American President Lines, Ltd. v. Franchise Tax Board

Opinion

TAYLOR, J.

American President Lines (hereafter taxpayer) appeals from an adverse judgment in its action for a refund of franchise taxes paid under protest to respondent, Franchise Tax Board (hereafter board). The taxpayer contends that it is engaged only in interstate commerce and, therefore, is not subject to the state franchise tax; and, in the alternative, if subject to the tax, the board erred in allocating to California all of the taxpayer’s interest from two statutory reserve funds required by federal maritime law.

The appeal is on the following stipulation of facts: The taxpayer…