Legal Question in Real Estate Law in California

Yes, I'm pretty sure it can. The theory is that any private (non-governmental) user of land ought to pay property taxes. When land is privately owned and privately leased, the tax falls on the owner (which can, of course, shoulder off the expense to its tenant). When the land is owned by a non-tax-paying (governmental) entity, the Board of Equalization may assess the lessee based on the value of the leasehold estate. Don't ask me for a citation; I'm not that familiar with the Revenue & Taxation Code.