People v. Webb Bros.

PLUMMER, J. This is an appeal by the defendants from a judgment awarding the plaintiff the sum of $971.52 license fees assessed against the defendants for the quarter ending 1926, under and in accordance with the provisions of chapter 412, Statutes of 1925, imposing a tax of four per cent upon the gross proceeds for the operation of motor vehicles upon the public highway.

On November 2, 1926, the people of the State of California amended article XIII of the Constitution by adding thereto section 15. This section imposes a license tax upon persons operating motor vehicles of the hind therein described, upon the public highways of the state. This section also contains a provision that nothing therein shall affect any taxes levied or assessed prior to the adoption of the section.

[336]Notwithstanding the decision of the Supreme Court in the case of People v. Borderland Express, 218 Cal. 680 [24 Pac. (2d) 823], holding in a ease the exact parallel of the one under consideration that the contention of the appellants is untenable, the argument is presented that under the holding had in the case of San Francisco v. Pacific Telephone & Telegraph Co., 166 Cal. 244 [135 Pac. 971], judgment should have been entered in favor of the appellants, the contention being that the holding in the Borderland Express case is incorrect and not in consonance with the reasoning of the Supreme Court in the case of Pacific Telephone & Telegraph Company. A careful review of the two cases leads us to the conclusion that there is no conflict in the rules of law therein set forth.

In the case of Pacific Telephone & Telegraph Company, supra, the action involved a license tax for the first two quarters of tire year 1911. Section 14 of article XIII of the Constitution involved in that action was adopted on November 8, 1910, and became effective as a part’ of the Constitution immediately upon its adoption, but its operative effect upon the license taxes involved began with the first day of January of the year 1911.

The second paragraph of subdivision “b” of section 15 of article XIII reads: ‘ ‘ The taxes herein provided for shall become a lien upon the first Monday in March of each year after the adoption of this section, and shall become due and payable on the first Monday in July thereafter.” Thus, while it is a settled law that an amendment to the Constitution becomes effective as a part of the Constitution upon its adoption by the voters of the state, its operative effect upon the subject matter therein contained may begin at a later date. This we think clearly appears to be the true consideration that should be given to the operation of section 15 of article XIII of the Constitution quoted above.