People v. Glendale & Rose Railway Co.

This is an appeal from a judgment for taxes in favor of the state. Defendant railway company was, *314 during the year 1930, engaged in business as a railroad company within the state of California. It operated as a common carrier of freight and passengers, and its property consisted mainly of tracks, rights of way, rolling stock and buildings. The gross receipts from its business in 1930 amounted to $64,267.59. Late in 1930 the company was granted permission by the Railroad Commission to abandon its operations as a common carrier. However, it continued to perform certain services under a contract with Los Angeles and Salt Lake Railroad Company at Los Angeles, using two. locomotives, a work car, and certain other equipment. The bulk of its tracks and other property was not used in its railroad business in 1931.

In March, 1931, the assessor of Los Angeles County classified all such unused property as nonoperative and assessed a local tax thereon for that year. Defendant acquiesced in this classification. Also in March, 1931, the state board of equalization levied its gross receipts tax under the provisions of the California Constitution, article XIII, section 14, as it then read,…