Sterling Liquor Distributors, Inc. v. County of Orange

Opinion

GRIFFIN, J.

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Defendants County of Orange and City of Buena Park appeal from two judgments for plaintiff in actions for refund of ad valorem property taxes. The cases were consolidated for trial and on appeal.

The facts are stipulated by the parties.

1. Plaintiff is an importer of liquor.

2. The imported liquors were kept in their original cartons upon receipt by plaintiff. They were separated from the domestic liquors and stacked in their unopened cases according to brand. The imported liquors were resold in their original unopened cases, except where individual orders were received for less than case lots. When orders for less than case lots were received, such orders were filled from a separate section of the warehouse known as the “repack area.” Only in that area were any broken cases to be found.

3. Plaintiff did not use the liquor for any purpose; it was retained by plaintiff at its warehouse until sold to plaintiff’s wholesale customers.

4. Defendants assessed ad valorem property taxes on the unopened cases of liquor held by plaintiff in the years 1966-67 and 1967-68. Plaintiff paid the taxes of $9,998.09 and $1,142.50 respectively for those two years under protest.

5. These suits for refund were timely .filed.

6. Following trial the court entered judgment for plaintiff in both cases for the full amount of the tax.

Issues on Appeal

“. . . [wjhether or not Article I, Section 10, Clause 2 of the United States Constitution precludes the levy of ... ad valorem property tax on goods

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imported for resale while such goods are held by the importer in their original packages.

“. . . [w]hether or not goods imported for sale should be treated in the same manner as goods imported for use (manufacture) for purposes of the California ad valorem property tax.”