Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2014
 

Rules For Tax Appeals

Chapter 5. GENERAL PROCEDURES FOR BOARD deletionACTION

ARTICLE 7. CORRESPONDENCE, PUBLIC HEARING RECORDS, AND COPIES

Rule 5574

5574. Request for Portion ofdeletion Board Hearing Conducted During Closed Session.

(a) Board's Discretion to Conductdeletion Hearings During Closed Session.

(1) In general, the Board may conduct portions ofdeletion Board hearings requested under chapter 2 or chapter 3 of this division during a closed session held under Government Code section 11126.

(2) The Board may not conductdeletion Board hearings requested under the following provisions during a closed session:

(A) Article 2 of chapter 3 of this division regarding the assessment of unitary or non-unitary property, or an electric generation facility as defined in Revenue and Taxation Code section 721.5.

(B) Chapter 4 of this division regarding appeals from the actions of the Franchise Tax Board.

(b) Contents of Requests. Taxpayers may request that the Board conduct a portion ofdeletion a Board hearing requested under chapter 2 or chapter 3 during a closed session. Such a request must be in writing, specifically identify thedeletion appeal for which the taxpayer'sdeletion Board hearing was requested, and describe the trade secrets or other confidential research, development, or commercial information, which is likely to be presented at the taxpayer'sdeletion Board hearing, the disclosure of which will cause unwarranted annoyance, embarrassment, or oppression.

(c) Manner of Filing and Due Date for Requests. Requests described in subdivision (b) must be filed with the Chief of Board Proceedings in the manner provided in section 5570 no later than the due date of the Response to Notice of Board Hearing provided in section 5522.6.

(d) Review of Requests.

(1) Chief Counsel's Review and Recommendation. Upon receipt of a taxpayer's request for the Board to conduct a portion ofdeletion a Board hearing during a closed session, the Chief Counsel will:

(A) Review the request to determine whether thedeletion appeal involves trade secrets or other confidential research, development, or commercial information the disclosure of which would cause unwarranted annoyance, embarrassment, or oppression to any person;

(B) Prepare a written recommendation to grant or deny the request; and

(C) Submit the taxpayer's request along with the recommendation to the Board Chair.

(2) Board Chair's Discretion. Upon receipt of a taxpayer's request under subdivision (b) and the Chief Counsel's recommendation to grant or deny the request, the Board Chair may direct the Chief of Board Proceedings to schedule the taxpayer'sdeletion Board hearing so that a portion of the hearing is conducted during a closed session, if the Board Chair determines that:

(A) Thedeletion appeal involves trade secrets or other confidential research, development, or commercial information the disclosure of which would cause unwarranted annoyance, embarrassment, or oppression to any person; and

(B) Such information is likely to be disclosed if the taxpayer'sdeletion Board hearing is conducted solely during an open session at a public meeting.

(3) If a portion ofdeletion a Board hearing is scheduled to be conducted during a closed session pursuant to paragraph (2) of this subdivision, that portion of thedeletion Board hearing must proceed in closed session unless a majority of the quorum present during the closed session votes in favor of a motion to conduct the entiredeletion Board hearing during an open session.

(4) If a motion is passed in accordance with paragraph (3) of this subdivision, the taxpayer'sdeletion Board hearing must be rescheduled so that the entire hearing can be conducted during an open session at a public meeting, and the Chief of Board Proceedings shall issue a new Notice of Board Hearing in accordance with section 5522.6.

(A) The waivers described in subdivision (b) or (c) of section 5573 are effective on the date the Board issues its first Public Agenda Notice providing public notice of the date and time of the taxpayer's rescheduleddeletion Board hearing.

(B) The waivers described in subdivision (b) or (c) of section 5573 may be rescinded by the taxpayer at any time before they become effective, if the taxpayer agrees to waive itsdeletion Board hearingdeletion.

(e) Notice of Board Chair's Decision. The Chief of Board Proceedings must notify the taxpayer of the Board Chair's decision on a request to conduct a portion ofdeletion a Board hearing during a closed session no later than five days prior to the issuance of the Public Agenda Notice described in section 5573, subdivision (d).

(f) Definitions. The phrase "trade secrets or other confidential research, development, or commercial information the disclosure of which will cause unwarranted annoyance, embarrassment, or oppression" must be interpreted in the same manner as the terms used therein are interpreted or defined for purposes of Code of Civil Procedure section 2031.060.

(g) Notwithstanding the foregoing provisions, nothing in this division shall prevent the Board from publishing a written opinion on its Internet website when required under section 5552.

Note: Authority cited: California Constitution, article XIII, section 11; Government Code sections 15606, 15640; Revenue and Taxation Code sections 251, 1840, 7051, 8251, 9251, 11651, 13170, 30451, 32451, 38701, 40171, 41128, 43501, 45851, 46601, 50152, 55301, 60601.

Reference: California Constitution, article XIII, section 11; Government Code sections 6254, 11124.1, 11125.1, 15606, 15619, 15640; Revenue and Taxation Code sections 40, 251, 743, 833, 1840, 7051, 7056, 8251, 8255, 9251, 9255, 11651, 11655, 13170, 19542, 19545, 30451, 30455, 32451, 32455, 38701, 38705, 38706, 40171, 41128, 43501, 45851, 46601, 50152, 55301, 60601, 60609.

History: 1. New section adopted 9-12-2007; effective 2-6-2008.

2. Amendments adopted November 19, 2013, effective April 1, 2014. The amendments replaced "Oral" with "Board" in the title of the regulation; deleted "Oral" from before "Hearings" in the tile of subdivision (a); replaced "oral" with "Board" before "hearings" in subdivision (a)(1) and (2); replaced "an oral" with "a Board" before "hearing" in the first sentence of subdivision (b); replaced "matter" with "appeal" and replaced "oral" with "Board" before both references to "hearing" in the second sentence of subdivision (b); replaced "an oral" with "a Board" in subdivisions (d)(1) and (e); replaced "matter" with "appeal" in subdivision (d)(1)(A) and (2)(A); replaced "oral" with "Board" in subdivision (d)(2), (2)(B), (4)(A) and (4)(B); replaced "an oral" with "a Board" before the first reference to "hearing" and replaced "oral" with "Board" before the second and third references to "hearing" in subdivision (d)(3) and the first reference to "hearing" in subdivision (d)(4); deleted "before the Board" from the end of subdivision (d)(4)(B); added new subdivision (g) to make the regulation consistent with new Regulation 5552; and added a citation to Revenue and Taxation Code section 40 to the regulation's reference note.