Olympic and Ga. Partners, LLC v. County of L.A.

Summary

The court held that the assessor properly included both the occupancy-tax revenue and the key-money payment in the hotel’s income-capitalization valuation because each reflected income derived from the taxable property or its beneficial use, rather than income attributable to enterprise activity. The court rejected a categorical rule requiring exclusion of all revenue flowing through a valuable intangible right and held that the assessor could not rely solely on a management-fee deduction to establish that the hotel’s identified enterprise assets had been fully excluded. The matter remained subject to further proceedings concerning the valuation and deduction of those enterprise assets.