P. Lorillard Co. v. City of Seattle

Plaintiff, P. Lorillard Company, is a wholesaler of cigarettes which are distributed from storage in a public warehouse in Seattle. Defendant, the City of Seattle, assessed taxes against plaintiff in the amount of $17,066.45, based upon section 3(c) of Seattle Ordinance 72630. That ordinance levies a business and occupation tax for the privilege of engaging in business activity within the city. Section 3(c) levies a tax upon sales at wholesale with the measure of the tax being the gross proceeds of such sales.