Klemp

The principal question here is whether plaintiffs were residents of California for personal income tax purposes for the fiscal years ending June 30, 1960, through 1964, inclusive.

After the Franchise Tax Board (hereinafter “Board”) had assessed against Mr. and Mrs. Klemp income taxes for the years in question, they appealed to the State Board of Equalization, which sustained the assessment. The Klemps then filed this action in the superior court. The case was tried upon a written stipulation of facts and the testimony of Mrs. Klemp, and judgment was entered in favor of the Klemps declaring that they were not residents of California for income tax purposes during any of the years in question. The Board appeals from that judgment.

There is no conflict in the evidentiary facts, which are a detailed recital of the activities, business interests and affiliations of the Klemps prior to and during the years in question. Mrs. Klemp’s oral testimony supplemented the stipulation with further detail.

The Board did not and does not challenge the credibility of that testimony or suggest that there are conflicting inferences which might be drawn as to any material fact. We therefore…