Franchise Tax Board v. Superior Court

Does a taxpayer have the right to a jury trial in an action for a refund of state income taxes? The Court of Appeal said yes, reasoning that the gist of such an action is legal and therefore a jury trial is guaranteed by the state Constitution. We reverse.

The facts are undisputed, and may briefly be stated. Real party in interest Tom Gonzales, as personal representative of his son’s estate, filed a complaint in 2006 seeking a refund of state personal income taxes for the years 2000 and 2001. Gonzales alleged that the estate had paid over $15 million as part of a tax amnesty program, reserving the right to seek a refund. He demanded a jury trial. The trial court denied a motion by defendant Franchise Tax Board (the Board) to strike the jury demand. On the Board’s application for writ relief, the Court of Appeal issued an order to show cause. After thorough consideration of the parties’ arguments, the court declined to disturb the trial court’s mling as to the refund action, deciding as a matter of first impression that there is a state constitutional right to a jury trial in, an action for a refund of state income taxes. We granted the Board’s petition for review.…