1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 MAY 31, 2012 9 10 CHIEF COUNSEL MATTERS 11 ITEM M 12 M2 REQUEST FOR AUTHORIZATION 13 TO FILE AMICUS CURIAE BRIEF 14 15 16 17 18 19 20 21 22 23 24 Reported by: Juli Price Jackson 25 No. CSR 5214 26 27 28 1 1 P R E S E N T 2 3 For the Board Jerome E. Horton of Equalization: Chairman 4 5 Michelle Steel Vice-Chairwoman 6 7 Betty T. Yee Member 8 9 George Runner Member 10 11 Marcy Jo Mandel Appearing for John 12 Chiang, State Controller (per 13 Government Code Section 7.9) 14 15 Joann Richmond Chief, Board 16 Proceedings Division 17 18 For the Staff: Robert Lambert Assistant Chief 19 Counsel 20 Daniel Paul Tax Counsel 21 Tax and Fee Division Legal Department 22 23 ---oOo--- 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 MAY 31, 2012 4 ---oOo--- 5 MS. RICHMOND: Our next item is M2, request for 6 authorization to file amicus curiae brief. 7 MR. HORTON: Welcome, Mr. Lambert. 8 MR. LAMBERT: Mr. Paul is going to do the 9 presentation on this today. 10 MR. HORTON: Okay, Daniel Paul, welcome. 11 MR. PAUL: Thank you. Good afternoon, Chairman 12 Horton, Members of the Board. My name's Daniel Paul 13 from the Legal Department. 14 From my left is Bob Lambert, also from the 15 Legal Department. 16 We're before you today to request authorization 17 to file an amicus brief in a case involving the Marin 18 County Assessor. At issue in this case is the 19 application of the Revenue and Taxation Code Section 61, 20 62, 65 and Property Tax Rule 462.040, which collectively 21 address transfers of joint tenancy interests, in 22 particular, Sections 61 and 65. 23 Sections 61 and 65 provide that the termination 24 of a joint tenancy interest is a change in ownership, 25 unless an exclusion applies. In this case, the assessor 26 followed our guidance on this and when the taxpayer's 27 interest terminated without an applicable exclusion, the 28 assessor correctly reassessed that interest. 3 1 We believe this method is consistent with Board 2 advice, same with the relevant statutes and rules. The 3 Superior Court, however, found that our advice was 4 invalid and that the transfer was excluded from change 5 in ownership. 6 We believe this decision is incorrect because 7 it fails to follow the relevant statutes and rules and 8 because it potentially allows for property to escape 9 assessment. 10 For these reasons, we request an authorization 11 to file and amicus brief in this case. 12 MR. HORTON: Okay. Moved by Member Yee, second 13 by -- 14 MR. RUNNER: No. 15 MR. HORTON: -- pardon, objection? 16 MR. RUNNER: Yeah. 17 MR. HORTON: So noted. Discussion? 18 Member Mandel. 19 MS. MANDEL: Oh, and it's -- it's my 20 understanding -- I mean, when I read the memo, I -- you 21 know, little bells went off my head. 22 But it's my understanding that this isn't -- 23 there's no -- this isn't a step transaction. Staff 24 agrees this is not a step transaction. 25 MR. LAMBERT: No, it's not. It was a ten year 26 period -- 27 MS. MANDEL: Okay. 28 MR. LAMBERT: And it was -- I think there was 4 1 trouble between brothers. 2 MS. MANDEL: Okay, 'cause I -- 3 MR. LAMBERT: It wasn't -- 4 MS. MANDEL: -- I just -- you know, I saw some 5 words that as you know, you know, just made me -- 6 MR. LAMBERT: Right. If someone tried to do 7 this on purpose, take advantage of it in a short period 8 of time, then it could be viewed as a step transaction. 9 MS. MANDEL: Okay, just wanted to be clear. 10 MR. LAMBERT: This was not. 11 MS. MANDEL: Okay. 12 MR. HORTON: Okay. Moved by Member Yee, second 13 by Member Mandel. 14 Ms. Richmond, please call the roll. 15 MS. RICHMOND: Mr. Horton? 16 MR. HORTON: Aye. 17 MS, RICHMOND: Ms. Steel? 18 MS. STEEL: No. 19 MS, RICHMOND: Mr. Runner? 20 MR. RUNNER: No. 21 MS, RICHMOND: Ms. Yee? 22 MS. YEE: Aye. 23 MS, RICHMOND: Ms. Mandel? 24 MS. MANDEL: Aye. 25 MS. RICHMOND: Motion carries. 26 MR. HORTON: Thank you very much. 27 Mr. Paul, is this your first time appearing 28 before the Board? 5 1 MR. PAUL: Before you, sir, but I have been 2 around since 2007. 3 MR. HORTON: Oh, I know you've been around. 4 MR. LAMBERT: I hired him. 5 MR. HORTON: All right, welcome. 6 MR. PAUL: 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 6 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 MAY 31, 2012 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 6 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: JUNE 21, 2012 17 18 19 ____________________________ 20 JULI PRICE JACKSON 21 Hearing Reporter 22 23 24 25 26 27 28 7