1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 5901 GREEN VALLEY CIRCLE 3 CULVER CITY, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 FEBRUARY 24, 2015 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 P R E S E N T 2 3 For the Board Fiona Ma, CPA of Equalization: Chair 4 5 Jerome E. Horton Member 6 7 Sen. George Runner (Ret) Member 8 9 Diane L. Harkey Member 10 Yvette Stowers 11 Appearing for Betty T. Yee, State Controller 12 (per Government Code Section 7.9) 13 Joann Richmond 14 Chief, Board Proceedings Division 15 16 17 ---oOo--- 18 For Staff: Michele Pielsticker CEA 19 Legislative Division 20 Todd Gilman Taxpayer Rights Advocate 21 Office of Taxpayer Rights 22 ---o0o--- 23 24 25 26 27 28 2 1 5901 GREEN VALLEY CIRCLE 2 CULVER CITY, CALIFORNIA 3 FEBRUARY 24, 2015 4 ---oOo--- 5 MR. HORTON: Ms. Richmond, what is our 6 first matter? 7 MS. RICHMOND: Good morning, Mr. Chairman 8 and Board Members. 9 Our first item on this morning's agenda is 10 the Legislative Committee. 11 Ms. Ma is the Chair of that committee. 12 Ms. Ma. 13 MS. MA: Thank you, Madam Clerk. 14 We will bring the Legislative Committee to 15 order. 16 Ms. Pielsticker, what is our first item? 17 MS. PIELSTICKER: Good morning, Madam 18 Chair, Members of the Committee. 19 The first item is Suggestion 2-2, which is 20 return of levy. It is brought to the Board Members 21 by the Chair of our Legislative Committee, the 22 Honorable Fiona Ma. 23 Under existing law the BOE is authorized to 24 levy bank accounts to collect delinquent amounts 25 owed to the BOE. Under the BOE's Tax and Fee 26 Programs, the BOE's Taxpayers' Rights Advocate is 27 authorized to order the return of up to $1500 to the 28 taxpayer if the levy threatens the health or welfare 3 1 of the taxpayer or the taxpayer's family. 2 The $1500 return amount has not been 3 increased since 1996, when the return authority 4 first became effective. The TRA has return 5 authority under all BOE-administered tax and fee 6 programs, except the Cigarette and Tobacco Products 7 tax law and the Fee Collection Procedures law. 8 The return of levied funds does not reduce 9 tax liability. If the levy -- if the levy to be 10 returned is related to a jeopardy assessment, then 11 the TRA is not permitted to order the levy return. 12 This proposal, approved by the Board in 13 2013, increases from $1500 to $2300 the levy amount 14 that BOE's TRA is authorized to return to a 15 taxpayer. 16 The bill also adds levy return authority to 17 the remaining BOE-administered tax and fee programs 18 that currently lack it. 19 And the proposal also would allow the 20 return of levy even when it is associated with a 21 jeopardy assessment. 22 I have with me Mr. Todd Gilman, our 23 Taxpayer Rights Advocate, who will speak to the 24 benefits of the proposal. 25 MR. GILMAN: Good morning, Members, Todd 26 Gilman, Taxpayers' Rights Advocate. 27 It's only been -- there's only been two 28 times in which I have had to use the statute because 4 1 the fact that the taxpayer really has to show that 2 it's a hardship, meaning that it's a health and 3 welfare issue. 4 I've directed our Refunds Section again on 5 two occasions to return that money, primarily 6 because the taxpayer is suffering a hardship because 7 they maybe have -- the example that I can give, we 8 had one taxpayer that had Stage IV prostate cancer 9 and the funds that we had taken took away some of 10 the funds that his primary insurance would not pay 11 for. So, really, it's for humanitarian reasons that 12 we do this. 13 Also, secondly, in regards to the statute 14 section that pertains to jeopardy, there is no 15 mechanism in the law. We already have the funds at 16 that point. And it's -- oftentimes it's two or 17 three years down the road that the taxpayer has come 18 back to us and requested those funds back. 19 Of course, it's a high standard. They have 20 to provide information showing that it's a hardship, 21 but there should be a mechanism in the law for those 22 types of billings as well. 23 Again, keep in mind, it's for funds that we 24 already have. We already have the money. And, so, 25 we look at it and determine whether it's a true 26 hardship, so -- 27 MS. MA: Any questions, Members? 28 I have a question. How long does it 5 1 normally take to get the money to these taxpayers in 2 the two cases that you had? 3 MR. GILMAN: Once I give the order it's 4 within less than a week. So, the money is sent back 5 pretty -- pretty, pretty rapidly. 6 MR. HORTON: Madam Chair, move approval of 7 Board sponsorship. 8 MS. HARKEY: Second. 9 MS. MA: Okay. Any objections? 10 Without objection, such will be the order. 11 MR. GILMAN: Thank you, Members. 12 MS. MA: This concludes the Legislative 13 Committee. 14 ---o0o--- 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 8 the California State Board of Equalization certify 9 that on *datetaken I recorded verbatim, in 10 shorthand, to the best of my ability, the 11 proceedings in the above-entitled hearing; that I 12 transcribed the shorthand writing into typewriting; 13 and that the preceding pages 1 through 6 constitute 14 a complete and accurate transcription of the 15 shorthand writing. 16 17 Dated: MARCH 5, 2015 18 19 20 ____________________________ 21 JULI PRICE JACKSON 22 Hearing Reporter 23 24 25 26 27 28 7