Hibernia Bank v. State Board of Equalization

Appellants Zablocki Corporation (Zablocki) and Hibernia Bank (Hibernia), appeal from judgments entered in favor of respondent State Board of Equalization in appellants’ consolidated actions for the refund of taxes paid on gross receipts from sales of personal property by Zablocki and other sellers to Hibernia. We affirm the judgments.

I

Hibernia was and is a banking corporation chartered under state law, and Zablocki is a California corporation engaged in the printing business. Between October 1, 1968, and December 31, 1973, Zablocki sold printed forms and other personal property to Hibernia.

It is the general practice of retailers selling tangible personal property in this state to state separately “sales tax reimbursement” in setting forth the total amounts charged their customers; it is also the general practice of customers to pay “sales tax reimbursement” as part of the total amount paid for goods. The invoices sent by Zablocki to Hibernia were consistent with this general practice: an amount computed according to the “sales tax reimbursement” schedules prepared by respondent was stated separately from the stated sales price of items.

Zablocki timely filed state…