Globe Grain & Milling Co. v. County of Los Angeles

CONREY, P. J.

Plaintiff paid under protest a tax levied against it on solvent credits assessed as property of the plaintiff. Plaintiff’s demand for repayment of this tax having been refused, it brought this action. The defendant’s demurrer to the second amended complaint was sustained, and the plaintiff failed to make any further amendment. Thereupon, judgment was entered in favor of the defendant. Prom this judgment the plaintiff appeals.

In the complaint it is alleged that in the assessment of plaintiff’s property for the year 1919 by the county assessor of the county of Los Angeles there was wrongfully and unlawfully included as property belonging to the plaintiff solvent credits amounting to $1,559,850; that said assessment so set down was illegal and void in that plaintiff at 12 o’clock M., of the first Monday of March, 1919, owed debts and unsecured liabilities to

Iona fide

residents of the state of California and firms, associations, and corporations doing business in said state in excess of said sum, “which said debts and liabilities had been claimed as a deduction from said assessment by plaintiff”; that thereafter, in July, 1919, plaintiff duly appeared before the board of equalization of said county and requested that said assessment be changed by reducing said assessment of solvent credits to nothing; that said board of equalization upon a hearing of said request did reduce said assessment of solvent credits to $798,780, but failed and refused to reduce said solvent credits to nothing. The assessment and levy having followed in due course, the tax was paid under written protest duly filed.

It is alleged that the assessment and levy and the tax so paid were illegal and void by reason of the failure to allow for and deduct from the amount of solvent credits returned by the plaintiff, said debts and deductions allowed by law and claimed by the plaintiff, which consisted of unsecured liabilities owing by the plaintiff to

bona fide

residents of the state of California and to firms, associations, and corporations doing business therein; and that

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there were not at 12 o’clock M., on the first Monday of March, 1919, in the state of California, or subject to the jurisdiction of said county or state, any solvent credits owned by plaintiff subject to assessment or tax for said tax year 1919, had said debts and deductions allowed by law and claimed by plaintiff been allowed by said assessor and by said board of equalization.