Corrie v. County of Contra Costa

GOODELL, J. The 1949 Legislature enacted the “Alternative method of distribution of tax levies and collections and of tax sale proceeds” (Stats. 1949, ch. 1370, p. 2386; Rev. & Tax. Code, §§ 4701-4716). Its purpose as section 4701 declares is “to provide an alternative procedure for the distribution of property tax levies on the secured roll made by counties on their own behalf or as the tax-levying and tax-collecting agency for other political subdivisions” and “to accomplish a simplification of the tax-levying and tax-apportioning process and an increased flexibility in the use of available cash resources.”

The Board of Supervisors of Contra Costa County by resolution declared its intention to adopt the new system where[211]upon appellant commenced this taxpayer’s suit, contending that the new law is in conflict with section 31 of article IV and section 18 of article XI of the Constitution, and therefore void. The court held otherwise and this appeal was taken.

Section 31 of article IV provides:

“The legislature shall have no power to give or to lend, or to authorize the giving or lending, of the credit of the state, or of any county ... or other political corporation or subdivision of the state ... in aid of or to any person, association, or corporation, whether municipal or otherwise, or to pledge the credit thereof, in any manner whatever, for the payment of the liabilities of any individual, association, municipal or other corporation whatever; ...”

Appellant contends that the new system conflicts with section 31 since it “allows a credit to a political subdivision of the full amount of its tax assessments”, and permits such subdivision “to expend the amount of the assessments before any such taxes are collected.” Appellant says by way of illustration: "Thus a political body, such as a school district, is given full credit before any tax is actually collected, and such body will draw on and receive county moneys before they are actually collected from taxes.”

The principal legal question is whether such action runs counter to the Constitution, and the principal practical question is whether there is any more danger of loss to the county and its taxpayers under the new system than under the old.

“All tax liens attach annually as of noon on the first Monday in March preceding the fiscal year for which the taxes are levied” (Rev. & Tax. Code, § 2192) and “Every lien . . . has the effect of an execution duly levied against the property subject to the lien” (§ 2193 id.).