1      BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION

            2                  5901 GREEN VALLEY CIRCLE

            3                   CULVER CITY, CALIFORNIA

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            8                    REPORTER'S TRANSCRIPT

            9                      FEBRUARY 23, 2016

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           15                       PUBLIC HEARINGS

           16         F1 PROPOSED AMENDMENTS TO SALES AND USE TAX 

           17              REGULATION 1668, SALES FOR RESALE

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           27                      REPORTED BY:  Kathleen Skidgel 

           28                                     CSR NO. 9039




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            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 Chair
            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      
           16                               Division
                 
           17    For Board of 
                 Equalization Staff:        Bradley Heller
           18                               Legal Department
                 
           19    

           20                          ---oOo---

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            1                               5901 GREEN VALLEY CIRCLE

            2                               CULVER CITY, CALIFORNIA

            3                               FEBRUARY 23, 2016

            4                          ---oOo--- 

            5             MR. HORTON:  Members and guests, let us 

            6    reconvene the meeting of the Board of Equalization.  

            7             Ms. Richmond, what is our next matter?  

            8             MS. RICHMOND:  Our next matter is Item F, 

            9    Public Hearings; Item F1, Proposed Amendments to 

           10    Sales and Use Tax Regulation 1668, Sales for 

           11    Resale.  

           12             MR. HORTON:  Thank you.  

           13             Welcome to the Board, Mr. Heller.  Please 

           14    commence at your convenience.  

           15             MR. HELLER:  Good afternoon, Chairman 

           16    Horton, Members of the Board.  I'm Bradley Heller 

           17    from the Board's Legal Department.  

           18             I'm here to request that the Board vote to 

           19    adopt the proposed amendments to Sales and Use Tax 

           20    Regulation 1668, Sales for Resale.  

           21             The proposed amendments clarify that a sale 

           22    or purchase of counterfeit goods by a convicted 

           23    seller or purchaser is subject to tax regardless of 

           24    whether the sale or purchase was for resale.  

           25             MR. HORTON:  Discussion, Members?  

           26             Member Runner moves to adopt staff 

           27    recommendation.  Second by Member Ma.  

           28             Let me commend staff for bringing this 




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            1    forward.  I would also encourage staff to take a 

            2    look at the whole cannabis issue to ensure that when 

            3    there is a violation of the existing law that's 

            4    governed in the Legislature pass, when they're not 

            5    in line with the system, they are -- they are in 

            6    fact considered a retailer.  Therefore, in 

            7    positioning the Board of Equalization to protect the 

            8    State of California and collect the revenue that 

            9    would have gone -- would have gone uncollected and 

           10    unreported to the Board, these individuals fall into 

           11    the category of those who are just violating the law 

           12    and don't want to comply.  Encourage you to take a 

           13    look at that.  

           14             Otherwise, there's a motion and a second.  

           15             Without objection, such will be the order.  

           16                          ---oOo---

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            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 23, 2016 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 4 constitute 

           14    a complete and accurate transcription of the 

           15    shorthand writing.

           16    

           17    Dated:  March 1, 2016

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           20                           ____________________________

           21                           KATHLEEN SKIDGEL, CSR #9039

           22                           Hearing Reporter

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