People v. Ford Motor Co.

The state of California instituted the present action against the Ford Motor Company for the recovery of a franchise tax for the fiscal year 1915-16, in the sum of twenty-four thousand dollars, and accrued delinquency penalties amounting to three thousand dollars. Judgment was rendered in favor of the state and defendant appeals.

Upon this appeal the first question for consideration is whether the constitution and laws of this state authorize the imposition of a franchise tax upon the defendant, a corporation organized under the laws of the state of Michigan and transacting both interstate and intrastate business in the state of California. Article XIII, section 1, of the constitution of California provides: “All property in the state except as otherwise in this constitution provided, not exempt under the laws of the United States shall be taxed in proportion to its value, to be ascertained as provided by law, or as hereinafter provided. The word ‘property’ as used in this article and section is hereby declared to include . . . franchises ...” Section 14 of the same article reads in part: “(d) All franchises, other than those expressly provided for in this section, shall be…