Ice Capades, Inc. v. County of Los Angeles

This is an appeal by a taxpayer from a judgment sustaining the imposition of an unapportioned county tax upon personal property of the taxpayer physically outside of the taxing county on the lien date because of its use in interstate commerce. We conclude that, to the extent the property had acquired a tax situs in a state other than California, the due process and commerce clauses of the United States Constitution preclude the imposition of tax without apportionment. We conclude, also, that the property here taxed had acquired a tax situs in New Jersey as well as in California. Accordingly, we reverse the judgment with directions that the trial court remand the matter .to the Los Angeles Board of Tax Appeals for application of a formula of apportionment.

Facts

Ice Capades is a Delaware corporation which, during the tax years here involved, had its principal place of business in Los Angeles County. It is in the business of staging ice shows throughout the United States and Canada. Ice Capades produces two separate shows, each presented by its own touring company. The companies are designated “East Show” and “West Show.” Each has its own stage equipment, props, and…