1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 5901 GREEN VALLEY CIRCLE 3 CULVER CITY, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 SEPTEMBER 22, 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 Bill Leonard Member 6 Michelle Steel 7 Member 8 Marcy Jo Mandel Appearing for John Chiang 9 State Controller (per Government Code 10 Section 7.9) 11 Diane G. Olson Chief, Board 12 Proceedings Division 13 14 ---OOO--- 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 1 5901 GREEN VALLEY CIRCLE 2 CULVER CITY, CALIFORNIA 3 SEPTEMBER 22, 2009 4 ---o0o--- 5 A1 ASUNCION P. HAMOY 6 NO. 437618 7 ---o0o--- 8 MS. OLSON: We are at the final actions, those 9 cases that were submitted for decision. 10 MS. YEE: Okay. Our first item is A1, Asuncion 11 Hamoy. 12 MS. YEE: Okay, Members, first item under 13 submission is item A1, Asuncion P. Hamoy. 14 Is there a motion? 15 MS. MANDEL: Sustain the Franchise Tax Board. 16 MS. YEE: Motion by Ms. Mandel to sustained the 17 Franchise Tax Board. 18 Is there a second? 19 MS. STEEL: Second. 20 MS. YEE: Second by Ms. Steel. 21 Without objection, that motion carries. 22 ---o0o--- 23 24 25 26 27 28 3 1 MS. OLSON: Our next item is A2, Elaine M. 2 Nichols. 3 ---o0o--- 4 A2 ELAINE M. NICHOLS 5 NO. 458679 6 ---o0o--- 7 MS. YEE: Okay, item A2, Elaine M. Nichols. Is 8 there a motion? 9 MS. MANDEL: Sustain the Franchise Tax Board. 10 MS. YEE: Motion by Ms. Mandel to sustain the 11 Franchise Tax Board. 12 Is there a second? 13 MS. STEEL: Second. 14 MS. YEE: Second by Ms. Steel. 15 Without objection, that motion carries. 16 ---o0o--- 17 18 19 20 21 22 23 24 25 26 27 28 4 1 MS. OLSON: Our next item is B2, Takashi 2 Watanabe and Marcia Watanabe. 3 ---o0o--- 4 B2 TAKASHI WATANABE AND MARCIA WATANABE 5 NO. 461159 6 ---o0o--- 7 MS. YEE: Okay, item B2, Takashi Watanabe and 8 Marcia Watanabe, is there a motion? 9 MS. MANDEL: Sustain the Franchise Tax Board. 10 MS. YEE: Motion by Ms. Mandel to sustain the 11 Franchise Tax Board. 12 I will second that motion. Any discussion 13 here? 14 MS. STEEL: I think it was a bad law and double 15 taxation, that's why law's been changed. I think we 16 should give -- grant for Petitioner here. 17 MS. YEE: Okay. Any other discussion on this? 18 MS. MANDEL: If they change the law, but not -- 19 MS. YEE: Not in time. 20 MS. MANDEL: -- not in time, I guess. 21 MS. YEE: Right. 22 All right, the subsequent law change, yeah, 23 unfortunately that does not -- will not have an impact 24 here. 25 MR. LEONARD: But -- Madam Chair? 26 MS. YEE: Yes, Mr. Leonard? 27 MR. LEONARD: Do we really know that? I mean, 28 did the statute that changed the law say "prospective 5 1 only"? 2 In most cases tax laws are also retroactive. 3 If that -- do we really know that? 4 MS. KELLY: Right. The law that changed that 5 was effective October 2004 and for California purposes 6 in 2005, January of 2005. 7 So, she would have had -- 8 MR. lEONARD: I know the statute became 9 effective that day. But did the statutory changes say 10 "prospective only"? 11 MS. KELLY: I believe so. 12 She would have had to have received her award 13 and the attorneys fees in 2005 for the law change to be 14 effective. 15 MR. LEONARD: I understand that part. But it 16 strikes me if the legislative branch is recognizing the 17 deficiency in the law that we would give -- I could see 18 it consistent with their intent that it be applied to 19 all open cases. 20 MS. YEE: Okay. The motion's by Ms. Mandel to 21 sustain the Franchise Tax Board, second by Yee. 22 Please call the roll. 23 MS. OLSON: Madam Chair? 24 MS. YEE: Aye. 25 MS. OLSON: Mr. Leonard? 26 MR. LEONARD: No. 27 MS. OLSON: Ms. Steel? 28 MS. STEEL: No. 6 1 MS. OLSON: Ms. Mandel? 2 MS. MANDEL: Aye. 3 MS. OLSON: Motion fails. 4 MS. YEE: Motion fails. 5 ---o0o--- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 1 MS. YEE: Let's move on to the nextitem. 2 MS. OLSON: Next item is B3, Loren Zelmer. 3 ---o0o--- 4 B3 LOREN ZELMER 5 NO. 426246 6 ---o0o--- 7 MS. YEE: Item B3, Loren Zelmer, is there a 8 motion? 9 MS. MANDEL: Sustain the Franchise Tax Board. 10 MS. YEE: Motion by Ms. Mandel to sustain the 11 Franchise Tax Board. 12 Is there a second? 13 MS. STEEL: Second. 14 MS. YEE: Okay. Second by Ms. Steel. 15 Without objection, that motion carries. 16 ---o0o--- 17 18 19 20 21 22 23 24 25 26 27 28 8 1 MS. OLSON: And our last item for today is B7, 2 Joe L. Santos. 3 ---o0o--- 4 B7 JOE L. SANTOS 5 NO. 445970 6 ---o0o--- 7 MS. YEE: Okay. Last item is item B7, Joe L. 8 Santos. 9 Is there a motion? 10 MR. LEONARD: I move for partial interest 11 abatement. 12 MS. STEEL: Second. 13 MS. YEE: Okay. 14 MR. LEONARD: I'm open on a month. 15 MS. YEE: Okay, motion by Mr. Leonard, second 16 by Ms. Steel to approve a partial interest abatement. 17 MR. LEONARD: And otherwise sustain the 18 Franchise Tax Board. 19 MS. YEE: Okay, partial interest abatement, do 20 you want to elaborate more on that? 21 MS. STEEL: May 2007 through January 2008. 22 MR. LEONARD: May sounds good to me, I'm 23 looking for three votes, but there's some period of time 24 Franchise Tax Board should have -- even with the 25 workloads -- at a certain point it becomes administerial 26 delay to not tell the -- not respond to the taxpayer's 27 protest letter. 28 MS. YEE: Okay. So, motion by Mr. Leonard, 9 1 second by Ms. Steel for a partial interest abatement for 2 the period May 2007 to January 2008. 3 Please call the roll. 4 MS. OLSON: Madam Chair? 5 MS. YEE: No. 6 MS. OLSON: Mr. Leonard? 7 MR. LEONARD: Aye. 8 MS. OLSON: Ms. Steel? 9 MS. STEEL: Aye. 10 MS. OLSON: Ms. Mandel? 11 MS. MANDEL: No. 12 MS. OLSON: Motion fails. 13 MS. YEE: Okay. 14 MS. OLSON: That concludes our business this 15 afternoon. 16 MS. YEE: Okay, Members, we will recess until 17 9:30 tomorrow morning. 18 Thank you. 19 ---o0o--- 20 21 22 23 24 25 26 27 28 10 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 SEPTEMBER 22, 2009 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 10 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: October 5, 2009 17 18 19 20 ____________________________ 21 JULI PRICE JACKSON 22 Hearing Reporter 23 24 25 26 27 28 11