City & County of San Francisco v. Market Street Railway Co.

The City and County of San Francisco brought this action to recover from defendant Market Street Bailway the sum of $11,062.50, claimed to be owing to it “as and for a license tax” upon street ears operated by defendant in the city of San Francisco. The tax claimed is at the rate of $15 per annum per ear. The tax is payable quarterly. The recovery herein sought is for the year commencing July 1, 1926, and for the first quarter of the year commencing July 1, 1927.

Plaintiff city prosecutes this appeal from a judgment of nonsuit entered against it. It was the contention of defendant Market Street Bailway, sustained by the court below, that the collection of the municipal taxes in question could not be had by virtue of the provisions of section 14, article XIII, which was added to the Constitution in 1910. Said constitutional provision (until 1933) provided for a tax measured by a percentage of gross receipts from operation to be paid by certain enumerated companies, including street railway companies. It further provided: “Such taxes shall be in lieu of all other taxes and licenses, state, county and municipal, upon the property above enumerated [operative property] of such…