In January, the Board of Equalization heard proposals on proposed changes to statistical sampling methods outlined in Chapter 13 of the Audit Manual. We were alerted to the potential revenue losses that could occur if these proposed changes were to be adopted. Thankfully, the Business Taxes Committee recognized our concern in January and delayed action so we could have addition time to review and comment. It is now time for you to act. If you attended the Legislative Seminar last week, you heard David Jones warn that administrative actions taken by the BOE could prove far more dangerous to city revenues than recent legislation. This is a case in point. If a "de minimis" standard is used sophisticated taxpayers could ostensibly underpay taxes by up to one percent without any consequences. The attached letter outlines concerns cities and the state should have over this potential threat to revenues. Please take time to personalize the letter and submit it to the BOE. We understand the matter will again be taken up by the committee at a July or August meeting. Thank you. Frances Medema Policy Analyst League of California Cities 1400 K Street Suite 400 Sacramento, CA 95814 phone: 916/658-8218 fax: 916/658-8240 email: [EMAIL PROTECTED]
