This proceeding in mandamus was brought to test the application of the provisions of section 3627a of the Political Code.
The petitioner is a Delaware corporation with its principal place of business in the city of Los Angeles. On the first Monday of March, 1936, the assessor of the county of Los Angeles, for purposes of levying ad valorem property taxes for the tax year 1936-1937, assessed at a valuation of $443,-660 the stocks and bonds in Los Angeles County owned by the corporation. The аssessment was purported to have been made pursuant to section 3627a of the Political Code. By the prеsent proceeding the corporation sought to have the assessment canceled.
Since 1929 (Stats. 1929, p. 35), said section 3627a has contained the following provision: ‘ ‘ Notes, debentures, shares of capital stock, bonds, deeds of trust, mortgages, and any legal or equitable interest therein, of the classes taxable to the owner thereof under the provisions of section 14 of Article XIII of the Constitution of this State, are hereby taxed upon their aсtual value at the rate of two-tenths of one per cent. ...”
In 1935 the legislature by amendment added the following: “The property aforesaid . . . shall no longer be taxable under the provisions of this section if and when a net income tax shall be passed or adopted in this State. Upon the passage or adoption of such tax and from the time such income tax becomes effective such net income tax shall be in lieu of the tax herein providеd for upon notes, debentures, shares of capital stock, bonds, deeds of trust, mortgages and any legal or equitable interest therein. Provided, however, that any and all taxes imposed herein on such property prior to the passage or adoption of such net income tax and the effective date thereof shall remain fully collectible and distributable hereunder.” (Stats. 1935, p. 2251.)
In the same year the legislature adopted a net income tax law (Stats. 1935, p. 1090), which became effective upon its approval on June 13, 1935. It provided for the payment, of a tax on the net income of individuals. That law was
The enactment of the income tax law brought into operation the amendment to section 3627a of the Political Codе. It is necessarily conceded that as to individuals who own intangible properties enumerated therein, the “in lieu” рrovision applies and no inquiry may be made as to whether in each ease a tax om income derived thеrefrom is actually paid. It therefore must also' be conceded that the substituted income tax is unlike the “in lieu” taxеs involved in the eases of Southern Cal. Tel. Co. v. Los Angeles County,
We percеive no other possible conclusion than that the forms of intangible personal property enumerated in thе 1935 amendment to section 3627a of the Political Code are no longer assessable under said section and that the petitioner is entitled to a cancellation of the assessment of March, 1936, upon its stocks and bonds.
Let the peremptory writ issue as prayed.
Thompson, J., Edmonds, J., Curtis, J., Langdon, J., and Seawell, J., concurred.
Rehearing denied.