Westinghouse Electric & Manufacturing Co. v. County of Los Angeles

The plaintiff is a foreign corporation engaged in the manufacture, distribution, and sale of electrical machinery and appliances, with its factories and principal place of business at East Pittsburg, Pennsylvania. It maintains distributing and sales agencies for its products at various commercial centers throughout the United States and in foreign countries. One of these, serving the territory of Southern California, Arizona, New Mexico, and part of Texas, is located at Los Angeles.

The question presented by this appeal is the right of the state of California to levy and collect taxes upon the solvent credits of the corporation arising from sales on credit contracted through this Los Angeles agency.

Such a tax was levied for the year 1918-19 in the aggregate sum of $1,585.66 and paid under protest. This appeal is by the county of Los Angeles from a judgment of the superior court awarding the plaintiff corporation a refund of the amount so paid.

The question presented is a very simple one in its statement, namely, Are these credits, owing to the Pennsylvania corporation, property in the state of California?

Section 1 of article XIII of the constitution of California . directs…