First City Bank v. Franchise Tax Board

Opinion

LAZARUS, J. *

Plaintiff First City Bank (hereinafter First City) appeals from a summary judgment denying its claim for a $4,999 tax refund paid to respondent Franchise Tax Board (hereinafter Board). Both sides moved for summary judgment on the basis of stipulated facts. First City’s motion was denied. At issue was the question of whether a 2.5 percent tax on items of so-called “preference income” (see p. 448, post) in excess of $30,000 imposed on banking corporations under the provisions of Revenue and Taxation Code section 23400 et seq. is constitutionally valid.

The basic tax structure…