1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 FEBRUARY 3, 2009 10 11 12 13 14 15 FINAL ACTIONS 16 17 18 19 20 21 22 23 REPORTED BY: JULI PRICE JACKSON 24 CSR NO. 5214 25 26 27 28 1 1 P R E S E N T 2 3 For The Board Betty Yee of Equalization: Chairwoman 4 5 Judy Chu Vice-Chair 6 Bill Leonard 7 Member 8 Michelle Steel Member 9 Marcy Jo Mandel 10 Appearing for John Chiang State Controller 11 (per Government Code Section 7.9) 12 Diane G. Olson 13 Chief, Board Proceedings Division 14 15 ---OOO--- 16 17 18 19 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 FEBRUARY 3, 2009 4 ---o0o--- 5 MS. OLSON: The next item on agenda are final 6 actions. 7 The first is C1, Raymond David Boyda. 8 ---o0o--- 9 C1 RAYMOND DAVID BOYDA 10 No. 349462 (CH) 11 ---o0o--- 12 MS. YEE: Okay, let's turn to C1, Raymond David 13 Boyda. 14 Is there a motion? 15 MS. MANDEL: Move -- 16 DR. CHU: Move to adopt the staff 17 recommendation. 18 MS. YEE: Okay, motion by Dr. Chu to adopt the 19 staff recommendation. 20 Is there a second? 21 MS. MANDEL: Would you -- no, I was going to 22 delete the amnesty penalty on this one. 23 MS. YEE: Okay, let me second that motion. 24 Discussion? 25 MS. MANDEL: Well -- 26 MS. YEE: Ms. Mandel? 27 MS. MANDEL: -- yeah, on this one, I didn't 28 think that the Appeals section necessarily gave a 3 1 complete reading to the statement that -- the written 2 statement that he put in. 3 If he was asking the person who was working 4 with him, who it sounds like was a collector of some -- 5 a Board collector, 6 "If I file this amnesty, is this going to give 7 me some relief?" 8 And he doesn't file for amnesty because she 9 says, "I'm just," according to his written statement, 10 "I'm just -- it's just going to come back to me." 11 The relief he would have had would have been 12 not getting hit with the extra amnesty penalty. And the 13 way that Appeals looked at it was, well, what he's 14 saying is, 15 "I didn't file amnesty returns because of 16 that." 17 And he wouldn't have to file returns because 18 these were non remittance. All he had to do was pay or 19 enter into an installment plan and he hasn't really said 20 why he didn't do that. 21 That almost seemed like awfully technical 22 reading of the way he wrote it. 23 MR. LEONARD: It was -- 24 MS. MANDEL: So, and then -- so, it seemed like 25 in this instance he may have been a little misled not to 26 participate -- not to file paperwork to participate in 27 amnesty. 28 He would have had some relief, which would have 4 1 been he wouldn't have got hit with an amnesty penalty. 2 And here I think the amnesty was about $600, maybe 3 almost $601 -- 4 MS. YEE: All right. 5 MS. MANDEL: -- according to the paperwork. 6 So, that was why I thought that in this -- in this 7 instance, the way he explained why he didn't participate 8 in amnesty, seemed to make sense. 9 MS. YEE: Okay. Mr. Leonard? 10 MR. LEONARD: Is what -- which motion is before 11 us? 12 MS. YEE: The motion is to adopt the staff 13 recommendation. 14 MR. LEONARD: Is Ms. Mandel making a substitute 15 motion? 16 MS. MANDEL: If it's -- 17 MR. LEONARD: Because I would second it. It 18 think the case is well made. 19 MS. MANDEL: Yeah, redetermine but delete the 20 amnesty penalty. 21 MS. YEE: Okay. I have a substitute motion by 22 Ms. Mandel to redetermine but to delete the amnesty 23 penalty. 24 Second by Mr. Leonard. 25 Please call the roll. 26 MS. OLSON: Madam Chair? 27 MS. YEE: No. 28 MS. OLSON: Mr. Leonard? 5 1 MR. LEONARD: Aye. 2 MS. OLSON: Ms. Steel? 3 MS. STEEL: Aye. 4 MS. OLSON: Dr. Chu? 5 DR. CHU: No. 6 MS. OLSON: Ms. Mandel? 7 MS. MANDEL: Aye. 8 MS. OLSON: Motion carries. 9 MR. LEONARD: Madam Chair? 10 MS. YEE: Yes, Mr. Leonard? 11 MR. LEONARD: Could -- without objections, 12 could we direct our Sales and Use staff to work with our 13 legislative staff on the whole issue of corporate 14 officer responsibility during the suspended corporations 15 situations like this? 16 He seemed to be confused. I am confused about 17 when the responsibility moved to him. 18 In one sense, I think it was always on him, but 19 I am not sure our law reflects it that way. 20 MS. YEE: Okay. Very well, we'll note that 21 direction to the Legislative Division. 22 MR. LEONARD: Thank you. 23 MS. YEE: Thank you. 24 ---o0o--- 25 26 27 28 6 1 MS. YEE: Nextitem?. 2 MS. OLSON: Next item is C, Yohannes Kahsai -- 3 sorry. 4 ---o0o--- 5 C3 YOHANNES KASAI 6 No. 426226 (GH) 7 ---o0o--- 8 MS. YEE: Okay, C3, Yohannes Kahsai. 9 Is there a motion? 10 DR. CHU: Move to adopt the staff 11 recommendation. 12 MS. YEE: Motion by Dr. Chu to adopt the staff 13 recommendation. 14 Is there a second? 15 MS. YEE: I will second that motion. 16 Without objection? 17 MS. MANDEL: Hum -- 18 MS. YEE: Ms. Mandel? 19 MS. MANDEL: Yeah, I think I'll object. 20 MS. YEE: Okay. Please call the roll. 21 MS. OLSON: Madam Chair? 22 MS. YEE: Aye. 23 MS. OLSON: Mr. Leonard? 24 MR. LEONARD: Aye. 25 MS. OLSON: Ms. Steel? 26 MS. STEEL: Aye. 27 MS. OLSON: Dr. Chu? 28 DR. CHU: Aye. 7 1 MS. OLSON: Ms. Mandel? 2 MS. MANDEL: No. 3 MS. OLSON: Motion carries. 4 ---o0o--- 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8 1 MS. OLSON: Next item is C4, Michael D. Midgett 2 and Michal D. Midgett, Senior. . 3 It was a waived appearance. 4 ---o0o--- 5 C4a MICHAEL D. MIDGETT 6 NO. 314399 (KH) 7 C4b MICHAEL D. MIDGETT, SR. 8 No. 314453 (KH) 9 ---o0o--- 10 MS. YEE: Okay, item C4a, Michael D. Midgett 11 and C4b, Michael D. Midgett, Senior. 12 Is there a motion? 13 MS. MANDEL: Move staff recommendation. 14 MS. YEE: Motion by -- 15 DR. CHU: Second. 16 MS. YEE: -- Ms. Mandel to adopt the staff 17 recommendation. 18 Second by Dr. Chu. 19 Without objection, that motion carries. 20 MS. OLSON: That concludes our business for 21 today. 22 MS. YEE: Very well, thank you very much. 23 This meeting is adjourned. 24 ---o0o--- 25 26 27 28 9 1 clear.. 2 3 REPORTER'S CERTIFICATE 4 5 State of California ) 6 ) ss 7 County of Sacramento ) 8 9 I, JULI PRICE JACKSON Hearing Reporter for the 10 California State Board of Equalization certify that on 11 FEBRUARY 3, 2009 I recorded verbatim, in shorthand, to 12 the best of my ability, the proceedings in the 13 above-entitled hearing; that I transcribed the shorthand 14 writing into typewriting; and that the preceding pages 1 15 through 9 constitute a complete and accurate 16 transcription of the shorthand writing. 17 18 Dated: March 4, 2009 19 20 21 ____________________________ 22 JULI PRICE JACKSON 23 Hearing Reporter 24 25 26 27 28 10