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Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
Introduction and Overview
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Introduction and Overview

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  • 1. Board of Equalization Rules for California Tax Administration and Appellate Review Introduction & Overview
  • 2. 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 the Business 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:
  • 3. Intent of the Proposed Rules Transparency 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
  • 4. Increasing Transparency These 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
  • 5. Reorganization of the Board’s Procedures Will 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
  • 6. Improving Responsiveness to the Public Proposed 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
  • 7. Organization of the Proposed Rules For Discussion Purposes the Proposed Rules are Divided into Five Parts:
    • Part 1, Statement of Intent; Title
    • Part 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 Actions
    • Part 5, General Board Hearing Procedures
  • 8. Organization of the Proposed Rules The 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
  • 9. Statement of Intent Part 1
    • Part 1 contains the Board’s Statement of Intent
    • for the proposed rules and provides that:
    • Tax collection is the most sensitive point of contact between citizens and their government; and
    • Access to government officials, along with clear, well organized, and understandable procedures will promote a positive relationship between citizens and their government
  • 10. Statement of Intent Part 1
    • The Proposed Rules also :
    • Declare that it is imperative for the Board Members to remain accessible to their constituents, subordinates, and other governmental agencies at all times
    • Provide comprehensive procedures for all of the Board’s administrative and appellate review processes
    • Address specific concerns raised with regard to:
      • Issuance of decisions;
      • Publication of opinions; and
      • Nature of Board hearings
  • 11. Review of Sales and Use Taxes, Timber Yield Tax, and Special Taxes and Fees (Business Taxes and Fees) Part 2
    • This part contains the procedures governing the administrative review of Business Taxes and Fees
    • Article 1 provides that Part 2 governs all:
      • Petitions for redetermination,
      • Late protests,
      • Applications for administrative review, and
      • Claims for refund
    • Part 2 applies to all requests for relief under the following taxes and fees:
  • 12. Business Taxes and Fees Part 2
    • Sales and Use Tax
    • Motor Vehicle Fuel Tax
    • Use Fuel Tax
    • Tax on Insurers
    • Cigarette and Tobacco Products Tax
    • Alcoholic Beverages Tax
    • Timber Yield Tax
    • Emergency Resources Surcharges
    • Emergency Telephone Users Surcharges
    • Hazardous Substance Tax
    • Integrated Waste Management Fee
    • Oil Spill Response, Prevention, and Administration Fees
    • Underground Storage Tank Maintenance Fee
    • Diesel Fuel Tax
  • 13. Business Taxes and Fees Part 2 Also Covers Procedures For These Fees:
    • Covered Electronic Waste Recycling Fee
    • Tire Recycling Fee
    • Marine Invasive Species Fee
    • Natural Gas Surcharge
    • Water Rights Fee
  • 14. Business Taxes and Fees Petitions for Redetermination, Article 2A:
    • This Article:
    • Identifies who may file a petition
    • Provides the applicable statute of limitation
    • Prescribes the contents of the petition
    • Provides the appropriate addresses for filing petitions
    • Explains how petitions will be reviewed by the appropriate section or group prior to any appeals conference
  • 15. Business Taxes and Fees Article 2A Also Addresses:
    • Petitioners’ ability to amend their petitions;
    • Continuing accrual of interest;
    • Scope of petitions filed under these programs:
      • Hazardous Substances Tax Law
      • Childhood Lead Poisoning Prevention Fee
      • Covered Electronic Waste Recycling Fee
      • Water Rights Fee Law
  • 16. Business Taxes and Fees Late Protests, Article 2B
    • Article 2B provides for the Board’s discretion to treat an untimely petition as a late protest
    • Provides that late protests will be reviewed in accordance with Article 2A
    • Except, however, that the Board will retain discretion as to whether to provide an appeals conference or oral hearing before the Board
  • 17. Business Taxes and Fees Jeopardy Determinations, Article 2C
    • Article 2C prescribes the contents of Petitions for Redetermination and Applications for Administrative Review of Jeopardy Determinations, and applicable statute of limitation
    • It prescribes the scope of applications for administrative review, and explains the review process
    • It explains the need to make a security deposit with the Board to prevent the seizure and sale of property
  • 18. Business Taxes and Fees Claims for Refund, Article 3
    • Article 3 establishes the following:
    • Identifies those persons who may file a claim
    • Provides the statute of limitation for filing
    • Explains the effect of failing to file a timely claim (waiver of rights)
    • Prescribes the contents of a complete claim
  • 19. Business Taxes and Fees Claims for Refund, Article 3
    • Article 3 also:
    • Provides the addresses for mailing claims
    • Describes the process for reviewing claims
    • Explains that the Board may credit or offset overpayments
    • Defines the scope of claims filed under the Motor Vehicle Fuel Tax Law, Hazardous Substances Tax Law, Covered Electronic Waste Recycling Fee, and the Water Rights Fee Law
  • 20. Business Taxes and Fees Innocent Spouse & Equitable Relief, Article 4A
    • Identifies those eligible for innocent spouse relief
    • Prescribes the contents of a request for innocent spouse relief
    • Provides the address for mailing requests
    • Explains the Board’s process for reviewing innocent spouse relief requests
  • 21. Business Taxes and Fees Successors’ Relief of Penalties, Article 4B
    • Under Article 4B successors may request relief from penalties imposed on their predecessors pursuant to the Sales and Use Tax Law
    • A successor’s request for relief may be included in the successor’s petition for redetermination, if any
    • All such requests are required to include a written statement signed under penalty of perjury stating the facts upon which the request for relief is based
  • 22. Business Taxes and Fees Other Requests for Relief of Penalties, Article 4C
    • Reasonable cause
    • Unreasonable error or delay
    • Reasonable reliance on written advice from the Board
    • Disaster
  • 23. Business Taxes and Fees Distribution of Local Taxes, Article 5
    • Addressing claims of incorrect or non-
    • distribution of local tax, Article 5 generally
    • incorporates the Board’s current procedures
    • contained in California Code of Regulations,
    • title 18, section 1807
  • 24. Business Taxes and Fees Appeals Conferences, Article 6
    • This article addresses:
    • Scheduling of an appeals conference
    • Functions of the Appeals Division
    • Submitting evidence to the Appeals Division
    • Prescribes those persons present at an appeals conference
    • How to postpone and reschedule conferences
    • How to expedite the appeals conference
  • 25. Business Taxes and Fees Appeals Conferences, Article 6
    • Article 6 also:
    • Prescribes the contents of decisions and recommendations issued by the Appeals Division
    • Explains that Board staff cannot request an oral hearing before the Board to contest a decision and recommendation favorable to a tax or fee payer
  • 26. Administrative Review of Property Taxes Part 3
    • Article 1 of Part 3 addresses petitions for reassessment of state-assessed property and private railroad cars
    • Board documents and underlying data will be available to state assessees annually after May 31 st
    • Prescribes the hearings procedures applicable to assessment factors
  • 27. Property Taxes Petitions for Reassessment of State-assessed Property
    • Article 1 also:
    • Provides the statute of limitation applicable to state assessees’ petitions
    • Prescribes each petition’s contents
    • Sets forth the Board’s entire review process, including briefing
    • Explains that the Board will not reconsider or rehear such petitions after it has reached a decision
  • 28. Property Taxes Petitions for Equalization of Gov’t-Owned Property
    • Article 2 addresses petitions for review, equalization, and adjustment of assessments of publicly-owned property
      • Property assessed pursuant to Article XIII, §11, subdivision (g) of the California Constitution
    • Provides the applicable statute of limitation and prescribes the contents of petitions for review
  • 29. Property Taxes Petitions for Equalization of Gov’t-Owned Property
    • Article 2 also:
    • Provides procedures for the county assessor to answer the petition
    • Explains that the Appeals Division will conduct a pre-hearing conference to clarify and focus the issues for Board Hearing
    • Guarantees access to information on Board assessed property to both the applicant and the county assessor
  • 30. Property Taxes Welfare Exemption Appeals, Article 3
    • Article 3 addresses:
    • Petitions appealing Welfare Exemption ineligibility findings
      • Filed pursuant to Rev. & Tax. Code §254.6, and
      • Petitions appealing a denial of a supplemental clearance certificate requested pursuant to subdivision (g) of Rev. & Tax. Code §214
  • 31. Property Taxes Welfare Exemption Appeals, Article 3
    • Article 3 also:
    • Identifies the applicable statue of limitation
    • Prescribes the contents of petitions
    • Requires a pre-hearing conference with the petitioner to clarify facts and issues in dispute
    • Prescribes the briefing schedule
    • Lists the hearing documents to be distributed to the parties, and
    • Provides that the Board’s decisions are final
  • 32. Property Taxes County Assessment Samples, Article 4
    • Article 4 addresses the Board’s property tax assessment sampling program (Gov. Code §15640)
    • Provides the statute of limitation applicable to county assessors’ petitions appealing appraisals made by the Board’s County Property Tax Division, and
    • Prescribes the contents of such petitions
  • 33. Property Taxes County Assessment Samples, Article 4
    • This review process includes:
    • Acknowledgement of the petition
    • A pre-hearing conference
    • Briefing of the issues by the Legal Department and petitioner
    • Preparation of a hearing summary by the Appeals Division, and an
    • Oral hearing before the Board
  • 34. Appeals of Franchise Tax Board Actions Statement of Jurisdiction, Part 4, Article 1
    • This article provides a clear and concise statement of the Board’s jurisdiction regarding:
      • Notices of action
      • Notices of determination not to abate interest
      • Notices granting or denying innocent spouse relief
      • Notices denying a claim for assistance under the Senior Citizens Homeowners and Renters Property Tax Assistance Law
    • Jurisdiction also arises if the Franchise Tax Board fails to act on a claim within 6 months
  • 35. Appeals of Franchise Tax Board Actions Contents & Timing of Appeals, Article 2
    • Article 2:
    • Prescribes the contents of an appeal from the actions of the Franchise Tax Board
    • Delegates authority to the Chief of Board Proceedings to grant appellants additional time to perfect incomplete appeals
    • Establishes the time period in which to file a timely appeal
  • 36. Appeals of Franchise Tax Board Actions Briefing Process, Article 3
    • Article 3 describes the briefing process and the
    • following briefing schedules:
    • General (or default) schedule
    • Innocent spouse appeals schedule
      • Including participation by the non-appealing spouse
    • Homeowners’ and Renters Property Tax Assistance appeals schedules
    • New, streamlined elective briefing schedule applicable to appeals where the amount at issue is not more than $5,000 (including tax, penalties, fees and paid interest)
  • 37. Appeals of Franchise Tax Board Actions Requests for Oral Hearing, Article 4
    • Requires written requests for an oral hearing before the Board
    • Creates a new procedure allowing the Appeals Division to request additional briefing
    • Requires the Appeals Division to submit a hearing summary 30 days before an oral hearing
  • 38. Appeals of Franchise Tax Board Actions Issuance of Board Decisions, Article 5
    • Letter Decisions
      • Non-precedential
      • Provides a short explanation of the decision
    • Summary Decisions
      • Non-precedential
      • Sets forth findings of fact and conclusions of law
    • Formal Opinions
      • Creates Precedent
      • Sets forth findings of fact and conclusions of law
    • Dissenting Opinions
      • Containing a Board Member’s rationale for opposing the adoption of a Formal Opinion
  • 39. Appeals of Franchise Tax Board Actions Finality of Decisions, Article 6
    • Article 6 addresses:
    • Finality of decisions
    • Board’s authority to hold decisions in abeyance before they become final
    • Prescribes the procedures for submitting and responding to a petition for rehearing, and
    • Establishes the grounds for granting such a petition
  • 40. General Board Hearing Procedures Part 5
    • This part of the Proposed Rules:
    • Reorganizes the Board’s hearing procedures into a chronological order
      • Beginning with the scheduling of all the Board meetings for the year
      • Ending with a discussion of the disclosable public records produced in the hearing process
    • Provides that Part 5 applies to all of the Board’s programs, but that the more specific provisions of Part 4 take precedent
  • 41. General Board Hearing Procedures Scheduling of Board Hearings, Article 2
    • This article is separated into 3 chapters:
    • Chapter 1 provides for the adoption of the Board’s meeting calendar for the year
    • Chapter 2 explains how cases are scheduled for an oral hearing and how a scheduled case may be dismissed, deferred or postponed
  • 42. General Board Hearing Procedures Board Hearings, Article 2
    • Chapter 3 provides the following:
    • Identifies the 3 main pre-hearing documents:
      • Power of attorney form
      • Contribution disclosure form
      • Hearing summary
    • Information needed to prepare for the hearing
    • Describes the nature of the hearing
    • Allocates time and the presentation of evidence at the hearing
  • 43. General Board Hearing Procedures Communication with Board Members, §5015.1
    • Section 5015.1 implements the Board Members’ intent to be accessible to their constituents, their subordinates, and other governmental agencies at all times and states that:
    • “ [S]uch persons and their authorized representatives, including members of the State Bar, may contact Board Members at any time, including while a case or controversy involving such person is pending before the Board.”
  • 44. General Board Hearing Procedures Preparation for Board Meetings, Article 3
    • Article 3 of Part 5:
    • Explains how the Board prepares its agenda for a Board meeting
    • Includes a requirement that the Public Agenda Notice be issued at least 10-days prior to the applicable meeting
  • 45. General Board Hearing Procedures Participating in Board Hearings, Article 4
    • Article 4:
    • Identifies the time that participants should arrive for their oral hearings
    • Explains how to:
      • Sign-in for a hearing
      • Submit additional exhibits
      • Register witnesses
    • Emphasizes the need to submit completed contributions disclosure forms before the hearing
    • Indicates that the TRA staff will be available to assist tax and fee payers at the hearing
  • 46. General Board Hearing Procedures Conducting Board Hearings, Article 5
    • Article 5 identifies the laws applicable to the conduct of a Board meeting
    • It explains:
      • How the Chair calls meetings to order
      • Cases are called in the order provided in the Public Agenda Notice
      • General order of each hearing
      • That members of the public may address the Board on any agenda item
  • 47. General Board Hearing Procedures Quorum & Motion Requirements, Article 6
    • Article 6 requires:
    • That at least 3 Board Members (quorum) be present for the Board to render a decision
    • It prescribes:
      • the form of motions
      • motions are passed or defeated based upon the vote of the majority of Board Members participating in the vote
      • the procedures for reopening a prior vote
  • 48. General Board Hearing Procedures Notification of Decisions, Article 7
    • This article prescribes:
    • Procedures by which the Board will notify the parties of its decision and explains when that decision becomes final
    • Procedures applicable to:
      • the filing of a petition for rehearing
      • the Board’s action on the petition
      • holding a new hearing when granted
  • 49. General Board Hearing Procedures Documents & Disclosable Information, Article 8
    • Article 8 contains:
    • The Board Proceedings Division’s mailing address for correspondence
    • Timeliness of documents
    • Two sets of alternative provisions governing publicly disclosable information relevant to Board hearings
  • 50. General Board Hearing Procedures Disclosure Alternative 1
    • Section 5033 contains provisions that are similar to the Board’s current policy regarding disclosure
    • The minutes and transcript from an oral hearing, and exhibits officially incorporated into the hearing record are disclosable public records
    • Documents distributed to Board Members for discussion and consideration at the hearing are also disclosable public records, unless their disclosure is prohibited by law
  • 51. General Board Hearing Procedures Disclosure Alternative 2
    • The Second Alternative, found in sections 5033-5033.3, contains much more detailed rules providing for the broader disclosure of information relating to Board hearings
    • Section 5033 (Second Alternative) provides that minutes and transcripts, as well as documents officially incorporated into the hearing record, are disclosable public records
  • 52. General Board Hearing Procedures Disclosure Alternative 2
    • Section 5033.1 (Second Alternative) provides for increased disclosure by stating that:
    • Tax and fee payers who request oral hearings before the Board waive their right to confidentiality with regard to information that is directly relevant to the issues to be discussed and decided at their oral hearings
    • Exceptions: certain personal information, irrelevant portions of tax returns, and information exempt from disclosure under section 5033.2
  • 53. General Board Hearing Procedures Disclosure Alternative 2
    • The waiver provided for in section 5033.1 becomes effective on the date the Board issues the first Public Agenda Notice scheduling the tax or fee payer’s case for a hearing
    • The tax or fee payer may prevent disclosure by requesting that certain harmful information be protected from disclosure pursuant to section 5033.2, or by waiving its right to an oral hearing
  • 54. General Board Hearing Procedures Disclosure Alternative 2
    • Section 5033.2 (Second Alternative) permits tax and fee payer’s to request that certain harmful information remain confidential
    • Requests must be submitted by the due date for the tax or fee payer’s response to its notice of hearing
    • Requires the Board to decide such requests at least 5 days prior to the issuance of the Public Agenda Notice
  • 55. Conclusion
    • This concludes the introduction of the Proposed Board of Equalization Rules for California Tax Administration and Appellate Review
    • The Board has not yet made any decisions as to whether it will adopt any of these proposed rules
    • No decision will be made and the formal rule making process will not begin until after the Board has received public input
  • 56. Conclusion
    • In just a few moments, it is anticipated that the Chair will invite public comment on Part 5, General Board Hearing Procedures
    • The Board will also hold additional Board Meetings or interested parties meetings on the following dates to receive public comments on the other parts as indicated:
  • 57. Future Meetings Dates and Topics
    • October 2005: Part 2, Business Taxes and Fees
    • November 2005: Part 3, Property Taxes
    • December 2005: Part 4, Appeals from Actions of the Franchise Tax Board, and Part 5, General Board Hearing Procedures (Combined)
    • See Handout
  • 58. Additional Information On the BOE Web Site
    • Current information on this project and contact information is on the Board’s Web site at:
    • www.boe.ca.gov/regs/timelineCAtax.htm

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