B-194982 L/M: Jul 21, 1980

WE INFORMALLY ADVISED YOU THAT THE JUSTICE DEPARTMENT WAS CONSIDERING BRINGING SUIT TO DETERMINE WHETHER THE TAX COLLECTED UNDER CALIFORNIA CIVIL CODE SECTION 1656.1 (DEERING SUPP. 1980) IS CONSTITUTIONALLY APPLICABLE TO FEDERAL LEASES OF TANGIBLE PERSONAL PROPERTY IN CALIFORNIA. THIS ORDER AMOUNTS TO A DECISION THAT THE TAX IS UNCONSTITUTIONAL. THE BAN ON TAXING FEDERAL LEASES WILL REMAIN IN EFFE...