International Business Machines v. State Board of Equalization

Opinion

TOBRINER, J.

Defendant State Board of Equalization (hereafter Board) appeals from a judgment awarding plaintiff International Business Machines (hereafter IBM) a sales tax refund of $735,196.27 for taxes paid by IBM during 1965-1967.1 The Board contends that the trial court erred in concluding that certain lease receipts were exempt from taxation under a “grandfather clause” contained in Assembly Bill No. 1 of the 1965 First Extraordinary Session, hereafter referred to as the 1965 Tax Lease Law.

As we shall explain, we concur in the Board’s position, concluding that in light of the…