Western Lithograph Co. v. State Board of Equalization

The petitioner Western Lithograph Company, filed with the State Board of Equalization a claim for refund of sales taxes imposed pursuant to the Retail Sales Tax Act (Stats. 1933, p. 2599, as amended Stats. 1935, pp. 1225,1252, 1256), amounting to $356.05 and theretofore paid by it. The claim was rejected and this proceeding was brought to compel the allowance and payment of the claim.

During the first quarter of 1937 the petitioner sold tangible personal property to Bank of America National Trust and Savings Association for use in this state at a total purchase price of $11,868.33. It included in its return for said quarter the gross amount received from the sales so made and payment of the three per cent computed thereon. The reason advanced by the petitioner for the allowance of the claim for refund is that the bank is an instrumentality of the United States government and is not subject to any tax by the state except in the manner prescribed by section 5219, Revised Statutes (12 U. S. Code, sec. 548), in conjunction with article XIII, section 6, of the Constitution of California and the Bank and Corporation Franchise Tax Act (Stats. 1929, p. 19, as amended), which do not…