1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 JANUARY 22, 2008 9 10 FINAL ACTIONS 11 12 13 14 15 16 17 18 19 Reported by: Juli Price Jackson 20 No. CSR 5214 21 22 23 24 25 26 27 28 1 1 2 P R E S E N T 3 4 For the Board Betty T. Yee of Equalization: Chair 5 6 Judy Chu Vice-Chair 7 Bill Leonard 8 Member 9 Michelle Steel Member 10 Marcy Jo Mandel 11 Appearing for John Chiang, State Controller 12 (per Government Code Section 7.9) 13 Diane G. Olson 14 Chief, Board Proceedings Division 15 16 17 ---oOo--- 18 19 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 JANUARY 22, 2008 4 ---oOo--- 5 MS. OLSON: Next item -- would you like to take 6 the final actions? 7 MS. YEE: Let's look at where we are. 8 Members, we had actually put some of the 9 attorneys that were going to come closed session on 10 notice for 1:30. 11 So, at this point, why don't we take up the 12 matters under submission and see how far we get on this? 13 C3 ZENAIDA LAXAMANA, MANUEL GURION 14 ESTER GURION, LINDA GURION 15 NO. 389908 (BH) 16 ---o0o--- 17 MS. YEE: First item I have is C3, Zenaia 18 Laxamana, Manuel Gurion, Ester Gurion and Linda Gurion. 19 Is there a motion? 20 MS. STEEL: I have a motion, move to accept the 21 staff recommendations, but are we going to refigure the 22 numbers? 23 Because two -- the markup rate was the first 24 audit that they used for 45 percent, but second audit, 25 between 1999 to '02, they used 38 percent. And then 26 they went up to 56 percent. 27 So, I want to refigure that number to 38 28 percent, same as last audit for audit. Then I want to 3 1 move it that way. 2 MS. YEE: Okay, motion by Ms. Steel to adopt 3 the staff recommendation with the noted adjustment to 4 the markup rate. 5 Is there a second? 6 MR. LEONARD: Second. 7 MS. YEE: Second by Mr. Leonard. 8 MR. LEONARD: Question? 9 MS. YEE: Yes, please? 10 MR. LEONARD: Mr. Levine, they -- they 11 calculated a 56 percent, but then thought that might be 12 too high, so the Department used a 45 percent. 13 And Ms. Steel's pointing out that the prior -- 14 or the first audit that apparently was more agreed to 15 used the 38 percent. 16 MS. STEEL: Second audit, the -- 17 MR. LEONARD: Second. 18 MS. STEEL: -- first audit was 45 percent, then 19 second audit -- 20 MR. LEONARD: Okay, different order. 21 Is that your understanding? 22 MR. LEVINE: I'm not sure. 23 The first part, yes. I don't remember the 24 second audit. I believe that the reduction -- 25 MR. LEONARD: Let me ask a different way. 26 Would the adjustment that Ms. Steel is 27 proposing is from 45 to 38 as a markup? 28 MR. LEVINE: That's correct. The current 4 1 markup was -- I believe it was the recommendation of 2 Appeals. So, that was the reduction shown -- 3 MR. LEONARD: Right. 4 MR. LEVINE: -- for the -- 5 MR. LEONARD: She's doing a modest rounding 6 down. 7 MR. LEVINE: It would be further from the point 8 we're at at 45 percent? 9 MR. LEONARD: Right, correct. Okay, that's -- 10 MS. YEE: Okay. And then we'll also note the 11 adjustments for, I believe, two of the petitioners 12 relative -- 13 MR. LEVINE: Right. 14 MS. YEE: -- to when they were 15 actually partners in the business? 16 MR. LEVINE: The collection amounts? 17 MS. YEE: Right, exactly. 18 MS. MANDEL: Where is the 38? 19 MS. YEE: Ms. Steel, Ms. Mandel had a question 20 about the source of the 38 percent? 21 Or was this just based -- was it based on -- 22 MS. MANDEL: Somewhere else? 23 MS. STEEL: That was the second audit from 24 1992 -- 25 MS. YEE: '92? 26 MS. STEEL: '99 to 2002. 27 MS. YEE: Okay. 28 MS. MANDEL: I am trying to see where it was. 5 1 MS. YEE: Okay. We have a motion and a second. 2 Without objection, that motion carries. 3 ---o0o--- 4 C6 A.B.C. LUMBER JACK'S, INC. 5 NO. 3515356 (EH) 6 ---o0o--- 7 MS. YEE: Next item is C6, appearance waived 8 A.B.C. Lumber Jack's, Incorporated. 9 Is there a motion? 10 MS. MANDEL: Staff recommendation. 11 MS. YEE: Okay, motion by Ms. Mandel to adopt 12 the staff recommendation. 13 Is there a second? 14 I will second that motion. 15 Without objection, that motion carries. 16 ---o0o--- 17 18 19 20 21 22 23 24 25 26 27 28 6 1 D1 FASSEL M. ELDER AND AMAL ELDER 2 NO. 272656 3 ---o0o--- 4 MS. YEE: Next item, I believe, is D1, Fassel 5 M. Elder and Amal Elder. 6 This was -- 7 MS. OLSON: No show. 8 MS. YEE: No show. 9 MS. MANDEL: Move staff recommendation. 10 MS. YEE: Okay, motion by Ms. Mandel to adopt 11 the staff recommendation. 12 Is there a second? 13 MS. YEE: I will second that motion. 14 Without objection, that motion carries. 15 ---o0o--- 16 17 18 19 20 21 22 23 24 25 26 27 28 7 1 D2 AVIS CORPORATION 2 NO. 457948 (ET) 3 ---o0o--- 4 MS. YEE: And the next item is D2, Avis 5 Corporation. 6 Is there a motion? 7 MS. MANDEL: Staff recommendation. 8 MS. YEE: Motion by Ms. Mandel to adopt the 9 staff recommendation. 10 I will second that. 11 Without objection, that motion carries. 12 I believe that takes us through all items under 13 submission. 14 As I mentioned, we had closed session noticed 15 for the attorneys participating in that session for 16 1:30, so, we will recess until 1:30. 17 MS. OLSON: Thank you. 18 ---o0o--- 19 20 21 22 23 24 25 26 27 28 8 1 REPORTER'SCERTIFICATE. 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, JULI PRICE JACKSON Hearing Reporter for the 8 California State Board of Equalization certify that on 9 JANUARY 22, 2008 I recorded verbatim, in shorthand, to 10 the best of my ability, the proceedings in the 11 above-entitled hearing; that I transcribed the shorthand 12 writing into typewriting; and that the preceding pages 1 13 through 8 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: February 9, 2009 17 18 ____________________________ 19 JULI PRICE JACKSON 20 Hearing Reporter 21 22 23 24 25 26 27 28 9