1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 MAY 24, 2016 10 11 12 13 14 15 ITEM F 16 PUBLIC HEARINGS 17 ITEM F1 18 PROPOSED ADOPTION OF CIGARETTE AND TOBACCO PRODUCTS 19 TAX REGULATION 4076, 20 WHOLESALE COST OF TOBACCO PRODUCTS 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 of Equalization: Fiona Ma, CPA 4 Chairwoman 5 Diane L. Harkey Vice Chair 6 Jerome E. Horton 7 Member 8 Sen. George Runner (Ret.) Member 9 Yvette Stowers 10 Appearing for Betty T. Yee, State Controller 11 (per Government Code Section 7.9) 12 Joann Richmond 13 Chief Board Proceedings 14 Division 15 16 For Board of Equalization Staff: Pamela Mash 17 Tax Counsel Legal Department 18 Bradley Heller 19 Tax Counsel IV Legal Department 20 21 ---oOo--- 22 Speaker: Dennis Loper California Distributors 23 Association 24 ---oOo--- 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 MAY 24, 2016 4 ---oOo--- 5 MS. MA: Okay. The Board meeting is 6 reconvening. 7 Ms. Richmond, please call the first item. 8 MS. RICHMOND: Good afternoon, Members. 9 Our first item on the afternoon agenda is the Item F 10 Public Hearings. Item F1 Proposed Adoption of 11 Cigarette and Tobacco Products Tax Regulation 4076, 12 Wholesale Cost of Tobacco Products. 13 MS. MA: Thank you. 14 And to the Department, if you would please 15 introduce yourself for the record, and then commence 16 your presentation. 17 MS. MASH: Thank you, Chairman -- 18 Chairwoman Ma and Members of the Board. I'm Pamela 19 Mash from the Board's Legal Department, along with 20 Bradley Heller, also from the Legal Department. 21 I'm here to request that the Board vote to 22 adopt proposed special regulation -- special taxes 23 Regulation 4076, Wholesale Costs of Tobacco 24 Products. 25 The proposed regulation clarifies the 26 meaning of the term wholesale cost of tobacco 27 products as defined in Revenue and Taxation Code 28 section 30017. 3 1 And I understand there's someone here to 2 speak on this. 3 MS. MA: Yes. We have one public speaker, 4 Mr. Dennis Loper. If you would, please, come to the 5 front. You will have three minutes for your 6 presentation. And please introduce yourself for the 7 record. 8 ---oOo--- 9 DENNIS LOPER 10 ---oOo--- 11 MR. LOPER: Chairwoman Ma, Members, Dennis 12 Loper for the California Distributors Association. 13 We've reviewed the regulation. And, unless 14 I hear something different from what Legal has to 15 say, we're in support. 16 MS. MA: Okay. Members, any questions, 17 comments? 18 Seeing none, do I have a motion to accept 19 staff recommendation? 20 MR. HORTON: So moved, Madam Chair. 21 MS. MA: Okay. Motion by Mr. Horton. 22 Seconded by -- 23 MS. STOWERS: Second. 24 MS. MA: -- Ms. Stowers. 25 Without objection, item carries. 26 ---oOo--- 27 28 4 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 May 24, 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: May 31, 2016 18 19 20 ____________________________ 21 KATHLEEN SKIDGEL, CSR #9039 22 Hearing Reporter 23 24 25 26 27 28 5