BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 450 N Street, Room 121 Sacramento, California REPORTER'S TRANSCRIPT AUGUST 25, 2010 ITEM B2 (Case heard August 24, 2010) Reported by: Beverly D. Toms No. CSR 1662 1 1 2 P R E S E N T 3 4 For the Board Betty T. 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 Diane Olson Chief, Board 14 Proceedings Division 15 Board of Equalization 16 Staff: Amy Kelly Appeals Division 17 18 ---oOo--- 19 20 21 22 23 24 25 26 27 28 2 1 Sacramento, California 2 August 25, 2010 3 ---oOO--- 4 MS. OLSON: Ms. Kelly is here. Would you 5 like -- 6 MS. YEE: Oh, yes, please. 7 I'm sorry, this is my oversight from yesterday. 8 And I apologize to Ms. Alby, but she raised actually a 9 good point that I wanted to be sure got captured. 10 I wanted to go back, Members, to item -- I 11 believe it's B2 from yesterday. Hold on. 12 MS. KELLY: Noel Yi. 13 MS. YEE: Yes, Noel Yi and Meiling Yi. In 14 looking through some of the documents it appeared that 15 there were some documents that had been written in 16 Chinese characters and we wanted to be sure that there 17 weren't any language issues with respect to what's been 18 requested of the taxpayer, as we go through -- well, we 19 made a decision but I think also determining I think a 20 couple of the checks that Ms. Steel had identified -- 21 MS. KELLY: Right. 22 MS. YEE: -- yesterday. 23 MS. KELLY: And I have a suggestion on that. 24 MS. YEE: Yes. 25 MS. KELLY: Under the current direction the 26 Appellant will have less than the 30 days to file a 27 petition for rehearing, depending on how long it takes 28 FTB to respond. 3 1 MS. YEE: Uh-huh. 2 MS. KELLY: And my suggestion is that the vote 3 yesterday be expunged and put the vote over to the next 4 calendar. That way when the taxpayer receives the 5 decision they have all the information -- 6 MS. YEE: Okay. 7 MS. KELLY: -- and will have the full 30 days. 8 MS. YEE: Okay. 9 MS. KELLY: It will just allow them the full 30 10 days. In the meantime FTB can indicate whether or not 11 they find any concessions if they can tie any of the 12 other documentation to the Broadway property. 13 MS. YEE: Okay. And then also take this 14 thought into consideration with respect to if there are 15 any language issues. 16 MS. KELLY: Exactly, yes. 17 MS. YEE: Okay. And we certainly don't -- 18 don't want to impinge on the 30-day period. 19 Okay. Let's -- we had a vote yesterday to 20 sustain the Franchise Tax Board With the examination of 21 the -- the checks. I think it was CMG Enterprises that 22 Ms. Steel had ident -- oh, CM -- CMN, I'm sorry, 23 Enterprises that Ms. Steel had identified possibly for 24 work on the commercial building. 25 So we'll expunge that vote without objection, 26 Members? Okay. 27 And then entertain a motion pursuant to Ms. 28 Kelly's recommendation to put the matter -- is that the 4 1 proper thing, put a matter over 'til -- 2 MS. KELLY: Over to the next calendar. 3 MS. YEE: -- 'til the next calendar? 4 MS. KELLY: So basically it will come back as a 5 final action vote. 6 MS. YEE: Okay, that's fine. 7 MS. KELLY: Okay. 8 MR. HORTON: So moved. 9 MS. YEE: Okay. 10 MS. ALBY: Second. 11 MS. YEE: Okay. Motion by Mr. Horton, seconded 12 by Ms. Alby. Without objection, such will be the order. 13 Ms. Alby. 14 MS. ALBY: And may I ask a question so I'm 15 clear on this, and what will the taxpayer receive this 16 notice -- what will that notice be? 17 MS. KELLY: Well, under this current direction 18 what will happen is FTB will simply look at what they 19 already have as far as evidence and determine whether or 20 not they can tie it -- tie the checks to the Broadway 21 property. 22 If they -- if they make a concession or not, 23 that information will then be in the decision that the 24 Board makes. And the taxpayer will then have a full 30 25 days to file a petition for rehearing if they don't like 26 what FTB did. 27 MS. ALBY: All right. Thank you. 28 MS. YEE: Otherwise we're cutting into the 30 5 1 days with what we did yesterday. 2 MS. KELLY: Exactly. 3 MS. ALBY: Yeah. 4 MS. KELLY: Because what would happen is FTB 5 within a week or so would make -- you know, make us -- 6 make known what they've conceded -- 7 MS. YEE: Right. 8 MS. KELLY: -- and then the Appellant would 9 have less than 30 days to file. It could be as short as 10 a week, which may or may not be feasible for them. 11 MS. YEE: Very well. Thank you very much, Ms. 12 Kelly, for the clarification. 13 Okay, Members, any other questions on that? 14 Thank you. 15 MS. KELLY: Thank you. 16 MS. YEE: Okay. 17 ---oOo--- 18 19 20 21 22 23 24 25 26 27 28 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 August 25, 2010 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: September 7, 2010. 17 18 19 ____________________________ 20 BEVERLY D. TOMS 21 Hearing Reporter 22 23 24 25 26 27 28 7