City of Los Angeles v. Moore Business Forms, Inc.

Moore Business Forms, Inc., hereinafter referred to as Moore, appeals from a judgment in favor of the City of Los Angeles, hereinafter referred to as the City, for business taxes attributable to Moore’s out-of-city sales for the years 1957 through 1961 pursuant to Los Angeles Municipal Code sections 21.166 and 21.167 as implemented by City Clerk’s Ruling No. 14. We have determined that Moore’s liability for tax on the privilege of carrying on its business within the City was properly apportioned and we affirm the judgment of the trial court.

Section 21.166 provides for the taxing of the privilege of carrying on a wholesale business in the City while section 21.167 provides for the taxing of the privilege of carrying on a retail business in the City by applying in each case the established tax rate to the properly allocable portion of the taxpayer’s gross receipts. The guidelines for determining the proportion of the taxpayer's activities within the City which produce gross receipts from sales to customers outside the City limits are provided by the City Clerk’s Ruling No. 14 which was promulgated following and pursuant to the decisions of the California Supreme Court in City of…