Approved 2001 Minutes - Thursday, March 29, 2001

Thursday, March 29, 2001

The Board met at its offices at 450 N Street, Sacramento, at 9:30 a.m. with Vice Chairman Chiang and Mr. Andal present, Ms. Mandel present on behalf of Dr. Connell in accordance with Government Code Section 7.9.

ANNOUNCEMENT OF CLOSED SESSION

The Board recessed immediately in closed session with Mr. Chiang, Mr. Andal and Ms. Mandel present.

CLOSED SESSION

The Board met to discuss and Revenue and Taxation codes 7093.5, 7093.5(b)(3), 30459.1 and 50156.11 settlements and personnel matters.

The Board recessed at 9:31 a.m. and reconvened at 9:45 a.m. in open session with Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel present.

PROPOSED CONTRACTS OVER $1 MILLION

Dade Powers, Chief, Administrative Support Division, reported the items before the Board are 2001-02 contracts that require Board Member approval prior to being established (Exhibit 3.13).

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the 2001-02 contracts over $1 million with the exception of the Department of General Services Contract.

Upon motion of Mr. Chiang, seconded by Mr. Klehs and duly carried, Mr. Parrish, Mr. Chiang, Mr. Klehs and Ms. Mandel voting yes, Mr. Andal voting no, the Board approved the 2001-02 contract of the Department of General Services.

Exhibits to these Minutes are incorporated by reference.

ADMINISTRATIVE MATTERS, CONSENT

With respect to the Administrative Matter, Consent Agenda, upon a single motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Action: Adopt the following resolution extending its best wishes on their respective retirements and its appreciation for their service to the Board and the State of California (Exhibit 3.14).

Judith E. Newton, Chief, Board Proceedings Division, Headquarters

Sheila Tharp, Secretary, Return Analysis and Allocation Division

Jonnie J. Lorrent, Tax Technician III, Bakersfield Branch Office

Rebecca Y. Conteras, Tax Technician III, Ventura District Office

Luis M. Conte, Tax Auditor, Van Nuys District Office

George Len Taylor, Business Taxes Supervisor II, Special Procedures Unit, Headquarters

Dwight F. McGee, Business Taxes Representative, Bakersfield Branch Office

Billie Hegglin, Associate Governmental Program Analyst, Forms and Publications Section, Headquarters

Action: Adopt the following resolution extending its best wishes on their new positions and its appreciation for their service to the Board and the State of California (Exhibit 3.15).

Delena Bratton, Chief, Customer and Taxpayer Services Division, Headquarters

Derick Brannan, Supervising Tax Counsel, Legal Division, Appeals Section, Headquarters

Action: Approve the November 28 - December 1, 2000, December 12 - 14, 2000, and the January 3 - 4, 2001, Board Meeting Minutes.

Action: Approve Board Meeting date change from November 6 - 8, 2001 to November 5 - 7, 2001.

Action: Approve Non-Substantive Revisions to Audit Manual, Chapters 1, 2, 3, 4, 5, 6, 7 and 10 (Exhibit 3.16).

LEGISLATIVE COMMITTEE REPORT

Margaret Shedd, Legislative Counsel, presented the Legislative Committee Report (Exhibit 3.17).

Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the committee report.

CUSTOMER SERVICES AND ADMINISTRATIVE EFFICIENCY COMMITTEE REPORT

Delena Bratton, Chief, Customer and Taxpayer Services Division, presented the Customer Services and Administrative Efficiency Committee report (Exhibit 3.18).

Upon motion of Mr. Chiang, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the committee report.

BUSINESS TAXES COMMITTEE REPORT

Ramon Hirsig, Deputy Director, Sales and Use Tax Department, presented the Business Taxes Committee report (Exhibit 3.19).

Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the committee report.

PROPERTY TAX COMMITTEE REPORT

Richard Johnson, Deputy Director, Property Taxes Department, presented the Property Tax Committee report (Exhibit 3.20).

Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the committee report.

SPECIAL PRESENTATIONS

Mr. Parrish and the Board members presented to Delena Bratton, Chief, Customer and Taxpayer Services Division, a resolution extending its sincere and grateful appreciation for her dedicated service to the State Board of Equalization and the State of California. Mr. Parrish congratulated her on new position with the Internal Revenue Service.

Mr. Andal congratulated Ms. Bratton on her new endeavor and thanked her for her commitment and her accomplishments during her service at the Board.

Mr. Klehs thanked Ms. Bratton for her hard work and wished her all the success in the future.

Mr. Chiang recognized her for her talent and abilities. He expressed his and the Board’s gratefulness to her devoted service to the State of California.

CHIEF COUNSEL MATTERS, RULEMAKING

Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the Section 100 change to Rule 468.

Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the Section 100 change to Rule 469.

Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the Section 100 change to Rule 473.

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted the changed version to the Rule of Practice, Regulations 5020, 5023, 5030, 5043, 5051, 5053, 5063, 5071, 5075.1, 5076.1, 5079, 5081, 5081.2, 5090, 5091, 5093, 5094, and 5095.

CHIEF COUNSEL MATTERS, STATE ASSESSEE PETITIONS FOR REASSESSMENT OF UNITARY VALUE, FINDINGS AND DECISIONS

AT&T Communications, (2310) SAU 00-017, 75816
2000 Unitary Value $2,002,900,000

Action: The Board took no action.

LEGAL APPEALS MATTERS, ADJUDICATORY [C]

Sonlite Signs, Inc., SR KH 28-896133; 15543
4-1-95 to 3-31-98, $25,708.82 Tax, $2,570.90 Penalty, Negligence
Considered by the Board: Hearing Notice Sent - No Response
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by Appeals Section.

Edward Paul Cedillo, SR ARF 99-607688; 16245
7-1-95 to 3-31-98, $119,954.69 Tax, $15,827.94 Penalty, Negligence
Considered by the Board: Hearing Notice Sent - No Response
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by Appeals Section.

Toyota Motor Sales USA, Inc., SZ AB 11-297699; 89000009770
4-1-89 to 12-31-93, $12,360,006.00
Considered by the Board: Memorandum Opinion
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Mr. Andal moved to adopt the memorandum opinion as drafted by the Appeals Section. The motion was seconded by Mr. Parrish but failed to carry.
Mr. Parrish and Mr. Andal voting yes, Mr. Chiang, Mr. Klehs and Ms. Mandel voting no.

Xerox Corporation, SZ OHB 98-040852; 89002095430, -400
4-1-93 to 3-31-97, $453,327.00
Considered by the Board: Memorandum Opinion
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted the memorandum opinion as drafted by the Appeals Section.

Jennifer Smith, SR ARD 15-690565-020; 89000145680
7-1-85 to 4-21-89, $71,833.32 Tax, $00.00 Penalty, Failure to File Timely
Considered by the Board: Cases Heard But Not Decided
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Mr. Klehs moved to redetermine the petition. The motion was seconded by Mr. Parrish. No vote was taken.
Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Andal and Ms. Mandel voting yes, Mr. Klehs voting no, Mr. Parrish abstaining, the Board ordered that the petition be granted as to the disputed measures.

Shmuel Krampf & Rauven Aviv, SR BH 99-864638; 89002420940
7-1-92 to 6-30-95, $61,849.56 Tax, $00.00 Penalty, Negligence
Considered by the Board: Cases Heard But Not Decided
Action: The Board took no action.

Letter Excellence, Inc., SR AC 13-827269; 89000084890, -880
1-1-95 to 9-30-97, $7,165.51 Tax
Considered by the Board: Petition for Rehearing
Action: Mr. Klehs moved to deny the petition for rehearing as recommended by the Appeals Section. Ms. Mandel offered a substitute motion to grant the petition. The motion was seconded by Mr. Parrish and duly carried, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs and Mr. Andal voting no.

Jack & Lesly Kandel, SB UT 81-012722; 89001079560
8-31-94, $3,712.50 Tax, $00.00 Penalty, Negligence
Considered by the Board: Petition for Rehearing
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon the motion of Mr. Klehs, seconded by Andal and duly carried, Mr. Andal, Mr. Klehs and Ms. Mandel voting yes, Mr. Chiang voting no, Mr. Parrish abstaining, the Board ordered that the petition be redetermined as recommended by Appeals Section.

Cordax, Inc., SR EA 99-159240; 89002127090
1-1-93 to 12-31-95, $12,344.99 Tax
Considered by the Board: Petition for Rehearing
Action: The Board took no action.

FRANCHISE AND INCOME TAX MATTERS, ADJUDICATORY

Fergus M. Bourke, 50324
1992, $243.04 Claim for Refund
Submitted for Decision: July 27, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision sustaining the action of the Franchise Tax Board.

Hyundai Precision & Industry, 98A-0530; 89002463190
12-31-84 to 12-31-86, $4,203.00 Assessment
Hyundai Steel Industries Inc., 98A-0531; 89002463200
12-31-84 to 12-31-86, $68,017.00
Considered by the Board: October 29, 1999
Action: The Board took no action.

Jim Beam Brands Company, 99A-0183; 89002468010
1987, $137,368.00 Assessment
Submitted for Decision: December 14, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision modifying the action of the Franchise Tax Board.

Susan L. Lindsey, 52359
1993, $392.00 Assessment
Considered by the Board: July 13, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Andal, seconded by Ms. Mandel and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board sustained the action of the Franchise Tax Board.

Sandra S. Taber, 49608
1998, $1,180.00 Assessment
Submitted for Decision: May 25, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision sustaining the action of the Franchise Tax Board.

HOMEOWNER AND RENTER PROPERTY TAX ASSISTANCE MATTERS, ADJUDICATORY

R. G. Man, 60937
1998, $92.50 Claim for Credit
Submitted by Decision: January 4, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board sustained the action of the Franchise Tax Board.

SALES AND USE TAX MATTERS, CREDITS, CANCELLATIONS AND REFUNDS, ADJUDICATORY

Metabolife International, Inc., SR FH 099-751077; 94446
4-1-97 to 12-31-97, $100,085.29 Claim for Refund
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the refund as recommended by staff.

SALES AND USE TAX MATTERS, DENIALS OF CLAIMS FOR REFUND, ADJUDICATORY

Marriott Corporation, SR OHB 030-628394; 99087
9-7-85 to 12-30-88, $231,584.19 Claim for Refund
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the denial of claim for refund as recommended by staff.

LEGAL APPEALS MATTERS, CONSENT

The Board deferred consideration of the following matter: Learaf, Inc. SR BH 19-720223, 89000273570.

With respect to the Legal Appeals Matters, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Pannus Wholesale Marketing Inc., SY GH 99-193437; 89002141010
1-1-93 to 12-31-96, $71,244.42 Tax, $7,124.45 Penalty, Negligence
Action: Redetermine as recommended by Appeals Section.

CGF Cash & Carry, SR BH 19-750299; 8900028210, -110
7-1-92 to 6-30-95, $75,368.86 Tax, $7,536.95 Penalty, Negligence
Action: Redetermine as recommended by Appeals Section.

American Yearbook Company, Inc., SR OHA 30-001432; 89000804370
10-1-92 to 3-31-97, $543,556.17 Claim for Refund
Action: Grant the claim for refund with adjustments.

Ackerman Emergency Equipment, Inc., SR KHJ 99-287640; 33716
7-1-96 to 3-31-99, $5,771.00 Tax
Action: Redetermine as recommended by Appeals Section.

The Quadri Group, SR BHA 19-764949; 89000287380
12-1-88 to 12-31-92, $28,662.66 Tax, $2,881.86 Penalty, Negligence
Action: Redetermine as recommended by Appeals Section.

Tops Industries, TK MT 44-029409; 18552
4-1-91 to 6-30-91
4-1-92 to 9-30-92
1-1-93 to 12-31-93
$10,115.75 Claim for Refund
Action: Deny the claim for refund.

Gurpal Singh Sandhu, SR BH 99-515130-010; 89002288900
7-1-94 to 3-31-97, $37,440.32 Tax, $3,798.02 Penalty, Negligence
Action: Redetermine as recommended by Appeals Section.

Deborah Alfonso, SR EAA 13-874082; 50590
7-1-91 to 12-31-92, $18,517.28 Tax
Action: Redetermine as recommended by Appeals Section.

Lakireddy B. Reddy, et al., SY CH 21-670049; 89000316900
4-1-94 to 9-30-97, $145,178.66 Tax, $14,517.97 Penalty, Negligence
Action: Redetermine as recommended by Appeals Section.

Standard Sheet Metal, Inc., SN DH 52-001624; 89000962580
1-1-89 to 3-31-95, $147,175.80 Tax, $14,717.58 Penalty, Failure to File
$73,587.95 Penalty, Operating without Permit
Action: Redetermine as recommended by Appeals Section.

Larry Ross, SR CH 21-850816; 36990
7-1-95 to 6-30-98, $28,342.87 Tax, $2,834.30 Penalty, Negligence
Action: Redetermine as recommended by Appeals Section.

R. P. Richards, Inc., SZ ARA 98-043470; 89002097430
4-1-92 to 6-30-95, $217,928.30 Tax
Action: Redetermine as recommended by Appeals Section.

DTR Services, Inc., SR DHJ 97-555938; 19405
1-1-93 to 3-31-96, -$3,063.84 Tax credit not allowed in audit
Action: Redetermine as recommended by Appeals Section.

Irina Petrovna Nevska, SR BH 99-459144; 89002265090
7-1-94 to 6-30-97, $565.25 Tax
Action: Redetermine as recommended by Appeals Section.

Innovative Ceramics, Inc., SC OHC 30-702823; 89000887970
7-1-94 to 9-30-97, $14,870.01 Tax, $00.00 Penalty, Negligence
Action: Redetermine as recommended by Appeals Section.

Teamwork Concepts, Inc., SR JH 99-545816; 89002302290
1-1-95 to 9-30-97, $00.00 Tax
Action: Redetermine as recommended by Appeals Section.

Noel Carpenter Willyoung & Y’Vonne I. Willyoung, SR GH 99-551837; 48078
10-1-94 to 6-30-98, $28,756.82 Tax, $00.00 Penalty, Negligence
Action: Redetermine as recommended by Appeals Section.

Leslie Hennessy, Jr., SR BH 19-653110; 8900026210; 48018
4-1-93 to 11-2-95, $18,132.19 Tax, $00.00 Penalty
Leslie A. Hennessy, Inc., SR BH 97-255794; 47952
11-3-95 to 12-31-95, $1,317.34 Tax, $00.00 Penalty
Action: Deny the petition for rehearing.

Learaf, Inc., SR BH 19-720223; 89000273570
7-1-92 to 6-30-95, $61,849.56 Tax, $6,262.53 Penalty, Negligence
Action: The Board deferred consideration of this matter.

FRANCHISE AND INCOME TAX MATTERS, CONSENT

The Board deferred consideration of the following matters: Robert K. Bailey, 61142; Glenn & Joya Baker, 61143; Jeana Bevan, 59710; April K. Dean, 48858; R. B. Dixon, 62411; Rafael Guillen, 62133; Jianhua Hu, 56616, Eric S. & Candace E. Hyman, 37244; Wilbur Messinger & Betty Messinger (Deceased), 52423; Sandra M. Morgan, 56350; and Larin V. & Joan M. Schwab, 41858.

With respect to the Franchise & Income Tax Matters, Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Larry Aldana, 53052
1996, $111.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Robert K. Bailey, 61142
1996, $1,162.00 Assessment
Action: The Board deferred consideration of this matter.

Glenn & Joya Baker, 61143
1997, $8,229.25 Claim for Refund
Action: The Board deferred consideration of this matter.

Jeana Bevan, 59710
1998, $621.00 Assessment
Action: The Board deferred consideration of this matter.

Donald R. & Rhonda K. Biggs, 79137
1998, $1,258.00 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.

Richard E. Campbell, 55467
1997, $1,221.87 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.

Hector & Elvira Campos, 60039
1996, $1,446.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Burt C. Colberg, 56447
1996, $207.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Vickie G. Coleman, 58032
1997, $917.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

D&W LLC, 80325
1997, $267.00 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.

Dale W. & Frances R. Darnley, 79173
1982, $28,987.00 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.

April K. Dean, 48858
1997, $956.82 Claim for Refund
Action: The Board deferred consideration of this matter.

Barry & Deborah Delaney, 87441
1996, $1,706.00 Assessment
Action: Sustain the modified action of the Franchise Tax Board.

R. B. Dixon, 62411
1995, $1.00 or more Claim for Refund
Action: The Board deferred consideration of this matter.

Comfort Ekeledo, 78956
1998, $885.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Falcon Products, Inc., 62091
1995, $ 2,622.94 Claim for Refund
1996, $12,651.56 Claim for Refund
1997, $37,971.36 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.

Dorothy M. Gaithers, 83319
1996, $1,502.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Deyanira Garcia-Menocal, 62131
1998, $614.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Rafael Guillen, 62133
1997, $2,775.28 Claim for Refund
Action: The Board deferred consideration of this matter.

Mark H. Hawkins, 60599
1996, $363.00 Assessment, $51.00 Penalty, Delinquent
Action: Sustain the action of the Franchise Tax Board.

Norman B. (Deceased) & Sharon K. Hirsch, 63546
1983, $7,123.00 Assessment
1984, $ 412.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Sharon L. Howe, 63539
1996, $631.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Jianhua Hu, 56616
1998, $1,185.00 Assessment
Action: The Board took no action.

Eric S. & Candace E. Hyman, 37244
1995, $717.73 Assessment
Action: The Board took no action.

Debraprasad Karchowdhury, 83329
1996, $4,654.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

George W. Keyes, 77955
1998, $29,842.00 Assessment, $14,921.00 Penalty
Action: Sustain the action of the Franchise Tax Board.

Benjamin C. Kim, 83332
1996, $919.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Douglas Kisaka, 98A-1144; 89002463610
1995, $3,101.00 Assessment, $620.20 Penalty, Accuracy-related
Action: Sustain the action of the Franchise Tax Board.

Grant Lamphere, 57371
1997, $1,013.00 Assessment, $1,257.00 Penalty, Demand
$ 235.25 Penalty, Late Filing
Action: Sustain the action of the Franchise Tax Board.

John M. Langdon, 77248
1994, $2,823.60 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.

Stephen J. Lindsey, 52357
1994, $22,919.00 Assessment, $5,729.75 Penalty, Delinquent
$5,729.75 Penalty, Demand
1995, $24,295.00 Assessment, $6,073.75 Penalty, Delinquent
$6,073.75 Penalty, Demand
Action: Sustain the action of the Franchise Tax Board and impose a $750.00 frivolous appeal penalty.

Robbie Macias, 83573
1998, $609.50 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.

Charles McCarthy, 76284
1998, $1.00 or more Claim for Refund
Action: Sustain the action of the Franchise Tax Board.

Lori B. Mellman, 78224
1996, $1,288.00 Assessment
Action: Sustain the modified action of the Franchise Tax Board.

Wilbur Messinger & Betty Messinger (Deceased), 52423
1998, $148.32 Claim for Refund
Action: The Board took no action.

Richard C. Mickelson, 55252
1998, $1,229.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Sandra M. Morgan, 56350
1997, $1,158.00 Assessment
Action: The Board deferred consideration of this matter.

Jack A. Needham, 62141
1996, $313.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

David & Jolene Nissen, 49980
1991, $2,331.66 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.

Michael E. & Wendy Noll, 49973
1995, $3,299.00 Assessment, $659.80 Penalty, Accuracy-related
Action: Sustain the action of the Franchise Tax Board.

Joseph M. Opishinski, 58877
1998, $586.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Christine A. Phelps, 61397
1996, $941.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

James Phillips, 75835
1996, $90.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Michael & Robin Pritchard, 57325
1995, $1,247.00 Assessment
Action: Sustain the modified action of the Franchise Tax Board.

Manjit Ralhan, 53031
1998, $270.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Karen E. Runge, 61392
1996, $226.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Siebert Security Services, Inc., 49512
1992, $35,645.34 Claim for Refund
1993, $1.00 or more Claim for Refund
Action: Reverse the action of the Franchise Tax Board.

Karen S. Stewart, 59161
1991, $1.00 or more Claim for Refund
Action: Sustain the action of the Franchise Tax Board.

Robert J. Tarr, 88373
1996, $1,015.00 Assessment
Action: Sustain the modified action of the Franchise Tax Board.

Tower Enterprises, LLC, 88377
1997, $340.91 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.

Stephanie C. Trisler, 76206
1996, $320.77 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.

David J. Tyner, 55043
1997, $345.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Michael Harry Volzke, 59217
1996, $808.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

Roger A. & Nancy Walters, 55046
1995, $345.00 Assessment
Action: Sustain the action of the Franchise Tax Board.

John Waugaman, 57245
1997, $5,276.00 Assessment, $2,638.00 Penalty
Action: Sustain the action of the Franchise Tax Board.

Ryan T. & Iva K. Bonar, 31057
1994, $11,878.00 Assessment, $2,906.75 Penalty, Delinquent
$2,375.60 Penalty, Accuracy-related
1995, $ 68.00 Assessment, $ 70.00 Penalty, Delinquent
$ 13.60 Penalty, Accuracy-related
1996, $ 361.00 Assessment, $ 72.20 Penalty, Accuracy-related
Action: Deny the petition for rehearing.

Bruce E. Colegrove, 32604
1997, $1,178.00 Assessment, $294.50 Penalty, Late Filing
$294.50 Penalty, Failure to File
$ 71.00 Enforcement Fee
Action: Deny the petition for rehearing.

Larin V. & Joan M. Schwab, 41858
1996, $404.00 Assessment
Action: The Board deferred consideration of this matter.

HOMEOWNER AND RENTER PROPERTY TAX ASSISTANCE MATTERS, CONSENT

The Board deferred consideration of the following matter: G. Smith, 51717.

With respect to the Homeowner and Renter Property Tax Assistance Matters, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Wanda Bemben, 63321
1998, $50.00 Claim for Credit
Action: Sustain the action of the Franchise Tax Board.

Jerry Blocker, 58040
1997, $550.00 Claim for Credit
Action: Sustain the action of the Franchise Tax Board.

Evelyn E. Jackson, 76017
1997, $240.00 Claim for Credit
Action: Sustain the action of the Franchise Tax Board.

G. Smith, 51717
1999, $240.00 Claim for Credit
Action: The Board deferred consideration of this matter.

Michael Wilson, 51735
1999, $180.00 Claim for Credit
Action: Sustain the action of the Franchise Tax Board.

SALES AND USE TAX MATTERS, CREDITS AND CANCELLATIONS,AND REFUNDS, CONSENT

With respect to the Sales and Use Tax Matters, Credits, Cancellations and Refunds, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Ms. Mandel not participating in Robert P. Scherer III, SP H UT 084-007440; 106215 the Board made the following orders:

Allied Telesyn International Corporation, SR Y GH 026-788861; 105790
7-1-95 to 6-30-98, $59,599.78
Action: Approve credit and cancellation as recommended by staff.

Alan D. Purwin, SP H UT 084-004597; 104278
10-1-97, $106,233.16
Action: Approve credit and cancellation as recommended by staff.

Robert P. Scherer III, SP H UT 084-007440; 106215
5-1-98, $339,130.25
Action: Approve credit and cancellation as recommended by staff. Ms. Mandel not participating.

Sandoz Pharmaceuticals Corporation, SR S OHB 011-074752; 103437
7-1-96 to 9-30-99, $534,733.25
Action: Approve refund as recommended by staff.

Kawasaki Motors Corporation, SR EAA 012-607594; 37772
7-1-96 to 9-30-99, $192,999.33
Action: Approve refund as recommended by staff.

Bio-Rad Laboratories, SR Y CHB 021-126351; 104884
1-1-96 to 6-30-00, $2,232,421.00
Action: Approve refund as recommended by staff.

Cold Ice Corporation, SR CH 021-754755; 94314
1-1-99 to 9-30-99, $58,795.09
Action: Approve refund as recommended by staff.

Airtouch Paging, SR Y OHC 026-655228; 102884
7-1-96 to 6-30-99, $52,115.33
Action: Approve refund as recommended by staff.

Schlumberger Technologies Inc., SR Z GH 026-815093; 103442
7-1-95 to 12-31-98, $94,380.60
Action: Approve refund as recommended by staff.

American Yearbook Company Inc., SR Y OHA 030-001432; 49292
1-1-96 to 12-31-98, $172,150.76
Action: Approve refund as recommended by staff.

Schwarz Paper Company, SR Z OHA 030-633396; 103418
7-1-96 to 3-31-00, $53,820.76
Action: Approve refund as recommended by staff.

Hollywood Film Company, SR AA 097-016061; 104176
7-1-00 to 9-30-00, $50,675.04
Action: Approve refund as recommended by staff.

Gracon Corporation, SR S OH 097-142523; 56872
10-1-97 to 6-30-00, $119,338.82
Action: Approve refund as recommended by staff.

Minton & Nolet Inc., SR S GH 099-189910; 102887
4-1-97 to 3-31-00, $85,502.00
Action: Approve refund as recommended by staff.

Progressive Legal Support, SR AA 099-471213; 82094
1-1-00 to 2-8-00, $55,051.23
Action: Approve refund as recommended by staff.

Qualcomm Investment Company, Inc., SR FH 099-533032; 89248
1-1-99 to 3-31-99, $59,000.71
Action: Approve refund as recommended by staff.

Somera Communications, LLC, SR AR 099-756321; 79121
1-1-99 to 11-30-99, $79,416.25
Action: Approve refund as recommended by staff.

Cherokee International LLC, SR Y EA 099-877767; 37761
7-1-96 to 9-30-99, $91,930.21
Action: Approve refund as recommended by staff.

SALES AND USE TAX MATTERS, REDETERMINATIONS, RELIEF OF PENALTY AND DENIALS OF CLAIMS FOR REFUND, CONSENT

The Board deferred consideration of this matter: L. A. Gear California, Inc., SR AS 011-716253; 89000019940.

With respect to the Sales and Use Tax Matters, Redeterminations, Relief of Penalty and Denials of Claims for Refund, Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Hill’s Pet Nutrition, Inc., SR OHA 017-798004; 62188
7-1-95 to 9-30-98, $59,753.52
Action: Redetermine as recommended by staff.

Sun Microsystems Federal Inc., SR GH 026-763359; 89000666130
7-1-89 to 3-31-93, $2,088,523.80
Action: Redetermine as recommended by staff.

Sun Microsystems Federal Inc., SR GH 026-763359; 89000666140
4-1-93 to 9-30-95, $1,764,414.79
Action: Redetermine as recommended by staff

White Cap Ready Mix Inc., SR KH 028-884750; 58329
4-1-96 to 3-31-99, $137,722.23
Action: Redetermine as recommended by staff.

E. R. Squibb & Sons Inc., SR S OHB 030-602758; 89000806480
4-1-93 to 3-31-96, $552,498.13
Action: Redetermine as recommended by staff.

Stryker Sales Corporation, SC OHA 030-695263; 89000878090
10-1-94 to 9-30-97, $339,426.65
Action: Redetermine as recommended by staff.

Aero Leasing, SP P UT 084-005973; 92026
9-21-98, $66,650.00
Action: Redetermine as recommended by staff.

Aero Leasing, SP P UT 084-006344; 92032
5-13-98, $71,300.00
Action: Redetermine as recommended by staff.

Aero Leasing, SP P UT 084-006377; 93074
8-4-94, $69,045.00
Action: Redetermine as recommended by staff.

Aero Leasing, SP P UT 084-0063780; 93071
10-19-92, $60,450.00
Action: Redetermine as recommended by staff.

C C 2 B Trust, SP H UT 084-007988; 94378
6-5-98, $319,893.75
Action: Redetermine as recommended by staff.

Hughes Electronics Corporation, SP H UT 084-010407; 91699
6-15-99, $990,000.00
Action: Redetermine as recommended by staff.

Granite Construction Company, SR Z GHD 098-000442; 89002084870
7-1-93 to 6-30-96, $109,711.53
Action: Redetermine as recommended by staff.

Hewlett-Packard Company, SR Z OH 098-039144; 89002094310
1-1-91 to 12-31-94, $863,391.40
Action: Redetermine as recommended by staff.

Corning Costar Corporation, SR S OHB 099-373333; 89002222620
1-1-94 to 12-31-97, $67,681.95
Action: Redetermine as recommended by staff.

Infoimage Inc., SR Y OH 099-382424; 16970
7-1-94 to 6-30-97, $340,366.19
Action: Redetermine as recommended by staff.

Q’s Whittier L. P., SR AA 099-717433; 47967
2-16-95 to 11-11-98, $71,222.96
Action: Redetermine as recommended by staff.

Corporate Express of the West, Inc., SR Z OH 030-693359; 105763
7-1-99 to 9-30-99, $97,195.40
Action: Grant relief from penalty as recommended by staff.

GTE Wireless Service Corporation, SR S OHC 097-664097; 104574
4-1-00 to 6-30-00, $61,807.35
Action: Grant relief from penalty as recommended by staff.

Eastman Kodak Company, SR Z OHB 098-010303; 105765
2-1-00 to 2-29-00, $59,924.90
Action: Grant relief from penalty as recommended by staff.

L. A. Gear California, Inc., SR AS 011-716253; 89000019940
10-1-89 to 12-31-93, $300,000.00
Action: The Board deferred consideration of the following matter.

Kawasaki Motors Corporation, SR EAA 012-607594; 104156
7-1-96 to 9-30-99, $183,129.82
Action: Deny claim for refund as recommended by staff.

Harold M. Pitman Company, SR Y OHA 017-733669; 15738
7-1-96 to 9-30-98, $86,760.68
Action: Deny claim for refund as recommended by staff.

Yamaha Corporation of America, SR Y EA 098-040009; 89002094820
4-1-89 to 3-31-95, $250,000.00
Action: Deny claim for refund as recommended by staff.

SPECIAL TAXES MATTERS, CREDITS, CANCELLATIONS AND REFUNDS, CONSENT

With respect to the Special Taxes Matters, Credits, Cancellations and Refunds, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs Mr. Andal and Ms. Mandel voting yes, Ms. Mandel not participating in American Home Assurance Company, IT ET 034-001006; 53156, and General American Life Insurance Company, IT ET 034-001160; 104023, in accordance with Government Code section 7.9, the Board made the following orders:

Sweetwater Union High School District, DB MT 057-415294; 56018
1-1-97 to 12-31-99, $87,725.56
Action: Approve the refund as recommended by staff.

American Home Assurance Company, IT ET 034-001006; 53156
1-1-95 to 12-31-95, $581,208.26
Action: Approve the refund as recommended by staff. Ms. Mandel not participating.

General American Life Insurance Company, IT ET 034-001160; 104023
1-1-98 to 12-31-98, $85,306.57
Action: Approve the refund as recommended by staff. Ms. Mandel not participating.

SPECIAL TAXES MATTERS, REDETERMINATIONS AND DENIALS OF CLAIMS FOR REFUNDS, CONSENT

With respect to the Special Taxes Matters, Redeterminations and Denials of Claims for Refunds, Consent Agenda, upon a single motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Ms. Mandel not participating in American Home Assurance Company, IT ET 034-001006; 53155, in accordance with Government Code section 7.9, the Board made the following orders:

American Home Assurance Company, IT ET 034-001006; 53155
1-1-95 to 12-31-95, $116,048.00
Action: Redetermine as recommended by staff. Ms. Mandel not participating.

Tehama County/Red Bluff Landfill Management Agency WD ET039-000340; 78278
1-1-92 to 12-31-94, $77,099.30
Action: Deny the claim for refund as recommended by staff.

PROPERTY TAXES MATTERS, CONSENT

With respect to the Property Taxes Matters, Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs and Mr. Andal voting yes, Ms. Mandel not participating in accordance with Government Code section 7.9, the Board made the following orders:

The Siskiyou Telephone Company (301), EAU 00-002; 94640
2000, $6,105.00 Escaped Assessment
Action: Grant the petition for reassessment canceling the 2000 Escaped Assessment as recommended by staff. Ms. Mandel not participating.

MFS Intelenet of California, Inc. (2468), EAU 00-001; 89463
1996, $26,500,000.00 Escaped Assessment
Action: Deny the petition for reassessment of 1996 Escaped Assessment and abate the penalty. Ms. Mandel not participating.

PROPERTY TAXES MATTERS, NOT SUBJECT TO CONTRIBUTION DISCLOSURE STATUTE

With respect to the Property Taxes Matters Not Subject to Contributions Disclosure Statute Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs and Mr. Andal voting yes, Ms. Mandel not participating in accordance with Government Code Section 7.9, the Board made the following orders:

AUDITS

GST Pacific Lightwave, Inc. (2000)
1999, $2,900,000.00 Escaped Assessment
$ 290,000.00 Penalty
$ 348,000.00 Interest
2000, $2,300,000.00 Escaped Assessment
$ 230,000.00 Penalty
$ 69,000.00 Interest
Action: Adopt the audit escaped assessments, plus penalties and assessment in lieu of interest as recommended by staff.

GST Telecom California, Inc. (2097)
1999, $2,080,000.00 Escaped Assessment
$ 208,000.00 Penalty
$ 249,600.00 Interest
Action: Adopt the audit escaped assessment, plus penalty and assessment in lieu of interest as recommended by staff.

Bay Area Teleport, Inc. (2131)
1997, $ 1,100,000.00 Escaped Assessment
$ 110,000.00 Penalty
$ 363,000.00 Interest
1998, $ 7,700,000.00 Escaped Assessment
$ 520,000.00 Penalty
$ 1,248,000.00 Interest
1999, $30,500,000.00 Escaped Assessment
$ 3,050,000.00 Penalty
$ 4,575,000.00 Interest
Action: Adopt the audit escaped assessments, plus penalties and assessment in lieu of interest as recommended by staff.

ICG Telecom of San Diego, L.P. (2433)
1997, $ 700,000.00 Escaped Assessment
$ 70,000.00 Penalty
$ 231,000.00 Interest
1998, $1,700,000.00 Escaped Assessment
$ 100,000.00 Penalty
$ 240,000.00 Interest
1999, $2,900,000.00 Escaped Assessment
$ 290,000.00 Penalty
$ 435,000.00 Interest
Action: Adopt the audit escaped assessments, plus penalties and assessment in lieu of interest as recommended by staff.

ICG Access Services, Inc. (2462)
1997, $ 8,700,000.00 Escaped Assessment
$ 870,000.00 Penalty
$ 2,871,000.00 Interest
1998, $ 6,700,000.00 Escaped Assessment
$ 523,000.00 Penalty
$ 1,255,200.00 Interest
1999, $31,400,000.00 Escaped Assessment
$ 3,140,000.00 Penalty
$ 4,710,000.00 Interest
Action: Adopt the audit escaped assessments, plus penalties and assessment in lieu of interest as recommended by staff.

Sacramento Valley Limited Partnership (2513)
1996, $ 500,000.00 Escaped Assessment
$ 50,000.00 Penalty
$ 210,000.00 Interest
1997, $ 100,000.00 Escaped Assessment
$ 10,000.00 Penalty
$ 33,000.00 Interest
1998, $ (100,000.00) Escaped Assessment
$ (24,000.00) Interest
1999, $1,100,000.00 Escaped Assessment
$ 110,000.00 Penalty
$ 165,000.00 Interest
Action: Adopt the audit escaped assessments, plus penalties and assessment in lieu of interest as recommended by staff.

Los Angeles SMSA Partnership (2532)
1996, $ (500,000.00) Escaped Assessment
$ (210,000.00) Interest
1997, $ 4,700,000.00 Escaped Assessment
$ 470,000.00 Penalty
$ 1,551,000.00 Interest
1998, $ 1,200,000.00 Escaped Assessment
$ 120,000.00 Penalty
$ 288,000.00 Interest
1999, $(2,400,000.00) Escaped Assessment
$ (360,000.00) Interest
Action: Adopt the audit escaped assessments, plus penalties and assessment in lieu of interest as recommended by staff.

Hurricane Electric Communications LLC (7830)
2000, ($923,818.00) Assessment
Action: Adopt the audit excessive assessment as recommended by staff.

UNITARY AND NONUNITARY ESCAPED ASSESSMENTS

GTE California Incorporated (201)
1997-1999, $257,945.00 Value
Action: Adopt nonunitary escaped assessment as recommended by staff.

Citizens Telecommunications Company of California (284)
2000, $956,579.00 Value
Action: Adopt unitary escaped assessment as recommended by staff.

Volcano Telephone Company (327)
1999-2000, $32,614.00 Value
Action: Adopt unitary and nonunitary escaped assessment and abatement of penalties as recommended by staff.

Union Pacific Railroad Company (843)
1997-1999, $1,532,763.00 Value
Action: Adopt nonunitary escaped assessment as recommended by staff.

GST Telecom California, Inc. (2097)
1999-2000, $73,635.00 Value
Action: Adopt unitary and nonunitary escaped assessment as recommended by staff.

AT&T Communications (2310)
1997-1999, $154,000.00 Value
Action: Adopt unitary escaped assessment as recommended by staff.

Bay Area Cellular Telephone Company (2502)
1998-2000, $2,568,774.00 Value
Action: Adopt unitary and nonunitary escaped assessment as recommended by staff.

Sacramento Valley Ltd. Partnership (2513)
2000, $65,161.00 Value
Action: Adopt unitary escaped assessment as recommended by staff.

Los Angeles SMSA Ltd. (2532)
1999, $59,084.00 Value
Action: Adopt nonunitary escaped assessment as recommended by staff.

AB Cellular Holding, LLC (2547)
1999-2000, $198,500.00 Value
Action: Adopt unitary and nonunitary escaped assessment as recommended by staff.

Fresno MSA Ltd. Partnership (2552)
1997-2000, $3,699,985.00 Value
Action: Adopt unitary and nonunitary escaped assessment as recommended by staff.

GTE Mobilnet of California Ltd. Partnership, (2559)
1997-2000, $8,319,318.00 Value
Action: Adopt unitary and nonunitary escaped assessment as recommended by staff.

AT&T Wireless Services of California, Inc. (2606)
1997-1999, $567,890.00 Value
Action: Adopt nonunitary escaped assessment as recommended by staff.

AT&T Wireless Services of California (2622)
1999-2000, $256,876.00 Value
Action: Adopt unitary and nonunitary escaped assessment as recommended by staff.

GTE Mobilnet of Santa Barbara Ltd. Partnership (2627)
1997-2000, $2,495,500.00 Value
Action: Adopt unitary and nonunitary escaped assessment as recommended by staff.

Napa Cellular Telephone Company (2628)
1997-1999, $31,007.00 Value
Action: Adopt nonunitary escaped assessment as recommended by staff.

Santa Cruz Cellular Telephone Company (2630)
1997-2000, $320,270.00 Value
Action: Adopt unitary and nonunitary escaped assessment as recommended by staff.

California RSA No. 4 Partnership (2669)
1997-2000, $1,719,984.00 Value
Action: Adopt unitary and nonunitary escaped assessment as recommended by staff.

El Dorado Cellular dba Mountain Cellular (2672)
2000, $88,650.00 Value
Action: Adopt unitary escaped assessment as recommended by staff.

Cox Communications PCS L.P. (2720)
1999-2000, $863,300.00 value
Action: Adopt unitary and nonunitary escaped assessment and abatement of penalties as recommended by staff.

Sprint Spectrum L.P. (2722)
1999-2000, $1,312,696.00 Value
Action: Adopt unitary and nonunitary escaped assessment and abatement of penalties as recommended by staff.

Nextel of California, Inc. (2737)
1998-1999, $364,724.00 Value
Action: Adopt nonunitary escaped assessment and abatement of penalties as recommended by staff.

Central Wireless Partnership (2747)
1999, $110,840.00 Value
Action: Adopt nonunitary escaped assessment as recommended by staff.

AT&T Wireless Services PCS, LLC (2749)
2000, $795,300.00 Value
Action: Adopt unitary escaped assessment as recommended by staff.

Broadwing Communications Services, Inc. (7630)
2000, $115,000.00 Value
Action: Adopt unitary escaped assessment as recommended by staff.

PRIVATE RAILROAD CAR PENALTY CANCELLATIONS

Asarco Incorporated (5732)
2000, $481.53
Action: Deny the petition for cancellation of the penalty as recommended by staff.

Arco Products Company (5786)
2000, $5,997.98
Action: Grant the petition for cancellation of the penalty as recommended by staff.

Trinity Industries Leasing Company (5787)
2000, $5,905.58
Action: Grant the petition for cancellation of the penalty as recommended by staff.

Reynolds Metals Company (5892)
2000, $57.33
Action: Grant the petition for cancellation of the penalty as recommended by staff.

AE Staley Manufacturing Company (5933)
2000, $1,114.35
Action: Grant the petition for cancellation of the penalty as recommended by staff.

Minnesota Corn Processors Inc. (5990)
2000, $39.62
Action: Grant the petition for cancellation of the penalty as recommended by staff.

AE Staley Manufacturing Company, Industrial Production Group (5998)
2000, $115.39
Action: Grant the petition for cancellation of the penalty as recommended by staff.

Trinity Rail Management Inc. (6059)
2000, $1,708.46
Action: Grant the petition for cancellation of the penalty as recommended by staff.

ECDC Environmental LC (6109)
2000, $1,962.81
Action: Grant the petition for cancellation of the penalty as recommended by staff.

LaRoche Industries Inc. (6230)
2000, $168.00
Action: Grant the petition for cancellation of the penalty as recommended by staff.

Centennial Gas Liquids LLC (6246)
2000, $528.85
Action: Grant the petition for cancellation of the penalty as recommended by staff.

Newcourt Capital USA Inc. (6271)
2000, $785.20
Action: Grant the petition for cancellation of the penalty as recommended by staff.

Cenex Harvest States Coop (6286)
2000, $693.21
Action: Grant the petition for cancellation of the penalty as recommended by staff.

Mr. Parrish announced that during Closed Session the Board appointed David Hayes to the position of Manager, Research and Statistics Section, (CEA).

BUSINESS TAXES APPEALS HEARINGS

Michael Alan Morales, SR DHH 99-208531; 89002148370
10-1-94 to 12-31-97, $3,282.82 Tax

For Petitioner: Michael Alan Morales
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the evidence shows that the source of the "other income" on petitioner’s 1996 federal income tax return was from insurance proceeds, rather than revenue from taxable sales.

Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision, granting the petitioner 30 days to provide additional documentation, the Department 30 days to review the documentation and the Appeals Section 30 days thereafter to bring the matter back to the Board with a final recommendation.

Tumiair, Inc., SP UT 82-676084; 89001158400
7-31-98, $57,337.50 Tax

For Petitioner: Robert A. Petersen, Representative
Joe Tummirano, President
For Sales and Use Tax Department: Sharon Jarvis, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues: Whether petitioner’s purchase and use in California of the aircraft is subject to use tax.
Alternatively, whether petitioner’s California use of the aircraft is exempt from tax as an aircraft leased to common carriers.
Action: Upon motion of Mr. Klehs, seconded by Mr. Mandel and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

Filco, Inc., SY KH 28-691911; 89000747000
1-1-93 to 9-30-96, $75,512.98 Tax

For Petitioner: No Appearance
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Action: The Board took no action.

Future Paging & Cellular, Inc., SY BH 97-050892; 29946
10-1-93 to 9-30-96, $126,900.49 Tax

For Petitioner: No Appearance
For Sales and Use Tax Department: Warren Astleford, Counsel

Action: The Board took no action.

Wah C. Wong, SR BH 52-006842; 89000966230
7-3-95 to 6-27-96, $9,041.89 Tax, $904.19 Penalty, Negligence
Royal Jade House, Inc., SR BH 97-098026; 89002056090
4-1-94 to 3-31-97, $35,711.28 Tax, $3,571.13 Penalty, Negligence

For Petitioner: No Appearance
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Action: The Board took no action.

Mark Russell Andrade, SS GH 99-227094; 89002156680
1-1-95 to 7-31-96, $7,899.59 Tax
Sight & Sound Security, SR GH 97-160682; 89002068040
8-1-96 to 9-30-97, $7,050.12 Tax

For Petitioner: Waived Appearance
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue: Whether an additional allowance for tax-paid purchases consumed in lump-sum construction contracts is warranted.
Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by the Appeals Section.

Edward T. Spaulding, SR JHD 19-661544; 89000263400
10-1-95 to 12-31-97, $17,598.80 Tax

For Petitioner: Edward T. Spaulding
For Sales and Use Tax Department: Jeffery Graybill, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue: Whether campaign brochures, pamphlets, and flyers designed and sold by petitioner that were not used as fund-raising materials qualify as exempt printed sales messages.
Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Mr. Parrish abstaining, the Board ordered that the petition be redetermined as recommended by the Appeals Section.

Precision Technologies, Inc., SR GH 26-787532; 89000673580
4-1-94 to 12-31-96, $3,022.50 Tax

For Petitioner: Armando Reyes, Vice President, Finance
For Sales and Use Tax Department: Warren Astleford, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue: Whether petitioner provided sufficient evidence to show that certain sales qualify as exempt sales in foreign commerce.
Action: Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

FINAL ACTION ON PETITIONS HEARD MARCH 29, 2001

Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, and Mr. Andal voting yes, Mr. Klehs voting no, Ms. Mandel abstaining, the Board ordered that the petition of Tumiair, Inc., SP UT 82-676084; 89001158400, be granted as to the disputed measures.

BUSINESS TAXES APPEALS HEARINGS

Robert Sage Blackman, SR BH 26-831546; 89000691720
10-1-96 to 12-31-96, $1,765.70 Tax

For Petitioner: Robert Blackman
For Sales and Use Tax Department: Sharon Jarvis, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues: Whether petitioner is liable for sales tax for petitioner’s sales of artwork for which petitioner charged, but was not paid, sales tax reimbursement.
Whether petitioner’s efforts after the sales to obtain a resale certificate from an uncooperative customer relieves him of his obligation to pay the sales tax.
Whether petitioner made a sale of tangible personal property subject to sales tax where the petitioner alleges the sale never materialized.
Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

FINAL ACTION ON PETITIONS HEARD MARCH 29, 2001

Upon motion of Mr. Andal, seconded by Mr. Klehs and duly carried, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Mr. Parrish voting no, the Board ordered that the petition of Precision Technologies, Inc., SR GH 26-787532; 89000673580, be redetermined as recommended by the Appeals Section.

Upon motion of Mr. Andal, seconded by Mr. Klehs and duly carried, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Mr. Parrish voting no, the Board ordered that the petition of Robert Sage Blackman, SR BH 26-831546; 89000691720, be redetermined as recommended by the Appeals Section.

Mr. Parrish stated for the record that he would like his vote to be recorded as a yes, in the petition of Precision Technologies, Inc., SR GH 26-787532; 8900067358.

The Board adjourned at 11:35 a.m.


The foregoing minutes are adopted by the Board on May 31, 2001.