Martinac v. County of San Diego

[172]

BROWN (Gerald), P. J.

Defendants County and City of San Diego appeal from judgments requiring them to refund ad valorem personal property taxes levied against the full value of plaintiffs’ fishing vessels

Boyal Pad fie

and

Southern Padfic

for the fiscal year July 1, 1964, to June 30, 1965.

Joseph S. Martinac, a lifelong resident of Tacoma, Washington, is president and general manager of J. M. Martinac Shipbuilding Corp., Tacoma. The Martinac Corporation built the

Boyal Pacific

and

Southern Padfic

at its Tacoma shipyard. The vessels’ majority owners reside in Tacoma. The vessels’ federal licenses and enrollments, registered at the United States Customs House, Tacoma, designate Tacoma as their home port and Joseph S. Martinac as their managing owner. Pierce County, Washington, collects personal property taxes assessed against the full value of both vessels.

During the 1964-1965 fiscal year, Joseph S. Martinac owned 20 percent of each vessel, and managed majority interests in them. He maintained the vessels’ bank accounts in Tacoma. The accounts required his signature on every check. The Martinac Corporation kept the vessels’ financial records, and expected to make any major repairs in Tacoma. Martinac authorized the vessels’ masters to hire crews, purchase fuel, manage the vessels at sea, and incur minor repair expense under $250.

The vessels fish in the eastern Pacific, ranging south to Peru, north to slightly north of San Diego. Not needing major repair, they have not been in Tacoma since construction. They enter foreign ports only for emergency repair. The vessels are at sea about 265 days each year. When a vessel is loaded with fish, the master contacts Martinac in Tacoma by radiotelephone. Martinac negotiates cargo insurance, investigates market prices and decides when to bring the vessel into port.

The American Tunaboat Association holds its fish auctions in San Diego. The masters usually attend the auctions. Through constant telephone communication with the masters about prices Martinac decides when to sell.