California – Request to Repeal Regulation 1585 (Bundled Cell Phone Charges) Denied

Salt Report 3618 – On February 23, 2015, pursuant to Government Code section 11340.6, Ms. Jenny Lee (petitioner) requested that the BOE repeal Regulation 1585, clarifying the measure of tax with regard to the sales of wireless telecommunications devices in “bundled” transactions because the regulation was inconsistent with the statutory definition of “gross receipts” in RTC 6012.

At the BOE hearing on March 26, 2015, comments were heard from Mr. Ed Howard, from the California Tax Reform Association (CTRA), and Mr. Daniel Hattis, petitioner’s attorney and from Board Staff.   At the conclusion of the hearing the Board unanimously agreed that Regulation 1585 is consistent with RTC section 6012.  Petition denied.

Further Information:

Reg 1585 Notice of Decision Denying Petition 2015

Board Meeting 3.25.15 Item J1 Reg 1585 Petition