1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 REPORTER'S TRANSCRIPT 7 AUGUST 31, 2016 8 9 10 11 12 ITEM I 13 TAX PROGRAM NONAPPEARANCE MATTERS 14 I3 15 LOCAL TAX REALLOCATION MATTERS 16 SECTION 40 (AB 2323) MATTER 17 1. CITIES OF ONTARIO, PALM SPRINGS, SAN DIEGO, 18 SANTA BARBARA, AND COUNTIES OF SACRAMENTO AND 19 SAN MATEO 20 21 22 23 24 25 26 27 REPORTED BY: Jillian M. Sumner 28 CSR NO. 13619 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 Staff: David Levine Tax Counsel IV 16 Legal Department 17 Trecia Nienow Tax Counsel IV 18 Legal Department 19 ---oOo--- 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 AUGUST 31, 2016 4 ---oOo--- 5 MS. RICHMOND: We have two items that were 6 put over from yesterday's Board Meeting. 7 Our first item is I3 Local Tax Reallocation 8 Matter. 9 MR. HORTON: I move the amendment 10 recommended last time by Member Harkey. 11 MS. HARKEY: I second it. 12 MS. MA: Okay. Moved by Mr. Horton, 13 seconded by Ms. Harkey. 14 On what item, Madam Clerk? 15 MS. RICHMOND: I3. 16 MS. MA: I3? 17 MS. RICHMOND: Local Reallocation Matter. 18 MS. MA: I3 Local Reallocation Matter? 19 MS. RICHMOND: Yes. 20 MS. MA: Okay. Yeah. 21 MS. STOWERS: I just want to comment. I 22 will be voting "yes" on this, but I wanted to 23 comment that I did go back and read the transcript. 24 And although the parties talked about participation, 25 the language on page 3 line 17 to support the 26 application sales tax, no Board Member referenced it 27 that way. That is from the D&R So I understand why 28 this should be coming out, because it's -- it's not 3 1 in the regulation, and no Member used that type of 2 language. 3 My thought would be in the future, um, to 4 be careful and make sure that you're capturing what 5 the Members are saying. And then if it's analyzing 6 how the law should be, it should be noted as such 7 as, "This law may be analyzed in this situation." 8 But it -- it -- it -- it did go too far. 9 MR. HORTON: Comment. 10 MS. MA: Yes, Mr. Horton. 11 MR. HORTON: I do want to say I agree with 12 the language, but I just think that, uh, the Section 13 40 should reflect the discussion of the Members. 14 But the "if then" and "if so forth" -- 15 MS. HARKEY: Had you said that -- 16 MR. HORTON: -- I probably would have said 17 that, and probably would agree with the language set 18 forth in the Section 40 had it been said. 19 MS. MA: Thank you. 20 Okay. Great. 21 I think -- there's a motion, second.? 22 Motion carries. 23 Next item. 24 MR. LEVINE: Okay. Can I just clarify one 25 thing that I said -- 26 MS. MA: Mm-hm. 27 MR. LEVINE: -- yesterday just about the 28 reg? 4 1 I said the reg. that would be amended if 2 you were to put this in BTC was 1802, and that's not 3 correct. This is a Sales and Use Tax issue. It 4 would be 1620, and a flag would be put in 18 -- 5 should be put in 1802 to defer back to 1620 if there 6 was an amendment. 7 MS. HARKEY: We don't need to amend it. If 8 we change it accordingly, we're fine. 9 MR. LEVINE: That's fine. I just wanted to 10 clarify the record. 11 MS. HARKEY: Right? I mean by -- 12 MS. MA: Right. By deleting those -- 13 MS. HARKEY: Those two areas. 14 MS. MA: -- areas. 15 MS. HARKEY: You have the alternate B. 16 MR. HORTON: I think we're good. 17 MS. MA: Mm-hm, yeah. 18 MR. HORTON: We're good? 19 MR. LEVINE: Yes. 20 MR. HORTON: Keep it at Section 40. 21 MS. MA: Thank you. 22 ---oOo--- 23 24 25 26 27 28 5 1 REPORTER'S CERTIFICATE 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, Jillian Sumner, Hearing Reporter for 8 the California State Board of Equalization certify 9 that on August 31, 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 5 14 constitute a complete and accurate transcription of 15 the shorthand writing. 16 17 Dated: September 7, 2016 18 19 20 ____________________________ 21 JILLIAN SUMNER, CSR #13619 22 Hearing Reporter 23 24 25 26 27 28 6