California State Board of Equalization RULES FOR TAX APPEALS of the STATE BOARD OF EQUALIZATION January 2022 | Publication 310 LDA BOARD MEMBERS TED GAINES MALIA M. COHEN ANTONIO VAZQUEZ MIKE SCHAEFER BETTY T. YEE EXECUTIVE DIRECTOR First District Second District Third District Fourth District State Controller BRENDA FLEMING Sacramento San Francisco Santa Monica San Diego RULES FOR TAX APPEALS of the STATE BOARD OF EQUALIZATION The Board's Rules for Tax Appeals are the hearing procedures applicable to the tax programs administered by the Board, which include Property Taxes, the Alcoholic Beverage Tax, and the Tax on Insurers. January 2022 Board Proceedings Division RULES FOR TAX APPEALS OF THE STATE BOARD OF EQUALIZATION TABLE OF CONTENTS SECTION PAGE CHAPTER 1: TITLE OF DIVISION .........................................................................................1 5000. Statement of Intent; Title of Division ........................................................................................1 CHAPTER 2. SPECIAL TAXES AND FEES ...........................................................................2 ARTICLE 1. APPLICATION OF CHAPTER 2 ............................................................................................2 5200. Application of Chapter 2. ..........................................................................................................2 5202. Notice Requirements ................................................................................................................2 ARTICLE 2A. PETITIONING NOTICES OF DETERMINATION AND NOTICES OF DEFICIENCY ASSESSMENT ...............................................................................................3 5210. Persons Who May File Petitions for Redetermination ..............................................................3 5211. Limitation Period for Filing Petitions and Stay of Collection Activities. ...................................3 5212. Contents of a Petition for Redetermination ..............................................................................4 5212.5. Amendments to Petitions for Redetermination ........................................................................5 5213. Accrual of Interest ....................................................................................................................5 5214. Additional Copy of Petitions for Redetermination Filed Under the Tax on Insurers Law. .................................................................................................................6 5216. Filing Petitions for Redetermination .........................................................................................6 5217. Acknowledgment of Petitions for Redetermination. .................................................................7 5218. Review of the Petition by the Assigned Section. ......................................................................7 5219. Preparation and Mailing of the Summary Analysis ..................................................................9 ARTICLE 2B. TREATMENT OF PREMATURE OR UNTIMELY PETITION AS AN ADMINISTRATIVE PROTEST .............................................................................................10 5220. Premature or Untimely Petition May Be Treated as an Administrative Protest .............................................................................................................10 5220.4. Accrual of Interest ...................................................................................................................11 5220.6. No Stay of Collection Activities ...............................................................................................11 ARTICLE 2C. CONTESTING A JEOPARDY DETERMINATION ..............................................................12 5221. Notice of Jeopardy Determination ..........................................................................................12 5222. Filing a Petition for Redetermination of a Jeopardy Determination ........................................12 5222.4. Contents of Petition for Redetermination of Jeopardy Determination ....................................13 5222.6. Limitation Period for Petition for Redetermination of Jeopardy Determination ..........................................................................................................13 5223. Security Requirement for Petition ...........................................................................................14 5224. Review of Petition for Redetermination of Jeopardy Determination .......................................14 Table of Contents — i — State Board of Equalization: Rules for Tax Appeals SECTION PAGE 5225. Person Who May File an Application for Administrative Hearing; Manner of Filing; and Consolidation with Petition ...................................................................15 5226. Limitation Period for Filing Application for Administrative Hearing. ........................................15 5227. Contents of Application for Administrative Hearing. ...............................................................16 5228. Option to Post Security with Application for Administrative Hearing .....................................16 5229. Assignment of Application for Administrative Hearing to Appeals Attorney for Appeals Conference ............................................................................................17 ARTICLE 3. CLAIMS FOR REFUND .....................................................................................................18 5230. Persons Who May File a Claim for Refund; Limitations on Certain Claims .........................................................................................................................18 5231. Limitation Period for Claim for Refund ....................................................................................18 5231.5. Failure to File Timely Claim for Refund ....................................................................................19 5232. General Contents of Claims for Refund .................................................................................20 5232.6. Requirements for Claims for Refund Regarding Lost, Unmarketable or Condemned Alcoholic Beverages ......................................................................................21 5233. Filing Claims for Refund. ........................................................................................................21 5234. Assignment and Acknowledgment of Claim or Refund .........................................................21 5234.5. Review Process for Claims for Refund and Requests for Additional Information ............................................................................................................22 5235. Action on the Claim for Refund ..............................................................................................22 5236. Discretion to Grant or Deny Appeals Conferences and Oral Hearings on Claims for Refunds.............................................................................................23 5237. Chief Deputy Director Approval Required for Refunds Over $100,000 .................................24 5238. Credits and Offsets May Reduce Refunds.............................................................................25 ARTICLE 4A: REQUESTS FOR INNOCENT SPOUSE RELIEF ...............................................................25 5240. Persons Who May File, Contents of, and Manner of Filing Requests for Innocent Spouse Relief ..........................................................................................................25 5241. Acknowledgement and Review of Requests for Innocent Spouse Relief ..........................................................................................................................27 5242. Requests for Reconsideration by the Board ..........................................................................27 ARTICLE 4C: OTHER REQUESTS FOR RELIEF OF PENALTIES AND INTEREST ...............................28 5244. No Independent Right to Oral Board Hearing on a Request for Relief; Applicable Procedures for Requests Included In Petitions or Claims; and Association with Related Petitions or Claims ..................................................................28 5245. Authority to Grant Relief for Reasonable Cause and Contents of Requests for Relief for Reasonable Cause ........................................................................29 5246. Authority to Grant Relief Due to Unreasonable Error or Delay and Contents of Requests for Relief Due to Unreasonable Error or Delay. ..................................................................................................................................29 Table of Contents — ii — State Board of Equalization: Rules for Tax Appeals SECTION PAGE 5247. Authority to Grant Relief Due to Reasonable Reliance on Written Advice and Contents of Requests for Relief Due to Reasonable Reliance on Written Advice ...................................................................................................................30 5248. Authority to Grant Relief Due to Disaster and Contents of Requests for Relief Due to Disaster. ............................................................................................................31 5249. Filing Requests for Relief ........................................................................................................32 5249.4. Assignment and Acknowledgement of Requests for Relief ...................................................32 5249.6. Reviewing Requests for Relief ................................................................................................33 ARTICLE 6: APPEALS CONFERENCES ...............................................................................................34 5260. Referral to Appeals Attorney for Appeals Conference; Location for Appeals Conference. ..............................................................................................................34 5261. Notice of Appeals Conference: Response to Notice of Appeals Conference; Submission of Additional Arguments and Evidence; Recording Appeals Conferences ...........................................................................................34 5262. Requests to Reschedule or Postpone Appeals Conferences ................................................35 5263. Ways to Expedite an Appeals Conference .............................................................................36 5264. Conducting the Appeals Conference; Parties to the Appeals Conference; Nature of the Appeals Conference; Additional Submissions ..........................................................................................................37 5265. Issuance and Contents of a Decision and Recommendation. ...............................................38 5266. Appeals Attorney Recommendations; Requests for Reconsideration; Requests for Board Hearings; Supplemental Decision and Recommendation. ............................................................................................39 5267. Issuance of Post Appeals Conference Notices; Board Approval ..........................................40 5268. Procedures for Conducting Board Hearings ..........................................................................42 ARTICLE 7: OPTIONAL BRIEFS FOR BOARD HEARINGS ..................................................................42 5270. Requirements for Briefs; Briefing Schedule; Non-Party Briefs; Additional Briefing ..................................................................................................................42 5271. Extensions of Time for Filing Briefs ........................................................................................43 CHAPTER 3: PROPERTY TAXES ........................................................................................45 ARTICLE 1: APPLICATION OF CHAPTER AND DEFINITIONS ...........................................................45 5310. Application of Chapter ............................................................................................................45 5311. Definitions ...............................................................................................................................45 5312. Application of Articles 2, 3, and 4 ...........................................................................................47 ARTICLE 2: PETITIONS FOR REASSESSMENT OF STATE-ASSESSED PROPERTY AND PRIVATE RAILROAD CARS .................................................................47 Subarticle 1. Application of Article .....................................................................................................47 5321. Application of Article. ..............................................................................................................47 Subarticle 2. Assessments and Assessment Factor Hearings .......................................................47 5322. Information Available to Assessees; Assessment Factor Hearings ........................................47 Table of Contents — iii — State Board of Equalization: Rules for Tax Appeals SECTION PAGE 5322.5. Validity of Assessment ...........................................................................................................48 Subarticle 3. Contents of Petitions and Filing Deadlines ................................................................48 5323. Time for Filing of Petitions ......................................................................................................48 5323.2. Filing Requirements and Procedures for Contesting Private Railroad Car Jeopardy Assessments .....................................................................................49 5323.4. Contents of the Petition ..........................................................................................................49 5323.6. Submission of Petition ............................................................................................................50 5323.8. Duplicate Petitions ..................................................................................................................50 Subarticle 4. Timeliness, Acceptance, and Dismissal of Petitions ................................................50 5324. Timeliness of Petition..............................................................................................................50 5324.2. Extensions of Time ..................................................................................................................51 5324.4. Accepting or Rejecting a Petition ............................................................................................51 5324.6. Submission of Additional Supporting Documents by Petitioner .............................................51 5324.8. Dismissal of Petition ...............................................................................................................52 Subarticle 5. Prehearing Meetings and Review of Petitions ..........................................................52 5325. Prehearing Meeting and Exchange of Information Between State-Assessed Properties Division, Legal Unit, and Petitioner ............................................52 5325.4. Petitions Resolved Before Appeals Attorney Review .............................................................52 5325.6. Prehearing Review of All Other Petitions ................................................................................52 Subarticle 6. Briefing Schedules and Appeals Conferences ..........................................................53 5326. General Briefing Procedures for Petitions Reviewed by the Appeals Attorney ..............................................................................................................53 5326.2. Briefing Schedule if No Appeals Conference is Scheduled ...................................................53 5326.4. General Appeals Conference Procedures..............................................................................54 5326.6. Scheduling of Appeals Conferences; Briefing Schedule for Petitions for Which an Appeals Conference is Scheduled....................................................................55 Subarticle 7. Preparing Summaries, Scheduling Hearings, and Distributing Documents ..........55 5327. Appeals Attorney Hearing Summary or Summary Decision ..................................................55 5327.4. Oral Hearings – Scheduling of Hearings ................................................................................55 5327.6. Distribution of Documents ......................................................................................................56 Subarticle 8. Consolidation and Withdrawal of Petitions ................................................................56 5328. Consolidation of Petitions into a Single Hearing ....................................................................56 5328.5. Withdrawal of a Petition ..........................................................................................................56 ARTICLE 3: OTHER PROPERTY TAX PETITIONS................................................................................57 Subarticle 1. Application of Article .....................................................................................................57 5331. Application of Article ..............................................................................................................57 Table of Contents — iv — State Board of Equalization: Rules for Tax Appeals SECTION PAGE Subarticle 2. Appeal of Assessment of Publicly-Owned Property – Contents of Applications, Filing Deadlines, and Board-Appraised Property ..............................57 5332. Time of Filing of Application ...................................................................................................57 5332.4. Contents of Application ..........................................................................................................58 5332.6. Filing of Application and Board–Appraised Property ............................................................58 Subarticle 3. Contents of Property Tax Welfare and Veterans' Organization Exemption Petitions and Filing Deadlines ......................................................................................58 5333. Time for Filing of Petitions ......................................................................................................58 5333.4. Contents of Petition ................................................................................................................59 5333.6. Filing of Petition ......................................................................................................................59 Subarticle 4. Contents of Property Tax Sampling Program Petitions and Filing Deadlines .......59 5334. Time for Filing of Petitions ......................................................................................................59 5334.4. Contents of Petition ................................................................................................................60 5334.6. Filing of Petition ......................................................................................................................60 Subarticle 5. Filing and Distribution of Petitions, Briefs, and Other Documents .........................60 5335. Filing of Petitions, Briefs, and Related Documents ................................................................60 5335.4. Timely Performance; Mailing Date .........................................................................................61 5335.6. Distribution of Documents ......................................................................................................61 Subarticle 6. Accepting, Rejecting, and Perfecting Petitions and Applications. .........................61 5336. Accepting or Rejecting a Petition ...........................................................................................61 5336.5. Perfecting a Petition ...............................................................................................................62 Subarticle 7. Prehearing Meetings and Briefing Schedules ...........................................................63 5337. Prehearing Meeting and Exchange of Information Between Respondent and Petitioner..........................................................................................................................63 5337.4. Briefing: General Requirements .............................................................................................63 5337.6. General Briefing Schedule ......................................................................................................64 Subarticle 8. Appeals Division Review, Prehearing Conferences, and Summaries .....................65 5338. Appeals Attorney Review .......................................................................................................65 5338.4. Appeals Conference ...............................................................................................................65 5338.6. Preparing and Revising Hearing Summaries .........................................................................66 ARTICLE 4: GENERAL BOARD HEARING AND NOTICE PROCEDURES..........................................67 5340. Relation to General Board Hearing Procedures .....................................................................67 5341. Additional Briefing ..................................................................................................................67 5342. Notice of Hearing ....................................................................................................................67 5343. Submission for Decision Without Oral Hearing ......................................................................68 5344. Notice of Board Decisions ......................................................................................................68 5345. Finality of Board Action; Written Findings and Decision ........................................................68 Table of Contents — v — State Board of Equalization: Rules for Tax Appeals SECTION PAGE CHAPTER 5: GENERAL PROCEDURES FOR BOARD ACTION .......................................70 ARTICLE 1: APPLICATION OF CHAPTER AND DEFINITIONS ...........................................................70 5510. General Application of Chapter 5 ...........................................................................................70 5511. Definitions ...............................................................................................................................70 ARTICLE 2: REQUIREMENTS FOR SCHEDULING BOARD MEETINGS AND HEARINGS ...............72 Subarticle 1. Meeting Calendars ........................................................................................................72 5521. Monthly Board Meetings ........................................................................................................72 5521.5. Adoption of Board Meeting Calendar.....................................................................................72 Subarticle 2. Requesting and Scheduling an Oral Hearing .............................................................73 5522. Right to Request an Oral Hearing ..........................................................................................73 5522.2. Acknowledgement of Request for Oral Hearing ....................................................................73 5522.4. Consolidation for Hearing or Decision ...................................................................................73 5522.6. Notice of Board Hearing and Response .................................................................................74 5522.8. Dismissal and Postponement .................................................................................................75 Subarticle 3. Representation, Prehearing Documents, and Preparation for Hearing .................76 5523. Representation at Hearings ....................................................................................................76 5523.1. Power of Attorney ...................................................................................................................76 5523.2. Contribution Disclosure Forms ...............................................................................................77 5523.3. Hearing Summary ...................................................................................................................77 5523.4. Additional Briefing ..................................................................................................................77 5523.5. Preparation for Board Hearing and Subpoenas .....................................................................78 5523.6. Presentation of Evidence ........................................................................................................79 5523.7. Witnesses ...............................................................................................................................79 5523.8. Communications with Board Members ..................................................................................80 ARTICLE 3: PUBLIC NOTIFICATION OF BOARD MEETING ...............................................................80 5530. Public Agenda Notice .............................................................................................................80 ARTICLE 4: CONDUCT OF THE BOARD MEETING AND BURDEN OF PROOF ...............................80 5540. Conduct of the Board Meeting ...............................................................................................80 5541. Burden of Proof ......................................................................................................................81 ARTICLE 5: VOTING, DECISIONS, AND OPINIONS ............................................................................81 5550. Quorum ...................................................................................................................................81 5551. Voting and Decisions ..............................................................................................................81 5552. Publication ..............................................................................................................................82 ARTICLE 6: POST HEARING NOTICES AND PETITIONS FOR REHEARING ....................................83 5560. Notice of Board Decision .......................................................................................................83 Table of Contents — vi — State Board of Equalization: Rules for Tax Appeals SECTION PAGE 5561. Petition for Rehearing .............................................................................................................83 5562. Recommendation and Decision on Petition for Rehearing ....................................................84 ARTICLE 7: CORRESPONDENCE, PUBLIC HEARING RECORDS, AND COPIES ............................85 5570. Filing Documents ....................................................................................................................85 5571. Timeliness of Documents .......................................................................................................85 5572. Hearing Record ......................................................................................................................85 5573. Confidentiality .........................................................................................................................86 5574. Request for Portion of Board Hearing Conducted During Closed Session ...........................87 5575. Privilege ..................................................................................................................................88 5576. Fees: Filing, Transcripts, and Copies .....................................................................................89 CHAPTER 6: TAXPAYER BILL OF RIGHTS REIMBURSEMENT CLAIMS .......................90 5600. Definitions, Board Hearing Procedures; Taxes Affected by this Chapter ..............................90 5601. Eligible Claims ........................................................................................................................90 5602. Reasonable Fees ....................................................................................................................90 5603. Claim Procedure .....................................................................................................................91 5604. Oral Hearing on Reimbursement Claim .................................................................................91 5605. Notice of Decision ..................................................................................................................92 5700. Annotations .............................................................................................................................92 Table of Contents — vii — State Board of Equalization: Rules for Tax Appeals