BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 450 N Street, Room 121 Sacramento, California REPORTER'S TRANSCRIPT DECEMBER 15, 2009 ITEM C1 FINAL ACTION Reported by: Beverly D. Toms No. CSR 1662 1 1 2 P R E S E N T 3 4 For the Board Betty Yee of Equalization: Chair 5 Jerome E. Horton 6 Vice-Chair 7 Bill Leonard Member 8 Michelle Steel 9 Member 10 Marcy Jo Mandel Appearing for John 11 Chiang, State Controller (per Government Code 12 Section 7.9) 13 Diane Olson Chief, Board 14 Proceedings Division 15 16 ---oOo--- 17 18 19 20 21 22 23 24 25 26 27 28 2 1 2 Sacramento, California 3 December 15, 2009 4 ---oOO--- 5 MS. YEE: Members, what I'd like to do is 6 take up the matters under submission. Why don't we 7 begin with the oral appeal that we heard this morning. 8 Item C1, Rodney Eugene Lane. 9 Is there a motion? 10 MS. MANDEL: Move to redetermine. 11 MS. YEE: Okay. We have a motion by Ms. Mandel 12 to redetermine. This is a very unfortunate case. 13 I will second that motion. 14 Discussion? 15 MS. MANDEL: Yeah. You know, I was thinking 16 that perhaps the paperwork that he might have might have 17 something, but it does look from the notes on it that it 18 was about tax paid. 19 MS. YEE: Okay. Other discussion on this 20 matter, Members? 21 MS. STEEL: Just objection. 22 MS. YEE: Yes, Ms. Steel. 23 Well, and I think what I'd like to do is renew 24 certainly the request to have the Department go back 25 than confer with our districts to be sure that we are in 26 every Sales and Use Tax class really emphasizing the -- 27 the point that we do need these requests in writing. 28 I know there is a powerpoint slide in the 3 1 current Sales and Use Tax class presentations now, but 2 we really mean it and we really want to emphasize it. 3 And I know the way these classes are conducted 4 there is a lot of one-on-one time with class attendees. 5 But even with that any request specific to a taxpayer or 6 business really should be made in writing. 7 So if the Department can just go back and -- 8 and just reaffirm that with the -- with the District 9 offices. 10 We have a motion by Ms. Mandel, second by Yee. 11 MR. LEONARD: Madam -- 12 MS. YEE: Mr. Leonard. 13 MR. LEONARD: Just -- your -- your discussion 14 provoked a thought in my mind. The evidence that was 15 presented of the -- of the dummy return -- 16 MS. YEE: Yes. Return, uh-huh. 17 MR. LEONARD: -- is that something that we hand 18 out at -- at our seminars? 19 Anybody know? 20 It looks like a dummy return that the taxpayer 21 and a BOE employee sat down and kind of went over 22 together with and -- 23 MS. YEE: I think that's part of the exercise 24 about how to fill out a return that is -- 25 MR. LEONARD: I'd further your suggestion that 26 we -- we put on this, "This does not constitute written 27 advice without" -- 28 MS. YEE: Right. 4 1 MR. LEONARD: -- "without a written question 2 and signed response." 3 MS. YEE: No, that's a good point. 4 MR. LEONARD: We're on -- but it's -- it's -- 5 it's -- I think that would add to what your point is to 6 try to encourage every taxpayer to get written tax 7 advice. 8 MS. YEE: Okay. 9 MR. LEONARD: If this is something we just 10 print up en masse and hand out, maybe as we reprint it 11 we can add some -- something on it to say that. 12 MS. YEE: Right. Okay. Yeah, I know we -- 13 MR. LEONARD: Who knows? 14 MS. YEE: I -- I believe that's still part of 15 the how to complete the return, although our emphasis 16 has been more recently on e-filing. So -- 17 MR. LEONARD: I've never seen these at my 18 seminars, but I haven't looked at every piece of paper 19 handed out, either. 20 So, is -- 21 MS. YEE: Mr. Hanks. 22 MR. LEONARD: -- is the -- a filled-in form 23 with generic information, is that what we hand out at 24 our seminars, Mr. Hanks? 25 MR. HANKS: Yes, Mr. Leonard, Kevin Hanks with 26 the Sales and Use Tax Department. 27 I'm not certain if that exact form is -- is 28 provided at the seminars, but certainly at the seminars 5 1 we -- we provide return information that's very similar 2 to that. 3 So, I -- I think that your suggestion is -- is 4 a good one that -- that we insert language indicating 5 that this doesn't constitute -- 6 MR. LEONARD: And Ms. Yee's point, and I was 7 adding to it, is everywhere possible in what we hand out 8 we should say this is -- this is tax information, this 9 is not written legal tax advice for which you can rely 10 on in an appeal, or some -- some such language. 11 MR. HANKS: We'll certainly do that. 12 MR. LEONARD: Thank you. 13 MS. YEE: Thank you. I have a motion by Ms. 14 Mandel, second by Yee. 15 Please call the roll. 16 MS. OLSON: Madam Chair. 17 MS. YEE: Aye. 18 MS. OLSON: Mr. Leonard. 19 MR. LEONARD: Aye. 20 MS. OLSON: Ms. Steel. 21 MS. STEEL: No. 22 MS. OLSON: Mr. Horton. 23 MR. HORTON: Aye. 24 MS. OLSON: Ms. Mandel. 25 MS. MANDEL: Aye. 26 MS. OLSON: Motion carries. 27 MS. YEE: Okay, thank you. 28 ---oOo--- 6 1 REPORTER'S CERTIFICATE 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, BEVERLY D. TOMS, Hearing Reporter for the 8 California State Board of Equalization certify that on 9 December 15, 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 6 pages 13 constitute a complete and accurate transcription of the 14 shorthand writing. 15 16 Dated: December 23, 2009. 17 18 19 ____________________________ 20 BEVERLY D. TOMS 21 Hearing Reporter 22 23 24 25 26 27 28 7