Approved 2000 Minutes - Tuesday November 28, 2000
The Board met at its offices at 5901 Green Valley Circle, Culver City, at 9:00 a.m. with Chairman Andal, Vice Chairman Parrish, Mr. Klehs, Mr. Chiang and Dr. Connell present.
PUBLIC COMMENT ON PROPERTY TAXES HEARING
Speakers: Mr. Bruce Dear, Assessor, Placer County
Mr. William G. Copren, Sierra County
Mr. Robert Sandman, Deputy County Counsel, Placer County
Mr. David Brown, Assessor, Yuba County
Mr. Allen Haim, Special Counsel, Sierra, Placer, Butte, Mariposa, Nevada and Yuba Counties
Mr. Thomas R. Parker, Deputy County Counsel, El Dorado County
Mr. Gary Orso, Assessor, Riverside County
Mr. Brent Hastey, Supervisor, Yuba County
Mr. Don Peterson, Legislative Advocate, El Dorado, Butte, and Placer Counties
Mr. Rick Auerbach, Assessor, Los Angeles County
PROPERTY TAXES HEARING - PETITION FOR REASSESSMENT OF UNITARY VALUE
Pacific Gas & Electric Company (135), SAU 00-018
2000, $13,542,150,713.00
| For Petitioner: | Waived Appearance |
| For Property Taxes Department: | Larry Augusta, Assistant Chief Counsel |
Dick Johnson, Deputy Director
Contribution Disclosures pursuant to Government Code Section 15626: No disqualifying contributions were disclosed.
Issue:Whether or not the Board properly assessed the petitioner for its possessory interests at certain hydroelectric projects of: (1) the Merced Irrigation District; (2) the Yuba County Water Agency; (3) the Placer County Water Agency; (4) the Nevada Irrigation District; and (5) the Oroville-Wyandotte Irrigation District.
Action: (Motion expunged.)
Upon motion of Mr. Andal, seconded by Mr. Parrish and
unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Dr. Connell voting yes, the Board ordered that its previous motion to deny the petition based on Dr. Connell's comments be expunged.
The Board recessed at 9:50 a.m. and reconvend at 9:55 with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Dr. Connell present.
Mr. Klehs made the motion to adopt the staff-recommended value. The
motion was seconded by Mr. Chiang but no vote was taken. Dr. Connell offered a substitute motion to deny the petition based on the comments she has presented
(Exhibit 11.20). The motion was seconded by Mr. Parrish and duly carried, Mr. Andal, Mr. Parrish, and Dr. Connell voting yes, Mr. Chiang voting no, Mr. Klehs abstaining, the Board ordered that the petition be denied.
Dr. Connell left the Boardroom.
Exhibits to these Minutes are incorporated by reference
TAXPAYER BILL OF RIGHTS REIMBURSEMENT CLAIM HEARING
Inquiry Handling Service, Inc., TBR00-003-B; 57745
8-13-97 to 10-18-99, $6,558.75 Fees, $136.86 Expenses
| For Claimants: | No Appearance |
| For Department: | Janice Thurston, Counsel |
Action: The Board took no action.
BUSINESS TAXES HEARINGS
China House Enterprises, Inc., SR AC 13-889557-010; 89000101190
4-1-93 to 3-31-96, $60,735.65 Tax, $6,073.57 Penalty
| For Petitioner: | Sherman Yu, Vice President Danny Wong, Agent |
| For Sales and Use Tax Department: | Richard Goodrich, Hearing Representative |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues:Whether audited cost of beer sold was established in accordance with the facts.
Whether the selling price to "B-girls" in excess of the regular selling price represents petitioner's gross receipts.
Ms. Mandel entered Boardroom, present on behalf of Dr. Connell in
accordance with Government Code Section 7.9.
Mr. Klehs left the Boardroom.
Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs absent, the Board ordered that the measure of tax be reduced by 2% for self consumption and shrinkage.
Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs absent, the Board ordered that the petition be submitted for decision.
El Senda, Inc. SR AC 99-392174-010; 89002231360
4-1-94 to 6-30-98, $18,804.23 Tax, $00.00 Penalty
| For Petitioner: | Sherman Yu, Vice President Danny Wong, Agent |
| For Sales and Use Tax Department: | Richard Goodrich, Hearing Representative |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue:Whether the evidence supports an increase in liquor pour size to 2 ounces.
Mr. Klehs entered the Boardroom.
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 ordered that the measure of tax be reduced by 10% and the remainder of the petition be submitted for decision.
S. M. INC., SR AS 18-661680-010; 89000233760
4-1-91 to 3-31-94, $6,691.35 Tax
| For Petitioner: | No 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 the additional measure of tax was established in accordance with the facts.
Ms. Mandel stated she would not be participating in S. M. INC., SR AS 18-661680-010, 89000233760 and left the Boardroom.
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 not participating, the Board ordered that the petition be granted in accordance with the revised recommendation by the Appeals Section.
Hayat Ulmulk Jalala, SX AC 99-406071-010; 89002237970
12-9-93 to 12-31-96, $35,698.66 Tax, $3,608.80 Penalty, Negligence
| For Petitioner: | Mace Abdullah, CPA Hayat Jalala |
| For Sales and Use Tax Department: | Richard Goodrich, Hearing Representative |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues:Whether audited taxable sales were established in accordance with the facts.
Whether relief from the penalty for negligence is warranted.
Ms. Mandel entered Boardroom.
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 ordered that the petition be submitted for decision.
A & G, Inc., SY EA 24-959307-010; 89000502760
1-1-92 to 12-31-95, $103,686.13 Tax
| For Petitioner: | Jim Kleban, CFO |
| For Sales and Use Tax Department: | Richard Goodrich, Hearing Representative |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue:Whether petitioner has shown that it is entitled to a reduction of disallowed claimed sales for resale.
Action: 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 ordered that the petition be submitted for decision.
Toyota Motor Sales, USA, Inc., SZ AB 11-297699-020; 89000009770
4-1-89 to 12-31-93, $962,213.68 Tax
| For Petitioner: | Joseph A. Vinatieri, Attorney Jeffrey K. Tozaki, Tax/Admin Manager |
| For Sales and Use Tax Department: | David Levine, Counsel |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues:Whether the evidence supports that the vehicles at issue were frequently demonstrated and displayed while being held for resale with some business and personal use, in which case, the combined demonstration or display and use is subject to the 1/40th fair rental value formula.
Alternatively, whether petitioner qualifies for relief from tax under Revenue and Taxation Code Section 6596.
Action: 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 ordered that the petition be granted as to the disputed items. The Board ordered that a memorandum opinion be prepared and brought back for the Board's consideration.
Steven Wiener, SY FH 25-760528-010; 89000549410
7-1-94 to 6-30-97, $75,213.77 Tax, $7,521.40 Penalty, Negligence
| For Petitioner: | John W. Sunnen, Attorney |
| For Sales and Use Tax Department: | Richard Goodrich, Hearing Representative |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues:Whether the evidence shows that the percentage of petitioner's nontaxable gross receipts is greater than the 27 percent allowed in the audit.
Whether relief from the penalty for negligence is warranted.
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 ordered that the petition be submitted for decision.
Home Lumber Company, San Bernardino, Inc. et.al., SR EH 99-663099-010; 89002349550
1-1-95 to 12-31-97, $45,923.44 Tax
| For Petitioner: | No Appearance |
| For Sales and Use Tax Department: | Janice Thurston, Counsel |
Action: The Board took no action.
Narinder J. Keith & Rajinder K. Keith, SY AP 24-783274-010; 89000460580
1-1-94 to 6-30-97, $75,217.49 Tax, $7,535.29 Penalty, Negligence
| For Petitioner: | Narinder J. Keith |
| For Sales and Use Tax Department: | Kevin Hanks, Hearing Representative |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues:Whether the evidence shows that the audited taxable sales are excessive.
Whether relief from negligence penalty is warranted.
Ms. Mandel left the Boardroom.
Action: Mr. Klehs moved to submit the petition for decision. Mr. Parrish offered a substitute motion to increase the pilferage to 2.5%. Mr. Andal seconded the motion and duly carried, Mr. Andal, Mr. Parrish and Mr. Chiang voting yes, Mr. Klehs voting no, Ms. Mandel absent.
Upon motion of Mr. Parrish, seconded by Mr. Andal and duly carried,
Mr. Andal, Mr. Parrish, and Mr. Chiang voting yes, Mr. Klehs voting no, Ms. Mandel absent, the Board ordered the negligence penalty be deleted and redetermine the reminder as recommended by Appeals Section.
Albert Kelly Ruiz, SR AP 11-762085-010; 89000025700
10-1-91 to 6-30-93, $10,016.00 Tax, $00.00 Penalty, Negligence
$00.00 Penalty, Finality
| For Petitioner: | Albert Ruiz, Owner Michael Weinstein, Representative Joyce Heiman, Witness |
| 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 audited understatements of snack bar and catering sales were established in accordance with the facts.
Ms. Mandel entered the Boardroom
Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and duly carried, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Andal voting no, the Board ordered that the petition be granted as to the disputed items.
Judith Zane, SR AC 13-841959-010; 89000088260
7-1-93 to 12-31-97, $54,661.60 Tax, $13,665.48 Penalty, Fraud
| For Petitioner: | No Appearance |
| For Sales and Use Tax Department: | Kevin Hanks, Hearing Representative |
Action: The Board took no action.
FINAL ACTION HEARD ON NOVEMBER 28, 2000
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 ordered that the remainder of the petition of China House Enterprises, Inc., SR AC 13-889557-010; 89000101190, be redetermined as recommended by the Appeals Section.
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 ordered that the remainder of the petition of El Senda, Inc. SR AC 99-392174-010; 89002231360, be redetermined as recommended by the Appeals Section.
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 ordered that the petition of Hayat Ulmulk Jalala, SX AC 99-406071-010; 89002237970, be redetermined as recommended by the Appeals Section.
Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition of A & G, Inc., SY EA 24-959307-010; 89000502760, be redetermined as recommended by the Appeals Section.
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 ordered that the petition of Steven Wiener, SY FH 25-760528-010; 89000549410, be redetermined as recommended by the Appeals Section.
LEGAL APPEALS MATTERS, CONSENT
The Board deferred consideration on the following matters: Optivus Technology, Inc., SR EH 99-482047-010; 89002275710, Hector Martinez, SR AP 99-653421-010; 89002345510, Micro Technology, Inc., SY EA 24-757442-010; 89000456460, MTI Technology Corporation, SY EA 99-296072-010, -020; 89002187780, -790, Cheryl Torres, Executor of Estate, SN AA 52-004708-010; 89000964940, Pete's Auto Body, SR AP 97-216197-010; 30039, J.G. Boswell Company, SY AP 98-034163-010; 89002091030, American Datamed, SR EAA 24-901509-010; 89000486100, Sanchez Celso Apaez, SR AC 13-879905-010; 89000098170,and Arman Vakili, Alex Ghomizadeh & Allen Monshietehadi, SR EAA 99-136397-010; 89002118100.
With respect to the Legal Appeals Matters, Consent Agenda, upon a single 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 made the following orders:
Empire Lighting & Crystal, SR AS 11-790595-010; 89000030410
1-1-95 to 6-30-97, $42,348.21 Tax, $4,234.83 Penalty, Negligence
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Deanna Terrie Miller, SR AS 13-847473-010; 89000089590
1-1-94 to 12-31-96, $15,849.39 Tax; $1,584.91 Penalty, Negligence
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Lal D. Wadhwani, SR AC 13-866540-010; 89000094270
1-1-94 to 3-31-96, $2,708.56 Tax
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Chun Hwan Lee, SY ADA 16-680371-020, -030; 89000187620, -630
10-1-85 to 6-30-89, $275,227.03 Tax, $68,806.77 Penalty, Fraud
FV EA 14-744045-010, -020; 89000123370, -380
1-1-88 to 6-30-89, $19,266.21 Tax, $4,816.55 Penalty, Fraud
$983.71 Penalty, Failure to File
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Refrigerated Containers CA, Inc., SR OH 14-718935-010; 89000119110
4-1-93 to 3-31-96, $61,747.60 Tax
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Armen Lousinian & Petros Sarafian, SR AA 14-792540-010, -020; 89000133110, -120
7-1-92 to 12-31-93, $30,210.97 Tax, $00.00 Penalty
FV AA 14-792541-010; 89000133130
5-1-92 to 9-30-94, $120,494.53 Tax, $28,945.16 Penalty, Fraud
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Khatchatoor Bagdassarian, SR AB 14-770022-010; 89000128870
Metro Lines, SN AB 52-000425-010; 89000961550
1-1-92 to 3-31-93, $129,211.34 Tax, $12,921.14 Penalty, Failure to File
$32,302.82 Penalty, Fraud
Jim & Hutch Corporation, FP HQ 98-500111-010; 89000133460
1-1-92 to 12-31-92, $87,716.32 Tax, $21,929.08 Penalty, Fraud
Metro Lines, FP HQ 98-500127-010; 89000189090
1-1-92 to 3-31-93, $391,224.21 Tax, $39,122.42 Penalty, Failure to File
$97,806.05 Penalty, Fraud
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Robert & Deanne Wenger, SN AC 52-005633-010; 89000965550
1-1-96 to 3-31-96, $00.00 Tax, $500.00 Penalty, Misuse of retail certificate
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Benbow Helicopters, Inc., SP UT 82-663400-010; 89001148740
7-31-98, $14,437.50 Tax
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Jan L. Richards, SR EH 97-130210-010,-020; 89002062630, -620
1-1-97 to 8-30-97, $14,334.73 Tax, $00.00 Penalty
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Optivus Technology, Inc., SR EH 99-482047-010; 89002275710
5-1-93 to 9-30-96, $103,994.97 Tax, $1,578.74 Penalty, Failure to File
Considered by the Board:Hearing Notice Sent - No Response
Action: The Board deferred consideration of this matter.
Flame Fighters Inc., SR AP 99-188075-010; 89002138270
10-1-93 to 12-31-96, $49,010.65 Tax, $4,901.56 Penalty, Negligence
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
John William Varciag, SR EH 23-848550-010; 89000426220
1-1-95 to 6-30-95, $17,593.31 Tax, $1,759.35 Penalty, Negligence
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Flora Rahman, SR AC 99-722935-010; 89002372000
Sakhawat Ullah, Jr., SR AC 53-000153-010; 89000969900
7-1-95 to 9-30-96, $4,766.29 Tax, $1,191.58 Penalty, Fraud
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Syed Mohammed G. Hossain, SX AC 99-569128-010; 89002311920
Sakhawat Ullah, Jr., SX AC 53-000147-010; 89000969880
7-1-95 to 9-30-96, $59,613.82 Tax, $14,903.50 Penalty, Fraud
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Anowara Rahman, SX AC 13-839943-010, 89000087790
Sakhawat Ullah, Jr., SX AC 53-000156-010; 89000969910
1-1-92 to 6-30-94, $44,337.79 Tax, $11,084.51 Penalty (Fraud)
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
I. Siegal Company, Inc., SR AS 18-694053-010; 89000238390
1-1-93 to 6-30-96, $39,864.99 Tax, $3,986.51 Penalty, Negligence
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Julius Chuck Friedman, SR DHD 53-000307-010; 89000970240
5-1-91 to 6-30-93, $4,461.35 Tax, $446.14 Penalty, Negligence
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Leland H. West, SN EA 53-000185-010; 89000969990
4-1-93 to 6-30-94, $623,390.00 Tax
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Little Oil Company, Inc., SG ARH 78-005054-010; 89001008210
9-1-95 to 3-25-96, $10,838.00 Tax
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Hector Martinez, SR AP 99-653421-010; 89002345510
1-1-95 to 12-31-97, $3,968.15 Tax, $396.83 Penalty, Negligence
$396.82 Penalty, Failure to Pay Timely
Considered by the Board:Hearing Notice Sent - No Response
Action: The Board deferred consideration of this matter.
Jose L. Urbina Wallace, SR AP 99-749585-010; 89002381220
4-1-95 to 6-30-95, 0.00 Tax
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
McMullen Argus Publishing, Inc., SR EA 24-645029-010; 89000443630
4-1-94 to 12-31-96, $31,755.39 Tax
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Micro Technology, Inc., SY EA 24-757442-010; 89000456460
MTI Technology Corporation, SY EA 99-296072-010, -020; 89002187780, -790
7-1-90 to 6-30-94, $1,542,438.53 Tax, $181,270.07 Penalty, Negligence
Considered by the Board:Hearing Notice Sent - No Response
Action: The Board deferred consideration of this matter.
Thomas D. Thomas, Esq., SP UT 82-652648-010; 89001136570
12-31-96, $19,965.00 Tax, $1,996.50 Penalty, Failure to File a Return
$1,996.50 Penalty, Failure to Pay Timely
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Holiday Oldsmobile, SR EH 98-036254-010; 89002092270
1-1-93 to 3-31-96, $00.00 Tax
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Michael Eric Shorr & William Morris, SR ARH 99-442941-010; 89002257140
5-1-94 to 6-30-96, $3,436.95 Tax, $00.00 Penalty
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Gurnam Singh, SR ARH 99-200672-010; 89002144530
FV ARH 99-272140-020; 89002177400
4-1-93 to 6-30-95, $20,828.14 Tax
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Cheryl Torres, Executor of Estate, SN AA 52-004708-010; 89000964940
3-31-96 to 12-31-96, $2,685.64 Tax , $268.57 Penalty, Negligence
Considered by the Board:Hearing Notice Sent - No Response
Action: The Board deferred consideration of this matter.
Excellular Communications, SR EA 24-905121-020; 89000486840
10-1-93 to 9-30-96, $15,892.46 Tax, $3,086.66 Penalty, Negligence
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Pete's Auto Body, SR AP 97-216197-010; 30039
7-1-95 to 6-30-98, $00.00 Tax, $1,192.12 Penalty, Failure to File
$5,956.00 Penalty, Failure to Obtain a Valid Permit
Considered by the Board:Hearing Notice Sent - No Response
Action: The Board deferred consideration of this matter.
J.G. Boswell Company, SY AP 98-034163-010; 89002091030
1-1-95 to 12-31-97, $21,673.96 Tax
Considered by the Board:Hearing Notice Sent - No Response
Action: The Board deferred consideration of this matter.
Dariosh Ghassemi, SR EHC 99-435471-010; 89002253380
FV EHC 99-435487-010; 89002253420
9-1-93 to 12-31-93, $93,237.14 Tax, $9,323.71 Penalty, Failure to File
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Hossein Semnani, SR AS 99-536627-010; 89002298440
1-1-96 to 9-30-98, $2,054.07 Tax
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
SMB Corporation, SR AS 99-337905-010; 89002207250
7-1-94 to 3-31-97, $5,560.57 Tax, $00.00 Penalty
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
Jerry Wallace, SR AS 99-729640-010; 89002374270
1-1-87 to 6-30-95, $69,548.14 Tax, $6,954.88 Penalty, Failure to File
Considered by the Board:Hearing Notice Sent - No Response
Action: Redetermine as recommended by the Appeals Section.
American Datamed, SR EAA 24-901509-010; 89000486100
1-1-94 to 12-31-96, $10,561.07 Tax, $00.00 Penalty
Considered by the Board:Hearing Notice Sent - No Response
Action: The Board deferred consideration of this matter.
Palm Springs Auto Wash, Inc., SR EH 23-801958-010; 89000417040
1-1-94 to 3-31-97, $5,592.67 Tax, $559.29 Penalty, Negligence
Considered by the Board:Hearing Notice Sent - Appearance Waived
Action: Redetermine as recommended by the Appeals Section.
Sanchez Celso Apaez, SR AC 13-879905-010; 89000098170
7-1-94 to 6-30-97, $9,612.51 Tax, $961.26 Penalty, Negligence
Considered by the Board:Hearing Request Withdrawn
Action: The Board deferred consideration of this matter.
Vidfilm Services, Inc., SR AP 17-709315-010; 89000203760
10-1-94 to 12-31-97, $00.00 Tax, $22,168.05 Penalty, Negligence
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Kamboj Liquor, Inc., SY AP 17-710965-010; 89000204120
4-1-93 to 6-30-96, $00.00 Tax, $00.00 Penalty, Negligence
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Kurt Krumes, SY EA 24-785958-020; 89000461070
10-1-94 to 9-30-97, $00.00 Tax, $00.00 Penalty
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Walid Dawood Barash, SR EA 24-920300-010; 89000491340
1-1-94 to 12-31-96, $6,810.96 Tax, $00.00 Penalty
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Mercedes-Benz Credit Corporation, SS OHB 30-654620-010; 89000834370
7-1-87 to 12-31-90, $00.00 Tax
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Primeco, Inc., SY OHC 30-694891-030; 89000877710
Prime Service Inc., SY OHC 97-057921-020; 89002047030
7-1-93 to 3-31-97, $00.00 Tax
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Electrocom Automation LP, SS OHC 30-696225-010, -005; 89000879350; 18672
10-1-93 to 9-30-96, $00.00 Tax, $00.00 Penalty
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Fisher Graphic Industries, SR KHE 41-643977-010; 89000941390
7-1-91 to 6-30-94, $00.00 Tax
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Transport Traders, Inc., SR EH 97-712170-010; 82838
1-1-88 to 3-31-91, $00.00 Tax, $00.00 Penalty
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Douglas John Brant, SR FH 99-469066-010; 89002269630
1-1-95 to 6-30-95, $00.00 Tax
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Adventure Management Corporation, SR GH 99-475091-010; 89002272420
4-8-94 to 6-30-97, $00.00 Tax, $00.00 Penalty, Failure to File
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Tilo's European Autosales, Inc., SR EA 99-872216-010; 89002423460
1-1-94 to 12-31-96, $00.00 Tax, $00.00 Penalty, Negligence
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Toyota Motor Distributors, Inc., SY AB 98-040026-010; 89002094840
4-1-89 to 12-31-93, $115,505.88 Tax
Considered by the Board:Hearing Request Withdrawn
Action: Redetermine as recommended by the Appeals Section.
Arman Vakili, Alex Ghomizadeh & Allen Monshietehadi, SR EAA 99-136397-010; 89002118100
4-1-95 to 3-31-98, $80,396.69 Tax
Considered by the Board: June 28, 2000
Action: The Board deferred consideration of this matter.
FRANCHISE AND INCOME TAX MATTERS, CONSENT
The Board deferred consideration of the following: Jayne E. Okruhlik, 31902, 27976, Donald D. Brown, 15711 and Gerald H. & Elizabeth A. Beaulaurier, 99A-0012; 89002466420, Lothar & Eveline Schmidt, 99R-0022; 89002465680, Clarence E. & Joan M. Bonner, 99N-0013; 89002466520, Howard & Helen Fox, 99R-0032; 89002467610.
With respect to the Franchise and Income Tax 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:
Laurence N. Bader, 57146
1997, $691.75 Claim for Refund
Action: Reverse the action of the Franchise Tax Board.
Jennifer Broman, 60038
1996, $298.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
C. Richard & Susan R. Bryant, 48854
1994, $413.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Michael R. Burns, 49470
1994, $3,041.11 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.
Gene & Karen M. Cochran, 32601
1995, $2,617.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Eric A. Cummings, 33815
1995, $221.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Frank A. Duckworth, 40707
1995, $188.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
George S. Gilmour, 34337
1997, $62.00 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.
Michael P. Haverty, 34341
1995, $1,778.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Joseph Hawley, 53605
1996, $146.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Ping Wei Huang, 51598
1998, $110.42 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.
Donald R. Hull, 34340
1995, $718.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Jennings Operations (USA), Inc., 34347
1989, $185,309.00 Claim for Refund
1990, $ 72,886.00 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.
Stanley J. Kucera, 27628
1997, $1,398.00 Assessment, $699.00 Penalty
Action: Sustain the action of the Franchise Tax Board with regard to the filing enforcement cost recovery fee imposed but is otherwise reversed.
Russell L. Livingston, 47987
1995, $1,743.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Mary Massen, 57370
1996, $43.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Stan P. Moser, 47194
1996, $1,279.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Jose G. Nunez, 32910
1997, $1,903.00 Assessment, $1,683.00 Penalty
Action: Sustain the action of the Franchise Tax Board and impose a $2,000.00 frivolous appeal penalty.
Jayne E. Okruhlik, 31902
1995, $276.00 Assessment
Action: The Board deferred consideration of this matter.
Marin E. Ozawa, 61399
1996, $106.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Carson A. Parlan, 31959
1997, $1,084.00 Assessment, $542.00 Penalty
Action: Sustain the action of the Franchise Tax Board and impose a $750.00 frivolous appeal penalty.
Albert E. Reinhardt, 48799
1994, $187.69 Claim for Refund
1995, $100.72 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.
Bertram & Adele Rockoff, 31098
1995, $10,633.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Jeffrey A. Scheid, 99A-0483, 18699
1991, $3,971.00 Assessment, $1,070.20 Penalty
1992, $3,643.00 Assessment, $ 728.60 Penalty
Action: Sustain the action of the Franchise Tax Board.
John & Petrina C. Schnabel, 33739
1994, $12,873.00 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.
Steven N. & Fay P. Shapiro, 49521
1996, $900.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Julianne T. Sullivan, 32899
1995, $392.34 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.
Timothy J. & Malene R. Thompson, 32912
1995, $1,696.92 Claim for Refund
Action: Sustain the action of the Franchise Tax Board.
Peter K. Tiernan, 37448
1996 $1.00 of more Claim for Refund
Action: Sustain the action of the Franchise Tax Board.
Donald D. Brown, 15711
1993, $1.00 or more Assessment
1996, $1.00 or more Assessment
Action: The Board deferred consideration of this matter.
Jason Gross, 27976
1995, $709.00 Assessment
Action: Sustain the action of the Franchise Tax Board.
Loraine M. Langdon, 47547
1997, $233.00 Assessment, $100.00 Penalty, Delinquent
$721.50 Penalty, Demand
Action: Deny the petition for rehearing as recommended by staff.
Metro Commercial Corporation, 98A-1357; 89002464340
1994, $15,137.60 Assessment
1995, $ 7,555.96 Assessment
Action: Deny the petition for rehearing as recommended by staff.
Leon R. & Barbara K. Peikin, 33783
1989, $1,453.62 Claim for Refund
Action: Deny the petition for rehearing as recommended by staff.
Gerald H. & Elizabeth A. Beaulaurier, 99A-0012; 89002466420
1984, $3,298.00 Assessment
1985, $4,108.00 Assessment
Lothar & Eveline Schmidt, 99R-0022; 89002465680
1983, $1,078.71 Claim for Refund
1984, $2,191.91 Claim for Refund
1985, $3,555.23 Claim for Refund
1986, $1,669.30 Claim for Refund
Clarence E. & Joan M. Bonner, 99N-0013; 89002466520
1984, $3,348.09 Claim for Refund
1985, $5,389.00 Assessment
Howard & Helen Fox, 99R-0032; 89002467610
1983, $4,288.85 Claim for Refund
1984, $5,704.57 Claim for Refund
1985, $4,362.60 Claim for Refund
Action: The Board deferred consideration of this matter.
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 Redeterminations, Relief of Penalty, Denials of Claims for Refund and Denials of Relief of Penalty, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Ms. Mandel not participating in International Business Machines Corporation, SR X OHB 026-096995; 90504, Mr. Chiang not participating in Applied Materials Inc., SR Y OHC 026-815460; 27544, Pharmacia Corporation, SR Z OHA 098-003963; 41164, Avcom Technologies, Inc., SR Y GH 030-662940; 89855, CAT Technology Inc., SR GH 099-420521; 90663, Seagate Technology, SR Z GHD 020-643638; 90544, International Business Machines Corporation, SR X OHB 026-096995; 90504, Avcom Technologies, Inc., SR Y GH 030-662940; 89853, Avcom Technologies, Inc., SR Y GH 030-662940; 89854, the Board made the following orders:
Sunstrand Corporation, SR S OHA 013-087758; 89000057160
1-1-94 to 3-31-97, $85,497.52
Action: Redetermine as recommended by staff.
Nordstrom Inc., SR Z OH 024-711856; 89000450250
4-1-95 to 3-31-98, $77,139.30
Action: Redetermine as recommended by staff.
Applied Materials Inc., SR Y OHC 026-815460; 27544
4-1-94 to 6-30-97, $3,037,091.23
Action: Redetermine as recommended by staff. Mr. Chiang not participating.
Polaroid Corporation, SR Z OHB 030-603455; 15888
1-1-94 to 3-31-97, $149,971.43
Action: Redetermine as recommended by staff.
Dana Commercial Credit Corporation, SR S OHA 030-679158; 89000856560
7-1-91 to 9-30-95, $2,049,715.95
Action: Redetermine as recommended by staff.
Sodexho USA, Inc., SR Y OHB 030-679864; 31831
10-1-95 to 12-31-97, $117,146.93
Action: Redetermine as recommended by staff.
Airstar International Inc., SP H UT 084-003741; 75756
July 16, 1998, $57,117.50
Action: Redetermine as recommended by staff.
FAI Electronics Corporation, SC OHB 097-322801; 36885
4-1-93 to 12-31-97, $302,436.25
Action: Redetermine as recommended by staff.
Pharmacia Corporation, SR Z OHA 098-003963; 41164
7-1-93 to 9-30-96, $233,353.05
Action: Redetermine as recommended by staff. Mr. Chiang not participating.
Kent-Moore Corporation, SR S OHA 099-005021; 89002101020
7-1-94 to 6-30-97, $83,484.40
Action: Redetermine as recommended by staff.
Calsonic Miura Graphics, Inc., SR EAA 024-925117; 89815
April 1, 1998,
Action: Grant relief from the penalty as recommended by staff.
Avcom Technologies, Inc., SR Y GH 030-662940; 89855
July 24, 2000, $97,829.46
Action: Grant relief from the penalty and one month interest as recommended by staff. Mr. Chiang not participating.
American Builders/Contractors Supply Company, Inc., SR Y OHA 030-684157; 90502
5-1-00 to 6-15-00, $57,786.42
Action: Grant relief from the penalty as recommended by staff.
Shell Trading (US) Company, SG OHC 077-001536; 89813
12-01-99 to 12-31-99, $54,755.77
Action: Grant relief from the penalty as recommended by staff.
CAT Technology Inc., SR GH 099-420521; 90663
4th Quarter 1999, $116,136.10
Action: Grant relief from the penalty as recommended by staff. Mr. Chiang not participating.
Seagate Technology, SR Z GHD 020-643638; 90544
4-1-96 to 6-30-98, $1,151,212.48
Action: Deny the claim for refund as recommended by staff. Mr. Chiang not participating.
International Business Machines Corporation, SR X OHB 026-096995; 90504
1-1-96 to 12-31-98, $201,478.00
Action: Deny the claim for refund as recommended by staff. Mr. Chiang and Ms. Mandel not participating.
F M C Corporation, SR Z OHC 098-001562; 37770
7-1-96 to 9-30-99, $419,843.97
Action: Deny the claim for refund as recommended by staff.
Axiom Design LLC, SC OH 099-755880, 34112
7-1-96 to 6-30-99, $167,085.34
Action: Deny the claim for refund as recommended by staff.
Avcom Technologies, Inc., SR Y GH 030-662940; 89853
4th Quarter 1998, $61,523.30
Action: Deny the claim for refund as recommended by staff. Mr. Chiang not participating.
Avcom Technologies, Inc., SR Y GH 030-662940; 89854
1st Quarter 1999, $74,434.10
Action: Deny the claim for refund as recommended by staff. Mr. Chiang not participating.
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 Mr. Parrish, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Ms. Mandel not participating in International Business Machines Corporation, SR X OHB 026-096995, and International Business Machines Corporation, SR Z OHB 098-006714; 18643, Mr. Chiang not participating in Universal City Studios Inc., SR AC 011-784389; 90600, Seagate Technology, SR Z GHD 020-643638; 30519, International Business Machines Corporation, SR X OHB 026-096995, International Business Machines Corporation, SR Z OHB 098-006714; 18643, the Board made the following orders:
Universal City Studios Inc., SR AC 011-784389; 90600
1-1-92 to 6-30-96, $82,443.95
Action: Approve the refund as recommended by staff. Mr. Chiang not participating.
Pepperdine University, SR AC 012-000572; 89850
1-1-97 to 3-31-00, $64,554.82
Action: Approve the refund as recommended by staff.
Norman Industrial Materials, Inc., SR Y AC 013-108022; 78481
1-1-97 to 3-31-00, $71,117.53
Action: Approve the refund as recommended by staff.
Galpin Motors, Inc., SR X AC 013-604368; 90534
1-1-97 to 12-31-99, $283,714.28
Action: Approve the refund as recommended by staff.
National Medical Care, HMCare Div. Inc., SR Y OHA 013-805053; 91222
1-1-94 to 12-31-94, $330,288.45
Action: Approve the refund as recommended by staff.
National Medical Care, HMCare Div. Inc., SR Y OHA 013-805053; 91223
1-1-95 to 6-30-95, $133,097.59
Action: Approve the refund as recommended by staff.
D. Longo Inc., SR AP 017-616808; 89533
4-1-97 to 12-31-99, $113,340.45
Action: Approve the refund as recommended by staff.
AMC Colorgrafix, SR AP 017-803520; 49933
10-1-96 to 12-31-99, $69,456.59
Action: Approve the refund as recommended by staff.
Georgia-Pacific Corporation, SR Y OHC 020-164598; 52047
10-1-94 to 12-31-97, $107,419.15
Action: Approve the refund as recommended by staff.
Seagate Technology, SR Z GHD 020-643638; 30519
4-1-96 to 6-30-98, $3,527,010.93
Action: Approve the refund as recommended by staff. Mr. Chiang not participating.
Fidelity Motors, Inc., SR CH 021-637825; 89261
2nd Quarter 2000, $59,134.15
Action: Approve the refund as recommended by staff.
Ethylene Control Inc., SR ARF 022-815001; 37317
7-1-96 to 12-31-99, $82,344.68
Action: Approve the refund as recommended by staff.
ESRI Inc., SR EH 023-792254; 76667
7-1-96 to 12-31-99, $156,385.73
Action: Approve the refund as recommended by staff.
KARS-YES Inc., SR S OHC 024-931718; 56481
10-1-98 to 6-30-99, $250,125.09
Action: Approve the refund as recommended by staff.
Cinema Air Jet Center, Inc., SR FHB 025-772180; 79059
1-1-00 to 3-31-00, $58,996.11
Action: Approve the refund as recommended by staff.
International Business Machines Corporation, SR X OHB 026-096995
1-1-96 to 12-31-98, $5,139,114.68
Action: Approve the refund as recommended by staff. Ms. Mandel and Mr. Chiang not participating.
QVC Inc., SC OHB 030-687333; 90285
10-1-95 to 6-30-98, $191,152.93
Action: Approve the refund as recommended by staff.
Coors Brewing Company, SU S OH 030-697348
1-1-98 to 9-30-99, $401,519.12
Action: Approve the refund as recommended by staff.
Shiseido Cosmetics America Ltd., SR S OHB 030-698672; 37762
8-1-96 to 9-30-99, $397,294.60
Action: Approve the refund as recommended by staff.
Marrs Printing Inc., SR AP 040-618544; 55045
1-1-97 to 12-31-99, $51,250.32
Action: Approve the refund as recommended by staff.
DBB Fuel Cell Engines Corporation, SU FHB 097-241296, 59195
9-1-97 to 3-31-00, $103,627.75
Action: Approve the refund as recommended by staff.
Omnisky Corporation, SR GH 097-650298; 88743
10-1-99 to 3-31-00, $52,855.80
Action: Approve the refund as recommended by staff.
International Business Machines Corporation, SR Z OHB 098-006714; 18643
1-1-97 to 6-30-98, $577,709.23
Action: Approve the refund as recommended by staff. Ms. Mandel and Mr. Chiang not participating.
American Airlines, Inc., SR Z OHC 098-035051; 89112
7-1-93 to 9-30-96, $262,041.25
Action: Approve the refund as recommended by staff.
Bombardier Capital, Inc., SC OHB 099-468540; 53161
1-1-98 to 12-31-99, $67,148.13
Action: Approve the refund as recommended by staff.
Integic Corporation, SC OHB 099-673512; 90057
7-1-96 to 6-30-99, $50,371.44
Action: Approve the refund as recommended by staff.
American Hotel Register Company, SC OHA 099-841416; 89002413250
1-1-96 to 12-31-98, $61,550.53
Action: Approve the refund as recommended by staff.
BTS Broadcast Television Systems, SR Z OH 099-864006; 89865
10-1-99 to 12-31-99, $61,667.51
Action: Approve the 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. Chiang, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel not participating in Rosemount Estates, Inc., ABW Y ET 071-007877; 87387, the Board made the following orders:
Talk.Com Holding Corporation, TU ET 035-100767; 87177
January & April, 2000, $77,954.35
Action: Approve the refund and credit as recommended by staff.
Rosemount Estates, Inc., ABW Y ET 071-007877; 87387
April, 2000, $54,095.50
Action: Approve the refund and credit as recommended by staff. Ms. Mandel not participating.
PROPERTY TAXES MATTERS, CONSENT
The Board deferred consideration on the following: Global Crossing Telecommunications, Inc. (2207) SAU 00-056; 76462, Qwest Communications Corporation (2463) SAU 00-001; 63580 and Global Crossing North American Networks, Inc. (7536), SAU 00-057, 76464.
With respect to the Property Taxes Matter Consent Agenda dated November 28, 2000 (Exhibit 11.21), 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, Mr. Chiang not participating in Calnev Pipe Line Company (402), SAU 00-016; 75815, and Ms. Mandel not participating in accordance with Government Code Section 7.9, the Board made the following orders:
Calnev Pipe Line Company (402), SAU 00-016; 75815
$70,8000,000.00
Action: Granted petition for reassessment reducing its 2000 unitary value from $71,300,000.00 to 70,800,000.00. Ms. Mandel and Mr. Chiang not participating.
Global Crossing Telecommunications, Inc. (2207), SAU 0-056, 76462
$57,5000,000.00
Action: The Board took no action.
Qwest Communications Corporation (2463), SAU 0-001, 63580
$207,200,000.00
Action: The Board took no action.
Global Crossing North American Networks, Inc. (7536), SAU 00-057, 76464
$55,900,000.00
Action: The Board took no action.
Advanced Telecom Group, Inc. (7813), SAU00-078, 76912
$9,410,000.00
Action: Granted petition for reassessment reducing its 2000 unitary value from $10,800,000.00 to $9,410,000.00. Ms. Mandel not participating.
Worldwide Fiber Networks, Inc. (7779) SAU 00-075; 76909
$47,800,000.00
Action: Granted the petition for reassessment reducing its 2000 unitary value from $58,190,000.00 to $47,800,000.00 and penalty for late filing is abated. Ms. Mandel not participating.
ADMINISTRATIVE MATTERS, CONSENT
With respect to Administrative Matters, Consent Agenda, upon a single motion of Ms. Mandel, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel, the Board made the following orders:
Hazardous Waste and Occupational Lead Poisoning Fees
Action: Adopted fees as recommended by staff (Exhibit 11.22).
2001 Calendar for the Valuation of Public Utilities and Railroads
Action: Adopted revised calendar as recommended by staff (Exhibit 11.23).
The Board recessed at 12:00 p.m. and reconvened at 1:30 p.m. with Mr. Andal, Mr. Parrish, Mr. Klehs and Ms. Mandel present.
BUSINESS TAXES HEARINGS
Charles William Zurian & Allen Price Pike, SR AC 99-631615-010; 89002336020
12-19-94 to 12-31-96, $11,685.33 Tax
| For Petitioner: | Hollis Hedrich, CFO Allen Pike, Vice President |
| For Sales and Use Tax Department: | David Levine, Counsel |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue:Whether petitioner's reliance on erroneous, verbal advice from the Board's representative warrants relief from the applicable tax and interest.
Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, and Ms. Mandel voting yes, Mr. Chiang absent, the Board ordered that the petition be granted as to disputed item.
Shellback Tavern, SR AB 12-706519-010; 89000047870
4-1-94 to 3-31-97, $44,999.27 Tax, $4,499.95 Penalty, Negligence
| For Petitioner: | No Appearance |
| For Sales and Use Tax Department: | Kevin Hanks, Hearing Representative |
Action: The Board took no action.
Bahram Javaherian, SR AC 13-822583-010; 89000083730
Fahrad Delrahim, aka Fahrad Arya, SR AC 53-000179-010; 89000969980
4-1-94 to 2-27-97; $40,306.29 Tax, $4,030.63 Penalty, Negligence
| For Petitioner: | James M. Cha, CPA Paul M. Chun, CPA James G. Allen, Attorney |
| For Sales and Use Tax Department: | Richard Goodrich, Hearing Representative |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue:Whether the measure of tax was established in accordance with the facts.
Mr. Chiang entered the Boardroom.
Action: Upon motion of Mr. Chiang and seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision, granting the petitioner 30 days to submit 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 recommendation.
Lloyd Mark Morrissette, SR AA 17-778225-010; 89000214680
7-1-89 to 6-30-92, $35,728.71 Tax, $3,572.91 Penalty, Negligence
| For Petitioner: | Lloyd Mark Morrissette |
| For Sales and Use Tax Department: | David Levine, Counsel |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues:Whether documentation presented warrants a further reduction in taxable measure.
Whether relief from the negligence penalty is warranted.
Action: 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 ordered that the petition be submitted for decision, directing the Appeals Section to review new documentation and return to the Board in 30 days with a recommendation.
James A. Magglos, SP UT 82-658024-010; 89001143690
4-30-1997, $30,607.05 Tax, $00.00 Penalty
| For Petitioner: | Steven L. Graff, Attorney |
| For Sales and Use Tax Department: | David Levine, Counsel |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue:Whether petitioner's use of the aircraft is exempt from use tax pursuant to Revenue and Taxation Code Section 6366.1.
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 ordered that the petition be granted in accordance with the Appeals Section revised recommendation.
The Board recessed at 2:40 p.m. reconvened at 2:45 p.m. with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel present.
Trade American Card Company, SR EA 24-777525-020; 89000459430
4-1-94 to 3-31-97, $3,075.90 Tax
| For Petitioner: | Donald A. Hunsberger, Attorney George Hukriede, CPA Michael Ames, Owner |
| For Sales and Use Tax Department: | Sharon Jarvis, Counsel |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues:Whether the accounting fees computed from showroom sales are excludable from gross receipts.
Whether petitioner received misinformation qualifying for relief under Revenue and Taxation Code Section 6596.
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 ordered that the petition be granted as to the disputed items.
Philwan, Inc., SR AC 13-747918-010; 89000072520
1-1-94 to 12-31-96, $50,912.71 Tax, $5,091.27 Penalty
| For Petitioner: | Roger Glienke, Attorney |
| For Sales and Use Tax Department: | Kevin Hanks, Hearing Representative |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues:Whether the evidence shows that the audited mark-up is excessive.
Whether relief from the negligence penalty is warranted.
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 ordered that the petition be submitted for decision.
Norton S. Geller, SR AC 13-726965-010; 89000069820
4-1-94 to 3-31-97, $23,540.97 Tax
| For Petitioner: | Jonathon P. Reuben, CPA |
| For Sales and Use Tax Department: | Janice Thurston, Counsel |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue:Whether transportation occurred prior to the sale (lease) of the vehicles; therefore separately stated transportation charges are not subject to the use tax.
Whether "preparation charges" billed to the lessee for alterations made to the leased vehicle at the lessee's request, include nontaxable labor.
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 ordered that the measure of tax regarding the transportation charges be reduced to $56,000.00 in accordance with the revised recommendation of the Appeals Section.
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 granted the petitioner 30 days to submit 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 recommendation.
Upon 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 ordered that the petition be submitted for decision.
Mr. Klehs stated for the record he would like to submit a statement regarding his abstention from voting on Pacific Gas & Electric Company (135), 75859 (Exhibit 11.24).
Don Clemente, Inc., SR EH 99-521704-010; 89002291380
7-1-94 to 12-31-97, $12,110.76 Tax
| For Petitioner: | Luz E. Cobos, Accountant |
| For Sales and Use Tax Department: | Sharon Jarvis, Counsel |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue:Whether the evidence supports petitioner's allegation that disallowed sales for resale include transactions that are not retail sales.
Action: 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 ordered that a mathematical error be corrected, reducing the tax from $11,802.77 to $11,590.20.
Upon motion of Mr. Parrish, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the resale certificate for Paulo Bras be accepted.
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 ordered that the remainder of the petition be submitted for decision.
Heribertero & Rosa De La Torre, SR EH 99-603648-010; 89002324950
1-1-95 to 12-31-97, $11,841.42 Tax
| For Petitioner: | No Appearance |
| For Sales and Use Tax Department: | Richard Goodrich, Hearing Representative |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues:Whether petitioner's allegation that all sales were properly reported from petitioner's cash register key ring totals warrants relief from the tax.
Whether the evidence supports increases in the allowances for ending inventory.
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 ordered that the petition be redetermined as recommended by the Appeals Section.
Downey Stox, Inc., SR AA 14-785026-010; 89000132220
1-1-94 to 12-31-96, $10,251.19 Tax, $00.00 Penalty
| For Petitioner: | Lawrence R. Young, Attorney Jack Wannebo, President |
| For Sales and Use Tax Department: | Kevin Hanks, Hearing Representative |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues:Whether the understatement of bar sales was computed in accordance with the facts.
Whether petitioner's allegation that the pour test is not representative warrants a conclusion that the average liquor pour size should be increased to at least 2 ½ ounces.
Whether petitioner's allegation that it would be impossible to understate bar sales by over $60,000 a year because it would take collusion between management, the bartenders, and the accountants, warrants a reduction in the tax.
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 ordered that the petition be submitted for decision.
Mir Anoosh-Besh Saei, SR AS 12-729293-010; 89000052850
1-1-93 to 3-31-96, $28,352.85 Tax, $2,835.30 Penalty, Negligence
| For Petitioner: | Miranoosh B. Saei, Owner John Toyomura, Bookkeeper |
| For Sales and Use Tax Department: | Richard Goodrich, Hearing Representative |
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues:Whether the audited cost of taxable sales is excessive.
Whether relief from the negligence penalty is warranted.
Action: Mr. Klehs moved to take the petition under submission. Mr. Parrish offered a substitute motion to delete the negligence penalty, seconded by Mr. Andal and duly carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no.
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 ordered that the petition be submitted for decision.
FINAL ACTION ON PETITIONS HEARD NOVEMBER 28, 2000
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 ordered that the petition of Philwan, Inc., SR AC 13-747918-010; 89000072520, be redetermined as recommended by the Appeals Section.
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 ordered that the remainder of the petition of Don Clemente, Inc., SR EH 99-521704-010; 89002291380, be redetermined as recommended by the Appeals Section.
Upon motion of Mr. Parrish, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that in the petition of Downey Stox, Inc., SR AA 14-785026-010; 89000132220, the taxable measure be reduced to 50%.
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 ordered that in the remainder of the petition of Mir Anoosh-Besh Saei, SR AS 12-729293-010; 89000052850, be redetermined as recommended by the Appeals Section.
The Board adjourned at 4:15 p.m.
The foregoing minutes are adopted by the Board on March 28, 2000.