Action Trailer Sales, Inc. v. State Board of Equalization

Plaintiff Action Trailer Sales, Inc., a California corporation (hereinafter referred to as “Action”), brought suit against the California State Board of Equalization (hereinafter referred to as “Board”), seeking a refund of use tax paid under protest and declaratory relief.

The matter was submitted at trial before a judge sitting without a jury on stipulations of fact filed by the parties. The court issued its memorandum re, intended decision, finding in favor of defendant Board. Thereafter, upon proper request, findings of fact and conclusions of law were filed and judgment was rendered in favor of defendant Board. Action appeals from the judgment.

This case involves the question of whether a lessor, who (under Rev. & Tax. Code, § 6006, subd. (g)(5)), leases tangible personal property in substantially the samé form as acquired, may elect to either pay sales or use tax measured by the purchase price of the leased property or use tax . based on rental receipts from the subsequent rental of such property.

The facts are not in dispute. Based on the facts as to which the parties stipulated, the trial court found:

1. That since approximately 1959 Action has been in the…