Flying Tiger Line, Inc. v. State Board of Equalization

Plaintiff and appellant, The Flying Tiger Line, Inc., hereinafter called appellant, began two suits against the State Board of Equalization, hereinafter called respondent, for the recovery of sales and use taxes, interest and penalties paid under protest. The actions were consolidated for trial and both are now before this court on appeal. In one action, in which appellant sought to recover $28,978.86, the court gave partial relief by awarding judgment in the sum of $2,870.63 and respondent has not appealed. Other than that, the trial court denied relief in both actions.

The litigation involves the taxability of a series of more or less independent transactions. We will first generally describe the various transactions involved.

Iberia Lineas Aereas Compañía Mercantil Anónima of Madrid, Spain, hereinafter called Iberia, is a Spanish airline which does not operate within the United States. Prior to November 10, 1949, Iberia purchased two C-54 airplanes in the United States, and on that date entered into a written contract with appellant for the overhaul and repair of these aircraft at appellant’s plant at Burbank in California. The aircraft were flown from without the state to…