Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2012

Sales And Use Tax Court Decisions

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Chahine v. State Board of Equalization . . . (1990)

Claim for Refund of Partial Payment of Periodic Tax Liability Must Be Filed within Six Months of Date of Partial Payment

The Board issued notices of determination to taxpayer, assessing additional taxes due concerning the taxpayer's sale of mobile homes. After the assessments became final, taxpayer made several partial payments and filed a claim for refund of seven installments he had paid over the preceding fourteen years. The court of appeal upheld the Board's position that Revenue and Taxation Code Section 6902 requires a taxpayer who seeks a refund of taxes he or she has paid in partial satisfaction of a periodic tax liability to petition for refund thereof within six months from the date of such partial payment. The court rejected the taxpayer's contention that the time limit for pursuing the administrative remedy which must be exhausted prior to filing suit should not begin until a tax liability is fully paid. The result of such a construction would be to provide no time limit for the recovery of amounts paid as long as some portion of a periodic liability was left unsatisfied, frustrating the public policy enforcing prompt payment of public tax revenue. Chahine v. State Board of Equalization (1990) 222 Cal.App.3d 485.