City of Culver City v. State Board of Equalization

Petitioner City of Culver City sought a writ of mandate directing respondent board to transmit to it all sales taxes collected by said respondent from 1956 through 1969 and erroneously distributed to City of Los Angeles, real party in interest, and to correct its records accordingly. From a judgment directing issuance of the writ, both respondent board and real party in interest have appealed; Culver City, in turn, has appealed from the judgment insofar as it failed to award prejudgment interest.

The following background facts were the subject of stipulation. As authorized by the Bradley-Burns Uniform Local Sales and Use Tax Law (Rev. & Tax. Code, § 7200 et seq.), in February of 1956 both Culver City and Los Angeles enacted ordinances imposing a 1 percent sales and use tax within their respective boundaries; thereafter each entered into an agreement with the board whereunder the latter would administer and collect said taxes. Pursuant to an application therefor, a seller’s permit was issued by the board on September 21, 1956, to “Norm’s Inc., dba Norm’s Culver City,” said business admittedly being conducted within the official boundaries of Culver City; the above permit…