National Aircraft Leasing, Ltd. v. State Board of Equalization

Plaintiff and appellant, National Aircraft Leasing, appeals from a judgment of the superior court in favor of defendant and respondent, the State Board of Equalization of the State of California. Appellant sought recovery in superior court of sales or use taxes paid under protest by appellant’s assignor, National Airmotive Corporation. Both parties moved for summary judgment. The court denied appellant’s motion and granted respondent’s motion, on the grounds that the action had no merit and there was no triable issue of fact. Appellant moved for a new trial and the motion was denied.

Facts

During the transaction in question, appellant, National Aircraft Leasing (hereinafter referred to as NAL), was engaged in the business of leasing transport category aircraft which were owned by NAL. One such aircraft, a four-engine Lockheed Hercules, was on exclusive lease to Saturn Airways, a common carrier of persons or property for hire under the laws of the United States in interstate and foreign commerce. During the lease period, NAL and Saturn agreed that the aircraft would be modified to increase its load carrying capacity. As part of this modification, the engines also would…