Hugo Neu Corp. v. County of Los Angeles

In this action, tried on a stipulation of facts and attached exhibits, plaintiff corporation sought to recover property taxes paid under protest. Plaintiff filed a complaint pursuant to Revenue and Taxation Code section 5138, alleging that defendants had levied a tax on scrap iron in violation of article I, section 10, clause 2 of the United States Constitution, the export clause. The trial court made findings of fact and conclusions of law and, by memorandum opinion, rendered judgment for defendants. Plaintiff has appealed.

Hugo Neu Corporation, the plaintiff, during the tax year concerned, was an exporter of iron and steel scrap. On March 10, 1961, plaintiff entered into a “long range agreement” with several Japanese corporations which provided that, during a period beginning in April 1961 and ending in March 1962, if the Japanese buyers notified the sellers of the amount ordered, plaintiff would sell prepared scrap of a specified composition. After entering into the agreement, plaintiff purchased 8,345 long tons of prepared scrap of the type covered by the agreement and, between November 1, 1961, and March 3, 1962, shipped it by railroad common carrier to its storage depot at…