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:
For Department of Toxics Substances: 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 Property Taxes 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 Property Taxes 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 Represntative

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: Sten 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 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.