Board of Equalization Rules for California Tax Administration

and Appellate Review

Introduction & Overview

Proposed Board of Equalization Rules for California Tax Administration and Appellate Review (Proposed Rules)

Reviewing petitions, claims for refund, and requests for relief of penalties for all of theBusiness Taxes and Fees

Reviewing petitions and applications for Property Tax Programs administered by the Board

Acting on appeals of Franchise Tax Board actions

The Proposed Rules are Designed to Encompass all of the Board’s Procedures for:

Intent of the Proposed RulesTransparency and Responsiveness: Provide a single source for all of the Board’s

procedures from the initiation of administrative review to the Board’s final decision

Increase transparency by providing more detailed procedures for all the Board’s programs

Improve voluntary compliance and public trust by reorganizing the Board’s procedures to be more accessible to the public

Maintain responsiveness to the public by addressing specific concerns raised to the Board

Increasing TransparencyThese Proposed Rules Will:

Create new procedural regulations for Business Taxes and Fees to replace numerous operations memos and publications

Replace and augment current regulations with more detailed regulations for Property Tax petitions

Prescribe new procedures for the Franchise and Income Tax appeals briefing process

Create new Board Hearing Procedure regulations containing information that was not easily accessible to the public

Reorganization of the Board’s ProceduresWill Improve Public Access:

Currently, the Board’s procedures are spread throughout the:• Revenue and Taxation Code

• California Code of Regulations

• Board Publications, Forms, and Operations Memos

These Proposed Rules will reorganize the procedures into one location in the California Code of Regulations

Procedures will be organized by tax program and their chronological sequence in the administrative or appellate review process

Improving Responsiveness to the PublicProposed Rules Address Public Concerns

Appropriateness of communications with Board Members

Defining confidentiality of tax and fee payer information upon an oral hearing before the Board

Publication of Board Decisions

Organization of the Proposed RulesFor Discussion Purposes the Proposed Rules are Divided into Five Parts:

Part 1, Statement of Intent; TitlePart 2, Review of Sales and Use Taxes,

Timber Yield Tax, and Special Taxes and Fees (Business Taxes and Fees)

Part 3, Administrative Review of Property Taxes

Part 4, Appeals of Franchise Tax Board ActionsPart 5, General Board Hearing Procedures

Organization of the Proposed RulesThe Proposed Rules are Divided into Five Parts:

Section numbers within each part correspond to the part numbers

For example: Section 2000 is the first section in part 2

Please note that the Proposed Rules will be renumbered before they are placed into the California Code of Regulations

Statement of IntentStatement of IntentPart 1Part 1Part 1 contains the Board’s Statement of Part 1 contains the Board’s Statement of

IntentIntentfor the proposed rules and provides that:for the proposed rules and provides that: Tax collection is the most sensitive point of Tax collection is the most sensitive point of

contact between citizens and their contact between citizens and their government; andgovernment; and

Access to government officials, along with Access to government officials, along with clear, well organized, and understandable clear, well organized, and understandable procedures will promote a positive relationship procedures will promote a positive relationship between citizens and their governmentbetween citizens and their government

Statement of IntentStatement of IntentPart 1Part 1 The Proposed Rules also :The Proposed Rules also : Declare that it is imperative for the Board Declare that it is imperative for the Board

Members to remain accessible to their Members to remain accessible to their constituents, subordinates, and other constituents, subordinates, and other governmental agenciesgovernmental agenciesat all timesat all times

Provide comprehensive procedures for all of the Provide comprehensive procedures for all of the Board’s administrative and appellate review Board’s administrative and appellate review processesprocesses

Address specific concerns raised with regard to:Address specific concerns raised with regard to:• Issuance of decisions;Issuance of decisions;• Publication of opinions; andPublication of opinions; and• Nature of Board hearingsNature of Board hearings

Review of Sales and Use Taxes,Review of Sales and Use Taxes,Timber Yield Tax, and Special Taxes Timber Yield Tax, and Special Taxes and Fees (Business Taxes and Fees)and Fees (Business Taxes and Fees)Part 2Part 2 This part contains the procedures governing This part contains the procedures governing

the administrative review of Business Taxes the administrative review of Business Taxes and Fees and Fees

Article 1 provides that Part 2 governs all:Article 1 provides that Part 2 governs all:• Petitions for redetermination,Petitions for redetermination,• Late protests,Late protests,• Applications for administrative review, andApplications for administrative review, and• Claims for refundClaims for refund

Part 2 applies to all requests for relief under Part 2 applies to all requests for relief under the following taxes and fees:the following taxes and fees:

Business Taxes and FeesBusiness Taxes and FeesPart 2Part 2

Sales and Use TaxSales and Use Tax Motor Vehicle Fuel TaxMotor Vehicle Fuel Tax Use Fuel TaxUse Fuel Tax Tax on InsurersTax on Insurers Cigarette and Tobacco Cigarette and Tobacco

Products TaxProducts Tax Alcoholic Beverages TaxAlcoholic Beverages Tax Timber Yield TaxTimber Yield Tax Emergency Resources Emergency Resources

SurchargesSurcharges

Emergency Telephone Emergency Telephone Users SurchargesUsers Surcharges

Hazardous Substance TaxHazardous Substance Tax Integrated Waste Integrated Waste

Management FeeManagement Fee Oil Spill Response, Oil Spill Response,

Prevention, and Prevention, and Administration FeesAdministration Fees

Underground Storage Underground Storage Tank Maintenance FeeTank Maintenance Fee

Diesel Fuel TaxDiesel Fuel Tax

Business Taxes and FeesBusiness Taxes and FeesPart 2 Also Covers Procedures For These Part 2 Also Covers Procedures For These Fees:Fees:

Covered Electronic Waste Recycling FeeCovered Electronic Waste Recycling Fee Tire Recycling FeeTire Recycling Fee Marine Invasive Species FeeMarine Invasive Species Fee Natural Gas SurchargeNatural Gas Surcharge Water Rights FeeWater Rights Fee

Business Taxes and FeesBusiness Taxes and FeesPetitions for Redetermination, Article 2A:Petitions for Redetermination, Article 2A:

This Article:This Article: Identifies who may file a petitionIdentifies who may file a petition Provides the applicable statute of limitationProvides the applicable statute of limitation Prescribes the contents of the petitionPrescribes the contents of the petition Provides the appropriate addresses for filing Provides the appropriate addresses for filing

petitionspetitions Explains how petitions will be reviewed by the Explains how petitions will be reviewed by the

appropriate section or group prior to any appropriate section or group prior to any appeals conferenceappeals conference

Business Taxes and FeesBusiness Taxes and FeesArticle 2A Also Addresses:Article 2A Also Addresses:

Petitioners’ ability to amend their petitions;Petitioners’ ability to amend their petitions; Continuing accrual of interest;Continuing accrual of interest; Scope of petitions filed under these programs:Scope of petitions filed under these programs:

• Hazardous Substances Tax LawHazardous Substances Tax Law• Childhood Lead Poisoning Prevention FeeChildhood Lead Poisoning Prevention Fee• Covered Electronic Waste Recycling FeeCovered Electronic Waste Recycling Fee• Water Rights Fee Law Water Rights Fee Law

Business Taxes and FeesBusiness Taxes and FeesLate Protests, Article 2BLate Protests, Article 2B

Article 2B provides for the Board’s discretionArticle 2B provides for the Board’s discretionto treat an untimely petition as a late to treat an untimely petition as a late protestprotest

Provides that late protests will be reviewed Provides that late protests will be reviewed in accordance with Article 2Ain accordance with Article 2A

Except, however, that the Board will retain Except, however, that the Board will retain discretion as to whether to provide an discretion as to whether to provide an appeals conference or oral hearing before appeals conference or oral hearing before the Board the Board

Business Taxes and FeesBusiness Taxes and FeesJeopardy Determinations, Article 2CJeopardy Determinations, Article 2C

Article 2C prescribes the contents of Petitions Article 2C prescribes the contents of Petitions for Redetermination and Applications for for Redetermination and Applications for Administrative Review of Jeopardy Administrative Review of Jeopardy Determinations, and applicable statute of Determinations, and applicable statute of limitationlimitation

It prescribes the scope of applications for It prescribes the scope of applications for administrative review, and explains the review administrative review, and explains the review processprocess

It explains the need to make a security deposit It explains the need to make a security deposit with the Board to prevent the seizure and sale with the Board to prevent the seizure and sale of property of property

Business Taxes and FeesBusiness Taxes and FeesClaims for Refund, Article 3Claims for Refund, Article 3

Article 3 establishes the following:Article 3 establishes the following: Identifies those persons who may file a Identifies those persons who may file a

claimclaim Provides the statute of limitation for filingProvides the statute of limitation for filing Explains the effect of failing to file a timely Explains the effect of failing to file a timely

claim (waiver of rights)claim (waiver of rights) Prescribes the contents of a complete claimPrescribes the contents of a complete claim

Business Taxes and FeesBusiness Taxes and FeesClaims for Refund, Article 3Claims for Refund, Article 3

Article 3 also:Article 3 also: Provides the addresses for mailing claimsProvides the addresses for mailing claims Describes the process for reviewing claimsDescribes the process for reviewing claims Explains that the Board may credit or offset Explains that the Board may credit or offset

overpaymentsoverpayments Defines the scope of claims filed under theDefines the scope of claims filed under the

Motor Vehicle Fuel Tax Law, Hazardous Motor Vehicle Fuel Tax Law, Hazardous Substances Tax Law, Covered Electronic Waste Substances Tax Law, Covered Electronic Waste Recycling Fee, and the Water Rights Fee LawRecycling Fee, and the Water Rights Fee Law

Business Taxes and FeesBusiness Taxes and Fees Innocent Spouse & Equitable Relief, Innocent Spouse & Equitable Relief, Article 4AArticle 4A

Identifies those eligible for innocent spouse Identifies those eligible for innocent spouse reliefrelief

Prescribes the contents of a request for Prescribes the contents of a request for innocent spouse reliefinnocent spouse relief

Provides the address for mailing requestsProvides the address for mailing requests Explains the Board’s process for reviewing Explains the Board’s process for reviewing

innocent spouse relief requestsinnocent spouse relief requests

Business Taxes and FeesBusiness Taxes and Fees Successors’ Relief of Penalties, Article 4BSuccessors’ Relief of Penalties, Article 4B

Under Article 4B successors may request relief Under Article 4B successors may request relief from penalties imposed on their predecessors from penalties imposed on their predecessors pursuant to the Sales and Use Tax Lawpursuant to the Sales and Use Tax Law

A successor’s request for relief may be included A successor’s request for relief may be included in the successor’s petition for redetermination, in the successor’s petition for redetermination, if anyif any

All such requests are required to include a All such requests are required to include a written statement signed under penalty of written statement signed under penalty of perjury stating the facts upon which the request perjury stating the facts upon which the request for relief is based for relief is based

Business Taxes and FeesBusiness Taxes and Fees Other Requests for Relief of Penalties, Other Requests for Relief of Penalties, Article 4CArticle 4C

Reasonable causeReasonable cause Unreasonable error or delayUnreasonable error or delay Reasonable reliance on written advice Reasonable reliance on written advice

from the Boardfrom the Board DisasterDisaster

Business Taxes and FeesBusiness Taxes and FeesDistribution of Local Taxes, Distribution of Local Taxes, Article 5Article 5

Addressing claims of incorrect or non-Addressing claims of incorrect or non-

distribution of local tax, Article 5 generallydistribution of local tax, Article 5 generally

incorporates the Board’s current incorporates the Board’s current proceduresprocedures

contained in California Code of Regulations,contained in California Code of Regulations,

title 18, section 1807title 18, section 1807

Business Taxes and FeesBusiness Taxes and FeesAppeals Conferences, Article 6Appeals Conferences, Article 6

This article addresses:This article addresses: Scheduling of an appeals conference Scheduling of an appeals conference Functions of the Appeals DivisionFunctions of the Appeals Division Submitting evidence to the Appeals DivisionSubmitting evidence to the Appeals Division Prescribes those persons present at anPrescribes those persons present at an

appeals conferenceappeals conference How to postpone and reschedule How to postpone and reschedule

conferencesconferences How to expedite the appeals conferenceHow to expedite the appeals conference

Business Taxes and FeesBusiness Taxes and Fees Appeals Conferences, Article 6Appeals Conferences, Article 6

Article 6 also: Article 6 also: Prescribes the contents of decisions and Prescribes the contents of decisions and

recommendations issued by the Appeals recommendations issued by the Appeals DivisionDivision

Explains that Board staff Explains that Board staff cannotcannot request an request an oral hearing before the Board to contest a oral hearing before the Board to contest a decision and recommendation favorable to a decision and recommendation favorable to a tax or fee payertax or fee payer

Administrative Review of Property Administrative Review of Property TaxesTaxesPart 3Part 3 Article 1 of Part 3 addresses petitions Article 1 of Part 3 addresses petitions

for reassessment of state-assessed for reassessment of state-assessed property and private railroad carsproperty and private railroad cars

Board documents and underlying data Board documents and underlying data will be available to state assessees will be available to state assessees annually after May 31annually after May 31stst

Prescribes the hearings procedures Prescribes the hearings procedures applicable to assessment factorsapplicable to assessment factors

Property TaxesProperty TaxesPetitions for Reassessment of State-assessed Petitions for Reassessment of State-assessed PropertyProperty

Article 1 also:Article 1 also: Provides the statute of limitation applicable Provides the statute of limitation applicable

to state assessees’ petitionsto state assessees’ petitions Prescribes each petition’s contentsPrescribes each petition’s contents Sets forth the Board’s entire review process, Sets forth the Board’s entire review process,

including briefingincluding briefing Explains that the Board will not reconsider Explains that the Board will not reconsider

or rehear such petitions after it has reached or rehear such petitions after it has reached a decisiona decision

Property TaxesProperty TaxesPetitions for Equalization of Gov’t-Owned Petitions for Equalization of Gov’t-Owned PropertyProperty Article 2 addresses petitions for Article 2 addresses petitions for

review, equalization, and adjustment review, equalization, and adjustment of assessments of publicly-owned of assessments of publicly-owned propertyproperty• Property assessed pursuant to Article XIII, Property assessed pursuant to Article XIII,

§11, subdivision (g) of the California §11, subdivision (g) of the California ConstitutionConstitution

Provides the applicable statute of Provides the applicable statute of limitation and prescribes the contents limitation and prescribes the contents of petitions for reviewof petitions for review

Property TaxesProperty TaxesPetitions for Equalization of Gov’t-Owned Petitions for Equalization of Gov’t-Owned PropertyPropertyArticle 2 also:Article 2 also: Provides procedures for the county Provides procedures for the county

assessor to answer the petitionassessor to answer the petition Explains that the Appeals Division will Explains that the Appeals Division will

conduct a pre-hearing conference to clarify conduct a pre-hearing conference to clarify and focus the issues for Board Hearingand focus the issues for Board Hearing

Guarantees access to information on Board Guarantees access to information on Board assessed property to both the applicant assessed property to both the applicant andandthe county assessorthe county assessor

Property TaxesProperty TaxesWelfare Exemption Appeals, Welfare Exemption Appeals, Article 3Article 3Article 3 addresses:Article 3 addresses: Petitions appealing Welfare Exemption Petitions appealing Welfare Exemption

ineligibility findingsineligibility findings• Filed pursuant to Rev. & Tax. Code Filed pursuant to Rev. & Tax. Code

§254.6, and §254.6, and • Petitions appealing a denial of a Petitions appealing a denial of a

supplemental clearance certificate supplemental clearance certificate requested pursuant to subdivision requested pursuant to subdivision (g) of Rev. & Tax. Code §214(g) of Rev. & Tax. Code §214

Property TaxesProperty TaxesWelfare Exemption Appeals, Welfare Exemption Appeals, Article 3Article 3Article 3 also:Article 3 also: Identifies the applicable statue of limitationIdentifies the applicable statue of limitation Prescribes the contents of petitionsPrescribes the contents of petitions Requires a pre-hearing conference with the Requires a pre-hearing conference with the

petitioner to clarify facts and issues in petitioner to clarify facts and issues in disputedispute

Prescribes the briefing schedulePrescribes the briefing schedule Lists the hearing documents to be Lists the hearing documents to be

distributed to the parties, anddistributed to the parties, and Provides that the Board’s decisions are finalProvides that the Board’s decisions are final

Property TaxesProperty TaxesCounty Assessment Samples, County Assessment Samples, Article 4Article 4 Article 4 addresses the Board’s property Article 4 addresses the Board’s property

tax assessment sampling program (Gov. tax assessment sampling program (Gov. Code §15640) Code §15640)

Provides the statute of limitation Provides the statute of limitation applicable to county assessors’ petitions applicable to county assessors’ petitions appealing appraisals made by the Board’s appealing appraisals made by the Board’s County Property Tax Division, andCounty Property Tax Division, and

Prescribes the contents of such petitionsPrescribes the contents of such petitions

Property TaxesProperty TaxesCounty Assessment Samples, County Assessment Samples, Article 4Article 4This review process includes:This review process includes: Acknowledgement of the petition Acknowledgement of the petition A pre-hearing conferenceA pre-hearing conference Briefing of the issues by the Legal Briefing of the issues by the Legal

Department and petitionerDepartment and petitioner Preparation of a hearing summary by the Preparation of a hearing summary by the

Appeals Division, and anAppeals Division, and an Oral hearing before the BoardOral hearing before the Board

Appeals of Franchise Tax Board Appeals of Franchise Tax Board ActionsActionsStatement of Jurisdiction,Statement of Jurisdiction, Part 4, Article 1 Part 4, Article 1 This article provides a clear and concise This article provides a clear and concise

statement of the Board’s jurisdiction regarding:statement of the Board’s jurisdiction regarding:• Notices of actionNotices of action• Notices of determination not to abate interestNotices of determination not to abate interest• Notices granting or denying innocent spouse Notices granting or denying innocent spouse

reliefrelief• Notices denying a claim for assistance under the Notices denying a claim for assistance under the

Senior Citizens Homeowners andSenior Citizens Homeowners andRenters Property Tax Assistance Law Renters Property Tax Assistance Law

Jurisdiction also arises if the Franchise Tax Jurisdiction also arises if the Franchise Tax Board fails to act on a claim within 6 monthsBoard fails to act on a claim within 6 months

Appeals of Franchise Tax Board Appeals of Franchise Tax Board ActionsActions Contents & Timing of Appeals,Contents & Timing of Appeals, Article 2Article 2Article 2:Article 2: Prescribes the contents of an appeal from Prescribes the contents of an appeal from

the actions of the Franchise Tax Boardthe actions of the Franchise Tax Board Delegates authority to the Chief of Board Delegates authority to the Chief of Board

Proceedings to grant appellants additional Proceedings to grant appellants additional time to perfect incomplete appealstime to perfect incomplete appeals

Establishes the time period in which to fileEstablishes the time period in which to filea timely appeal a timely appeal

Appeals of Franchise Tax Board Appeals of Franchise Tax Board ActionsActions Briefing Process, Article 3Briefing Process, Article 3Article 3 describes the briefing process and theArticle 3 describes the briefing process and thefollowing briefing schedules:following briefing schedules: General (or default) scheduleGeneral (or default) schedule Innocent spouse appeals scheduleInnocent spouse appeals schedule

• Including participation by the non-appealing Including participation by the non-appealing spousespouse

Homeowners’ and Renters Property Tax Homeowners’ and Renters Property Tax Assistance appeals schedulesAssistance appeals schedules

New, streamlined elective briefing schedule New, streamlined elective briefing schedule applicable to appeals where the amount at issueapplicable to appeals where the amount at issueis not more than $5,000 (including tax, is not more than $5,000 (including tax, penalties, fees and paid interest)penalties, fees and paid interest)

Appeals of Franchise Tax Board Appeals of Franchise Tax Board ActionsActions Requests for Oral Hearing, Article 4Requests for Oral Hearing, Article 4 Requires written requests for an oral Requires written requests for an oral

hearing before the Boardhearing before the Board Creates a new procedure allowing theCreates a new procedure allowing the

Appeals Division to request additional Appeals Division to request additional briefingbriefing

Requires the Appeals Division to Requires the Appeals Division to submit a hearing summary 30 days submit a hearing summary 30 days before an oral hearingbefore an oral hearing

Appeals of Franchise Tax Board Appeals of Franchise Tax Board ActionsActions Issuance of Board Decisions, Article 5Issuance of Board Decisions, Article 5 Letter DecisionsLetter Decisions

• Non-precedential Non-precedential • Provides a short explanation of the decisionProvides a short explanation of the decision

Summary DecisionsSummary Decisions• Non-precedentialNon-precedential• Sets forth findings of fact and conclusions of lawSets forth findings of fact and conclusions of law

Formal OpinionsFormal Opinions• Creates PrecedentCreates Precedent• Sets forth findings of fact and conclusions of lawSets forth findings of fact and conclusions of law

Dissenting OpinionsDissenting Opinions• Containing a Board Member’s rationale for opposingContaining a Board Member’s rationale for opposing

the adoption of a Formal Opinionthe adoption of a Formal Opinion

Appeals of Franchise Tax Board Appeals of Franchise Tax Board ActionsActions Finality of Decisions, Article 6Finality of Decisions, Article 6Article 6 addresses:Article 6 addresses: Finality of decisionsFinality of decisions Board’s authority to hold decisions in Board’s authority to hold decisions in

abeyance before they become final abeyance before they become final Prescribes the procedures for submitting Prescribes the procedures for submitting

and responding to a petition for and responding to a petition for rehearing, andrehearing, and

Establishes the grounds for granting such Establishes the grounds for granting such a petitiona petition

General Board Hearing General Board Hearing ProceduresProceduresPart 5Part 5This part of the Proposed Rules:This part of the Proposed Rules: Reorganizes the Board’s hearing procedures Reorganizes the Board’s hearing procedures

into a chronological orderinto a chronological order• Beginning with the scheduling of all the Board Beginning with the scheduling of all the Board

meetings for the yearmeetings for the year• Ending with a discussion of the disclosable Ending with a discussion of the disclosable

public records produced in the hearing processpublic records produced in the hearing process Provides that Part 5 applies to all of the Provides that Part 5 applies to all of the

Board’s programs, but that the more specific Board’s programs, but that the more specific provisions of Part 4 take precedentprovisions of Part 4 take precedent

General Board Hearing General Board Hearing ProceduresProceduresScheduling of Board Hearings, Scheduling of Board Hearings, Article 2Article 2This article is separated into 3 chapters:This article is separated into 3 chapters: Chapter 1 provides for the adoption of Chapter 1 provides for the adoption of

the Board’s meeting calendar for the the Board’s meeting calendar for the yearyear

Chapter 2 explains how cases are Chapter 2 explains how cases are scheduled for an oral hearing and how scheduled for an oral hearing and how a scheduled case may be dismissed, a scheduled case may be dismissed, deferred or postponeddeferred or postponed

General Board Hearing General Board Hearing ProceduresProceduresBoard Hearings, Article 2Board Hearings, Article 2Chapter 3 provides the following:Chapter 3 provides the following: Identifies the 3 main pre-hearing documents:Identifies the 3 main pre-hearing documents:

• Power of attorney formPower of attorney form• Contribution disclosure formContribution disclosure form• Hearing summaryHearing summary

Information needed to prepare for the Information needed to prepare for the hearinghearing

Describes the nature of the hearingDescribes the nature of the hearing Allocates time and the presentation of Allocates time and the presentation of

evidence at the hearingevidence at the hearing

General Board Hearing General Board Hearing ProceduresProceduresCommunication with Board Members, Communication with Board Members, §5015.1§5015.1Section 5015.1 implements the Board Section 5015.1 implements the Board Members’ intent to be accessible to their Members’ intent to be accessible to their constituents, their subordinates, and other constituents, their subordinates, and other governmental agencies at all times and governmental agencies at all times and states that:states that:

““[S]uch persons and their authorized [S]uch persons and their authorized representatives, including members of therepresentatives, including members of the

State Bar, may contact Board MembersState Bar, may contact Board Membersat any time, including while a case orat any time, including while a case or

controversy involving such personcontroversy involving such personis pending before the Board.”is pending before the Board.”

General Board Hearing General Board Hearing ProceduresProceduresPreparation for Board Meetings, Preparation for Board Meetings, Article 3Article 3Article 3 of Part 5:Article 3 of Part 5: Explains how the Board prepares its Explains how the Board prepares its

agenda for a Board meetingagenda for a Board meeting Includes a requirement that theIncludes a requirement that the

Public Agenda Notice be issued at leastPublic Agenda Notice be issued at least10-days prior to the applicable meeting10-days prior to the applicable meeting

General Board Hearing General Board Hearing ProceduresProceduresParticipating in Board Hearings, Participating in Board Hearings, Article 4Article 4Article 4:Article 4: Identifies the time that participants should arrive Identifies the time that participants should arrive

for their oral hearingsfor their oral hearings Explains how to:Explains how to:

• Sign-in for a hearingSign-in for a hearing• Submit additional exhibits Submit additional exhibits • Register witnessesRegister witnesses

Emphasizes the need to submit completed Emphasizes the need to submit completed contributions disclosure forms before the hearingcontributions disclosure forms before the hearing

Indicates that the TRA staff will be available to Indicates that the TRA staff will be available to assist tax and fee payers at the hearingassist tax and fee payers at the hearing

General Board Hearing General Board Hearing ProceduresProceduresConducting Board Hearings, Article Conducting Board Hearings, Article 55 Article 5 identifies the laws applicable Article 5 identifies the laws applicable

to the conduct of a Board meetingto the conduct of a Board meeting It explains:It explains:

• How the Chair calls meetings to orderHow the Chair calls meetings to order• Cases are called in the order provided in Cases are called in the order provided in

the Public Agenda Noticethe Public Agenda Notice• General order of each hearingGeneral order of each hearing• That members of the public may address That members of the public may address

the Board on any agenda itemthe Board on any agenda item

General Board Hearing General Board Hearing ProceduresProceduresQuorum & Motion Requirements, Quorum & Motion Requirements, Article 6Article 6Article 6 requires:Article 6 requires: That at least 3 Board Members That at least 3 Board Members

(quorum) be present for the Board to (quorum) be present for the Board to render a decisionrender a decision

It prescribes:It prescribes:• the form of motions the form of motions • motions are passed or defeated based motions are passed or defeated based

upon the vote of the majority of Board upon the vote of the majority of Board Members participating in the voteMembers participating in the vote

• the procedures for reopening a prior votethe procedures for reopening a prior vote

General Board Hearing General Board Hearing ProceduresProceduresNotification of Decisions, Article 7Notification of Decisions, Article 7This article prescribes:This article prescribes: Procedures by which the Board will Procedures by which the Board will

notify the parties of its decision and notify the parties of its decision and explains when that decision becomes explains when that decision becomes finalfinal

Procedures applicable to:Procedures applicable to:• the filing of a petition for rehearingthe filing of a petition for rehearing• the Board’s action on the petitionthe Board’s action on the petition• holding a new hearing when grantedholding a new hearing when granted

General Board Hearing General Board Hearing ProceduresProceduresDocuments & Disclosable Information, Documents & Disclosable Information, Article 8Article 8Article 8 contains:Article 8 contains: The Board Proceedings Division’s The Board Proceedings Division’s

mailing address for correspondencemailing address for correspondence Timeliness of documents Timeliness of documents Two sets of alternative provisions Two sets of alternative provisions

governing governing publicly disclosable publicly disclosable informationinformation relevant to relevant toBoard hearingsBoard hearings

General Board Hearing General Board Hearing ProceduresProceduresDisclosure Alternative 1Disclosure Alternative 1 Section 5033 contains provisions that are Section 5033 contains provisions that are

similar to the Board’s current policy regarding similar to the Board’s current policy regarding disclosure disclosure

The minutes and transcript from an oral The minutes and transcript from an oral hearing, and exhibits officially incorporated into hearing, and exhibits officially incorporated into the hearing record are disclosable public the hearing record are disclosable public recordsrecords

Documents distributed to Board Members for Documents distributed to Board Members for discussion and consideration at the hearing are discussion and consideration at the hearing are also disclosable public records, unless their also disclosable public records, unless their disclosure is prohibited by lawdisclosure is prohibited by law

General Board Hearing General Board Hearing ProceduresProceduresDisclosure Alternative 2Disclosure Alternative 2 The Second Alternative, found in sections The Second Alternative, found in sections

5033-5033.3, contains much more 5033-5033.3, contains much more detailed rules providing for the detailed rules providing for the broaderbroader disclosure of information relating to disclosure of information relating to Board hearingsBoard hearings

Section 5033 (Second Alternative) Section 5033 (Second Alternative) provides that minutes and transcripts, as provides that minutes and transcripts, as well as documents officially incorporated well as documents officially incorporated into the hearing record, are disclosable into the hearing record, are disclosable public recordspublic records

General Board Hearing General Board Hearing ProceduresProceduresDisclosure Alternative 2Disclosure Alternative 2Section 5033.1 (Second Alternative) provides Section 5033.1 (Second Alternative) provides

for increased disclosure by stating that:for increased disclosure by stating that:Tax and fee payers who request oral hearings Tax and fee payers who request oral hearings

before the Board waive their right to before the Board waive their right to confidentiality with regard to information confidentiality with regard to information that is that is directly relevantdirectly relevant to the issues to be to the issues to be discussed and decided at their oral hearingsdiscussed and decided at their oral hearings

Exceptions: certain personal information, Exceptions: certain personal information, irrelevant portions of tax returns, and irrelevant portions of tax returns, and information exempt from disclosure under information exempt from disclosure under section 5033.2section 5033.2

General Board Hearing General Board Hearing ProceduresProceduresDisclosure Alternative 2Disclosure Alternative 2 The waiver provided for in section 5033.1 The waiver provided for in section 5033.1

becomes effective on the date the Board becomes effective on the date the Board issues the first Public Agenda Notice issues the first Public Agenda Notice scheduling the tax or fee payer’s case for a scheduling the tax or fee payer’s case for a hearinghearing

The tax or fee payer may prevent disclosure The tax or fee payer may prevent disclosure by requesting that certain harmful by requesting that certain harmful information be protected from disclosure information be protected from disclosure pursuant to section 5033.2, or by waiving its pursuant to section 5033.2, or by waiving its right to an oral hearingright to an oral hearing

General Board Hearing General Board Hearing ProceduresProceduresDisclosure Alternative 2Disclosure Alternative 2 Section 5033.2 (Second Alternative) Section 5033.2 (Second Alternative)

permits tax and fee payer’s to request permits tax and fee payer’s to request that certain harmful information remain that certain harmful information remain confidentialconfidential

Requests must be submitted by the due Requests must be submitted by the due date for the tax or fee payer’s response date for the tax or fee payer’s response to its notice of hearingto its notice of hearing

Requires the Board to decide such Requires the Board to decide such requests at least 5 days prior to the requests at least 5 days prior to the issuance of the Public Agenda Noticeissuance of the Public Agenda Notice

ConclusionConclusion This concludes the introduction of the This concludes the introduction of the

Proposed Board of Equalization Rules for Proposed Board of Equalization Rules for California Tax Administration and Appellate California Tax Administration and Appellate ReviewReview

The Board has not yet made any decisions The Board has not yet made any decisions as to whether it will adopt any of these as to whether it will adopt any of these proposed rulesproposed rules

No decision will be made and the formal No decision will be made and the formal rule making process will not begin until rule making process will not begin until after the Board has received public inputafter the Board has received public input

ConclusionConclusion In just a few moments, it is anticipated In just a few moments, it is anticipated

that the Chair will invite public comment that the Chair will invite public comment ononPart 5, General Board Hearing ProceduresPart 5, General Board Hearing Procedures

The Board will also hold additional Board The Board will also hold additional Board Meetings or interested parties meetings Meetings or interested parties meetings on the following dates to receive public on the following dates to receive public comments on the other parts as comments on the other parts as indicated:indicated:

Future MeetingsFuture MeetingsDates and TopicsDates and Topics October 2005: Part 2, Business Taxes and October 2005: Part 2, Business Taxes and

FeesFees November 2005: Part 3, Property TaxesNovember 2005: Part 3, Property Taxes December 2005: Part 4, Appeals from December 2005: Part 4, Appeals from

Actions of the Franchise Tax Board, and Actions of the Franchise Tax Board, and Part 5, General Board Hearing Procedures Part 5, General Board Hearing Procedures (Combined)(Combined)

See HandoutSee Handout

Additional InformationAdditional InformationOn the BOE Web SiteOn the BOE Web Site

Current information on this project and Current information on this project and contact information is on the Board’s contact information is on the Board’s Web site at: Web site at:

www.boe.ca.gov/regs/timelineCAtax.htmwww.boe.ca.gov/regs/timelineCAtax.htm