California Owes Movie Theater Heirs $5 Million in Overpaid Taxes

Trustees for 157 trusts established for descendants of Century Theaters Inc. founder Raymond Syufy will get more than $5 million from California after a trial court ruled not all of the trusts’ income is taxable in the state.

Judge Rochelle C. East of the California Superior Court, San Francisco County, granted the trustee’s motion for summary adjudication in a judgment filed Wednesday. She ordered the California Franchise Tax Board to refund $5.39 million, plus interest, on taxes paid on the $524 million gain from the sale of the movie theater company in 2007.

Only 81.4% of that gain is attributable ...