Heating Equipment Manufacturing Co. v. Franchise Tax Board

In this action for a refund of a portion of a franchise tax, plaintiff corporation appeals from a judgment in favor of defendant Franchise Tax Board.

Plaintiff brought the instant action pursuant to section 26102 of the Revenue and Taxation Code for a refund of a portion of the franchise tax paid by it for the taxable year commencing March 1, 1956, and ending February 28, 1957. Basically it claimed therein that it had duly prepaid its franchise tax for said taxable year, that it had been dissolved on December 11, 1956, that said dissolution was not pursuant to a reorganization, consolidation or merger as defined in section 23251, and that it was therefore entitled to a refund of 3/12ths of the amount of the prepayment. The cause was tried in the court below on a written stipulation of facts, in addition to which there was testimony of one witness called by plaintiff.

We first set forth the stipulated facts: Plaintiff Heating Equipment Manufacturing Co. (hereafter referred to as Heating Equipment) was incorporated in the State of California in 1938 and engaged in the manufacture of various types of forced-air furnaces. Prior to October of 1956, the outstanding stock of Heating…