City of Tacoma v. Hyster Co.

This is an appeal by the City of Tacoma (city) from a decision of a trial judge holding the city could not impose its business and occupation tax (B&O) upon the Hyster Company (Hyster). The matter was appealed to Division Two of the Court of Appeals, which certified the case to this court.

Tacoma, a city of the first class, has had an ordinance since 1951 imposing a B&O tax on the privilege of engaging in business within its boundaries. All persons so engaged must register, whether or not they actually owe a tax.

Hyster is primarily engaged in the sales and service of forklift trucks. Although…