Peterson Tractor Co. v. State Board of Equalization

Plaintiff Peterson Tractor Co. (hereafter referred to as Peterson) brought this action to recover sales taxes, together with interest, collected by the State Board of Equalization for the period April 1, 1955, to March 31, 1958. For convenience we will refer to the defendant as the board. The ease was tried upon a written stipulation of facts with exhibits attached thereto, without the introduction of any oral or other documentary evidence. From a judgment in favor of Peterson, the board appeals.

Peterson is a Nevada corporation, qualified to do business in California, with its principal place of business in San Leandro, Alameda County. It is the Caterpillar tractor dealer in the San Francisco Bay area and northern Sacramento valley. During the periods here involved, it was a retailer within the meaning of the California Sales and Use Tax Law. Peterson purchased all of the items, the lease and sale of which are here in controversy, for resale and gave resale certificates to the vendors thereof pursuant to the Sales and Use Tax Law. It paid no use tax to the state with respect to the leasing of these items.

Many of Peterson’s sales of heavy equipment were made to customers, who,…