Redding Pine Mills, Inc. v. State Board of Equalization

WARNE, J. pro tem.

*

This is an appeal from a judgment denying a petition for a writ of mandate sought to compel the State Board of Equalization to quash a subpoena duces tecum issued by its secretary. Declaratory relief was also denied in the same proceeding.

The appellant Redding Pine Mills, Inc., is an Oregon corporation qualified to do business in California, and the appellant Robert B. Toogood is its secretary. On or about March 20, 1957, appellant Toogood, as secretary of Redding Pine Mills, Inc., was served with a subpoena duces tecum, which directed him to appear before one of the board’s appraisers at the time and place designated therein and to produce the corporation’s ledger and other books of account “recording historical cost data for buildings and structures, machinery and equipment of the lumber mill of said corporation . . . for all years from the date of installation or acquisition of said mill by said corporation to and including 1956,” and “the inventory records for 1956 . . . and the record of said corporation of its most recent physical inventory taken prior to March 5, 1956,” defining “inventory,” as used therein, to mean “merchandise, materials, work in process, finished products, and supplies for the lumber mill. . . ”

The trial court found, among other things, that Redding Pine Mills, Inc., is a so-called “common property” taxpayer whose properties in Shasta County are subject to assessment by the assessor of that county and not by the State Board of Equalization.

The trial court also found that the State Board of Equalization was, at the time of the issuance of the subpoena, making a survey in 16 counties of the state, including Shasta County, and a statistical survey in each of the remaining

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counties of the state to determine the relationship between the total value of land, improvements and personal property entered upon the local assessment roll by the county assessor and the total market value thereof to enable it to perform the duties required of it by section 9 of article XIII of the California Constitution.

Appellants contend that, since the corporation owns no property subject to assessment by the State Board of Equalization, it is not subject to regulation by the board and, therefore, the board exceeded the constitutional and statutory limits that are imposed upon the use of a subpoena in the absence of an issue followed by a hearing and an opportunity afforded them to have rulings that are subject to review on the materiality and admissibility of the demanded documents. On the other hand, respondents claim the right to inspect the subpoenaed documents in order to enable the board to perform the duties required of it by section 9 of article XIII of the California Constitution. That section of the California Constitution established the State Board of Equalization, and in part provides: