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 25, 2016 10 11 12 13 14 15 CHIEF COUNSEL MATTERS 16 J SECTION 100 CHANGES 17 J2 SALES AND USE TAX REGULATION 1597, 18 PROPERTY TRANSFERRED OR SOLD BY CERTAIN NONPROFIT 19 ORGANIZATIONS 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 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 For Board of Equalization Staff: Bradley Heller 16 Tax Counsel IV Legal Department 17 18 ---oOo--- 19 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 MAY 25, 2016 4 ---oOo--- 5 MS. MA: Next item, Ms. Richmond. 6 MS. RICHMOND: We have two Section 100 7 changes. Item J2, Sales and Use Tax Regulation 8 1597, Property Transferred or Sold by Certain 9 Nonprofit Organizations. 10 MS. MA: Mr. Heller, please commence 11 your -- please introduce yourself and then commence 12 your presentation. 13 MR. HELLER: Thank you. Good morning, 14 Chairman Ma -- Chairwoman Ma, excuse me, and Members 15 of the Board. I'm Bradley Heller from the Board's 16 Legal Department. And I'm here to request that the 17 Board vote to authorize staff to complete Rule 100 18 changes to Sales and Use Tax Regulation 1597, 19 Property Transferred or Sold by Certain Nonprofit 20 Organizations. 21 The changes make the regulation consistent 22 with the 2015 enactment of Revenue and Taxation Code 23 section 6 -- 6018.10, which provides that an all 24 volunteer fire department is a consumer, not a 25 retailer, of all tangible personal property sold by 26 it at retail if the profits are used solely for -- 27 solely and exclusively to further the volunteer fire 28 department's purposes. 3 1 MS. MA: Okay, Members. Questions, 2 comments? 3 MR. HORTON: Move adoption of staff 4 recommendation. 5 MS. STOWERS: Second. 6 MS. MA: Okay. Mr. Horton moves, Ms. 7 Stowers seconds, to adopt the staff recommendation. 8 Without objection, motion carries. 9 ---oOo--- 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 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 25, 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