1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 5901 GREEN VALLEY CIRCLE 3 CULVER CITY, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 FEBRUARY 25, 2015 10 11 12 13 14 15 FINAL ACTIONS 16 17 18 19 20 21 22 23 24 25 26 27 REPORTED BY: Kathleen Skidgel 28 CSR NO. 9039 1 1 P R E S E N T 2 3 For the Board Jerome E. Horton of Equalization: Chairman 4 5 Sen. George Runner (Ret.) Vice Chairman 6 7 Fiona Ma, CPA Member 8 9 Diane L. Harkey Member 10 11 Yvette Stowers Appearing for Betty T. 12 Yee, State Controller (per Government Code 13 Section 7.9) 14 Joann Richmond 15 Chief Board Proceedings Division 16 17 ---oOo--- 18 For Staff: Robert Tucker 19 Assistant Chief Counsel Legal Department 20 Jeff Angeja 21 Tax Counsel IV Legal Department 22 23 Lisa Burke Business Taxes Specialist III 24 Legal Department 25 ---oOo--- 26 27 28 2 1 5901 GREEN VALLEY CIRCLE 2 CULVER CITY, CALIFORNIA 3 FEBRUARY 25, 2015 4 ---oOo--- 5 MR. HORTON: Ms. Richmond. 6 MS. RICHMOND: That concludes our hearings 7 for today. 8 Would you like to take the items that were 9 submitted in the order that they were heard? 10 MR. HORTON: There are none. 11 MS. RICHMOND: Oh, there are none. 12 MR. HORTON: Yeah. 13 MS. STOWERS: C2, C4. 14 MR. RUNNER: Don't we have a waived 15 appearance? 16 MS. STOWERS: C2, C4. 17 MR. TUCKER: Yes, there's one. 18 MR. RUNNER: We still have waived 19 appearance on, don't we? 20 MS. RICHMOND: Yes, we have two waived 21 appearances. 22 MR. HORTON: Oh, okay. 23 MS. RICHMOND: So our first item that has a 24 waived appearance is item C2 Laleh Enterprises, Inc. 25 ---oOo--- 26 C2 LALEH ENTERPRISES, INC. 27 NO. 469308 (AC) 28 ---oOo--- 3 1 MR. HORTON: Members -- one second, 2 Members. 3 MR. ANGEJA: We have a revised 4 recommendation for that one. 5 MR. HORTON: Okay. 6 MR. ANGEJA: This is C2? 7 MR. HORTON: Yes. 8 MS. BURKE: In the markup analysis in the 9 audit, the sale prices were -- used in the shelf 10 test were like a year and a half later than the cost 11 prices from the purchase invoices. And during that 12 period of time the consumer price index went up by 13 three-and-a-half percent. 14 So the Sales and Use Tax Department now 15 recommends that the cost prices used in the markup 16 analysis be increased by three-and-a-half percent. 17 That results in a reduction to the markup and a 18 reduction to the unreported taxable sales of 19 approximately $36,000. 20 MR. HORTON: Thank you for acknowledging 21 that. 22 MR. RUNNER: Move as adjusted by Appeals. 23 MS. STOWERS: Second. 24 MS. HARKEY: Second. 25 MR. HORTON: Member Run -- Member Runner 26 moves to adopt staff recommendation as reflected in 27 the adjustment. Second by Member Stowers. 28 Without objection, Members, such will be 4 1 the order. 2 ---oOo--- 3 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 5 1 MR. HORTON: Ms. Richmond. 2 MS. RICHMOND: Our next waived appearance 3 is item C4 Y.N.V., Inc. 4 ---oOo--- 5 C4 Y.N.V., INC. 6 NO. 573642 (AS) 7 ---oOo--- 8 MR. HORTON: Would staff, please -- 9 MR. RUNNER: I'll move staff 10 recommendation. 11 MR. HORTON: Member Runner moves -- 12 MS. HARKEY: And refer to OIC. 13 MR. HORTON: -- staff recommendation. 14 Second by Member -- 15 MR. RUNNER: And refer to OIC. 16 MR. HORTON: -- Harkey, with a direction to 17 refer to OIC. 18 Without objection, Members, such will be 19 the order. 20 ---oOo--- 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, KATHLEEN SKIDGEL, Hearing Reporter for 8 the California State Board of Equalization certify 9 that on February 25, 2015 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 3, 2015 18 19 20 ____________________________ 21 KATHLEEN SKIDGEL 22 Hearing Reporter 23 24 25 26 27 28 7