BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 450 N Street, Room 121 Sacramento, California REPORTER'S TRANSCRIPT MAY 26, 2010 FINAL ACTIONS 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 Barbara Alby Acting 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 Joann Richmond Property Tax Appeals Analyst 14 Board Proceedings Division 15 Board of Equalization Staff: David Levine 16 Tax Counsel IV 17 18 19 ---oOo--- 20 21 22 23 24 25 26 27 28 2 1 Sacramento, California 2 May 26, 2010 3 ---oOO--- 4 MS. RICHMOND: Next is final actions on item 5 D1, Chris E. Christensen and Margaret Ann Christensen. 6 MS. YEE: Okay. Members, we have one item 7 under submission. That's item D1, Chris E. Christensen 8 and Margaret Ann Christensen. Is there a motion? 9 MS. STEEL: I have a motion. 10 MS. YEE: Yes, Ms. Steel. 11 MS. STEEL: I move to sustain the staff 12 recommendations for the fees assessed but abate the late 13 payment penalty and abate the interest from 2001 January 14 to 2004 August 10th. 15 MS. ALBY: Second. 16 MS. YEE: Okay, we have a motion by Ms. Steel 17 to adopt the staff recommendation with respect to the 18 fee liability, abate the interest from January 1, 2000 19 through the end of the audit period and to abate the 20 failure to timely pay penalty. 21 MS. STEEL: And, actually -- 22 MS. YEE: Is that correct? 23 MS. STEEL: -- I have to add one more -- 24 MS. YEE: Yeah. 25 MS. STEEL: -- that assist Petitioner to Offer 26 in Compromise and ask Petitioner's wife to file the 27 innocent spouse relief. 28 MS. YEE: Okay. Mr. Levine. 3 1 MS. STEEL: Is it just -- that's just 2 recommendation. 3 MS. YEE: Actually -- 4 MR. LEVINE: On the last two -- 5 MS. STEEL: They already did? 6 MR. LEVINE: Yes, they've already talked to 7 him -- 8 MS. STEEL: Thank you. 9 MR. LEVINE: -- about both -- 10 MS. STEEL: Okay. 11 MR. LEVINE: -- items, strongly recommending 12 the Offer in Compromise even if they don't go the 13 innocent spouse -- 14 MS. YEE: Right. 15 MR. LEVINE: -- route. 16 On the interest relief, just clarification, 17 the -- is the motion for interest relief for liabilities 18 commencing on January 1, 2000 with interest relief from 19 that day forward? And I didn't hear -- 20 MS. STEEL: Just interest only. 21 MR. LEVINE: Through -- 22 MS. STEEL: Right. 23 MR. LEVINE: -- the end of the audit period? 24 I'm sorry -- 25 MS. YEE: Through the the end of the audit 26 period. January -- 27 MS. STEEL: Yeah, August 10 -- 28 MS. YEE: -- 1st, 2000 through the the end of 4 1 the audit period. It's just interest relief right? 2 MS. STEEL: Right. Uh-huh. 3 MS. YEE: Your -- your -- 4 MR. LEVINE: Through the -- 5 MS. STEEL: Just the interest only. 6 MR. LEVINE: Through the end of 2000, the -- 7 MS. YEE: The period. 8 MR. LEVINE: -- August 10, 2004. 9 MS. YEE: Correct. 10 MR. LEVINE: Okay. 11 MS. STEEL: Yes. 12 MR. LEVINE: Thank you. 13 MS. YEE: Okay. All right, we have a motion 14 by Ms. Steel, second by Ms. Alby. Disc -- other 15 discussion? Mr. Horton. 16 MR. HORTON: Madam Chair, can we hear from 17 staff on that? 18 MS. YEE: Well, no. 19 MR. HORTON: My -- my -- can't, that's right, 20 yeah. 21 MS. YEE: But you can pose questions to the 22 Appeals Division. 23 MR. HORTON: Yeah, from the Members. 24 MS. YEE: Yes. 25 MR. HORTON: My -- my only -- I just can't 26 recollect, there was testimony -- how do we do this? 27 There was testimony that there was a period of time that 28 we could not waive the interest. 5 1 MS. YEE: Yes, prior to January 1st. 2 MS. STEEL: That's why I'm not -- 3 MR. HORTON: So -- 4 MS. STEEL: -- waiving that interest period 5 from 1997 to 2001. 6 MS. YEE: It's -- it's from the -- 7 MS. STEEL: That's why Mr. Levine said that we 8 cannot waive it. 9 MR. LEVINE: To January 2000. 10 MS. YEE: Right. 11 MS. STEEL: Right. 12 MR. HORTON: Okay. I'm good to go. 13 MS. YEE: Okay. A motion by Ms. Steel, second 14 by Ms. Alby. 15 Without objection? 16 Please call the roll. 17 MS. RICHMOND: Madam Chair. 18 MS. YEE: Let me pass on this for now. 19 MS. RICHMOND: Ms. Alby. 20 MS. ALBY: Aye. 21 MS. RICHMOND: Ms. Steel. 22 MS. STEEL: Aye. 23 MS. RICHMOND: Mr. Horton. 24 MR. HORTON: Aye. 25 MS. RICHMOND: Ms. Mandel. 26 MS. MANDEL: No. 27 MS. RICHMOND: Madam Chair. 28 MS. YEE: No. 6 1 MS. RICHMOND: Motion carries. 2 MS. YEE: Thank you. 3 ---oOo--- 4 5 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 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 February 1, 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 7 pages 13 constitute a complete and accurate transcription of the 14 shorthand writing. 15 16 Dated: June 3, 2010. 17 18 19 ____________________________ 20 BEVERLY D. TOMS 21 Hearing Reporter 22 23 24 25 26 27 28 8