Japan Food Corp. v. County of Sacramento

This is an action for refund of personal property taxes paid by the plaintiff corporation under protest. (See Rev. & Tax. Code, § 5136 et seq.) The complaint sought a refund of taxes assessed by the defendant county for the taxable year 1972-1973 and also for refund of escaped tax assessments levied and collected by the defendant for the taxable years between 1968 and 1972. (See Rev. & Tax. Code, § 531 et seq.) The theory of recovery was that the taxed goods were exempt imports under the Constitution of the United States. After a court trial, judgment was rendered in favor of the plaintiff. The defendants county and city appeal.

The facts are not in dispute and may be summarized as follows: Plaintiff Japan Food Corporation is a California corporation with its principal office and headquarters located in San Francisco, and is engaged in the business of selling specialty Asian foods throughout the United States at a wholesale or jobber level.

Plaintiff carries on its business operations from the following branch offices: San Francisco, Los Angeles, New York, Chicago, Baltimore and Houston. The San Francisco branch operates a subsidiary branch in Sacramento. The instant…