Approved 2000 Minutes - Thursday November 2, 2000

The Board met at its offices at 450 N Street, Sacramento, at 10:00 a.m. with Chairman Andal, Vice Chairman Parrish and Mr. Chiang present, and Ms. Mandel present on behalf of Dr. Connell in accordance with Government Code Section 7.9.

1999-2000 SUSTAINED AND SUPERIOR ACCOMPLISHMENT AWARDS

James Speed, Executive Director and Members of the Board presented 1999-2000 Sustained Superior Accomplishment Awards to the following-listed employees in recognition of their outstanding achievements:

Mr. Klehs entered the Boardroom during the award ceremony.

Louis A. AmbroseStephanie GonzalezJeffrey Ong

David T. ArmentaCindy Griffin D. Leanea Parrott

Jennean CampbellDina Guerra Guy M. Perry

Carmen CastilloLinda A. Hale Michael Richards

Michele C. ChehakDarren HoffmanRebecca P. Ross

Ralph L. Davis, Jr.Judy D. Hukill Carmen J. Rubio

Maria DelgadoCarol Jaffee Darlene Saito

Mary Grace DomingoJoyce A. Lee Keely Su

Jesse Ducay Hector A. Leon Tina Valente-Gaylord

Nathaniel W. EddinsPatrick R. MayersJacob J. Verboon

Thomas S. FergusonLiz Mesa Nora Ward

Carla Garcia Alfredo MichelL. James Watkins

Maritza GonzalezLewantha Miniefee

Paul Burton Greg Dearte Fred Spitzer

Ralph L. DavisRichard Schwarting

The Members and Managers of the Board presented 1999-2000 Superior Accomplishment Awards to the following-listed employees in recognition of their outstanding achievements:

Individual Silver Awards

Larry Cantu Daniel E. GostageCraig R. Shaltes

Michael DennisSilvia Lee John K. Thompson

Rebecca GonzalezNathan Phan Susan M. Wengel

Blanca Breeze Gerald Kitt Larry Rackley

Susanne BuehlerJerry LairamoreJim Sorenson

Margaret ChengGary Lambert Jennifer Steinmetz

Roger EberspacherAileen Mah Cindy Tse

Ted Fagunes Lien Mai Richard Tubbs

Jennie Flynn John MartoranoLeo Usmial

Deanna GaiteroTony Meas Joyce Vincenty

Salvador GonzalezMonica MerrittMatthew Wacker

Wayne Grupe Mike Minter Lori Yee

Cynthia Guest Maria Pabon

Irene Johnson Janet Prezia

Connie EstradaJudy L. Hecox

Michael L. HaleJennifer M. Ward

ANNOUNCEMENT OF CLOSED SESSION

The Board recessed at 11:05 a.m. and reconvened immediately in closed session with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel present.

The Board met to discuss personnel matters, Revenue and Taxation Codes 7093.5, 30459.1 and 50156.11 settlements and pending litigation.

The Board recessed at 11:15 a.m. and reconvened immediately in open session with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel present.

FRANCHISE AND INCOME TAXES HEARING

Jerald A. Soracco, 55023

1996, $355.00 Assessment

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

Issues:Whether appellant has shown that the Board has jurisdiction over the abatement of interest issue.

Whether appellant has shown that respondent abused its discretion in making its determination not to abate interest.

Action: The Board deferred consideration.

RETIREMENT RESOLUTIONS

Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board adopted the following resolutions, extending to Donald J. Packard, Associate Tax Auditor, Houston District Office, Edmund M. Pedeupe, Business Taxes Specialist I, Centralized Review Section, Headquarters, Don F. Enos, Associate Governmental Program Analyst, Internal Security and Audit Division, Headquarters, Ronald L. Dick, Tax Counsel III, Legal Division, Appeals Section, Headquarters, Susan M. Wengel, Tax Counsel III, Legal Division, Headquarters, its best wishes on their respective retirements and its appreciation for their service to the Board and the State of California

Exhibits to these Minutes are incorporated by reference.

BOARD MEETING MINUTES

Upon motion of Mr. Chiang, seconded by Mr. Klehs, and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the minutes of its meetings of August 8-9, 2000.

SALES AND USE TAX DEPARTMENT PAMPHLET CLEARANCE PROCEDURES

Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the Sales and Use Tax Department Pamphlet Clearance Procedures (Exhibit 11.7).

REVISION TO ASSESSORS' HANDBOOK SECTION 222, STANDARD FORM LIST

Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the revision to Assessors' Handbook Section 222, Standard Form List (Exhibit 11.8).

REVISION TO ASSESSORS' HANDBOOK SECTION 531, RESIDENTIAL BUILDING COSTS

REVISION TO ASSESSORS' HANDBOOK SECTION 534, RURAL BUILDING COSTS

2001 TIMBERLAND VALUES

Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board adopted the 2001 Timberland Values (Exhibit 11.11).

INVESTIGATIONS SPECIALIST CLASSIFICATION

Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the new classification of Investigations Specialist (Exhibit 11.12).

REVISION TO ASSESSORS' HANDBOOK SECTION 581, EQUIPMENT INDEX AND PERCENT GOOD FACTORS

Speakers: Bruce Dear, California Assessors' Association

Greg Turner, California Taxpayers' Association

Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the revision to Assessors' Handbook Section 581, Equipment Index and Percent Good Factors (Exhibit 11.13).

LEGISLATIVE COMMITTEE REPORT

Margaret Shedd, Legislative Counsel, presented the Legislative Committee Report.

Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried,

Mr. Andal, Mr. Parrish and Ms. Mandel voting yes, Mr. Chiang voting no, Mr. Klehs abstaining, the Board proposed to amended Revenue and Taxation Code Section 6363.3 to include thrift stores operated by organizations whose proceeds are used for the funding of medical and social services to individuals with cancer.

Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Chiang, Mr. Klehs and Ms. Mandel voting yes, the Board approved the remainder of the committee report (Exhibit 11.14).

CUSTOMER SERVICES AND EFFICIENCY COMMITTEE REPORT

Jennifer Willis, Chief, Taxpayers' Rights and Equal Employment Opportunity Division presented the Customer Services and Efficiency Committee Report.

Upon motion of Mr. Klehs, seconded by Mr. Parrish and duly carried,

Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Mr. Andal voting no, Ms. Mandel abstaining, the Board approved Budget Change Proposal #13 (SB 876-Tire Recycling Fee Increase) as modified to include overtime in lieu of positions.

Upon motion of Mr. Chiang, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the remainder of the committee report (Exhibit 11.15).

BUSINESS TAXES COMMITTEE REPORT

Ramon Hirsig, Deputy Director, Sales and Use Tax Department presented the Business Taxes Committee Report.

Upon motion of Mr. Chiang, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the committee report and authorized the Sales and Use Tax Department to begin working immediately with interested parties in the development and implementation of procedures which would allow qualified taxpayers to use a validated percentage to report use tax liabilities (Exhibit 11.16).

PROPERTY TAX COMMITTEE REPORT

Richard Johnson, Deputy Director, Property Taxes Department, presented the Property Tax Committee Report.

Upon motion of Mr. Chiang, seconded by Ms. Mandel and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the committee report with amendments to Page 45 of the State Assessment Manual (Exhibit 11.17).

Ms. Mandel left the Board room.

CHIEF COUNSEL MATTERS - RULEMAKING

Upon motion of Mr. Andal, seconded by Mr. Klehs and duly carried,

Mr. Andal, Mr. Klehs and Mr. Chiang voting yes, Mr. Parrish voting no, Ms. Mandel absent, the Board adopted staff's option 2 and referred exempting fees to the Legislative Committee for Regulation 1584, Membership Fees (Exhibit 11.18).

LEGAL APPEALS MATTERS, ADJUDICATORY

BCC International, SR EAA 99-104074-010; 89002104400

4-1-93 to 6-30-96, $27,876.87 Tax, $00.00 Penalty

Considered by the Board:Petition for Rehearing

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

Action: Upon motion of Mr. Parrish, seconded by Mr. Chiang and duly carried, Mr. Andal, Mr. Parrish and Mr. Chiang voting yes, Mr. Klehs voting no, Ms. Mandel absent, the Board denied the petition for rehearing.

Jerome H. Pena, SR GH 99-144234-010; 89002121410

10-1-93 to 12-31-96, $3,143.54 Tax

Submitted for Decision:March 15, 2000

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

Action: Upon motion of Mr. Parrish, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel absent, the Board denied the petition for rehearing and reduced the measure of tax. The Board ordered that a payment plan be offered to the taxpayer.

Wavell-Huber Wood Products, Inc., SS EA 24-630291-010, -001; 89000442230, -210

1-1-89 to 12-31-92, $0.00 Tax, $0.00 Penalty

Considered by the Board:Hearing Notice Sent - Appearance Waived.

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

Action: Upon motion of Mr. Parrish, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel absent, the Board ordered that the petition be redetermined as recommended by the Appeals Section.

WilsonArt International, Inc., SY OHC 30-683122-010, -020, -030;

89000861430, -440,-450

1-1-91 to 12-31-96, $62,640.88 Tax

Considered by the Board:Hearing Notice Sent - Appearance Waived

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

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Andal, Mr. Parrish and Mr. Chiang voting yes, Mr. Klehs voting no, Ms. Mandel absent, the Board ordered that the petition be redetermined as recommended by Appeals Section.

AMCS, Inc., SZ GH 26-763172-010; 89000666040

4-1-92 to 3-31-95, $29,571.26 Tax, $00.00 Penalty

Considered by the Board:May 3, 2000

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

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel absent, the Board ordered that the petition be redetermined as recommended by Appeals Section.

Jamor Mart, Inc, SR AS 12-608172-010, -020; 89000039660, -670

1-1-91 to 12-31-97, $123,239.98 Tax, $23,583.12 Penalty, Fraud

Joseph Sternlight, SR AS 53-000091-010; 89000969720

5-1-91 to 12-31-96, $89,697.06 Tax; $22,424.39 Penalty, Fraud

Considered by the Board:August 29, 2000

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

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms Mandel absent, the Board ordered that the petition be redetermined as recommended by Appeals Section.

PUBLIC COMMENT ON FRANCHISE AND INCOME TAX MATTERS, ADJUDICATORY

Speaker: Eric Miethke, Nielsen, Merksamer, Parrinello, Mueller & Naylor

Mr. Miethke requested that the Board hold the appeal of Sara Lee

Corporation, 97R-0948; 89002458860, in abeyance pending the resolution of the Pillsbury Company.

Ms. Mandel entered the Boardroom.

FRANCHISE AND INCOME TAX MATTERS, ADJUDICATORY

Sara Lee Corporation, 97R-0948; 89002458860

06/30/87, $ 69,628.00 Claim for Refund

06/30/87, $671,556.00 Claim for Refund

06/30/87, $ 33,000.00 Claim for Refund

06/30/88, $108,469.00 Claim for Refund

06/30/88, $ 8,329.00 Claim for Refund

06/30/88, $441,375.00 Claim for Refund

06/30/89, $ 57,971.00 Claim for Refund

06/30/89, $ 23,006.00 Claim for Refund

Considered by the Board:July 10, 2000

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

Action: Upon motion of Mr. Parrish, seconded by Ms. Mandel and duly carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no, the Board ordered that the appeal be held in abeyance pending the resolution of the appeal of the Pillsbury Company.

Paul B. & Mary A. Milhous, 99A-0186; 89002466650

1993, $227,246.00 Assessment

Robert E. & Gail P. Milhous, 99A-0187; 89002466660

1993, $670,825.00 Assessment

Considered by the Board:May 4, 2000

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

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board adopted the formal opinion.

Yamaha Motor Corporation, USA, 99A-0226; 89002467500

1989, $ 3,593.00 Assessment

1990, $229,623.00 Assessment

1991, $ 9,038.00 Assessment

Considered by the Board:June 30, 2000

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

Action: Upon motion of Mr. Parrish, seconded by Ms. Mandel and duly carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no, the Board adopted the formal opinion.

Thomas L. & Elizabeth R. Brown, 97A-0164; 89002466700

1989, $4,176.00 Assessment, $1,044.00 Penalty

Herbert E. Long, Jr., 97A-0181; 30450

1989, $12,284.00 Assessment, $3,071.00 Penalty

Considered by the Board:August 29, 2000

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

Action: Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board sustained the action of the Franchise Tax Board.

Rebecca B. Delliskave, 99A-0440; 17874

1997, $2,870.00 Assessment

Considered by the Board:August 29, 2000

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

1995, $209.00 Assessment

Considered by the Board:August 29, 2000

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

Fred & Joyce Hameetman, 98A-0964; 89002467860

1990, $53,749.00 Assessment

1993, $11,989.00 Assessment

Considered by the Board:October 3, 2000

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

Gregory J. & LeeAnn N. Kaderabek, 27966

1993, $660.00 Assessment

Submitted for Decision:February 8, 2000

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

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board sustained the action of the Franchise Tax Board.

The Board directed staff to include a letter of support to the Board of

Control on behalf of the appellant, Ms. Mandel abstaining.

David R. & Veronica C. Keim, 99A-0455; 18049

1993, $840.00 Assessment

Submitted for Decision:January 14, 2000

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

Action: Upon motion of Mr. Klehs, seconded by Ms. Mandel and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board sustained the action of the Franchise Tax Board.

The Board directed staff to include a letter of support to the Board of

Control on behalf of the appellant, Ms. Mandel abstaining.

Elaine J. Linden, 28420

1997, $597.27 Claim for Refund

Considered by the Board:October 3, 2000

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. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board sustained the action of the Franchise Tax Board.

William G. & Norma Maloney II, 32926

1994, $962.00 Assessment

Submitted for Decision:March 3, 2000

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

The Board directed staff to include a letter of support to the Board of

Control on behalf of the appellant, Ms. Mandel abstaining.

Dai T. Nguyen, 33781

1995, $527.00 Assessment

Considered by the Board:October 3, 2000

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

Pentel of America Ltd., 98A-0014; 89002464880

1989, $177,126.00 Assessment

Considered by the Board:June 30, 2000

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

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried,

Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no, the Board sustained the action of the Franchise Tax Board with respect to issue 1.

In view of Franchise Tax Board's conclusion of issue 1, the Board took no action concerning issue 2.

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board sustained the action of the Franchise Tax Board with respect to issue 3.

Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no, the Board sustained the action of the Franchise Tax Board with respect to issue 4.

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board sustained the action of the Franchise Tax Board with respect to issue 5.

Robert G. Senchy, 99A-0278; 89002468830

1994, $188.00 Assessment

Considered by the Board:August 29, 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. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board sustained the action of the Franchise Tax Board.

Sunstrand Corporation, 99A-0375; 89002469900

1990, $467,826.00 Assessment

Considered by the Board:April 6, 2000

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

Upon motion of Mr. Parrish, seconded by Mr. Andal and duly carried,

Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no, the Board reversed the action of the Franchise Tax Board regarding section 24344.

Maude Washington, 35986

1998, $1.00 Claim for Credit

Considered by the Board:August 29, 2000

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

Colleen F. Wasson, 35999

1999, $175.28 Claim for Credit

Submitted for Decision:June 14, 2000

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

Gene L. Clothier, 27809

1993, $726,319.00 Claim for Refund

Considered by the Board:June 30, 2000

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. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board denied the petition for rehearing.

Kimberly-Clark Corporation, 93R-0091, 93R-0898, 93A-1129

1984, $65,580.00 Assessment, $347,237.00 Claim for Refund

1985, $17,348.00 Assessment, $207,486.00 Claim for Refund

1986, $414,876.00 Claim for Refund

Considered by the Board:May 4, 2000

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

Action: Upon motion of Ms. Mandel, seconded by Mr. Parrish and duly carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no, the Board granted the petitions for rehearing.

The Pillsbury Company, 98A-1358; 89002464970

1986, $ 99,465.00 Assessment

1987, $1,039,047.00 Assessment

Considered by the Board:May 4, 2000

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

Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board denied the petition for rehearing.

John H. Williams, 99A-0286; 89002468900

1994, $896.00 Assessment, $610.00 Penalty

1995, $635.00 Assessment, $127.00 Penalty

1996, $686.00 Assessment, $137.20 Penalty

Considered by the Board:June 30, 2000

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

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board denied the petition for rehearing.

Joann & Jack D. Pine, 97A-1158; 89002467270

1991, $118,529.00 Assessment; $53,338.05 Penalty

1992, $ 279.00 Assessment, $ 69.75 Penalty

Considered by the Board:September 14, 2000

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

Jose & Elena Sosa 37440

1989, $12,900.00 Assessment

1990, $ 6,103.60 Assessment

Considered by the Board:August 10, 2000

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

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

United Retail Incorporated, SR Y OHB 030-675203; 30647

7-1-96 to 12-31-98, $404,246.20 Claim for Refund

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

Action: Upon motion of Mr. Parrish, seconded by Mr. Andal and duly carried, Mr. Andal, Mr. Parrish and Ms. Mandel voting yes, Mr. Klehs and Mr. Chiang voting no, the Board approved the refund as recommended by staff.

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

Staples Contract & Commercial Inc., SR Z OHB 097-162235; 80117

January 2000, $78,370.92

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

Action: Upon motion of Mr. Parrish, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved to grant the relief of penalties as recommended by staff.

Docdata California, Inc., SR AC 097-179997; 35873

7-1-94 to 12-31-97, $327,123.10

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

Action: Upon motion of Mr. Parrish, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the denial of claim for refund as recommended by staff.

William C. Fritz, SR BHA 019-762603; 63126

10-1-85 to 3-31-94, $59,783.71

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

Action: Upon motion of Mr. Parrish, seconded by Mr. Klehs and unanimously carried Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the denial of claim for refund as recommended by staff.

SPECIAL TAXES MATTERS, RELIEF OF PENALTY, ADJUDICATORY

Mobil Oil Corporation, MD MT 007-000754; 84606

April 15, 2000, $1,294,920.00

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

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the relief of penalty as recommended by staff.

LEGAL APPEALS MATTERS, CONSENT

The Board deferred consideration of the following: Yosemite Falls Inc., SR DH 99-577429-010; 89002315130 and Pannus Wholesale Marketing, Inc., SY GH 99-193437-010; 89002141010.

With respect to the Legal Appeals Matters, Consent Agenda, upon a single motion of Mr. Parrish, seconded by Mr. Chiang and unanimously carried, Mr. Andal,

Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board made the following orders:

Yosemite Falls Inc., SR KHE 99-577429, 89002315130

4-1-95 to 12-31-97, $5, 195.94 Tax, $519.61 Penalty, Negligence

Considered by the Board:June 15, 2000

Action: The Board deferred consideration of this matter.

Achievers Unlimited, Inc., SC OHC 99-748619-010; 89002380730

10-1-92 to 6-30-93 $2,150.60 Penalty

SC OHC 99-620328-010, -020; 89002331450, -470

10-1-92 to 5-31-95, $188,834.26 Tax

Considered by the Board:June 29, 2000

Action: Deny the petitions for rehearing as recommended by the Appeals Section.

Richard O. Michalowski, SR BH 19-788624-020; 27477

5-1-92 to 6-30-96, $91,722.23 Tax, $ 5,650.42 Penalty, Fraud

$ 6,120.06 Penalty, Failure to File

$34,560.32 Penalty, Operating without a Permit

Considered by the Board:Hearing Notice Sent - No Response

Action: Redetermine as recommended by the Appeals Section.

Stan Jarrett Truck Sales, Inc., SR DH 22-657359-020; 16671

7-1-95 to 6-30-98, $8,065.04 Tax, $1,025.66 Penalty, Negligence

Considered by the Board:Hearing Notice Sent - No Response

Action: Redetermine as recommended by the Appeals Section.

ATI Machinery, Inc., SR ARF 22-763150-010; 37632

4-1-96 to 3-31-99, $18,569.01 Tax

Considered by the Board:Hearing Notice Sent - No Response

Action: Redetermine as recommended by the Appeals Section.

Scott Terrance Sheppard, SR JH 24-854377-010; 89000474870

7-1-94 to 3-31-98, $7,509.20 Tax, $750.92 Penalty, Negligence

Considered by the Board:Hearing Notice Sent - No Response

Action: Redetermine as recommended by the Appeals Section.

Frank D. & Corinne N. Butterfield, SR GH 26-695963-010; 89000650940

7-1-94 to 6-30-97, $10,295.73 Tax

Considered by the Board:Hearing Notice Sent - No Response

Action: Redetermine as recommended by the Appeals Section.

Automated Test Engineering, Inc., SR GH 26-726207-010, 89000656700

10-1-93 to 9-30-96, $70,564.41 Tax

Considered by the Board:Hearing Notice Sent - No Response

Action: Redetermine as recommended by the Appeals Section.

Laserscope, SR GH 26-753116-010; 89000663190

1-1-94 to 12-31-96, $55,386.72 Tax, $5,550.31 Penalty, Negligence

Considered by the Board:Hearing Notice Sent - No Response

Action: Redetermine as recommended by the Appeals Section.

Family Affair, Inc., SB UT 81-012579-010; 89001079380

8-1-94, $29,837.50 Tax

Considered by the Board:Hearing Notice Sent - No Response

Action: Redetermine as recommended by the Appeals Section.

Inacom Business Centers, Inc., SY OHA 99-515721-010; 89002289180

10-1-93 to 9-30-96, $67,100.90 Tax

Considered by the Board:Hearing Notice Sent - No Response

Action: Redetermine as recommended by the Appeals Section.

Pannus Wholesale Marketing, Inc., SR Y GH 99-193437, 89002141010

1-1-93 to 12-31-96, $71,244.42 Tax, $ 7,124.45 Penalty, Negligence

Considered by the Board:Hearing Notice Sent - No Response

Action: The Board deferred consideration of this matter.

Brightstar Studios, Ltd. & HBPR Investments, Inc., SR OH 99-295075-010; 89002187420

7-1-93 to 10-31-96, $22,753.21 Tax

Considered by the Board:Hearing Notice Sent - No Response

Action: Redetermine as recommended by the Appeals Section.

Ursula Holcomb, SR ARF 99-331176-010; 89002203650

4-1-94 to 7-15-97, $9,012.55 Tax, $965.81 Penalty, Negligence

Considered by the Board:Hearing Notice Sent - No Response

Action: Redetermine as recommended by the Appeals Section.

Mark D. Everett, SR KH 99-347030-010; 89002211240

1-1-94 to 12-31-96, $10,459.07 Tax, $1,045.90 Penalty, Negligence

Considered by the Board:Hearing Notice Sent - No Response

Action: Redetermine as recommended by the Appeals Section.

Eclipse Surgical Technologies, SR GH 26-809303-010, -020; 89000681720, -730

1-1-94 to 12-31-96, $7,783.87 Tax, $8,480.32 Penalty, Negligence

$529.36 Penalty, Failure to pay determination timely

Considered by the Board:Hearing Request Withdrawn

Action: Redetermine as recommended by the Appeals Section.

Bill & Ardith Huber, SB UT 82-680370-010; 89001161560

12-31-99, $1,814.00 Tax

Considered by the Board:Hearing Request Withdrawn

Action: Redetermine as recommended by the Appeals Section.

Knudson Mfg. Inc., SC OH 97-306393-010; 33139

2-13-92 to 6-30-98, $33,132.04 Tax, $00.00 Penalty

Considered by the Board:Hearing Request Withdrawn

Action: Redetermine as recommended by the Appeals Section.

Hong Kong Investments, Inc., SR JHJ 99-218235-010; 89002153020

4-1-93 to 3-31-96, $8,570.44 Tax, $00.00 Penalty

Considered by the Board:Hearing Request Withdrawn

Action: Redetermine as recommended by the Appeals Section.

Benny J's, Inc., SR KH 99-461704-010; 89002266040

10-1-94 to 6-30-97, $00.00 Tax

Considered by the Board:Hearing Request Withdrawn

Action: Grant the petition as recommended by the Appeals Section.

Triple S. Engineering, Inc., SR CHA 99-620212-010; 89002331360

4-1-95 to 12-31-97, $35,947.46 Tax

Considered by the Board:Hearing Request Withdrawn

Action: Redetermine as recommended by the Appeals Section.

Floor Seal Technology, Inc., SR GH 99-768017-010; 89002387430

6-1-95 to 12-31-97, $00.00 Tax

Considered by the Board:Hearing Request Withdrawn

Action: Redetermine as recommended by the Appeals Section.

FRANCHISE AND INCOME TAX MATTERS, CONSENT [H]

The Board deferred consideration of the following: John & Kathryn Taylor, 98A-0989; 89002465960.

With respect to the Franchise and Income Tax Matters, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried,

Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board made the following orders:

Darlyne M. Andrus, 32599

1997, $541.00 Assessment, $270.50 Penalty

Action: Sustain the action of the Franchise Tax Board.

Guy Blackwell, 29258

1996, $2,513.00 Assessment, $502.60 Penalty, Accuracy, $628.25 Penalty, Demand

Action: Sustain the action of the Franchise Tax Board and impose a $750.00 frivolous appeal penalty.

Laurence J. & Miyoko Blickman, 99A-0110; 89002466490

1993, $46,947.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Maria C. Bloh, 29787

1995, $262.00 Assessment

Action: Reverse the action of the Franchise Tax Board.

Stephen Buchsbaum, 29234

1995, $419.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

James D. Burks, 55018

1998, $1,181.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

David A. & Teresa J. Casey, 31371

1995, $250.50 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

1995, $394.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Bruce E. Colegrove, 32604

1997, $1,178.00 Assessment, $294.50 Penalty, Late Filing

$294.50 Penalty, Demand

Action: Sustain the action of the Franchise Tax Board.

Terry M. Dang, 61151

1998, $1,171.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Michael DeFrenza, 31086

1998, $274.98 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

David G. Frandlin, 32615

1995, $798.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

David A. Froke, 56612

1996, $112.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Gary Fujiyama, 31657

1992, $4,969.76 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Dennis R. Fultz, 60033

1996, $556.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Ralph Garside, 27970

1995, $21,370.00 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Stephen B. Gendel, 27582

1985, $765.51 Credit for Refund

Action: Reverse the denial of request for a refund of interest, otherwise sustain the action of the Franchise Tax Board.

George W. Griffith & Sue Rosselet-Griffith, 42809

1995, $1,211.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Dean E. & Georgia Hoffman, 37242

1990, $1.00 or more Assessment

Action: Sustain the action of the Franchise Tax Board.

Rebecca Howard, 47683

1995, $209.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

William S. Kaplan, 32622

1995, $1,902.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

L. Lee Kauftheil, 32623

1991, $8,113.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Brett A. Kelly, 32624

1995, $67.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

1994, $743.00 Assessment, $185.75 Penalty, Delinquent

$392.50 Penalty, Demand

Action: Sustain the action of the Franchise Tax Board and impose a $750.00 frivolous appeal penalty.

Allan C. & Linda C. Kramer, 56637

1994, $8,890.00 Claim for Refund

Action: Reverse the action of the Franchise Tax Board.

1997, $5,835.00 Assessment, $1,458.75 Penalty, Delinquent,

$1,458.75 Penalty, Demand

Action: Sustain the action of the Franchise Tax Board and impose a $2,000.00 frivolous appeal penalty.

William D. Little, 32928

1991, $35,923.00 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Michael P. Nelson, 36519

1997, $240.00 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Fred H. & Glenna A. Nielsen, 49978

1996, $499.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Novacap, Inc., 99R-0172; 89002467070

1992, $1,244.15 Claim for Refund

Action: Appeal dismissed.

On the Go Espresso, 31095

1995, $1,692.75 Claim for Refund

Action: Abate the penalties for delinquent return and the notice and demand; otherwise sustain the action of the Franchise Tax Board.

1995, $5,488.00 Assessment, $1,097.60 Penalty

Action: Sustain the action of the Franchise Tax Board and impose a $750.00 frivolous appeal penalty.

1997, $391.70 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

W.T. Pratt, Jr., 29716

1995, $481.00 Assessment, $120.25 Penalty

Action: Sustain the action of the Franchise Tax Board.

Mahmoud-Reza Banan, 31370

1995, $292.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

James A. Roleson, 31100

1995, $606.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Eric A. Rowley, 33384

1997, $332.00 Assessment, $100.00 Penalty, Delinquent

$ 83.00 Penalty, Demand

Action: Sustain the action of the Franchise Tax Board and impose a $750.00 frivolous appeal penalty.

Amir H. Shahandeh, 41860

1995, $7,289.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

George M. Stuart, 28901

1995, $1,054.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Gary P. Tkacs, 26875

1995, $206.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Kimberly Thibeau, 37447

1997, $ 36.00 Claim for Refund

1998, $238.00 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Tour Ice National, 30141

1985, $ 612.83 Claim for Refund

1986, $ 548.18 Claim for Refund

1987, $ 484.95 Claim for Refund

1988, $ 631.14 Claim for Refund

1989, $ 537.97 Claim for Refund

1990, $ 906.12 Claim for Refund

1991, $1,013.79 Claim for Refund

1992, $ 857.26 Claim for Refund

1993, $ 731.09 Claim for Refund

1994, $ 643.16 Claim for Refund

1995, $ 534.94 Claim for Refund

1996, $ 427.75 Claim for Refund

1997, $ 332.16 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Ali Vazirabadi, 37450

1997, $999.58 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Marc & Laura L. Waterman, 99A-0431, 17478

1994, $1,048.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Roger Williams, 43087

1995, $1,209.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

World Marine Transport, Inc., 33740

1997, $800.00 Assessment, $21.30 Penalty

Action: Sustain the action of the Franchise Tax Board.

Joseph L. Gruber, 99A-0264; 89002468720

1982, $5,243.00 Assessment, $11,988.67 Penalty

1983, $8,781.00 Assessment, $17,856.70 Penalty

Bogda J. Gruber, 99A-0264; 89002468720

1982, $5,353.00 Assessment, $ 2,676.50 Penalty

1983, $8,671.00 Assessment, $ 4,335.50 Penalty

Action: Deny the petition for rehearing.

William R. Hunter, 99A-0037; 89002463180

1996, $800.00 Assessment, $200.00 Penalty, Delinquent, $649.25 Penalty, Demand

Action: Deny the petition for rehearing.

William Litsinger, 99A-0475; 17581

1992, $11,938.00 Assessment

Action: Deny the petition for rehearing.

Manlio B. & Carolina Melillo, 99A-0356; 89002469710

1989, $1,690.00 Assessment

1990, $3,539.00 Assessment

1991, $3,059.00 Assessment

1992, $ 553.00 Assessment

Action: Deny the petition for rehearing.

Joseph E. Pollock, 99A-0458; 17762

1997, $587.00 Assessment

Action: Deny the petition for rehearing.

Blake L. Wingle, 99A-0304; 89002469230

1996, $2,189.00 Assessment; $547.25 Penalty, Delinquent, $742.25 Penalty, Demand

Action: Deny the petition for rehearing.

John Woodruff, 99A-0384; 16376

1994, $25,975.00 Assessment, $6,493.75 Penalty, Delinquent

$5,195.00 Penalty, Demand

1995, $26,572.00 Assessment, $6,643.00 Penalty, Delinquent

$6,643.00 Penalty, Demand

1997, $25,873.00 Assessment, $6,468.25 Penalty, Delinquent

$6,468.25 Penalty, Demand

Action: Deny the petition for rehearing.

HOMEOWNER AND RENTER PROPERTY TAX ASSISTANCE MATTERS, CONSENT

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

Evelyn E. Allen, 48844

1999, $1.00 or more Claim for Credit

Submitted for Decision:June 2, 2000

Action: Sustain the action of the Franchise Tax Board.

Satenik Ambartsumyan, 47648

1999, $240.00 Claim for Credit

Submitted for Decision:June 2, 2000

Action: Sustain the action of the Franchise Tax Board.

Phil Courtney, 36014

1999, $1.00 or more Claim for Credit

Submitted for Decision:June 2, 2000

Action: Reverse the action of the Franchise Tax board.

William D. Epps, 47498

1999, $1.00 or more Claim for Credit

Submitted for Decision:May 26, 2000

Action: Sustain the action of the Franchise Tax Board.

1999, $35.40 Claim for Credit

Submitted for Decision:August 31, 2000

Action : Sustain the action of the Franchise Tax Board.

Arpik Gotanian, 42558

1999, $240.00 Claim for Credit

Submitted for Decision:May 18, 2000

Action: Sustain the action of the Franchise Tax Board.

Allan MacDonald, 36501

1999, $1.00 or more Claim for Credit

Submitted for Decision:June 14, 2000

Action: Sustain the action of the Franchise Tax Board.

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

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

Allied Telesyn International Corporation, SR Y GH 026-788861; 88664

1-21-2000, $500,772.62

Action: Approve the credit and cancellation as recommended by staff.

TRI-RAD Incorporated, SR AP 040-636828; 27008

4-19-99, $206,894.28

Action: Approve the credit and cancellation as recommended by staff.

Alan D. Purwin, SP H UT 084-008243; 88654

4-28-2000, $70,597.72

Action: Approve the credit and cancellation as recommended by staff.

Inrock Drilling Systems, SC OHC 097-498144; 88660

1-1-91 to 9-30-98, $185,378.00

Action: Approve the credit and cancellation as recommended by staff.

Office Max Inc., SR Z OHA 099-409202; 88718

1-6-94 to 12-31-97, $69,182.80

Action: Approve the credit and cancellation as recommended by staff.

SAP America Inc., SC OHB 099-690105; 88210

1-1-94 to 12-31-97, $1,697,477.81

Action: Approve the credit and cancellation as recommended by staff.

DAZU Inc., SR AC 013-855393; 89000091650

7-1-93 to 5-31-99, $628,046.74

Action: Approve the refund as recommended by staff.

Alphus R. Rollans, SR Y AR 015-771615; 52656

10-1-99 to 12-31-99, $53,321.90

Action: Approve the refund as recommended by staff.

Professional Hospital Supply, Inc., SR Y EH 025-736547; 50210

10-1-96 to 9-30-99, $192,269.29

Action: Approve the refund as recommended by staff.

NTN Communications, Inc., SR FHB 025-855808; 77377

1-1-98 to 6-30-99, $182,485.41

Action: Approve the refund as recommended by staff.

Kinetic Systems, Inc., SR Z GH 026-664975; 87353

10-1-93 to 6-30-97, $188,383.81

Action: Approve the refund as recommended by staff and the disputed measure to continue in the appeals process.

Kistler Vineyards, SR JH 027-693682; 76453

1-1-2000 to 3-31-2000, $157,430.18

Action: Approve the refund as recommended by staff.

Svedala Industries Inc., SR Z OHA 030-680354; 46719

7-1-96 to 9-30-96, $117,277.50

Action: Approve the refund as recommended by staff.

Columbia Tristar Home Video, Inc., SR AS 097-573115; 88009

7-27-99, $214,260.75

Action: Approve the refund as recommended by staff.

Draeger Medical Inc., SC OHB 099-145520; 79120

1-1-2000 to 3-31-2000, $55,557.51

Action: Approve the refund as recommended by staff.

Hughes-JVC Technology Corporation, SR FHB 099-151717; 51625

7-1-99 to 9-30-99, $225,883.31

Action: Approve the refund as recommended by staff.

Sola Group Ltd., SR JH 099-410247

1-1-94 to 3-31-97, $81,071.21

Action: Approve the refund as recommended by staff.

Sumitomo Bank Leasing & Fnc. Inc., SC OHB 099-677662; 50484

7-1-95 to 6-30-98, $208,115.92

Action: Approve the refund as recommended by staff.

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

With respect to the Sales and Use Tax Matters Redetermination, Relief of Penalty and Denials of Claims for Refund, Consent Agenda, upon a single motion of

Mr. Parrish, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish,

Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board made the following orders:

Elmore Motors, SR Y EA 098-041924; 89002096260

4-1-94 to 3-31-97, $50,389.15

Action: Redetermine as recommended by Staff.

Deluxe Check Printers, Inc., SR Z AC 098-045302; 89002098340

4-1-93 to 6-30-96, $130,308.80

Action: Redetermine as recommended by Staff.

Apadav Computer Supplies, Inc., SR EA 024-891919; 86437

4^th Quarter, 1999, $74,944.40

Action: Grant relief from the penalty as recommended by staff.

Staples Contract & Commercial Inc., SR Z OHB 097-162235; 80115

February 2000, $78,370.92

Action: Grant relief from the penalty as recommended by staff.

Nine West Group Inc., SR Y OHB 097-555164; 88614

3^rd & 4^th Quarters, 1999, $143,558.10

Action: Grant relief from the penalty as recommended by staff.

HBO & Company, SC OHC 097-563198; 88612

October, 1999, $58,394.00

Action: Grant relief from the penalty as recommended by staff.

The Wet Seal Retail, Inc., SR Y EAA 097-665188; 86438

1^st Quarter, 2000, $83,525.40

Action: Grant relief from the penalty as recommended by staff.

DAZU, Inc., SR AC 013-855393; 89111

7-1-93 to 5-31-99, $51,578.84

Action: Deny the claim for refund as recommended by staff.

Sumitomo Bank Leasing & Fnc. Inc., SC OHB 099-677662

7-1-95 to 6-30-98, $54,542.85

Action: Deny the claim for refund as recommended by staff.

Johnson's Trading Post Inc., SR JHF 028-755293; 53391

7-1-97 to 9-30-97, $152,250.00

Action: Deny the claim for refund as recommended by staff.

Sallen/Allen "RRR" Speed Lab, Inc., SC EAA 097-506870; 50456

5-1-95 to 12-31-98, $111,375.12

Action: Deny the claim for refund as recommended by staff.

Saleen Performance, Inc., 099-614432; 50455

11-25-94 to 6-30-98, $130,473.11

Action: Deny the claim for refund as recommended by staff.

SPECIAL TAXES MATTERS, CONSENT

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

Fletcher Oil & Refining Company, MD MT 007-000815; 89000005900

1-1-91 to 12-31-93, $2,364,500.61

Action: Redetermine 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. Chiang, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, with Ms. Mandel not participating in the appeal of AIU Insurance Company, IT ET 034-000351; 50845, in accordance with Government Code Section 7.9, the Board made the following orders:

AIU Insurance Company, IT ET 034-000351; 50845

Action: Approve the refund as recommended by staff. Ms. Mandel not participating.

Santa Barbara Transportation, DB MT 057-415746; 89339

7-1-96 to 12-31-99, $134,313.71

Action: Approve the refund as recommended by staff.

PROPERTY TAXES MATTERS, CONSENT [N]

With respect to the Property Taxes Matter, Consent Agenda dated November 2, 2000 (Exhibit 11.18), upon a single motion of Mr. Parrish, seconded by

Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel not participating in accordance with Government Code Section 7.9, the Board made the following orders:

Sierra Pacific Power Company (146), SAU 00-038; 76149

Action: Grant petition for reassessment reducing its 2000 unitary value from $201,200,000.00 to $192,500,000.00.

Southwest Gas Corporation (152), SAU 00-029; 76077

Action: Grant petition for reassessment reducing its 2000 unitary value from $100,900,000.00 to $97,800,000.00.

Globe Wireless, Inc. (2368), SAU 00-028, 76076

Action: Grant petition for reassessment reducing its value from $3,710,000.00 to $2,780,000.00.

LCI International Telecom Corporation (2467), SAU-00-053; 76458

Action: Deny the petition for reassessment and its value stands at $59,800,000.00.

Pacific Bell Wireless, (2748), SAU 00-024; 76072

Action: Grant the petition for reassessment reducing its value from $820,000,000.00 to $818,900,000.00.

Nextlink of California, L.L.C. (7560), SAU 00-033; 76081

Action: Grant the petition for reassessment reducing its value from $181,400,000.00 to $175,900,000.00.

RCN Telecom Services of California, Inc. (7775), SAU 00-032; 76080

Action: Grant petition for reassessment reducing its value from $53,700,000.00 to $51,700,000.00.

MGC Communications, Inc., (7724), SAU 00-035; 76140

$78,600,000.00/$7,860,000.00

Action: Grant petition for reassessment reducing its 2000 unitary value from $78,600,000.00 to $66,200,000.00 and the penalty be abated.

Telco Network Services, Inc. (7762), SAU 00-083, 77513

$12,800,000.00/$1,280,000.00

Action: Grant petition for reassessment reducing its 2000 unitary value from $12,800,000.00 to $8,920,000.00 and the penalty be abated.

BroadStream Corporation (7787), SAU 00-044; 76427

$414,000.00/$41,400.00

Action: Grant petition for reassessment reducing its 2000 unitary value from $414,000,000.00 to $27,200.00 and the penalty be abated.

Electric Lightwave, Inc., (2430), SAU 00-034; 76082

$78,000,000.00/$7,800,000.00

Action: Grant the petition for abatement of penalty on its 2000 unitary value.

Public Communications Services, Inc., (7811), SAU 00-015; 75812

$1,640,000.00/$164,000.00

Action: Grant the petition for abatement of penalty on its 2000 unitary value.

Southern California Gas Company (149), SAN 00-001; 83764

Action: Grant petition for reassessment reducing its 2000 nonunitary value from $35,117,863.00 to $31,257,863.00.

Relco Tank Line, Inc., (576), PCP 00-001; 84682

Action: Grant petition for abatement of penalty on its 2000 Private Railroad Car Tax.

PROPERTY TAXES MATTERS, NOT SUBJECT TO CONTRIBUTION DISCLOSURE STATUTE [O]

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

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Pacific Gas and Electric Company (135)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

San Diego Gas & Electric Company (141)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Sierra Pacific Power Company (146)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Southern California Edison Company (148)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Southern California Gas Company (149)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Surprise Valley Electrification Corporation (173)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Plumas-Sierra Rural Electric Cooperative, (176)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

West Coast Gas Company, Inc. (194)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

GTE California Incorporated (201)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Ponderosa Telephone Company (205)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Ducor Telephone Company (228)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Foresthill Telephone Company (235)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Pacific Bell and Subsidiaries (279)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Siskiyou Telephone Company (301)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Volcano Telephone Company (327)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Sprint Communications Company, L.P. (2014)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

MCI Worldcom Network Services, Inc., (2274)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

AT&T Communications (2310)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

MCI Metro Access Transmission Services, LLC (2372)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Sacramento Valley Limited Partnership (2513)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Los Angeles SMSA, Ltd. (2532)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

AB Cellular Holding, LLC (2547)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

GTE Mobilnet of California, Ltd. Partnership (2559)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

AT&T Wireless Services (2622)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Santa Barbara Cellular Systems, Ltd. (2626)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

GTE Mobilnet of Santa Barbara, L.P. (2627)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Salinas Cellular Telephone Company (2637)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Data Cellular Systems, RDS#10 - Nevada County (2676)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Dobson Cellular of Imperial, Inc. (2718)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Cox Communications, PCS, L.P. (2720)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Sprint Spectrum L.P., (2722)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Pacific Bell Wireless (2748)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Genesis Communications International, Inc. (7517)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Level 3 Communications, LLC (7761)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

RCN Telecom Services of California, Inc. (7775)

Action: Adopt unitary escaped assessment for 2000 unitary valuation.

Sauvage Gas Company (643)

Action: Grant Private Railroad Car tax refund as recommend by staff.

Ferro Quadrum, S.A. de C.V. (5953)

Action: Grant Private Railroad Car tax refund as recommend by staff.

Ferro Quadrum, S.A. de C.V. (5953)

Action: Grant Private Railroad Car tax refund as recommend by staff.

Allied Signal, Inc. (6000)

Action: Grant Private Railroad Car tax refund as recommend by staff.

Dana Railcare Services (6192)

Action: Grant Private Railroad Car tax refund as recommend by staff.

Occidental Chemical Corporation (547)

$32,142.00 Assessed Value

Action: Approve correction to the 2000 Private Railroad Car Tax Roll.

FMC Corporation (690)

$76,727.00 Assessed Value

Action:Approve correction to the 2000 Private Railroad Car Tax Roll.

Harnischfeger Corporation (5718)

$2,605.00 Assessed Value

Action: Approve correction to the 2000 Private Railroad Car Tax Roll.

Huntsman Polypropylene Corporation (5972)

$8,041.00 Assessed Value

Action: Approve correction to the 2000 Private Railroad Car Tax Roll.

Huntsman Corporation (6147)

$21,431.00 Assessed Value

Action: Approve correction to the 2000 Private Railroad Car Tax Roll.

The Board recessed at 12:30 p.m. and reconvened at 1:30 p.m. with

Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang present.

FRANCHISE AND INCOME TAXES HEARINGS

Marit & Giovanni Nocerino, 55255

1997, $9,345.93 Claim for Refund

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

Issue:Whether appellants have shown that reasonable cause existed for their failure to respond to respondent's notice and demand to file a 1997 tax return..

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel absent, the Board ordered that the appeal be submitted for decision.

Mr. Klehs stated for the record he would like to reverse his vote in the

petition of BCC International, SR EAA 099-104074, 89002104400 and the appeal of Sundstrand Corporation, 99A-0375, 8900246990, with regards to section 24344. This request does not change the Board's decisions.

Halliburton Energy Services, Inc., 49556

1980, $16,149.00 Claim for Refund

1981, $ 2,489.00 Claim for Refund

1982, $ 8,666.00 Claim for Refund

1983, $32,857.00 Claim for Refund

1984, $32,541.00 Claim for Refund

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

Issue:Whether appellant has shown that respondent erroneously applied refund amounts to previous income years for which appellant had filed amended returns (showing deficiencies) based upon federal changes.

Action: Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel absent, the Board ordered that the appeal be submitted for decision.

Kenneth Lucido, 31911

1995, $2,327.00 Assessment, $581.34 Penalty

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

Issues:Whether appellant's disability retirement benefits should be excluded from gross income.

Whether appellant has shown that the Internal Revenue Service (IRS) incorrectly increased his rental income for 1995.

Whether appellant has shown reasonable cause exists for filing his return late, to the extent that the late filing penalty should be abated.

Appellant's Exhibit:Handwritten letter dated 11/1/2000 & attachments

Action: Mr. Andal moved that Issue 1 be granted. The motion was seconded by Mr. Parrish but failed to carry, Mr. Andal and Mr. Parrish voting yes, Mr. Klehs and Mr. Chiang voting no, Ms. Mandel absent.

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel absent, the Board granted Issue 2 accepting $850 a month as monthly rental income for 1995.

Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried,

Mr. Andal, Mr. Parrish and Mr. Chiang voting yes, Mr. Klehs voting no, Ms. Mandel absent, the Board ordered that the late filing penalty be abated.

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish and Mr. Chiang voting yes, Mr. Klehs voting no,

Ms. Mandel absent, the Board deferred consideration of Issue 1.

Shakey's International, LTD, 99R-0312; 89002469240

1986, $ 28,612.00 Claim for Refund

1987, $198,571.00 Claim for Refund

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

Issues:Whether respondent properly determined that the basis of the Aspinone Japanese trademark is $637,354.00.

Whether respondent properly excluded the gross receipts from the sale of its trademark, as well as those from the sale of the 24,000 shares of Shakey's Japan Limited stock, from appellant's sales factor.

Whether respondent properly included a property factor in appellant's California apportionment formula.

Respondent's Exhibit:Misc. documents re: appellants method of calculating basis

and facts known at time of purchase (Exhibit 11.19)

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel absent, the Board ordered that the appeal be continued to the next Sacramento Board meeting. Appellant agreed to waive the 60-day notice requirement.

PROPERTY TAXES HEARINGS - PETITIONS FOR REASSESSMENT OF UNITARY VALUE

Pacific Harbor Line Railroad (813), SAU 00-031; 76079

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

Issue:Should the value of a possessory interest be reduced to reflect certain activities which petitioner performs for the owner pursuant to the operating agreement?

Action: Mr. Andal moved that the petition be denied. The motion was seconded by Mr. Parrish but failed to carry, Mr. Andal and Mr. Chiang voting yes, Mr. Klehs and

Mr. Chiang voting no, Ms. Mandel absent.

Mr. Parrish moved to grant the petition. The motion failed for lack of a second.

The Board deferred consideration of this matter.

All American Pipeline L.P. (465), SAU 00-026; 76074

2000, $88,600,000.00

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

Issue:Whether the Board should adjust the Petitioner's capitalized earning ability (CEA) value indicator to exclude the portion of the company's pipeline sold after the lien date.

Chevron Pipeline Company (467) SAU 00-023; 76070

2000, $29,040,000.00

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

Issues:Whether the Board staff used the proper income level and correct allocation factors to calculate the Board-adopted unitary value of the property.

Whether the Board should abate the penalty for incomplete filing of the property statement pursuant to Revenue and Taxation Code Section 830 because Petitioner waited for CPUC approval of the sale of its pipeline property, and that approval was not granted until after the last day for timely filing.

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish and Mr. Klehs voting yes, Mr. Chiang abstaining,

Ms. Mandel absent, the Board ordered that the petition be granted reducing the unitary value from $26,400,000 to $25,800,000 and reducing the penalty from $2,640,000 to $2,580,000.

FINAL ACTION ON PETITIONS FOR REASSESSMENT OF UNITARY VALUE HEARD NOVEMBER 2, 2000

Upon motion of Mr. Klehs, seconded by Mr. Andal and duly carried,

Mr. Andal, Mr. Klehs and Mr. Chiang voting yes, Mr. Parrish voting no, Ms. Mandel absent, the Board ordered that the petition of Pacific Harbor Line Railroad (813) SAU 00-031; 76079, be denied and that no Findings and Decisions be prepared.

FINAL ACTION ON APPEALS HEARD NOVEMBER 2, 2000

Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Klehs and Mr. Chiang voting yes, Mr. Parrish abstaining,

Ms. Mandel absent, the Board ordered that the appeal of Marit & Giovanni Nocerino, 55255, be denied.

Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel absent, the Board ordered that the appeal of Halliburton Energy Services, Inc., 49556, be denied.

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel absent, the Board ordered that the appeal of Jerald A. Soracco, 55023, be denied.

The Board took no action regarding Issue one in the appeal of Kenneth Lucido, 31911 because the Franchise Tax Board conceded to Issue 1.

For Appellant:	Jerald A. Soracco
For Franchise Tax Board:	Greg Heninger, Legal Analyst

For Appellant:	Dr. Giovanni Nocerino Marit Nocerino
For Franchise Tax Board:	Cynthia Kent, Tax Counsel

For Appellant:	Eric J. Coffill, Attorney
For Franchise Tax Board:	Sherman Eatmon, Tax Counsel

For Appellant:	Kenneth Lucido
For Franchise Tax Board:	Bruce Langston, Tax Counsel

For Appellant:	Jeffrey M. Vesely, Attorney
For Franchise Tax Board:	Jon Jensen, Counsel

For Petitioner:	Appearance Waived
For Property Taxes Department:	Louis Ambrose, Counsel

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Approved 2000 Minutes - Thursday November 2, 2000