County of San Diego v. Lafayette Steel Co.

Lafayette Steel Company, dba Ocean Systems Research Division (Lafayette) appeals a judgment following a court trial awarding the County of San Diego (County) $85,033.50 for unpaid taxes and penalties.

I

The parties stipulated to the facts and at the trial entered into other stipulations. No testimony was taken and no evidence was received.

Lafayette, a Michigan corporation with an office in Sitka, Alaska, owned the documented vessel Tradition, which was registered at Sitka. When operative, the vessel engaged in commercial fishing.

The Tradition arrived in San Diego in November 1977. During the period January 1-January 30 and March 6-December 31, 1978, the Tradition was moored in San Diego harbor undergoing repairs. The vessel made one trip, San Diego to Costa Rica and back February 1-March 5, 1978. The vessel was not in San Diego on March 1, 1978, the 1978 lien date for unsecured property taxes. Lafayette sold the vessel in February 1979 for $1.35 million through an escrow established with Bank of America’s main office in San Diego.

In May of 1980, Lafayette received from the County an unsecured property tax bill for $35,415 representing an “escape” assessment for…