Suits for Refund

Article 2 of Chapter 7 of Part 1 of Division 2 of the Revenue and Taxation Code deals with suits for refund involving overpayments of sales and use taxes in this state.

Section 6931 provides that no injunction or writ of mandate or other legal or equitable process is to be issued in any suit, action, or proceeding in any court against this State or against any officer of the State to prevent or enjoin the collection under this part of any tax or any amount of tax required to be collected.

Section 6932 explains that no suit or proceeding is to be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally determined or collected unless a claim for refund or credit has been duly filed.

Section 6933 states that, within 90 days after the mailing of the notice of the board’s action upon a claim filed, the claimant may bring an action against the board on the grounds set forth in the claim in a court of competent jurisdiction in any city of this state in which the Attorney General has an office.

Section 6934 states that, if the board fails to mail notice of action on a claim within six months after the claim is filed, the claimant may consider the claim disallowed and bring an action against the board on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.

Section 6935 provides that, if judgment is rendered for the plaintiff, the amount of the judgment is first credited on any sales or use tax or amount of use tax due and payable from the plaintiff. The balance of the judgment is then refunded to the plaintiff.

Section 6936 requires interest to be allowed at the modified adjusted rate per annum established for overpayments upon the amount found to have been illegally collected, the date to be determined by the board.

Section 6937 specifies that a judgment is not to be rendered in favor of the plaintiff in any action brought against the board to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount.