An excerpt from:

Treatise
on

Taxation
Alan Lewis Painter
Advanced Student, Organic Laws Institute
Common Law 2015

TABLE OF CONTENTS
TERRITORIAL STATES OF THE UNITED STATES TODAY ____1
The Law in California and in Arizona ________________1
The Law in the State of California and in the State of
Arizona________________________________________2
The State of California ____________________________2
State of Arizona _________________________________9

TERRITORIAL STATES OF THE

UNITED STATES TODAY
Today, there are free and independent states, such as
Arizona, California, New Mexico, New York, etc. So, what
are the territorial States? The State of Arizona, the State of
California, the State of New Mexico, the State of New York,
etc.
Im going to talk about California, Arizona, the State
of California and the State of Arizona. There are some distinctions to be made between the State of California and the
State of Arizona. Ultimately, they are very much the same,
but they look a bit dierent, and the dierences are instructive.

The Law in California and in Arizona

At this time, the English common law is the law in
both California and Arizona. After the Treaty of Guadalupe
Hidalgo became eective, California and subsequently Arizona were admitted into the Senate (the Congress) of the
United States of America and, thereby, into the perpetual Union of sovereign, free and independent states established by
the Articles of Confederation of November 15, 1777, the
United States of America.

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The Law in the State of California and in

the State of Arizona
The Constitution of the State of California and the
laws passed pursuant to that Constitution are the law in the
State of California. The Constitution of the State of Arizona
and the laws passed pursuant to that Constitution are the law
in the State of Arizona. The State of California and the State
of Arizona were admitted (at separate times) by a Congress of
the United States into this (United States) Union established
by the Constitution of September 17, 1787, which is the supreme Law of the (territorial) land(s) in the State of California and in the State of Arizona. The English common law is
not the law in the State of California or in the State of Arizona.

The State of California

We can look to the Constitution of the State of California for verication that the State of California is a subdivision of this Union, the United States, as stated above.
State of California Constitution
Article III, State of California
Sec. 1. The State of California is an inseparable part of the United States
of America, and the United States Constitution is the supreme law of
the land.

That language is similar to language found in the Northwest

Ordinance of July 13, 1787, specically Article 4:
The said territory, and the States which may be formed therein, shall forever remain a part of this Confederacy of the United States of America, subject to the Articles of Confederation, and to such alterations therein as shall be
constitutionally made; and to all the acts and ordinances of the

TERRITORIAL STATES OF THE UNITED STATES TODAY

United States in Congress assembled, conformable thereto. The inhabitants and settlers in the said territory shall be subject to pay a part of the
federal debts contracted or to be contracted, and a proportional part of the
expenses of government, to be apportioned on them by Congress according to the same common rule and measure by which apportionments thereof shall be made on the other States; and the taxes
for paying their proportion shall be laid and levied by the authority and direction of the legislatures of the district or districts, or new States, as in the
original States, within the time agreed upon by the United States in
Congress assembled.

Article III 1 of the State of California Constitution tells

us that the State of California is the kind of federal territory
(i.e., a territorial State) that is made a permanent part of the
Confederacy by Article 4 of the Northwest Ordinance of
July 13, 1787. It is also a place where taxes may be laid and
collected by the (Confederacy) Congress. Thus, the State of
California is a place where taxes may be laid and collected.
Eleven sections of the Revenue and Taxation Code of
the State of California, alone, dene the phrase in this
State (a legal term, since it has a statutory denition) in
identical words.
State of California Codes
Revenue and Taxation CodeR.T.C.
Division 1. Property Tax Division
Part 10. Aircraft Assessment and Taxation
General Provisions and Denitions
5304. In this State means within the exterior limits of the State of
California, and includes all territory within these limits owned by or ceded
to the United States of America.
Division 2. Other Taxes

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Part 1. Sales and Use Taxes

Chapter 1. General Provisions and Denitions
6017. In this State or in the State means within the exterior
limits of the State of California and includes all territory within these
limits owned by or ceded to the United States of America.
Division 2. Other Taxes
Part 2. Motor Vehicle Fuel Tax Law
Chapter 1. General Provisions and Denitions
7321. In this state or in the state means within the exterior limits
of the State of California and includes all territory within these limits
owned by or ceded to the United States of America.
Part 3. Use Fuel Tax Law
Chapter 1. General Provisions and Denitions
8609. In this State or in the State means within the exterior limits of the State of California and includes all territory within these
limits owned by or ceded to the United States of America.
Part 6. Private Railroad Car Tax
Chapter 1. General Provisions and Denitions
11205. In this State or in the State means within the exterior
limits of the State of California and includes all territory within these
limits owned by or ceded to the United States of America.
Part 13. Cigarette Tax
Chapter 1. General Provisions and Denitions
30013. In this State or in the State means within the exterior
limits of the State of California and includes all territory within these
limits owned by or ceded to the United States of America.
Part 19. Energy Surcharge Surcharge Law
Chapter 1. General Provisions and Denitions

TERRITORIAL STATES OF THE UNITED STATES TODAY

40006. In this state means within the exterior limits of the State of
California and includes all territory within those limits owned by or
ceded to the United States of America.
Part 20. Emergency Telephone Users Surcharge Law
Chapter 1. General Provisions and Denitions
41005. In this state means within the exterior limits of the State of
California and includes all territory within those limits owned by or
ceded to the United States of America.
Part 22. Hazardous Substances Tax Law
Chapter 1. General Provisions and Denitions
43009. In this state means within the exterior limits of the State of
California and includes all territory within those limits owned by or
ceded to the United States of America.
Part 23. Integrated Waste Management Fee Law
Chapter 1. General Provisions and Denitions
45008. In this state means within the exterior limits of the State of
California and includes all territory within those limits owned by or
ceded to the United States of America.
Part 31. Diesel Fuel Tax Law
Chapter 1. General Provisions and Denitions
60017. In this state or in the state means within the exterior limits of the State of California and includes all territory within these
limits owned by or ceded to the United States.

Since the State of California has been dened in the State of

California Constitution to be federal territory, and since in
this State has been shown eleven times in the State of California Revenue and Taxation Code alone to refer to the same
territory, the eect of those sections is to limit taxation to

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that federal territory, since the Articles of of Confederation

do not provide authority for taxation in the United States of
America (geographically, the free and independent states.
The State of Californias juror qualication law aords
us another means of determining what the State of California is.
State of California Codes
Code of Civil Procedure
Title 3. Persons Specially Invested with Powers of a Judicial
Nature
Chapter 1. Trial Jury Selection and Management Act
203
(a) All persons are eligible and qualied to be prospective trial jurors,
except the following:
(1) Persons who are not citizens of the United States.
(2) Persons who are less than 18 years of age.
(3) Persons who are not domiciliaries of the State of California, as determined pursuant to Article 2 (commencing with Section 2020)
of Chapter 1 of Division 2 of the Elections Code.
(4) Persons who are not residents of the jurisdiction wherein they are
summoned to serve.
(5) Persons who have been convicted of malfeasance in oce or a
felony, and whose civil rights have not been restored.
(6) Persons who are not possessed of sucient knowledge of the
English language, provided that no person shall be deemed incompetent solely because of the loss of sight or hearing in any degree or other disability which impedes the persons ability to
communicate or which impairs or interferes with the persons mobility.

TERRITORIAL STATES OF THE UNITED STATES TODAY

(7) Persons who are serving as grand or trial jurors in any court of
this state.
(8) Persons who are the subject of conservatorship.
(b) No person shall be excluded from eligibility for jury service in
the State of California, for any reason other than those reasons provided by this section.

Notice the back-handed way of stating juror qualications,

i.e., everyone is eligible to be a juror except those who arent, according to the above provision. Wouldnt it be simpler to
positively state the qualications? The qualications are that
one must be:
a citizen of the United States (a subject of territorial
government),
minimally 18 years of age (the age of majority in a territorial State),
a domiciliary of the State of California (a territorial
State), and
a resident of the jurisdiction (a territorial State)
wherein they are summoned to serve.
Notice the requirement to be a domiciliary of the State
of California and the requirement to be a resident of the jurisdiction wherein one is summoned to serve. A State of California Court would, logically, be located in the State of California. A domicile is a permanent home, and a residence is a
temporary home. The thrust of these two requirements is that
the prospective juror must have a permanent home in the territorial State and must actually be living there when called to
serve. The signicance of these requirements is that those
people who are charged with crimes normally live in California, the free and independent state; and yet when charged

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with crimes, they are summoned to a territorial-State court

that observes territorial-State law and that must impanel jurors with principle domiciles in that territorial State that are
actually living in that territorial State. That is the equivalent
of being charged with a Canadian crime while in Mexico and
being summoned to a court located in Canada that observes
Canadian law and that impanels Canadian jurors. The obvious problem is that there is a jurisdictional mismatch. When
one is in Mexico, one is not subject to Canadian law, Canadian courts or Canadian jurors.
Lastly, in the Business and Professions Code, as if we
need more, we nd:
State of California Codes
Business and Professions Code
General Provisions
21. State means the State of California, unless applied to the dierent
parts of the United States. In the latter case, it includes the District of
Columbia and the territories. (Enacted by Stats. 1937, Ch. 399.)

Here again, the State of California is inferred to be a subdivision of the United States (federal territory), and State refers to that particular federal territory.
It is quite clear from the above that the State of California is a territorial State, not a free and independent
state. Furthermore, federal territory (which includes territorial States) is the only place where taxation may occur as an
exercise of the (Confederacy) Congresss proprietary Power
(the authority of the owner over its property).
The importance of this is: The State of California exercises localized federal proprietary Power when it enforces
taxation: be it in the form income taxes, drivers license fees,

TERRITORIAL STATES OF THE UNITED STATES TODAY

motor vehicle registration fees, property taxes, etc. Howeverthis is the crucial pointit improperly exercises that
proprietary Power in California, a free and independent
state, where it has no authority. To be clear: For the inhabitants of California, the imposition of those taxes is an attachment of a foreign power.
This should sound familiar. In the Declaration of Independence of July 4, 1776, it was complained that:
He has combined with others to subject us to a jurisdiction foreign
to our constitution, and unacknowledged by our laws; giving his assent to their acts of pretended legislation For imposing taxes on us
without our consent;.

Today in 2015, 239 years later, we are experiencing exactly the

same problem, albeit in a somewhat dierent guise.

State of Arizona
Let us now turn our attention to the State of Arizona.
A search of the State of Arizona Constitution turns up no
denition for State of Arizona. In fact, said denition is also
not to be found in the Arizona Revised Statutes. Nonetheless,
the following is found.
Revised Statutes
Title 1. General Provisions
Chapter 2 Law and Statutes
1-215
14. Includes or including means not limited to and is not a term of
exclusion.
37. State, as applied to the dierent parts of the United States, includes
the District of Columbia, this state and the territories.

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10

39. United States includes the District of Columbia and the territories.

State is specically dened in subsection 37 as applied to parts of the United States, and it was shown earlier
in this treatise that the United States is federal territory; in
other words, State is not dened in terms of the United
States of America.
Note also in subsection 37, State includes this
State, which must be the State of Arizona since all statutes
in the State of Arizona Revised Statutes ow from the State
of Arizona Constitution.
Often in statute law, includes and including are
dened as terms of exclusion (meaning that everything but
what is listed is excluded). However in the State of Arizona
Revised Statutes, in subsection 14, those terms are specically dened to not be terms of exclusion. Rules of statutory
construction, both federal and State, require that items in a
list (as in subsection 37) must have something common; in
that subsection, the items are all territorial in nature. Thus, in
subsection 39, the denition of United States can be expanded to encompass all territorial States (50 of them), of
which the State of Arizona is one.
While the phrase in this State is used in State of Arizona statutes, it is not in itself a legal term dened in statute.
However, we do nd ve instances in the Revised Statutes of
State being dened; thus, State is a legal term.
State of Arizona Revised Statutes
30. Power
Chapter 1. Arizona Power Authority
Art. 1. Administration

TERRITORIAL STATES OF THE UNITED STATES TODAY

30-101. Denitions
In this chapter, unless the context otherwise requires:
12. "State" means the state of Arizona.
35. Public Finances
Chapter 3. Public Indebtedness
Art. 3.1. Tax anticipation Notes
35-465. Denitions
In this article, unless the context otherwise requires:
7. "State" means the state of Arizona.
38. Public Ocers and Employees
Chapter 5. social Security and Retirement
Art. 4. Public Safety Personnel Retirement System
38-842. Denitions
In this article, unless the context otherwise requires:
46. "State" means the state of Arizona, including any department,
oce, board, commission, agency or other instrumentality of the
state.
41. State Government
Chapter 9. Civil Rights
Art. 8. Public Accommodation Services
41-1492. Denitions
In this article, unless the context otherwise requires:
16. "State" means the state of Arizona.
45. Waters
Chapter 10. State Water and Power Plan
Art. 1. In General

11

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12

45-1702. Denitions
In this article, unless the context otherwise requires:
10. "State" means the state of Arizona.

Thus, State = State of Arizona = territorial State.

Just like in the State of California, we nd a juror
qualication law in the State of Arizona Revised Statutes:
Revised Statutes
21. Juries
Chapter 2. Jurors
Art. 1. Qualications and Excuses
21-201. Qualications
Every juror, grand and trial, shall be at least eighteen years of age and meet
the following qualications:
1. Be a citizen of the United States.
2. Be a resident of the jurisdiction in which the juror is summoned to serve.
A citizen whose name and address appears on the master jury list as
required by section 21-301 is presumed to be a resident of the jurisdiction for the purposes of this section.
3. Never have been convicted of a felony, unless the juror's civil rights
have been restored.
4. Is not currently adjudicated mentally incompetent or insane.

Relative to Californias juror qualication law, it was suggested that the structure of the statute was inverted and that
it would be easier to understand if it were positively stated.
Note that the State of Arizonas juror qualication law is positively stated and that it is much easier to understand. That
said, the juror qualications in the State of Arizona are nearly
identical to the State of Californias juror qualications. The
qualications are that one must be:

TERRITORIAL STATES OF THE UNITED STATES TODAY

13

a citizen of the United States (a subject of government),

minimally 18 years of age (the age of majority in a territorial State), and
a resident of the jurisdiction (a territorial State)
wherein they are summoned to serve.
The State of Arizonas juror qualication law only requires that a juror be a resident of (have a temporary domicile
in) the State of Arizona.
Again we see the equivalent of being charged with a
Canadian crime while in Mexico and being summoned to a
court located in Canada that observes Canadian law and that
impanels Canadian jurors. And again, the obvious problem is
that there is a jurisdictional mismatch. When one is in Mexico, one is not subject to Canadian law, Canadian courts or
Canadian jurors. Thus, while in Arizona, one is not subject to
State of Arizona law or State of Arizona courts with impaneled State of Arizona jurors.
While State of Arizona law looks a bit dierent than
State of California law and seemingly is not as specic, the difference is cosmetic. Functionally, there is no dierence. The
State of California is a territorial State locally exercising the
Confederacys proprietary power in California, a free and
independent state. Likewise, the State of Arizona is a territorial State locally exercising the Confederacys proprietary
power in Arizona, a free and and independent state.
As with the State of California, the State of Arizona
exercises localized, federal, proprietary Power when it enforces taxation: be it in the form income taxes, drivers license
fees, motor vehicle registration fees, property taxes, etc. Furthermore, it improperly exercises that proprietary Power in

14

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Arizona, a free and independent state, where it has no

authority. Moreover, for the inhabitants of Arizona, the imposition of those taxes is an attachment of a foreign power.