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 26, 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: Jeff Angeja 19 Tax Counsel IV Legal Department 20 21 Lisa Burke Business Taxes Specialist III 22 Legal Department 23 Pamela Mash Tax Counsel 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: Our next matter are those 7 items that were taken under submission. 8 Our first item is C13 Azim Shaalemi. 9 ---oOo--- 10 C13 AZIM SHAALEMI 11 NO. 521073 (AC) 12 ---oOo--- 13 MS. BURKE: Chairman Horton, we have two 14 points of correction for the record. 15 MR. HORTON: Yes. 16 MS. BURKE: First, there was an inadvertent 17 misstatement regarding the 32 percent markup. The 18 markup was computed from a comparison of the gross 19 receipts with the cost of goods sold on the income 20 tax returns. And so, assuming that petitioner had 21 reported both his wholesale sales and his retail 22 sales in his gross receipts, the markup was 23 computed -- it was a blended markup for both retail 24 sales and the wholesale sales. 25 MR. HORTON: That does change -- 26 MS. BURKE: The other -- the other -- 27 MS. HARKEY: What was that then? Was that 28 the same markup? 3 1 MS. BURKE: It's still the same markup. 2 It's just there was a statement made that made it 3 sound like it was computed just for the retail 4 sales. 5 MR. HORTON: Can you explain what -- if the 6 Department was to extract the wholesales which has a 7 lower markup, theoretically, what impact would that 8 have on markup? 9 MS. BURKE: The markup on the retail sales 10 would be higher. If there's really -- if there's 11 negative markups in particular for the wholesale 12 sales, the audited markup for the retail sales would 13 be significantly higher. 14 MR. HORTON: Do you have a -- was there a 15 segregation, in the audit, taxable amount? 16 MS. BURKE: Well, there was for 2005, and 17 that's what I'm going to talk about as my other 18 correction, because -- 19 MR. HORTON: Okay, let's do it. 20 MS. BURKE: The statement was made that 21 the -- the markup was applied to 60 percent of the 22 purchases as -- assuming that 60 percent of the 23 purchases were -- were sold at retail when actually 24 it was 76.63 percent. 25 MR. HORTON: Oh, it was higher. 26 MS. BURKE: It was -- it was higher. 27 MR. HORTON: Okay. However, with that 28 said, the liability can't go up, right? Because -- 4 1 you want to explain that? 2 MR. ANGEJA: It doesn't go up. This is 3 just to correct inadvertent statements that were 4 made in response to questions, so we're correcting 5 the record. It doesn't change what was actually 6 done. It just was incorrectly phrased. 7 MR. HORTON: We can't. You know, they 8 couldn't. The Department couldn't, even if it 9 wanted to, because -- you want to explain that? 10 MR. ANGEJA: The statute of limitations 11 under 6563 has passed, to try to do an increase. 12 That wasn't the intent. We were just clarifying 13 misstatements. 14 MR. HORTON: So even though the markup 15 would be much higher, the percentage would be much 16 higher and, therefore, the taxable -- audited 17 taxable sales would be -- 18 MR. ANGEJA: Higher. 19 MR. HORTON: -- much higher. 20 MR. ANGEJA: In other words this -- 21 MR. HORTON: The Department can't find that 22 and, therefore, raise it. 23 MR. ANGEJA: Correct. 24 MR. HORTON: Right. Okay. 25 Discussion, Members? 26 MS. HARKEY: I'll make a motion to support 27 the Department. 28 MS. STOWERS: Second. 5 1 MR. HORTON: Member Harkey moves to adopt 2 staff recommendation. Second by Member Stowers. 3 Without objection, Members, such will be 4 the order. 5 ---oOo--- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 1 MR. HORTON: Ms. Richmond. 2 MS. RICHMOND: Our next item is C14 The 3 Wakefield Company, Inc. 4 ---oOo--- 5 C14 THE WAKEFIELD COMPANY, INC. 6 NO. 608341 (EA) 7 ---oOo--- 8 MS. HARKEY: I'll make a motion to grant 9 the petition on the basis -- 10 MS. MA: Which one is this? 11 MS. HARKEY: This is Wakefield. 12 MR. HORTON: C -- C14. 13 MS. MA: Oh. Oh, we're going to decisions 14 now? 15 MR. HORTON: Mm-hmm. 16 MS. MA: Oh, okay. I thought we had 17 more. 18 MR. RUNNER: We're done. Almost. 19 MS. HARKEY: Make a motion to grant the 20 petition. 21 MR. RUNNER: I'll second. 22 MR. HORTON: On -- Member Harkey moves to 23 grant the petition. Second by Member Runner. 24 Discussion? Objection? 25 MR. RUNNER: Well, I -- 26 MS. STOWERS: Objection. 27 MR. HORTON: Objection noted. 28 MS. STOWERS: To the maker of the motion, 7 1 can -- you're saying grant. Can you give me a 2 little clarification on the basis? 3 MS. HARKEY: I believe the testimony was -- 4 I'm sorry -- the incorrect advice. Well, it wasn't 5 incorrect advice. It was the advice at the time 6 that was continued to be followed. 7 And so I do believe that the taxpayer 8 relied on the advice of the Department from the '91 9 audit. And I believe it was the '94 audit that was 10 the non audit that told him or explained to the 11 taxpayer that he was following the law and 12 everything was okay. 13 So I think the taxpayer took that in good 14 faith. Once he found out that he had -- that -- 15 with the new audit, once he found out there was a 16 problem, he immediately switched and changed gears. 17 So I think in good faith he was relying on the 18 audit. 19 MS. STOWERS: Thank you. 20 I object to the motion because I see that 21 there was a change in business practice that -- for 22 the period at issue, the petitioner was no longer 23 making installation and the evidence that he 24 provided in support that he did installation or he 25 hired a contractor to do installation. So I don't 26 think reliance on the prior audit is valid. 27 MR. HORTON: Yeah -- 28 MS. HARKEY: Was there a second? 8 1 MR. HORTON: -- the concern I have, 2 Members -- 3 MR. HORTON: Go ahead. Pardon? 4 MR. RUNNER: It was seconded. 5 MS. HARKEY: Okay. 6 MR. RUNNER: She asked if it was 7 seconded. 8 MR. HORTON: Yeah. Let me repeat it. 9 There's a motion and a second. Motion is 10 to grant pursuant to 6596 -- 11 MR. RUNNER: Mm-hmm. 12 MR. HORTON: -- relief relative to the 13 communication in the previous two audits. 14 The concern I have is the testimony of the 15 taxpayer themselves was that the -- they sold to 16 contractors, cities and so forth, and not to 17 consumers, wherein they would have provided 18 installation. Further testimony was, is that we 19 actually terminated all of the people who did the 20 installation for us during the period in the audit. 21 There's a motion and a second. 22 Further discussion, Members? 23 MR. RUNNER: Well, at least my 24 understanding was that actually they had already 25 gone to that contracted -- contracted labor in 26 that -- in that earlier audit. So that was their 27 business practice. 28 MS. HARKEY: Both '91 and '94. 9 1 MR. RUNNER: So -- and, again -- and -- and 2 they were selling things the same way. And, you 3 know, I think, you know, if you have -- if you have 4 BOE auditors come in, they check your books, they 5 look at what you're doing, they say you're doing it 6 right, why change? 7 MR. HORTON: I actually agree that they 8 were doing the contracting. In fact, they refer -- 9 they refer to it as subcontracting. And had they 10 continued the practice of subcontracting, then the 11 Department wouldn't have picked it up, the audit 12 liability would not be here. 13 Testimony of the taxpayer was that they 14 discontinued subcontracting. 15 MS. HARKEY: I believe it was once they 16 found out they had an audit, then they changed the 17 way that they accounted for it because they had not 18 changed business practices. That's what I 19 understood from the testimony. 20 MR. HORTON: Okay. 21 There's a motion and a second. 22 Further discussion? 23 MS. MA: Um -- 24 MR. HORTON: Objection noted. 25 MS. MA: No. 26 MR. HORTON: Not from you. 27 Ms. Richmond, please call the roll. 28 MS. RICHMOND: Mr. Horton. 10 1 MR. HORTON: No. 2 MS. RICHMOND: Ms. Harkey. 3 MS. HARKEY: Aye. 4 MS. RICHMOND: Mr. Runner. 5 MR. RUNNER: Aye. 6 MS. RICHMOND: Ms. Ma. 7 MS. MA: Aye. 8 MS. RICHMOND: Ms. Stowers. 9 MS. STOWERS: No. 10 MS. RICHMOND: Motion carries. 11 ---oOo--- 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 11 1 MR. HORTON: Ms. Richmond. 2 MS. RICHMOND: Our next item is C15 Pacific 3 Paradise Nursery, Inc. 4 ---oOo--- 5 C15 PACIFIC PARADISE NURSERY, INC. 6 NO. 518628, 576425 (EA) 7 ---oOo--- 8 MR. HORTON: Discussion, Members? 9 Is there a motion? 10 MS. HARKEY: I'll support the Department, 11 but I would like to move to allow issue Number 4 12 adjustments to the disallowed diesel fuel 13 exemption. 14 MS. MA: Second. 15 MS. STOWERS: Objection. 16 MR. HORTON: Member Harkey moves to, uh -- 17 to adopt staff recommendation with the exception of 18 item -- issue item Number 4, to be adjusted 19 accordingly to the Department, without any further 20 direction, I believe. Second by Member Harkey 21 (verbatim). 22 Discussion, Member Runner. 23 MR. RUNNER: Just a question. If you 24 dis -- if we disallow Number 4, doesn't that create 25 the, uh -- the refund? 26 MS. STOWERS: Was that 4 or is that 5, the 27 fuel exemption? 28 MS. HARKEY: It's -- it's -- I've got 12 1 disallowed diesel fuel exemption to adjustments to 2 it -- 3 MR. RUNNER: Okay. 4 MS. HARKEY: -- to allow for that. 5 MR. RUNNER: So that's just the tax. Okay, 6 I got it. 7 MR. HORTON: Uh -- 8 MS. STOWERS: So clarification again. I'm 9 sorry. 10 MR. HORTON: Well, hold on, Members. Let 11 me go to Appeals, give them a second to catch up. 12 MR. ANGEJA: For clarification, that was 13 what we have listed as issue Number 4, and it's a 14 measure of 844,373. 15 If I understand the Board's motion, it is 16 to grant as to that item. 17 MS. HARKEY: Yes. 18 MR. RUNNER: Yes. 19 Gotcha. Gotcha, okay. Which is 44 percent 20 of the tax. 21 MS. HARKEY: I believe that's the item that 22 the taxpayer was able to -- 23 MR. RUNNER: Yeah. 24 MS. HARKEY: Or the ex-taxpayer was able to 25 justify. 26 MR. HORTON: There's a motion and a second. 27 Objection noted. 28 Ms. Richmond, please call the roll. 13 1 MS. RICHMOND: Mr. Horton. 2 MR. HORTON: No. 3 MS. RICHMOND: Ms. Harkey. 4 MS. HARKEY: Aye. 5 MS. RICHMOND: Mr. Runner. 6 MR. RUNNER: Aye. 7 MS. RICHMOND: Ms. Ma. 8 MS. MA: Aye. 9 MS. RICHMOND: Ms. Stowers. 10 MS. STOWERS: No. 11 MS. RICHMOND: Motion carries. 12 ---oOo--- 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 14 1 MS. RICHMOND: Our next item is C16 2 Dastigir G. Omar. 3 ---oOo--- 4 C16 DASTIGIR G. OMAR 5 NO. 609881 (EH) 6 ---oOo--- 7 MR. RUNNER: I'll make a motion on this one 8 to -- to grant -- 9 Actually, I want to include -- I want to 10 include all quarters of the -- of the -- well, the 11 first, second and third quarter of 19 -- of 2009. 12 Those are the ones that -- that were left out. 13 I'm trying to figure out if that is the 14 same as a grant, is really what I'm trying to figure 15 out right now. 16 MS. HARKEY: I will second your motion, and 17 I do believe that it is a grant. I think that 18 the -- 19 MR. RUNNER: I can't remember what else is 20 in there. 21 MS. HARKEY: -- credit measures for the 22 first three quarters, at least according to my 23 notes, more than offset -- 24 MR. RUNNER: Yeah. 25 MS. HARKEY: -- the rest of the audited tax 26 measure. 27 But we can -- I think we can make the 28 motion just the way you have it -- 15 1 MR. RUNNER: Right. 2 MS. HARKEY: -- and then make the 3 adjustment. 4 MR. RUNNER: I'll make the motion to 5 include the first three quarter -- or the -- yeah, 6 the first three quarters of 2009 and recognize those 7 credit amounts. 8 MR. HORTON: Let me make sure that -- let 9 me go to Appeals. 10 MR. ANGEJA: The only concern -- and 11 I can't do the math quick enough -- we don't have a 12 claim for refund on file. So if there's a credit 13 generated, we don't have the means to be able to 14 refund that. 15 MR. RUNNER: So what would he have to do? 16 MR. ANGEJA: It can offset the amount to 17 zero. 18 MS. HARKEY: Offset to zero works. 19 MR. HORTON: Are those numbers time-barred 20 for any reason? 21 MR. RUNNER: I'm okay with offset to 22 zero. 23 MS. HARKEY: Yeah, offset to zero. 24 MR. RUNNER: Yeah, I'm okay with offset to 25 zero. I'm actually -- I would -- I'm satisfied with 26 offset to zero. 27 MR. ANGEJA: Okay. 28 MS. HARKEY: If that's what it does. 16 1 MR. RUNNER: Yeah. 2 MR. HORTON: Are those -- those periods are 3 within the audit period. 4 MR. ANGEJA: They're within the audit 5 period, but we don't have a timely claim for refund 6 for the payments because they were made in 2009. 7 MR. RUNNER: So -- and because of that, if 8 there -- if there ends up being -- the way that 9 works, if there ends up being a potential refund and 10 there's no claim for refund he -- he can't get it 11 anyhow, so -- 12 MR. ANGEJA: It gets offset against any 13 other liability. And then to the extent there's 14 excess credits left over, we don't have the 15 mechanism -- 16 MR. RUNNER: Okay. 17 MR. ANGEJA: -- under the law to give that 18 back. 19 MR. RUNNER: So the bottom line is, it 20 would end -- if it ends up those numbers, it offsets 21 to zero -- 22 MR. ANGEJA: Yes. 23 MR. RUNNER: -- liability. Okay. 24 That would be -- that's fine. 25 MR. HORTON: Mr. Runner moves to -- 26 MS. HARKEY: Second. 27 MR. HORTON: Mr. -- Mr. Runner's motion is 28 to grant the credit in the first, second and third 17 1 quarter of the audit period. And second by -- and 2 to otherwise accept the Department's recommendation. 3 Second by Member Harkey. 4 Objection -- 5 MS. STOWERS: Objection. 6 MR. HORTON: -- noted. 7 Ms. Richmond, call the roll. 8 MS. RICHMOND: Mr. Horton. 9 MR. HORTON: No. 10 MS. RICHMOND: Ms. Harkey. 11 MS. HARKEY: Aye. 12 MS. RICHMOND: Mr. Runner. 13 MR. RUNNER: Aye. 14 MS. RICHMOND: Ms. Ma. 15 MS. MA: Aye. 16 MS. RICHMOND: Ms. Stowers. 17 MS. STOWERS: No. 18 MS. RICHMOND: Motion carries. 19 ---oOo--- 20 21 22 23 24 25 26 27 28 18 1 MS. RICHMOND: Our next item is D1 Adil 2 Alfonse Khilla. 3 ---oOo--- 4 D1 ADIL ALFONSE KHILLA 5 NO. 391101 (STF) 6 ---oOo--- 7 MR. HORTON: Discussion, Members? 8 MS. HARKEY: This was a very difficult, 9 difficult issue. I think the Department did an 10 excellent job of understanding the law and dealing 11 with it. 12 I do think we have a situation which is a 13 bit unusual and that is kind of driven by a memo 14 that's not legally binding but that what we've used 15 since '97. 16 I would like to make a -- a motion that's 17 going to need a little concentration, but to move to 18 give the taxpayer an adjustment at least $16,500 19 measure of the wholesale cost of cigars from the 20 overstock. I don't think he -- the taxpayer 21 provided any evidence of 70 percent or whatever it 22 was. 23 MR. RUNNER: Did you say 60 or 16? 24 MS. HARKEY: $16,500. 25 MR. RUNNER: Oh, dollars. 26 MS. HARKEY: Which figures out to be, mm -- 27 what does that figure out to be? Let me see. We 28 came up with this in the -- 19 1 MR. RUNNER: What's the percentage? 2 MS. HARKEY: It's probably -- it's about -- 3 it's about half. A little less than half. Because 4 33 five -- according to the auditor, the 32,000 was 5 an accurate -- or 33,000 was an accurate -- an 6 accurate figure. And we don't really have an 7 estimate of what was up above and we're relying on 8 the memo. 9 I'd also like to, based on the Department's 10 suggestion and -- and my review as well, move to 11 abate the interest for the period March 22nd, '07 12 through March 26th, '09. And maybe September 20th, 13 '12, 2012, through June 2014, based on a delay by 14 the Department. That's Revenue and Tax Code 6593.5. 15 MS. STOWERS: Can you bifurcate the 16 motions, please? 17 MS. HARKEY: We can bifurcate those 18 certainly. 19 And then the final motion I'd like to make 20 is that I -- I really -- I guess is Number 3, is I'd 21 like to review the issue of retail stock on the 22 BTC. 23 MR. RUNNER: Yeah. You can just do that. 24 MS. HARKEY: So I just wanted to let 25 everybody know I'm going to be -- 26 MR. RUNNER: Yeah. 27 MS. HARKEY: This has caught my interest. 28 And I think the Department did the best they could 20 1 with what they had. 2 MR. RUNNER: Yeah. 3 MR. HORTON: Bifurcating the motion -- 4 I'm assuming a second by Mr. Runner. 5 MR. RUNNER: Second, yes, on both of 6 them. 7 MR. HORTON: Um -- 8 MR. RUNNER: No, I guess we better deal 9 with one motion at a time. 10 MR. HORTON: Member Harkey moves to abate 11 the interest -- 12 MR. RUNNER: Let's start with that one, 13 yeah. 14 MR. HORTON: -- pursuant to the periods 15 previously mentioned. Second by Member Runner. 16 Without objection, Members, hearing none, 17 such will be the order. 18 The second motion is to grant an adjustment 19 of $16,500 in favor of the taxpayer. Second by -- 20 MR. RUNNER: Second. 21 MS. HARKEY: -- Mr. Runner. 22 MR. RUNNER: And the justification that I 23 would find on that is that basically I would say in 24 that is that those items were not in retail -- in -- 25 in stock for retail or in retail for -- stock for 26 sale, retail stock for sale. 27 MR. HORTON: Just for clarification, from 28 my perspective -- well, let me just ask the 21 1 question. 2 Mr. Angeja, the annotation itself speaks to 3 a situation where the tobacco products are held for 4 personal use. Is that right or not? 5 MR. ANGEJA: It defines retail stock as 6 anywhere on the physical location from which sales 7 are made. 8 MR. HORTON: But they're -- they're 9 referring to -- 10 MR. ANGEJA: Locations for other than sale 11 would not be considered retail stock. So if it was 12 home, if it was for personal use -- 13 MR. HORTON: Personal use. 14 MR. ANGEJA: -- if it was off-site storage 15 facility from which sales are not made, that 16 wouldn't be considered retail stock. 17 MR. HORTON: And so the taxpayer's 18 testimony was that it was -- it wasn't used for 19 personal use; it was actually held for sales. 20 So in such case, the annotation sort of is 21 a catch-22 because it -- and the Department holds 22 that it's held for retail, then retail stock the 23 annotations says yes. When the taxpayer, his 24 testimony his inventory was held for retail purpose, 25 so the annotation works against him and no claim -- 26 because there's no claim for personal use or claim 27 in -- interstate commerce. Just for the record. 28 So there's a motion. There's a second. 22 1 And -- 2 MS. STOWERS: Objection. 3 MR. HORTON: Objection noted. 4 Ms. Richmond, please call the roll. 5 MS. RICHMOND: Mr. Horton. 6 MR. HORTON: No. 7 MS. RICHMOND: Ms. Harkey. 8 MS. HARKEY: Aye. 9 MS. RICHMOND: Mr. Runner. 10 MR. RUNNER: Aye. 11 MS. RICHMOND: Ms. Ma. 12 MS. MA: Aye. 13 MS. RICHMOND: Ms. Stowers. 14 MS. STOWERS: No. 15 MS. RICHMOND: Motion carries. 16 MR. RUNNER: And as far as the BTC is 17 concerned, I think -- 18 MS. HARKEY: That's my issue. 19 MR. RUNNER: Seems like an appropriate item 20 for the -- 21 MS. HARKEY: I'll be -- she knows her 22 stuff. 23 MR. RUNNER: Yep. 24 MS. HARKEY: You know your stuff. You 25 impressed me. 26 MS. MASH: Oh, thank you. 27 ---oOo--- 28 23 1 MR. HORTON: Ms. Richmond. 2 MS. RICHMOND: Our last item is item D2 3 Solar American Transfers, Inc. 4 ---oOo--- 5 D2 SOLAR AMERICAN TRANSFERS, INC. 6 NO. 512177 (STF) 7 ---oOo--- 8 MR. HORTON: Discussion, Members? 9 MS. MA: I'd like to motion for the 10 petitioner. 11 You know, his permits were -- he didn't 12 know that -- you know, he thought part of the 13 business that he would get the permit but they 14 actually went to his drivers who were operating as 15 owner/operators. The petitioner did not have direct 16 control over the -- the truck drivers. They were 17 not his trucks per se. And after he went to the 18 course, the IFTA course in 2006 he severed the 19 relationship with the drivers and only reported his 20 permit under his and was reporting his taxes under 21 his own truck and permit. 22 MR. HORTON: Member Ma moves in favor of 23 the -- to grant in favor of the taxpayer. Second by 24 Member Harkey. 25 MS. HARKEY: I'd like to ask one question. 26 So what we're moving is the tax that's 14,156? 27 That's the total tax, right? Total liability is 28 27,411, but that includes interest. Almost the 24 1 equal amount of the tax. 2 MR. ANGEJA: Correct. The initial amount 3 of tax was 22,098, and that was -- 4 MR. HORTON: Member -- 5 MR. ANGEJA: -- relieved or reduced prior 6 to the D&R. 7 MS. HARKEY: Okay. 8 MR. ANGEJA: The tax that remains is 9 14,155.93, interest of 13,254. So the $27,000 10 figure you have is the aggregate total. 11 MS. HARKEY: But 14,000 is what we have the 12 IFTA issue with. 13 MR. ANGEJA: 14,155.93. 14 MS. HARKEY: Thank you. 15 Yes, I second it. 16 MR. HORTON: Second. 17 Objection -- 18 MS. STOWERS: Objection. 19 MR. HORTON: -- noted. 20 Ms. Richmond, please call the roll. 21 MS. RICHMOND: Mr. Horton. 22 MR. HORTON: No. 23 MS. RICHMOND: Ms. Harkey. 24 MS. HARKEY: Aye. 25 MS. RICHMOND: Mr. Runner. 26 MR. RUNNER: Aye. 27 MS. RICHMOND: Ms. Ma. 28 MS. MA: Aye. 25 1 MS. RICHMOND: Ms. Stowers. 2 MS. STOWERS: No. 3 MS. RICHMOND: Motion carries. 4 MR. HORTON: Members, we should direct the 5 Department to -- to -- to meet with the taxpayer so 6 that the taxpayer's fully aware of the IFTA 7 implications, that the State of California conducted 8 the audit and the liability still may hold in other 9 states. 10 MS. RICHMOND: That concludes our 11 business. 12 MR. HORTON: Thank you. Members, the 13 meeting of the Board of Equalization is hereby 14 adjourned. 15 ---oOo--- 16 17 18 19 20 21 22 23 24 25 26 27 28 26 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 26, 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 26 constitute 14 a complete and accurate transcription of the 15 shorthand writing. 16 17 Dated: March 5, 2015 18 19 20 ____________________________ 21 KATHLEEN SKIDGEL 22 Hearing Reporter 23 24 25 26 27 28 27