Filed: 1/18/01

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION THREE

 

CERIDIAN CORPORATION,

Plaintiff and Respondent,

v.

FRANCHISE TAX BOARD,

Defendant and Appellant.

A084298

(San Francisco County

Super. Ct. No. 983-377)

ORDER DENYING PETITION

FOR REHEARING AND

MODIFYING OPINION

[NO CHANGE IN JUDGMENT]

 

THE COURT:

The petition for rehearing is denied. It is ordered that the opinion filed herein on December 21, 2000, be modified in the following particular:

On page 15, the disposition paragraph (Part III, Conclusion and Disposition) should read:

"We hold that Revenue and Taxation Code section 24410 is an unconstitutional enactment in that it violates the commerce clause both by allowing a deduction for insurance subsidiary dividends only to corporations domiciled in California, and in limiting the amount of the deduction according to a formula based on the subsidiary’s gross receipts, payroll and property within the state. The trial court’s judgment invalidating the statute and awarding Ceridian the stipulated amount of tax refund is affirmed."

Dated: ____________________________ P. J.