Cod Gas & Oil Co. v. State Board of Equalization

Plaintiff Cod Gas & Oil Co., Inc., a motor fuel retailer, brings this tax refund action on behalf of itself and 18 other similarly situated fuel retailers to recover sales taxes later declared unconstitutional. The trial court entered judgment against plaintiffs after sustaining defendant’s demurrer without leave to amend for failure to state a cause of action. In a convoluted argument, plaintiffs alternately contend they were not reimbursed by purchasers for the invalid portion of the sales tax, or that reimbursement should not entitle purchasers to refunds denied to plaintiffs. They also contend Revenue and Taxation Code section 7275 et seq. is unconstitutional, depriving them of a vested right to seek refunds under the remedies available prior to the effective date of that statutory scheme. Finally, plaintiffs conclude, without analysis, that the statutory refund scheme unconstitutionally discriminates between classes of taxpayers.

Facts

On appeal from a judgment of dismissal following the sustaining of a demurrer, we treat the factual allegations of plaintiffs’ first amended complaint as true, solely for the purpose of determining whether plaintiffs have stated a…