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Business Taxes Law Guide—Revision 2024
Sales And Use Tax Court Decisions
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Javor v. State Board of Equalization … (1977)
Plaintiff Upheld in Consumer Class Action for Refund of Tax Reimbursement
Plaintiff, a consumer, purchased an automobile and paid sales tax reimbursement on the entire purchase price which included federal excise tax. The United States Congress later repealed the excise tax retroactively, resulting in a refund of that tax to plaintiff. Plaintiff brought a class action for all motor vehicle purchasers against all dealers, seeking to obtain refunds of all amounts of sales tax reimbursement paid with respect to the refunded federal excise tax. The Board was joined in the suit. The Supreme Court held that the Board was a proper party to the suit in Javor v. State Board of Equalization (1974) 12 Cal.3d 790. On remand, the Superior Court held that joinder of the Board in the suit tolled the three-year statute of limitations of Section 6902 of the Revenue and Taxation Code and that the Board must make the refunds to the dealers who would be required to pay over the money to the consumers who had paid excess tax reimbursement. The court also held that the amounts in question could not be used to offset other amounts owed by individual dealers to the Board. The court of appeal upheld the trial court on appeal by the Board. Javor v. State Board of Equalization (1977) 73 Cal.App.3d 939 (disapproved to the extent inconsistent with Woosley v. State of California (1992) 3 Cal.4th 758, which held that class claims for tax refunds were not authorized prior to 1989 legislative amendment to Revenue and Taxation Code).