Chase Brass & Copper Co. v. Franchise Tax Board

Both the taxpayer, Chase Brass & Copper Co., Inc. (hereafter Chase) and the state Franchise Tax Board (hereafter Board) appeal from a 1975 judgment in the total amount of $57,578.77 for the recovery of corporate franchise taxes, plus interest,, for the years 1954, 1955 and 1956. The 1975 judgment was entered after retrial and recomputation pursuant to the limited remand of this court (Div. Four) in Chase Brass & Copper Co. v. Franchise Tax Bd., 10 Cal.App.3d 496 [95 Cal.Rptr. 805] (hereafter Chase I). We have concluded that: 1) the court below acted within the scope of the remand; 2) as to the Board, the doctrine of the law of the case was properly applied as to the “other metals” and prevents redetermination of that issue here; 3) the Board did not abuse its discretion in using a three-factor formula of sales, property and payroll to determine the allocation of Chase’s income to California and in using cost rather than fair market value for the property factor; and 4) the method of recomputation used by the Board was not arbitrary or erroneous, and was fairly calculated to assign to California that portion of the net income of the unitary business reasonably attributable…