Ships & Power Equipment Corp. v. County of San Diego

BARNARD, P. J. This action involves the validity of a personal property tax levied for the year 1947-48 upon cer[523]tain ships moored in San Diego harbor. The plaintiff paid the tax under protest and brought this action to recover the amount paid.

The cause was heard upon an agreed statement of facts. The plaintiff is a New Jersey corporation, and none of its officers reside in California. On December 4, 1946, it purchased from the United States Navy 33 seagoing vessels, being L. C. I. landing craft constructed for Navy use in transporting infantry troops in assault landings. On January 16, 1947, it purchased from the Navy a seagoing P. C. vessel constructed for use in patroling the seas. On February 15, 1947, it purchased from the Navy two L. S. M. landing craft, constructed for use in transporting troops and equipment in assault landings. All of these vessels had been thus used by the Navy during World War II. Each of said vessels was over 50 tons net burden, but none of them had ever been registered at any port in this state or engaged in the transporting of freight or passengers, or engaged in trade or commerce. None of them had at any time been registered or documented or enrolled, or licensed, or awarded a number by the United States or by any other country or jurisdiction.

The dates when these vessels were decommissioned do not appear, but they had all been decommissioned at San Diego harbor on or prior to March 25, 1946. They remained moored in that harbor at least until July 6, 1948, the date of the stipulation. During said time they were capable of being recommissioned and of operating on the high seas.

On March 3, 1947, the county assessor assessed a tax of $2,486.02 upon said vessels, which the plaintiff paid under protest and under a threat that otherwise the vessels would be seized and sold. None of said vessels had been assessed or taxed in New Jersey, or in .any other state or jurisdiction. The vessels are still owned by the plaintiff and have not been sold or otherwise disposed of.

It was further stipulated that the president of plaintiff corporation, if called as a witness, would testify: “At the times of the purchase of said vessels and each of them, it was the intention of plaintiff to operate or cause to be operated as seagoing vessels upon the Yangtse River in China, but because of the inflation in that country have not done so.” Also that on October 14, 1947, an authorized agent of the plaintiff wrote to a man in San Diego offering to sell to him ‘ ‘ all of the L. C. I.’s in San Diego” at a price of $7,500 each, or at a price of $6,200 each if all were taken at one time.