Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales And Use Tax Court Decisions

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Snoozie Shavings, Inc. v. State Board of Equalization . . . (1979)

Taxpayer Entitled to Maintain Refund Action While Making Partial Payments of Use Tax Liability

A California corporation incurred a use tax liability for certain personal property purchased outside the state. Appellant corporation made two partial payments of $250 each on the tax owed, and entered into an installment agreement to pay under protest the total tax liability in monthly installments of $1,000. A claim for refund was filed for the $500 actually paid and was not acted upon by the Board within six months. Appellant then filed suit while the installment agreement was in effect. The court held that when a taxing authority voluntarily agrees to accept payment on an installment basis, and in the absence of any statutory provision to the contrary, a taxpayer may maintain a refund action which, in effect, determines the validity of the entire tax in question. Snoozie Shavings, Inc. v. State Board of Equalization (1979) 97 Cal.App.3d 771 (disapproved in State Board of Equalization v. Superior Court (O'Hara & Kendall Aviation, Inc.) (1985) 39 Cal.3d 633).