Xerox Corp. v. County of Orange

This is an appeal from a judgment in favor of respondents in a coordination proceeding involving six actions for the recovery of unsecured personal property taxes alleged to have been illegally and erroneously collected by the six respondent counties.

For the fiscal year ending June 30, 1972, the assessors for the counties named in these actions assessed to appellant certain personal property manufactured and owned by appellant on the lien date, and leased to various customers in California. The appellant paid the taxes under protest and brought these actions pursuant to California Revenue and Taxation Code section 5138, alleging that the assessors had erroneously included, as an element of the “full cash value” of the property, amounts representing sales tax and freight charges. The trial court entered judgment in favor of respondents, holding that sales tax and freight charges are properly includable in arriving at full cash value. Judgment affirmed.

The Facts

The personal property in question consisted of office copying machines and related equipment manufactured by appellant, and leased by it on the lien date to various users within the taxing jurisdictions of the…