Sears, Roebuck & Co. v. County of Kings

Opinion

FRANSON, J.

This appeal involves the propriety of respondent’s assessment of $37,031.97 in ad valorem personal property taxes on

[448]

imported tires owned by appellant and stored in two warehouses in Kings County on March 1, 1971. Appellant claims immunity from the tax under the import-export clause of the United States Constitution (art. I, § 10, cl. 2). The trial court held that the tires had lost their immunity when they were delivered to the warehouses, either in bulk lots or in sea vans, and commingled with other tires. Under the authority of

Michelin Tire Corp.

v.

Wages

(1976) 423 U.S. 276 [46 L.Ed.2d 495,96 S.Ct. 535], and

Ralston Purina Co.

v.

County of Los Angeles

(1976) 56 Cal.App.3d 547 [128 Cal.Rptr. 556] (hg. den.), we conclude that the trial court correctly ruled that the assessment was lawful.

The facts are not in dispute. Appellant was an importer of steel-belted, radial-ply tires manufactured in Europe by Michelin. The tires were imported for sale through appellant’s retail stores in 11 western states.

Appellant had a contractual arrangement with Armstrong Rubber Company by which Armstrong would store the tires at its warehouses in Hanford, Kings County, and ship the tires to appellant’s retail stores pursuant to orders placed by appellant.

On the lien date, 74,656 Michelin tires were stored at the warehouses. The average turnover of a particular shipment of imported tires at the warehouses would be approximately three to four months’ time.

Discussion

Article I, section 10, clause 2 of the United States Constitution provides in part: “No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing its Inspection Laws; ...”