Gray

—The sole issue on appeal is whether plaintiffs and respondents Harry J. Gray and Helen Gray (taxpayers), who are Connecticut residents, are entitled to a credit against their 1979 and 1980 California nonresident personal income taxes for taxes which were paid to the State of Connecticut on California-source capital gains. We conclude that taxpayers are entitled to such a credit and affirm.

Facts

Taxpayers and defendant and appellant Franchise Tax Board (Board) stipulated in writing to the following facts:

Procedural Background

The parties submitted the case for court trial solely on the basis of a written stipulation of facts and statement of issues, written points and authorities, and oral argument. The trial court found in favor of taxpayers and entered judgment in their favor in the amount of $57,314.17. The Board appeals.

Discussion

It is well established that the application of a taxing statute to stipulated facts is a question of law to be determined by the appellate court. “Since the issues here involve the application of a taxing statute to stipulated facts, we are confronted solely with a question of law and are not bound by the findings of the trial…