Montrose Chemical Corp. v. County of Los Angeles

This is an action to recover taxes which plaintiff paid to respondent county under protest. The taxes were levied by the respondents on certain chemical products which plaintiff contends are exempt from taxation, under the federal Constitution, as exports. The court concluded that the products had not entered the “export stream” and were not exempt from taxation. Plaintiff appeals from the judgment that it take nothing by its action.

Appellant contends that the products are exempt from taxation under article 1, section 10, clause 2, of the United States Constitution which provides that “No State shall . . . lay any Imposts or Duties on . . . Exports. . . . ”

The matter was submitted on the pleadings and a written stipulation of facts.

Plaintiff manufactures a chemical product referred to as “D.D.T. Technical,” which is used in the preparation of another chemical product referred to as “D.D.T. Concentrate.” By reason of its chemical properties, D.D.T. Concentrate cannot be sold in the domestic market (United States). Prior to the first Monday in March of the years 1961 and 1962, plaintiff contracted with the General Services Administration (G.S.A.) and the United Nations…