Rule dispute has tax board in confusion

SACRAMENTO — Members of California’s Board of Equalization objected Thursday to a broad interpretation of a new state law requiring that they disclose their private meetings with taxpayers who are engaged in appeals.

A state attorney said ex parte communications must be disclosed on currently pending matters — even if they occurred before the enactment of the new law July 1. Tax board members said they did not track who they and their staff talked to before the law took effect.

“No one is prepared to go back,” said Board of Equalization Chairwoman Diane Harkey. “We want to make sure we have no liability here. This is an impossible situation.”

The dispute led the panel on Thursday to delay action by three hours on several tax appeals while attorneys found a way to temporarily allow the hearings. In the end, each board member announced whether he or she recalled any communications with the taxpayer whose appeal was being heard.

Board member Jerome Horton said attorneys whom he has consulted disagree that the law applies retroactively.

However, since a reorganization signed into law by Gov. Jerry Brown, the board does not yet have its own attorney. The reorganization shifted most of the board’s responsibilities and employees to a new agency.

“The frustrating part for me is that this reorganization was supposed to be seamless, and it is anything but seamless,” said Board Vice Chairman George Runner.