Citrus Belt Savings & Loan Ass'n v. California Franchise Tax Board

Defendant California Franchise Tax Board appeals from the judgment entered in favor of two savings and loan associations following a non jury trial of their action for refund of certain of their franchise taxes paid during the income years 1953, 1954 and 1955. Each plaintiff made timely payment of its franchise taxes and filed a claim for refund for each year involved. These claims were denied by the defendant board and such denials were affirmed by the State Board of Equalization on appeal. Plaintiffs then commenced this action in the superior court. The court below held that certain payments made by plaintiffs to the Savings and Loan Commissioner should have been offset against their franchise taxes but that plaintiffs’ payments to the City of Riverside under its business license ordinance were not available as offsets. Plaintiffs have appealed from this latter holding.

The narrow issue before the trial court, as framed by the pleadings, pretrial proceedings, and stipulations of the parties, was simply this: “May the payments made ’by plaintiffs to the Savings and Loan Commissioner pursuant to sections 5300 and 5301 of the Financial Code be ‘offset’ (i.e: credited) pursuant to…