Union Oil Company California v. State

In this appeal we must determine whether the Department of Revenue (DOR) correctly denied Union Oil Company of Californias (hereinafter Union) request for a partial refund for tax years 1973 and 1974. Union calculates its tax liability using formulary apportionment instead of separate accounting. The DOR ruled Unions claim barred by res judicata. The DOR, however, decided Unions claim on the merits as well, ruling against Unions formulary accounting method. The superior court, sitting as an appellate court, affirmed the DORs ruling on the merits, but did not address the issue of res judicata. We do likewise in this appeal.