Mole-Richardson Co. v. Franchise Tax Board

Appellant Franchise Tax Board appeals from a judgment granting refund of corporate franchise taxes paid for income years 1972 through 1975 by respondent Mole-Richardson Company. The question presented is whether under the factual circumstances of this case the activities of a corporation with diverse business enterprises carried on both within and without the state constitute one unitary business for income apportionment purposes. We hold that they do and affirm the judgment.

The case was submitted on stipulated facts and uncontradicted testimony that may be summarized as follows;

Mole-Richardson Company is a California corporation with its principal office in Los Angeles. All of the stock is owned by Parker family trusts. The Parker family consists of Warren K. Parker, his wife, their four sons and two daughters. Warren K. Parker is president and chief executive of the corporation.

During the period in question, the corporation was engaged in the business of design, manufacture, rental and sale of lighting equipment for motion picture and television studios and still photographers. This business was based in Hollywood, California. The corporation was also engaged in…