City of Los Angeles v. Marine Wholesale/Warehouse Co.

Marine Wholesale/Warehouse Co., Inc. (Marine) appeals from a judgment granted in favor of the City of Los Angeles (City) in the amount of $10,034.06.

We affirm based upon our finding that the City’s imposition of a gross receipts and payroll tax on Marine’s business operations is not preempted under the supremacy clause. Additionally, the tax does not violate the import-export clause or the commerce clause.

Factual and Procedural Background

This case concerns the validity of business taxes assessed against Marine by City for the period 1984 through 1987 and was submitted on the following stipulated facts:

On April 23, 1991, the case was tried pursuant to the joint stipulation of facts. On August 13, 1991, the court issued its statement of decision, followed by a judgment after trial by court in favor of the City. Marine filed a timely notice of appeal.

Contentions

Marine contends:

Discussion

1. The Taxes Are Not Preempted

Marine argues that its gross receipts and payroll expenses are protected from municipal taxation because its goods are stored in a customs-bonded warehouse, a subject of comprehensive congressional regulation.

In order to determine if Congress…