that the situs of the property was the parish where the vessel had its home port.
Although this case appears to support the proposition of the petitioner that notice must be filed in the county and State in which the property subject to the liens is physically located and not the county and State of the taxpayers' domicile, this Court does not feel that it is authority supporting the argument of the petitioner in this case. The only facts before the Court upon which the petitioner bases his argument are: (1) the trailers were physically located in Philadelphia at the time of the sale which was three days after the notices were filed in Camden County, New Jersey, (2) seven Pennsylvania certificates of title were used to effect the transfer of the seven trailers, and, (3) the sale occurred in Philadelphia.
On the other hand, the defendant contends that the notices were properly filed in Camden County, New Jersey, at the domicile of the taxpayers. In this connection it should be noted of the case at bar: (1) that at the time the notices of tax liens were filed the trailers were physically located at Second and Beckett Streets, Camden, New Jersey, and constituted a part of the twenty-four trailers that were then under the seizure of September 15, 1958, (2) that said trailers were seized a second time at the aforesaid location, namely, on September 18, 1958, by virtue of the tax liens in question, (3) that the trailers were obviously moved from that location sometime after September 18, 1958, and before the day of the sale, September 21, 1958, when they were examined by the petitioner in Philadelphia, Pennsylvania, (4) that, although it does not appear in the facts of this matter that the trailers were used in the business of Boccuto Motor Freight, Inc. which had its principal place of business in Camden, New Jersey, the trailers were located at the Camden, New Jersey site on a lot adjacent to the offices of Boccuto Motor Freight, Inc., presumably where they were stored by the taxpayers when not in use, (5) that the certificates of title indicated on the face thereof that the residence of the taxpayers was 505 Cooper Street, Camden, New Jersey, and, (6) that after the sale on September 21, 1958, the trailers were moved by the petitioner back to New Jersey.
It would, therefore, appear that it is upon the temporary location of the trailers in Pennsylvania at the time of the sale that the petitioner would have the Court base its determination as to situs rather than upon the more permanent and substantial location of the trailers in Camden County, New Jersey. The Court cannot accept this proposition nor is it convinced that such a proposition is supported by the authority of Gulf Coast Marine Ways v. The J. R. Hardee, supra.
A similar argument was advanced in the case of Grand Prairie State Bank v. United States, 5 Cir., 1953, 206 F.2d 217, at page 219, and the Court there stated:
'It is argued that because of the transitory nature of the property in question, (rings) and of personal property in general, the notices of tax liens recorded in Tarrant County are ineffective to give constructive notice to a mortgagee or pledgee that acquired its claim against the property after it was removed from that county. Appellant recognizes the general principle that the situs of personal property is regarded as being the same as the domicile of its owner, but urges that when the property was reduced to its possession in Dallas County it acquired a situs in that county and the failure of the United States to have its liens recorded there defeats its claim. The statute, however, does not require a tax lien to be filed in every county to which personal property may be carried in order to be enforceable against a subsequent mortgagee or pledgee. The requirement that notice of lien be filed in the office in which the filing of such notice is authorized by the law of the state in which the property subject to the lien is situated is satisfied, so far as is pertinent here, when notice is filed in the county of the taxpayer's domicile. (Citing cases.) It is the transitory nature of personal property which requires the application of this rule. To hold otherwise, would be to overlook the practical necessities of the situation and would require the Collector to file tax liens in every jurisdiction to which the taxpayers may at any time remove the property. We do not think this result was intended by the statute, nor do the laws of Texas relating to the recording of liens against personal property require a different result.' *fn6"
Counsel for the petitioner also cites the case of United States v. Delaware Trust Company, D.C.Del.1958, 167 F.Supp. 465, where it was held by the Court that the situs of a trust of realty was not the residence of the taxpayer but rather the locus of the property. Inasmuch as the property in question in the instant case is trailers and not real property, the Court feels that the Delaware Trust Company case is clearly distinguishable.
There can be no doubt but that the seven Fruehauf trailers are personal property. They are extremely mobile and can pass from county to county or state to state in a relatively short period of time. The generally accepted principle of law regarding the situs of personal property is that the situs of personal property is determined to be that of the domicile of the owner. For the application of this principle in other federal tax lien cases see: Investment & Securities Co. v. United States, 9 Cir., 1944, 140 F.2d 894; Grand Prairie State Bank v. United States, 5 Cir., 1953, 206 F.2d 217; Marteney v. United States, 10 Cir., 1957, 245 F.2d 135; United States v. Spreckles, D.C.Cal.1943, 50 F.Supp. 789; and United States v. Royce Shoe Company, D.C.N.H.1956, 137 F.Supp. 786. The domicile of the taxpayers was Camden County, New Jersey, hence, applying the above stated principle it may be said that the trailers in question were situated in Camden County, New Jersey.
Therefore, considering the facts of the case at bar, the Court feels that the situs of the property in question is Camden County, New Jersey, where the taxpayers were domiciled and where the physical location of the property is established with a greater degree of permanency. Thus, the Federal tax liens were properly filed and perfected in accordance with the Federal and New Jersey statutes and the Government has valid liens as against the petitioner who is charged with constructive notice thereof. To hold otherwise, as stated in Grand Prairie State Bank v. United States, supra, would be to require the Government to file notices of tax liens in every county of the state or in every state of the nation to which property of such a movable nature could be moved or temporarily located in order to protect its interest. This, in the Court's opinion, is beyond the contemplation of Section 6323(a)(1) of Title 26 of the United States Code.
The Court is mindful of the possibility of the removal of personal property encumbered by Federal tax liens and sale of the same by designing taxpayers to innocent purchasers of another state in order to avoid the Government's liens. The Court also recognizes the injury suffered by the innocent purchaser in this case and takes refuge in the axiom, 'Caveat emptor, qui ignorare non debuit quod jus alienum emit (Let a purchaser beware, who ought not to be ignorant that he is purchasing the right of another),' for the petitioner should have searched the records of the county of the taxpayers' domicile since the certificates of title themselves indicated the residence of the taxpayers to be Camden County, New Jersey. This would have been a much simpler task to require of a purchaser than to require the Government to file notices in each state to which the property in question may have been removed.
In conclusion, the Court must state that the defendant is entitled to the proceeds from the sale of the seven trailers on deposit in the Registry with the Clerk.
Counsel will prepare an appropriate order.