Document: 362 U.S. 628 80 S.Ct. 1050 4 L.Ed.2d 1002 ROHR AIRCRAFT CORPORATION, a California Corporation, Appellant,v.COUNTY OF SAN DIEGO, Body Corporate, and City of Chula Vista, Municipal Corporation. No. 295. Argued March 30, 1960. Decided May 23, Mr. Leroy A. Wright, San Diego, Cal., for appellant. Manuel L. Kugler, Henry Dietz, appellees. Messrs. Myron C. Baum, Washington, D.C., the United States, as amicus curiae, by special leave Court. Justice CLARK delivered opinion 1 The question to be decided is whether real property declared surplus under Surplus Property Act 1944, 58 Stat. 765, but record title which in Reconstruction Finance continues subject local taxation exemption § 8 Corporation Act, 47 5.1 Supreme Court Michigan2 have held that it does. Claims has reached opposite conclusion.3 In view this conflict we agreed hear case, postponed consideration jurisdiction hearing on merits. 361 859, 122, 99. 2 On jurisdiction, believe appellant did not make required 'explicit timely insistence state courts statute, applied, repugnant federal Constitution, treaties or laws. * And long been settled an attack upon tax assessment levy, such (appellant) here made, ground infringes taxpayer's rights, privileges, immunities, will sustain appeal *.' Charleston Federal Savings & Loan Ass'n v. Alderson, 1945, 324 182, 185, 65 624, 627, 89 L.Ed. 857.4 therefore dismissed. While case properly appeal, treat same petition certiorari 28 U.S.C. 2103, U.S.C.A. 2103.5 granted. merits, conclude involved within waiver provision Act. 3 language was borrowed from earlier legislation dealing with financial institutions.6 congressional policy appears waive owned government corporations whose functions were primarily nature. Originally conceived purpose making loans distressed business concerns, category. Apparently Congress concerned obtained through its operations aid economic recovery policies would lose taxable status. Through 8, therefore, preserved right governmental bodies even though came into hands Success crowned efforts and, country approached critical period immediately preceding entry World War II, 1940 extended Corporation's include stockpiling supplies operation plants engaged manufacture war mate rial. 54 573. It soon apparent large tracts land necessary operation, estate holdings Defense Plant subsidiary 55 248. termination quickly threw substantial portions disuse, there being no further need mass production President created Assets Administration disposing all property.7 After 25, 1946, agencies possessing official needs so declare transfer disposal.8 By declaration 29, responsibilities. Under transferred9 of: caring handling pending disposal (§ 3(g) 6); disposition terms saw fit 9(b) 15(a), including donation certain conditions 13(b); power execution delivery papers incident 15(b). provided funds derived covered States Treasury miscellaneous receipts 30(a). Pursuant took possession successor, General Services Administration,10 retained until September 1, 1949, during used storage depot sales center Administration. latter date, leased appellant's predecessor. lease described lessor 'Reconstruction America, both acting Administrator 1944.' 5 Appellees assessed ad valorem taxes realty against owner, fiscal years 1951 1955, inclusive. Appellant paid taxes11 filed suit after claims refund had denied. trial court entered judgment affirmed court, denied claim refund. 51 Cal.2d 759, 336 P.2d 521, 523. 6 There name States. Since 17, fact, recorded; date executed recorded quit-claim deed 7 correctly posed underlying question, 'whether ceased 'real Corporation' became provisions 1944. That found that, since transferring out remained 'property hence time. We placed too much reliance fact bare us permit performance functions. Such use terminated when 1946. At time another agency Government occupancy complete control management disposition. specific thereby lost over property, account any proceeds therefrom ordered Treasury. Thereafter, elected, he statutory do, however, As recognized, general rule 'that lands America instrumentalities are immune taxation.' think 'owned' 9 overlooks while 1949 formally made lessors, recited face 'surplus States' Furthermore, noted 'been assigned disposal,' 'the Department Air Force determined premises Lessee herein military equipment National Defense.' Moreover, occupied two lease. appellees' contention seems well Corporation.' hardly conclusion inevitable. appropriate test turn practical ownership rather than naked legal title. This more respect public where may often department—or, matter, Government—rather Here proprietary interest thereof, performing none regard thereto, could receive income future benefits therefrom. Even title, holding, circumstances here, only benefit All incidents beneficial ended express mandate statute transferred 10 When confronted issue presented instant directly contrary California. Board County Comm'rs Sedgwick 123 Ct.Cl. 304, 105 F.Supp. 995, 304. surplus, 'physical possession, control, custody property. neither nor property.' went '(t)here indication intended immunity these circumstances.' at page 324, 1001. ageee cloak descended (when surplus) liability arise thereafter.' 1002. 11 crucial element intent Congress, important note enactment 1955 providing relief effects immunity. 40 §§ 521—524, 521—524. 'recognizes having status department operated remove rolls *' 'Transfer' defined 'a of, accountability care of,' 'transfer title.' goes provide payments lieu occurs. relevance lies sanction construing provision. 12 cannot say 1932 responsibilities agency, To Government's merely because formal either itself designated agencies, tollgate technicality. 13 Nor can agree short administrative practice claimed continued effect. if responsible permitted paper remain sole allowing taxed, 1944 overridden. matters, adjustments between governments strictly legislative ones Detroit, 1958, 355 466, 474, 78 479, 424, discretion executive agencies. 14 reversed cause remanded proceedings inconsistent opinion. 15 Reversed remanded. 16 BLACK DOUGLAS dissent. Section (as amended), 607: '* shall State, Territorial, county, municipal, extent according value other taxed.' 61 205; 607, 607. Continental Motors Corp. Township Muskegon, 346 Mich. 141, 77 N.W.2d 370. 995. involving similar posture, Ninth Circuit result accord County, Michigan courts. Shofner Iron Steel Works, Cir., 168 F.2d 286. Shofner, ultimate immunity, ejectment defendant 1257, 1257 provides: 'Final judgments decrees rendered highest State decision had, reviewed follows: '(2) drawn validity laws favor validity. '(3) writ certiorari, right, privilege specially set up statutes States.' 2103: 'If improvidently taken proper mode review alone dismissal; whereon regarded acted duly taken. See 99, 111, 548, 548 (national banking associations); 38 251, 258, 531, 531 (Federal Reserve Banks); 39 380, 931, 933, 933 Land 42 1469, 1261, 1261 (National Agricultural Credit Corporation). Exec.Order 9689, dated Jan. 31, Fed.Reg. 1265, U.S.Code Cong.Service p. 1761. 50 U.S.C.A.Appendix, 1611 et seq. require July Administrative c. 288, 63 377, 630 seq., 471 lease, lessee undertook pay legally

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