Overhead Electric Co. v. State Board of Equalization

Overhead Electric Company, Inc. (Overhead) appeals from judgment entered against it and in favor of the State Board of Equalization (Board). We affirm.

Facts

Overhead, a corporation engaged in business as an electrical contractor, entered into a subcontract to furnish and install an emergency standby uninterruptible power system at Mather Air Force Base in California. The portion of the contract involving the electrical installation was completed and the prime contractor received a certified copy of acceptance on or about January 20, 1981.

The Board audited Overhead for the period from January 1, 1978, through December 31, 1979, and determined that there was an underpayment of tax in the amount of $14,023.68 plus a penalty of $1,402.37. The tax with penalty was asserted on the purchase price of the equipment required for the uninterruptible power system furnished on the electrical subcontract at Mather Air Force Base.

Overhead paid that amount and filed a claim for refund. The claim was denied by the Board, and Overhead, along with others, filed the within action against the Board for refund of sales and use taxes.

*1233 After trial on the matter, the court entered…