1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 JULY 26, 2011 9 10 LEGISLATIVE COMMITTEE 11 12 13 14 15 16 17 18 19 Reported by: Juli Price Jackson 20 No. CSR 5214 21 22 23 24 25 26 27 28 1 1 2 P R E S E N T 3 4 For the Board Jerome E. Horton of Equalization: Chairman 5 6 Betty T. Yee Member 7 8 George Runner Member 9 Michelle Steel 10 Member 11 Marcy Jo Mandel Appearing for John 12 Chiang, State Controller (per Government Code 13 Section 7.9) 14 Diane G. Olson Chief, Board 15 Proceedings Division 16 17 For the Department: Margaret Shedd Legislative Division 18 19 Susanne Beuhler Sales and Use Tax 20 Department 21 22 23 ---oOo--- 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 JULY 26, 2011 4 ---oOo--- 5 MR. HORTON: Good morning. 6 The meeting of the Board of Equalization is 7 hereby called to order. 8 Ms. Olson, our first item? 9 MS. OLSON: Our first item on today's agenda is 10 the Legislative Committee. 11 Mr. Horton is the Chair of this Committee. 12 Mr. Horton? 13 MR. HORTON: Members, Miss Shedd is here to 14 make a presentation on behalf of the Legislative 15 Committee. 16 Let's hear from her as well as her colleague. 17 MS. SHEDD: Thank you, Mr. Chair and Members of 18 the Committee. My name is Margaret Shedd. I have with 19 me Susanne Beuhler from the Sales and Use Tax Department 20 to answer any questions. 21 We have one item before this committee. It's 22 suggestion No. 3-17. It was have brought forward by 23 Board Member George Runner. 24 It would remove the requirement that retailers 25 and lenders file an election form with the Board of 26 Equalization prior to claiming a bad debt in the case of 27 accounts held by a lender that have been found worthless 28 and written off by the lender. 3 1 The staff recommendation is to support in that 2 it clarifies existing practice of treating these 3 election forms as supporting documentation, the same as 4 we currently do for resale certificates. 5 As you may recall, in January of 2007 the Board 6 unanimously adopted Proposal 3-3. This removed the 7 requirement that the election form be filed with the 8 Board of Equalization or rather just had the lender and 9 the retailer retain it. 10 This would delete the requirement that the 11 election form be prepared and retained by the lender and 12 the retailer prior to claiming the deduction for refund. 13 This -- currently the staff allows the Claimant 14 to obtain the election form after the claim for 15 deduction or refund is filed, but will not consider the 16 claim valid in such time the election form is 17 obtained -- as long as this is not barred by the statute 18 of limitations. 19 So, this proposal would not extend the statute 20 of limitations. It would just look to the election form 21 as supporting documentation that can be acquired after 22 the claim for refund. 23 MR. HORTON: Thank you, Miss Shedd. 24 Discussion, Members? 25 Hearing none, is there a motion? 26 MS. MANDEL: So moved. 27 MR. RUNNER: Second. 28 MR. HORTON: Okay. It's been moved by 4 1 Ms. Steel, second by Mr. Runner. 2 Without objection, Members, such will be the 3 order. 4 Thank you very much, Miss Beuhler and 5 Miss Shedd. 6 MS. SHEDD: Thank you. 7 ---o0o--- 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 1 REPORTER'S CERTIFICATE. 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 JULY 26, 2011 I recorded verbatim, in shorthand, to the 10 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 5 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: AUGUST 18, 2011 17 18 19 ____________________________ 20 JULI PRICE JACKSON 21 Hearing Reporter 22 23 24 25 26 27 28 6