Computer Service Tax Cases
Several consumers brought actions contesting imposition of sales and use taxes on optional service contracts sold with computers. At issue on this appeal is a petition for writ of mandate and declaratory relief by consumers seeking, among other things, a declaration of the unlawfulness of the tax and an order stopping collection of the tax. The trial court sustained a demurrer to the petition and dismissed the action. The court found the action barred by constitutional and statutory provisions that preclude lawsuits to prevent tax collection. (Cal. Const., art. XIII, 32; Rev. & Tax. Code, 6931.) Tax disputes may be resolved by a postpayment refund action but the consumers here declined the courts invitation to pursue that remedy. (Cal. Const., art. XIII, 32; Rev. & Tax. Code, 6933.) This appeal concerns the narrow procedural issue of whether constitutional and statutory anti injunction provisions bar this action, as the trial court found. Court conclude that the action is barred, and affirm the judgment of dismissal.
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