STATE BOARD OF EQUALIZATION - Assignment No. 14-040 - Opinion Letter

Sep 16, 2026

State of California State Board of Equalization opinion letter responding to a request regarding the validity of a County Assessor’s “raise letter” in a C Corporation appeal of escape assessments for certain property. The analysis addresses procedural validity, the Assessor’s obligation to present evidence supporting the assessment at the Assessment Appeals Board hearing, and the ability to request that specific information be presented in a closed portion of the hearing for confidentiality purposes.

LanguageEnglish

CategoryLetters

FormatPDF

Pages9

Reading Time3 min

AccessFree to download

Re: Assignment No.: 14-040

Facts

Law and Analysis

The Assessor's Raise Letter

STATE OF CALIFORNIA 180.0063 STATE BOARD OF EQUALIZATION 450 N STREET, SACRAMENTO, CALIFORNIA PO BOX 942879, SACRAMENTO, CALIFORNIA 94279-0082 949-241-9846 • FAX 916-323-3387 [www.boe.ca.gov](www.boe.ca.gov) April 29, 2014 BETTY T. YEE First District, San Francisco SEN. GEORGE RUNNER (RET. ) Second District, Lancaster MICHELLE STEEL Third District, Orange County JEROME E. HORTON Fourth District, Los Angeles JOHN CHIANG State Controller CYNTHIA BRIDGES Executive Director Mr. Law Offices Mr. Assistant County Counsel County of Re: Assignment No.: 14-040 Dear Mr. and Mr. : This is in response to your request for our opinion on the validity of the County Assessor's Office's (Assessor's) "raise letter" in C Corporation's (Corporation's) appeal of an escape assessment of its property located at , in , County, which includes a fiberglass insulation plant (subject property), as well as our opinion on the confidentiality of certain information for purposes of the Assessment Appeals Board (AAB) hearing. 1 As discussed below, it is our opinion that the Assessor's raise letter is valid as a procedural matter, and that the Assessor is required to present evidence of information supporting its assessment at the hearing, but the taxpayer and Assessor are entitled to request that certain data be presented in a portion of the hearing that is closed to the public. Facts The subject property was built in 1978-1979, and a warehouse was added in 1990. In 2002, the Assessor conducted a mandatory audit for tax years 1998-2001. Corporation executed waivers extending the time to complete the audit and issue escape assessments until June 30, 2005.2 On February 8, 2005, the Assessor issued escape assessments for the years 1998 – 2001. 1 This opinion is being requested in connection with a hearing before the County Assessment Appeals Board (AAB) . Both parties are aware that we will be issuing this opinion, have examined and/or provided the facts set forth herein, and were given an opportunity to provide additional information in connection with this letter. The parties anticipate that this opinion will be issued prior to the hearing, as the AAB has granted a postponement of the hearing until May 1, 2014, to allow time for the State Board of Equalization's Legal Department to issue this opinion letter. 2 See Corporation's Waiver of Statute of Limitations dated May 17, 2004, waiving all rights and privileges conferred by sections 532 and 5097, attached as Exhibit A to Corporation's February 14, 2014 letter to the State Board of Equalization (February Letter) . The "adjustments were caused primarily by: Non-reporting of fixtures and/or personal property [and] Erroneous reporting of fixtures and/or personal property. " 3 On May 13, 2005, Corporation appealed the escape assessments.4 On August 3, 2006, Corporation signed waivers to extend the time for the AAB to hear appeals beyond the 2-year limit required by Revenue and Taxation Code section 5 1604, subdivision (c) . Corporation agreed to postpone the hearings to a date to be set upon mutual agreement or upon 60 days written request by any party.6 Accordingly, the AAB initially set Corporation's 1998 – 2001 appeals for hearing on January 9, 2014.7 On December 5, 2013, the Assessor initiated an exchange of information by submitting certain data to Corporation, pursuant to section 1606.8 According to that data, the assessments for 1998-2001 ranged from $46.67 million to $61.7 million. The Assessor stated that those figures were based on the Cost Approach and Historical Cost Approach, but reserved the right to develop assessments based on the Income Approach and Market Approach in rebuttal. The Assessor further stated that "[t]he income approach to value was not considered due to the companies' representatives' failure to provide revenue and expenses from the operation of [] this Plant, but we reserve the right to develop one in rebuttal." 9 On Decembe

FAQs

What is the request addressed in this State Board of Equalization letter?

The letter responds to a request about the validity of the County Assessor’s “raise letter” and about confidentiality of certain information for an Assessment Appeals Board hearing.

What does the Board opine regarding the “raise letter”?

The Board opines the raise letter is valid as a procedural matter and that the Assessor must present evidence supporting its assessment at the hearing.

Can parties seek confidentiality during the hearing?

Yes. The taxpayer and Assessor are entitled to request that certain data be presented in a portion of the hearing closed to the public.

Sep 16, 2026

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