Northrop Grumman Corp. v. County of Los Angeles

Opinion

BOREN, P. J.

The County of Los Angeles assessed ad valorem property taxes on personal property allocated by a military defense contractor to the performance of its fixed-price contracts with the United States government. The progress payment clause of the federal contracts states that title to property allocable or chargeable to the contracts vests in the federal government. The county interprets this to mean that the United States takes a lien or security interest in the contractor’s property. We disagree with the county’s interpretation. Title means title. Title does not mean lien.…