County of Sonoma v. State Board of Equalization

In ruling on cross-motions for summary judgment, the superior court determined that Revenue and Taxation Code 1 section 6353 does not exempt sales of geothermal steam from Sonoma County’s general retail sales tax. As a result, it ordered the Board of Equalization to commence collection of appropriate past and future taxes. We first hold that postjudgment amendment of section 6353 in 1986 was intended by the Legislature to make it clear that such sales are and have been exempt from local sales taxes under the statute. We then hold that the 1986 legislation may be applied retroactively. Accordingly, we need not determine whether the pre-1986 versions of section 6353 exempted sales of geothermal steam. In view of these holdings, we reverse.

I. The Factual and Procedural History

In 1955, the Legislature enacted the Bradley-Bums Uniform Local Sales and Use Tax Law (hereinafter Bradley-Bums) as part of the Revenue and Taxation Code. (§ 7200, et seq.; Stats. 1955, ch. 1311, § 1, p. 2381.) It was the first legislation which authorized counties to adopt and impose sales and use taxes. Under Bradley-Bums, the State Board of Equalization (hereinafter Board) is the sole agency…

I concur in the judgment of this court on the basis that, since its original enactment in 1941, Revenue and Taxation Code section 6353 in all its various forms has always exempted sales of geothermal steam from retail sales tax.

A petition for a rehearing was denied November 25, 1987, and the opinion was modified to read as printed above. Respondents’ petition for review by the Supreme Court was denied January 27, 1988.

Robert D. Raven, Thomas H. Steele, Kathy J. Bagdonas and Morrison & Foerster for Interveners and Appellants.

OPINION

SABRAW, J.

In ruling on cross-motions for summary judgment, the superior court determined that Revenue and Taxation Code [1] section 6353 does not exempt sales of geothermal steam from Sonoma County's general retail sales tax. As a result, it ordered the Board of Equalization to commence collection of appropriate past and future taxes. We first hold that postjudgment amendment of section 6353 in 1986 was intended by the Legislature to make it clear that such sales are and have been exempt from local sales taxes under the statute. We then hold that the 1986 legislation may be applied retroactively. Accordingly, we need not determine whether the pre-1986 versions of section 6353 exempted sales of geothermal steam. In view of these holdings, we reverse.

In 1955, the Legislature enacted the Bradley-Burns Uniform Local Sales and Use Tax Law (hereinafter Bradley-Burns) as part of the Revenue and Taxation Code. (§ 7200, et seq.; Stats. 1955, ch. 1311, § 1, p. 2381.) It was the first legislation which authorized counties to adopt and impose sales and use taxes. Under…