Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales And Use Tax Court Decisions

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Wilkinson v. Wilkinson . . . (1976)

Lien Attaches to Equitable Interest in Real Property of Taxpayer

Plaintiff acquired her co-tenant's interest in real property through a quitclaim deed and sued to quiet title. The Board had previously filed a lien for unpaid sales and use taxes against the co-tenant under Section 6757 of the Revenue and Taxation Code. That section states that the amount required to be paid, together with interest and penalty, constitutes a lien upon all property in the county owned by the person. At the time the lien was filed, the plaintiff and cotenant had entered into a contract with the Department of Veterans Affairs for the purchase of the real property in question, so they owned an equitable interest in the property. The legal question was whether or not such a lien attaches to an equitable interest. The court of appeal affirmed the trial court's finding that such a lien does attach to an equitable interest. When Section 6757 was amended in 1965 by deleting the word "real" as a modifier of the property to which the lien attached, the Legislature intended to broaden the scope of the lien to "all property." Since it is clear that an equitable interest is property, the lien under Section 6757 embraces it. Wilkinson v. Wilkinson (1976) 51 Cal.App.3d 382.