City and County of San Francisco v. Regents of the University of California

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For over 40 years, San Francisco has had an ordinance that imposes a tax on parking lot users for the “rent” paid to occupy private parking spaces. Since 1980, the amount of the tax has been 25 percent of the rent; parking lot users owe the tax, but parking lot operators are required to collect the tax when the users pay to park and periodically remit it to San Francisco. The ordinance states it is not to be construed as imposing a tax on the state or its political subdivisions but those “exempt” entities must “collect, report, and remit” the tax. The universities operate parking lots on property that is close to university facilities and is mostly owned by the state; they have never collected or remitted city parking taxes. In 2011, San Francisco directed the universities to start collecting and remitting the tax. After the universities refused, San Francisco unsuccessfully sought to compel compliance, citing its “home rule” powers. The court of appeals agreed that the universities are immune from compliance with the ordinance because they have not expressly consented to collecting and remitting the tax and their parking-lot operations are a governmental, not a proprietary, function. View "City and County of San Francisco v. Regents of the University of California" on Justia Law