Franchise Tax Board v. Superior Court

On February 9, 1983, Robert McKean was arrested and charged with possession of controlled substances for sale, a violation of Health and Safety Code section 11351. The police seized $171,785 and a large quantity of jewelry and firearms.

On February 10, McKean executed the following assignment; “In consideration of Carl Burkow, Attorney at Law, representing me in the criminal proceedings arising out of my arrest by officers of the Los Angeles Police Department on February 9, 1983. I Robert William McKean hereby assign to Carl Burkow, all of my rights, title and interest in and to all of the money seized by said Officers in the approximate sum of $171,185.00 (one hundred seventy one thousand one hundred eighty five dollars). I hereby direct and authorize the Los Angeles Police Department to release said funds to my said Attorney. ” Personal property also embraced in the assignment is set forth in the appendix attached hereto.

On February 10, 1983, the Franchise Tax Board (Board) issued and delivered to the police department 10 minutes after Burkow presented his assignment an “order to withhold personal income tax” pursuant to Revenue and Taxation Code section 18817. The…