Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2014
 

Property Tax Annotations


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P

660.0000 POSSESSORY INTEREST

Annotation 660.0365

660.0365 Vending Machines. A beverage manufacturer's right to occupy space in public schools for its vending machines and other equipment creates a possessory interest if the right is durable, exclusive, conveys a private benefit, and is sufficiently independent to constitute more than a mere agency. However, the possessory interest that arises from the agreement between the school district and the company is exempt as property used exclusively for public school purposes under section (3)(d) of article XIII of the California Constitution and section 202(a)(3) of the Revenue and Taxation Code. School districts are authorized to furnish food service in section 39871 of the Education Code; therefore, vending machines dispensing food items are a service that is directly related to and in furtherance of a public school purpose. Assuming that the beverages dispensed in the vending machines can be classified as a food product, the school district's agreement with the beverage company permits an incidental use of school property that is in furtherance of the primary purpose of the school district. C 10/4/2002.