Sumitomo Forestry Co., Ltd. Of Japan v. Thurston County, Washington, a Legal Subdivision of the State of Washington

In this case we must decide whether Thurston County, Washington, may impose an ad valorem tax on logs stored at the Port of Olympia awaiting ships for transportation to Japan. The district court held that the logs were in the process of exportation and that the tax was, therefore, a state imposed duty on exports prohibited by Article I, Section 10, Clause 2, of the United States Constitution. Following submission of the ap peal, we vacated our action pending the Supreme Court’s disposition of Kosydar v. National Cash Register Co., 417 U.S. 62 , 94 S.Ct. 2108 , 40 L.Ed.2d 660 (1974). After the opinion therein was filed, we vacated the judgment of the district court and remanded for reconsideration in light of the decision in Kosydar . The district court concluded that Kosydar did not affect its earlier disposition. We disagree, and reverse with directions to the district court to enter judgment in favor of appellant Thurston County.

The parties submitted the case on stipulated facts. Sumitomo is a foreign corporation which imports logs to Japan. Each summer it takes orders from its Japanese customers and buys logs to meet demand. The logs in issue were purchased in…