adequate job in discovery and valuation of personal property, not systematic undervaluation and underreporting].)
The Airlines argue that they are not required to demonstrate discriminatory intent. We agree that claims under former section 1513(d) are not limited to claims of intentional discrimination. (See Burlington No. R. Co. v. Okla. Tax Comm’n, supra, 481 U.S. at p. 463 [95 L.Ed.2d at p. 413] [former 49 U.S.C. § 11503(b) “speaks only in terms of ‘acts’ which ‘unreasonably burden and discriminate against interstate commerce’; nowhere does it refer to the intent of the actor.”].) However, in order to prevail on a claim under former section 1513(d), the Airlines must demonstrate some unreasonably disparate impact or effect on the assessment of their property that results from the action or inaction of the assessor. (See Burlington Northern R. Co. v. James (8th Cir. 1990) 911 F.2d 1297, 1300 [plaintiff railroad need not prove that a state intended to discriminate; it need only show that the tax has a discriminatory effect]; Louisville & Nashville R. Co. v. Dept. of Rev., etc. (11th Cir. 1984) 736 F.2d 1495, 1498 [“[discriminatory intent is not a precondition to recovery once disparate impact is shown”], italics added; CNW. v. Webster County Bd. ofSup’rs (N.D. Iowa 1995) 880 F.Supp. 1290,
Moreover, the Airlines bear the burden of demonstrating a practice or policy on the assessor’s part that is either targeted to disadvantage or that has an unreasonably disparate effect on the Airlines because it results in significant amounts of unassessed or underassessed other commercial and industrial personal property. (Cf. Atchison, Topeka and Santa Fe Ry. Co. v. Lennen (10th Cir. 1984) 732 F.2d 1495, 1500-1501 [plaintiff’s “real burden is to prove the true market and assessed values of ‘all other commercial and industrial property.’ ”].) As noted earlier, in California, assessors have a duty to “assess all property subject to general property taxation at its full value.” (Rev. & Tax. Code, § 401; see Rev. & Tax. Code, § 1361 et seq.) If an assessor discovers property has been underassessed or unassessed, he or she has a constitutional duty to levy retroactive assessments. (1 Ehrman & Flavin, Taxing Cal. Property, supra, § 14:01, p. 1.) The law generally “presumes that an assessor has performed [his or her] duty and has assessed all properties fairly and on an equal basis. The taxpayer has the burden of proving otherwise.” (2 Ehrman & Flavin, Taxing Cal. Property, supra, § 27:10, p. 18; see McDonnell Douglas Corp. v. County of Los Angeles, supra, 42 Cal.App.3d at p. 61.) Here, that burden would include adducing evidence of the Counties’ assessment practices that the Airlines assert demonstrate unequal enforcement of the ad valorem tax laws, and the discriminatory impact of those practices. Such evidence may include the regularity and effectiveness of County audits of personal property having a significant value, and the existence, performance, and effectiveness of any other County procedures to discover underreported or undervalued property. (See CSX Transp. v. Tennessee State Bd. of Equalization, supra, 801 F. Supp. at pp. 32-33 [evidence regarding assessment practices failed to demonstrate that commercial and industrial property appraised by local tax assessors substantially below market value].)
We note that unlike the 4-R and Motor Carrier Acts, which both require a 5 percent disparity in assessment ratios before a federal district court may assume jurisdiction, nothing in former section 1513(d) delineates the level of disparity in assessment ratios required to violate that statute. The Airlines assert that “[any] disparity violates the statute.” (See Discriminatory Demands, supra, 39 Vand. L.Rev. at p. 1148 [Former “[s]ection 1513(d) does not establish any threshold requirements to invoke the court’s remedial powers. A court, therefore, may prohibit any minor variation in assessment
As noted, the Airlines alleged that their property was “assessed at a value bearing a higher ratio to its true market value than the ratio that the assessed value of other commercial and industrial property in the county has to its true market value in violation of [former] 49 U.S.C. Section 1513.” This language adequately states a claim under former section 1513(d) of de facto discrimination based on unequal enforcement of the tax laws. In order to prevail on such a claim, however, the Airlines must demonstrate that any unassessed and underassessed personal property results from a practice or policy on the assessor’s part that is either targeted to disadvantage or that has an unreasonably disparate effect on the Airlines. Under these circumstances, unassessed and underassessed property is properly included in the comparison class of “other commercial and industrial property of the same type in the same assessment jurisdiction.” (Former § 1513(d)(1)(A); see Richmond, Fredericksburg & Potomac R. Co. v. Forst (4th Cir. 1993) 4 F.3d 244, 250, fn. 14 [consistent undervaluation of all other commercial and industrial property gives rise to claim under 4-R Act].)
b) Inclusion of Railroad Personal Property in the Comparison Class
The Airlines also assert assessment ratio discrimination because their personal property is assessed at 100 percent of full market value, but railroad personal property is assessed at 70 percent of full market value. Once again, the question we consider is whether railroad property is properly included in the comparison class of “other commercial and industrial property of the same type.” (Former § 1513(d)(1)(A).)
The Counties do not dispute the Airlines’ claim that railroad property is assessed by the State Board of Equalization at less than 100 percent of full value. Our research has indicated that during at least two of the years at issue, the board applied an assessment ratio of less than 100 percent to the value of “all rail transportation property in an effort to remove the equalization issue from possible petitions for reassessment and eliminate further
The Counties contend, however, that the comparison class under former section 1513(d) does not include railroad property. They assert two bases: (1) railroad personal property is transportation property and thus excluded under former section 1513(d), and (2) railroad personal property is not of the “same type” as Airline personal property within the meaning of former section 1513(d). Because we agree with the Counties that railroad property is transportation property, we do not reach their second contention.
As noted earlier, former section 1513(d)(1)(A) prohibits a state from “assessing] air carrier transportation property at a value that has a higher ratio to the true market value of the air carrier transportation property than the ratio that the assessed value of other commercial and industrial property of the same type in the same assessment jurisdiction has to the true market value of the other commercial and industrial property.” “ ‘[A]ir carrier transportation property’ means property, as defined by the Civil Aeronautics Board, owned or used by an air carrier providing air transportation.” (Former § 1513(d)(2)(C).) “‘[C]ommercial and industrial property’ means property, other than transportation property and land used primarily for agricultural purposes or timber growing, devoted to a commercial or industrial use and subject to a property tax levy.” (Former § 1513(d)(2)(D).)
The Airlines assert that “transportation property” means “air carrier transportation property,” and thus the only property (relevant to the issues in this case) excluded from the comparison class of other commercial and industrial property is airline, not railroad property. They argue that the exclusion of “transportation property” from the definition of other commercial and industrial property merely acknowledges that assessments on airline property must be compared with assessments on nonairline property. However, we generally do not construe different terms within a statute to embody the same
As noted earlier, the 4-R and the Motor Carrier Acts also exclude “transportation property” from their definitions of other commercial and industrial property. Moreover, just as former section 1513(d) refers to “air carrier transportation property,” the 4-R Act and the Motor Carrier Act respectively refer to “rail transportation property” and “motor carrier transportation property.” Thus, it is unnecessary for us to comprehensively define “transportation property” or enumerate all of the property that could constitute “transportation property.” It is apparent that at least as among these three companion statutes, “transportation property” encompasses not only airline, but rail and motor carrier transportation as well.
Moreover, Congress’s purpose in enacting former section 1513(d), the 4-R Act, and the Motor Carrier Act was to forbid discrimination against all three entities, railroads, motor carriers, and airlines. Given the strong federal statutory policy against property tax discrimination involving these carriers, it is unlikely that Congress intended to include other forms of transportation property in the comparison class of “other commercial and industrial property.”
The Airlines assert that as originally enacted in 1976, the 4-R Act defined “transportation property” as “transportation property, as defined in regulations of the Commission, which is owned or used by a common carrier by railroad subject to this part or which is owned by the National Railroad Passenger Corporation.” (Pub.L. No. 94-210 (Feb. 5, 1976) § 306, 90 Stat. 31, 55.) This language was changed and recodified at former 49 United States Code section 11503 as part of the Revised Interstate Commerce Act of 1978. (Pub.L. No. 95-473, 92 Stat. 1445-1446; Atchison, T. & S. Ry. Co. v. Lennen (10th Cir. 1981) 640 F.2d 255, 257-258.) These revisions were not intended to change the law. (Pub.L. No. 95-473, 92 Stat. 1466 [these “sections may not be construed as making a substantive change in the laws replaced”]; Burlington No. R. Co. Co. v. Okla. Tax Comm’n, supra, 481 U.S. at p. 457, fn. 1 [95 L.Ed.2d at p. 409].) Thus, the Airlines argue that because it was apparent under the former language of the 4-R Act that “transportation property” meant railroad property, not all entities that engaged in transportation, the term “transportation property” in former section 1513(d)(2)(D) must also mean air carrier property, and not all transportation property.
However, we have already noted that while the original version of the 4-R Act referred only to “transportation property,” the amended version refers to
In addition, the Airlines assert that prior to the 1982 passage of former section 1513(d), one court had concluded that under the 4-R Act, airlines were part of the comparison class for railroads. (Ogilvie v. State Bd. of Equalization (8th Cir. 1981) 657 F.2d 204, 209.) Congress generally is presumed to be aware of judicial interpretation of a statute, and to adopt that interpretation when it enacts a new law incorporating sections of a prior law. (Lorillard v. Pons (1978) 434 U.S. 575, 580-581 [55 L.Ed.2d 40, 45-56, 98 S.Ct. 866].) Ogilvie did not, however, focus on the issue of whether airlines were transportation property. Rather, the court concluded that both locally and centrally assessed property were included in the comparison class for railroads, and then noted without discussion that the comparison class also included airlines. (657 F.2d at pp. 208-209.) Accordingly, we are not compelled to conclude, based on a fleeting reference in a single case, that Congress intended the comparison class for airlines to include railroad property.
In sum, we conclude that railroad property is transportation property within the meaning of former section 1513(d)(2)(D). The trial court therefore properly granted summary judgment on this basis.
3. Cause of Action Under 42 United States Code Section 1983
The Airlines assert that they have a cause of action under 42 United States Code section 1983. As the Court of Appeal observed, this claim was not addressed by the parties in the summary judgment proceedings below. Accordingly, because we reverse the entry of summary judgment on other
Conclusion
The judgment of the Court of Appeal affirming the entry of summary judgment is reversed, and the case is remanded to that court for further proceedings consistent with this opinion.
Lucas, C. J., Mosk, J., Baxter, J., George, J., and Werdegar, J., concurred.
Retired Associate Justice of the Supreme Court sitting under assignment by the Chairperson of the Judicial Council.
This section is now codified in substantially the same form at 49 United States Code section 40116(d). Former section 1513(d), to which the parties refer, was in effect during the tax years at issue (1985-1989).
The airlines are Alaska Airlines, Inc.; American Airlines, Inc.; Continental Airlines, Inc.; Delta Air Lines, Inc.; Federal Express Corporation; Northwest Airlines, Inc.; Trans World Airlines, Inc.; United Airlines, Inc.; United Parcel Service; and USAir, Inc.
The counties are Alameda, Contra Costa, El Dorado, Fresno, Humboldt, Kern, Los Angeles, Monterey, Orange, Riverside, Sacramento, San Bernardino, San Diego, San Joaquin, San Mateo, Santa Barbara, Santa Clara, and Solano.
During the tax years in question, former section 1513(d) provided:
“(d) Acts which unreasonably burden and discriminate against interstate commerce; definitions.
(1) The following acts unreasonably burden and discriminate against interstate commerce and a State, subdivision of a State, or authority acting for a State or subdivision of a State may not do any of them:
“(A) assess air carrier transportation property at a value that has a higher ratio to the true market value of the air carrier transportation property than the ratio that the assessed value of other commercial and industrial property of the same type in the same assessment jurisdiction has to the true market value of the other commercial and industrial property;
“(B) levy or collect a tax on an assessment that may not be made under subparagraph (A) of this paragraph; or
“(C) levy or collect an ad valorem property tax on air carrier transportation property at a tax rate that exceeds the tax rate applicable to commercial and industrial property in the same assessment jurisdiction.
“(2) In this subsection—
“(A) ‘Assessment’ means valuation for a property tax levied by a taxing district;
“(B) ‘assessment jurisdiction’ means a geographical area in a State used in determining the assessed value of property for ad valorem taxation;
“(C) ‘air carrier transportation property’ means property, as defined by the Civil Aeronautics Board, owned or used by an air carrier providing air transportation;
“(D) ‘commercial and industrial property’ means property, other than transportation property and land used primarily for agricultural purposes or timber growing, devoted to a commercial or industrial use and subject to a property tax levy; and
“(E) ‘State’ shall include the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the District of Columbia, the territories or possessions of the United States, and political agencies of two or more States.
“(3) This subsection shall not apply to any in lieu tax which is wholly utilized for airport and aeronautical purposes.”
The Airlines conceded for the purposes of the Counties’ motion that their property was not assessed at more than 100 percent of its fair market value.
These federal constitutional claims were not raised by either party in this court and are therefore not before us. Likewise, the Airlines argued in the trial court that they had a viable discrimination cause of action because “[c]ertain key classifications of commercial and industrial personal property are exempt from property taxation altogether.” The United States Supreme Court subsequently rejected a similar argument under analogous provisions of the Railroad Revitalization and Regulatory Reform Act of 1976, former 49 United States Code section 11503. (Department of Revenue of Ore. v. ACF Industries, Inc. (1994) 510 U.S. 332, 343 [127 L.Ed.2d 165, 175, 114 S.Ct. 843, 849].) Accordingly, the Airlines have abandoned this claim on appeal. In addition, the Airlines sought declaratory relief “as to whether the ad valorem property taxes which they paid ... for the 1985,1986,1987, and 1988 and 1989 tax years were lawfully assessed and collected.” The trial court granted the Counties’ motion for summary adjudication as to this cause of action. The Airlines have not pursued this claim in this court. Finally, the issue of whether the Airlines’ claims are subject to a statute of limitations defense is not before us, and we express no opinion on it.
In addition, the Counties moved for summary adjudication as to certain causes of action on the ground that the Airlines failed to exhaust their state administrative remedies prior to filing their refund actions. The trial court denied this motion. Therefore, the exhaustion issue as to the refund claims was not addressed by the Court of Appeal and is not before this court.
This section is now codified in substantially the same form at 49 United States Code section 11501. Former section 11503, to which the parties refer, was in effect during the tax years at issue. During this period, it provided:
“(a) In this section—
“(1) ‘assessment’ means valuation for a property tax levied by a taxing district.
“(2) ‘assessment jurisdiction’ means a geographical area in a State used in determining the assessed value of property for ad valorem taxation.
“(3) ‘rail transportation property’ means property, as defined by the Interstate Commerce Commission, owned or used by a rail carrier providing transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title.
“(4) ‘commercial and industrial property’ means property, other than transportation property and land used primarily for agricultural purposes or timber growing, devoted to a commercial or industrial use and subject to a property tax levy.
“(b) The following acts unreasonably burden and discriminate against interstate commerce, and a State, subdivision of a State, or authority acting for a State or subdivision of a State may not do any of them:
“(1) assess rail transportation property at a value that has a higher ratio to the true market value of the rail transportation property than the ratio that the assessed value of other*1121 commercial and industrial property in the same assessment jurisdiction has to the true market value of the other commercial and industrial property.
“(2) levy or collect a tax on an assessment that may not be made under clause (1) of this subsection.
“(3) levy or collect an ad valorem property tax on rail transportation property at a tax rate that exceeds the tax rate applicable to commercial and industrial property in the same assessment jurisdiction.
“(4) impose another tax that discriminates against a rail carrier providing transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title.
“(c) Notwithstanding section 1341 of title 28 [the Tax Injunction Act] and without regard to the amount in controversy or citizenship of the parties, a district court of the United States has jurisdiction, concurrent with other jurisdiction of courts of the United States and the States, to prevent a violation of subsection (b) of this section. Relief may be granted under this subsection only if the ratio of assessed value to true market value of rail transportation property exceeds by at least 5 percent, the ratio of assessed value to true market value of other commercial and industrial property in the same assessment jurisdiction. The burden of proof in determining assessed value and true market value is governed by State law. If the ratio of the assessed value of other commercial and industrial property in the assessment jurisdiction to the true market value of all other commercial and industrial property cannot be determined to the satisfaction of the district court through the random-sampling method known as a sales assessment ratio study (to be carried out under statistical principles applicable to such a study), the court shall find, as a violation of this section—
“(1) an assessment of the rail transportation property at a value that has a higher ratio to the true market value of the rail transportation property than the assessed value of all other property subject to a property tax levy in the assessment jurisdiction has to the true market value of all other commercial and industrial property; and
“(2) the collection of an ad valorem property tax on the rail transportation property at a tax rate that exceeds the tax ratio rate applicable to taxable property in the taxing district.”
This section is now codified in substantially the same form at 49 United States Code section 14502. Former 49 United States Code section 11503a, to which the parties refer, was in effect during the tax years at issue. During this time, it provided:
“(a) In this section—
“(1) ‘assessment’ means valuation for a property tax levied by a taxing district;
“(2) ‘assessment jurisdiction’ means a geographical area in a State used in determining the assessed value of property for ad valorem taxation;
“(3) ‘motor carrier transportation property’ means property, as defined by the Interstate Commerce Commission, owned or used by a motor carrier providing transportation in interstate commerce whether or not such transportation is subject to the jurisdiction of the Commission under subchapter II of chapter 105 of this title; and
“(4) ‘commercial and industrial property’ means property, other than transportation property and land used primarily for agricultural purposes or timber growing, devoted to a commercial or industrial use and subject to a property tax levy.
“(b) The following acts unreasonably burden and discriminate against interstate commerce and a State, subdivision of a State, or authority acting for a State or subdivision of a State may not do any of them:
“(1) assess motor carrier transportation property at a value that has a higher ratio to the true market value of the motor carrier transportation property than the ratio that the assessed value*1122 of other commercial and industrial property in the same assessment jurisdiction has to the true market value of the other commercial and industrial property;
“(2) levy or collect a tax on an assessment that may not be made under paragraph (1) of this subsection;
“(3) levy or collect an ad valorem property tax on motor carrier transportation property at a tax rate that exceeds the tax rate applicable to commercial and industrial property in the same assessment jurisdiction.
“(c) Notwithstanding section 1341 of title 28 [the Tax Injunction Act] and without regard to the amount in controversy or citizenship of the parties, a district court of the United States has jurisdiction, concurrent with other jurisdiction of courts of the United States and the States, to prevent a violation of subsection (b) of this section. Relief may be granted under this subsection only if the ratio of assessed value to true market value of motor carrier transportation property exceeds by at least 5 percent, the ratio of assessed value to true market value of other commercial and industrial property in the same assessment jurisdiction. The burden of proof in determining assessed value and true market value is governed by State law. If the ratio of the assessed value of other commercial and industrial property in the assessment jurisdiction to the true market value of all other commercial and industrial property cannot be determined to the satisfaction of the district court through the random-sampling method known as a sales assessment ratio study (to be carried out under statistical principles applicable to such a study), the court shall find, as a violation of this section—
“(1) an assessment of the motor carrier transportation property at a value that has a higher ratio to the true market value of the motor carrier transportation property than the assessment value of all other property subject to a property tax levy in the assessment jurisdiction has to the true market value of all such other property; and
“(2) the collection of ad valorem property tax on the motor carrier transportation property at a tax rate that exceeds the tax ratio rate applicable to taxable property in the taxing district.”
In 1982, Congress passed the Tax Equity and Fiscal Responsibility Act (TEFRA), a comprehensive bill which included the AAIA, and added former section 1513(d) to the Airport Development Acceleration Act of 1973. (Western Air Lines v. Board of Equalization (1987) 480 U.S. 123, 125 [94 L.Ed.2d 112, 116-117, 107 S.Ct. 1038]; State Bd. of Equal, v. American Airlines, Inc. (Colo. 1989) 773 P.2d 1033, 1034-1035, fn. 1.) The legislative history of former section 1513(d) is limited, simply stating “This section provides that States may not tax at a level which unreasonably burdens or discriminates against interstate commerce. The provision makes current law which prohibits the assessment, levying or collecting of taxes on motor carrier property in a manner different from that of other commercial and industrial property, applicable to air carriers.” (Sen.Rep. No. 97-494, 2d Sess., p. 37 (1982), reprinted in 1982 U.S. Code Cong. & Admin. News at pp. 781, 1188, 1484.)
The Tax Injunction Act provides: “The district courts shall not enjoin, suspend or restrain the assessment, levy or collection of any tax under State law where a plain, speedy and efficient remedy may be had in the courts of such State.” (28 U.S.C. § 1341.)
“The question whether a federal statute creates a claim for relief is not jurisdictional.” (Northwest Airlines, Inc. v. County of Kent (1994) 510 U.S. 355, 365 [127 L.Ed.2d 183, 194, 114 S.Ct. 855, 862] [assuming without deciding that private right of action exists under the federal Anti-Head Tax Act (AHTA) former 49 U.S.C Appen. § 1513(a)].)
In addition, as a result of “long-term federal litigation based on the [4-R] Act,” during at least two of the years at issue the board applied a less than 100 percent ratio to the value of private railroad cars. (State Bd. of Equalization, Ann. Rep. for 1987-1988 at p. 30 [68 percent for 1988-1989]; State Bd. of Equalization, Ann. Rep. for 1989-1990, p. 29 [68 percent in 1989- 1990, and “will be 70.38 percent” for 1990-1991].) “Private railroad cars are considered personal property and are subject to a separate tax under California’s Private Railroad Car Tax Law.” (Trailer Train Co. v. State Bd. of Equalization, supra, 697 F.2d at p. 863; Rev. & Tax. Code, § 11401.) Private railroad cars do not include railroad cars owned by a railroad company, which are taxed on a unitary basis. The parties here do not distinguish between private railroad cars and other railroad property.