United States v. City of Los Angeles

DECISION, FINDINGS OF FACT AND CONCLUSIONS OF LAW, AND ORDER FOR JUDGMENT FOR PLAINTIFF

This is an action for enforcement of Internal Revenue levy and for collection of Internal Revenue taxes for failure to honor levy. Jurisdiction is conferred upon this Court by 28 U.S.C. Sections 1340 and 1345 and 26 U.S.C. Section 7402 . The specific question posed is whether a tax lien of the United States, hereafter the Government, perfected prior to and superior to a State tax lien is subordinated by the State lien under the State’s theory that their lien is that of a judgment creditor which under Federal law, takes priority over a Government lien which has not been filed.

The facts are not in dispute. On March 4, 1970, the Los Angeles Police Department arrested Ronald Holman and pursuant to a valid search warrant seized from him $13,320.03 in United States currency. At the time of his arrest, Ronald Holman had in his possession ten pounds of hashish and marihuana. On March 5, 1970, before 3:30 p.m., the United States Internal Revenue Service made a jeopardy assessment for excise tax (marihuana) in the amount of $16,000.00 and on the same day left a notice and demand at his last known…