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There is a hearing coming up in Sacramento where the California Tax board is laying the groundwork to limit your attorney fees to 75.00 per hour in awards where the taxpayer prevails over the taxing agency. This may seem like a good thing to those who believe attorney's make too much money for what they do, but for anyone who has taken the state to court so-to-speak on a tax issue they believe was unjustly applied, knows that it usually costs as much or more to win the case than to just pay what the state demands. What this measure does is further erode and deter people from fighting back because I am not aware of any attorney that will work for 75.00 an hour anymore, and especially so, a tax attorney. So the end result is, you get a letter from the state claiming you owe 12K in taxes because they found an error on your assessment or whatever, and you go to appeal it; The attorney you hire will charge you 350.00 an hour, and the state limits their liability to you as the prevailing party at 75.00 per hour.
This change is aimed at reducing the willingness to fight any assessments the state makes in the future. If the state assesses you a tax of 4K, and you know they are wrong, the costs of litigation are tilted in their favor. I don't believe the state is limiting their own attorney fees. they get paid the full amount it cost to win the case.
2009 Legislative Proposals
I. Administration
Set forth below are suggestions for administrative legislation to be sponsored by the Board in the first year of the 2009-2010 Legislative Session.
5-3 Add section 14673.11 to the Government Code to sell, exchange, lease, or any combination thereof the current headquarters building of the State Board of Equalization.
5-4 Add Chapter 11 (commencing with section 30491) to Part 13 of Division 2 of section 30491 to the Revenue and Taxation Code to limit litigation costs, including attorneys’ fees, under the Cigarette and Tobacco Products Tax Law in the same manner that litigation costs are limited under the Sales and Use Tax Law. This same provision would be added to the property tax law, the Franchise and Income Tax Law, and all of the Board-administered special tax and fee programs. In addition, section 7156 of the Sales and Use Tax Law would be moved to its own chapter.
This change is aimed at reducing the willingness to fight any assessments the state makes in the future. If the state assesses you a tax of 4K, and you know they are wrong, the costs of litigation are tilted in their favor. I don't believe the state is limiting their own attorney fees. they get paid the full amount it cost to win the case.
2009 Legislative Proposals
I. Administration
Set forth below are suggestions for administrative legislation to be sponsored by the Board in the first year of the 2009-2010 Legislative Session.
5-3 Add section 14673.11 to the Government Code to sell, exchange, lease, or any combination thereof the current headquarters building of the State Board of Equalization.
5-4 Add Chapter 11 (commencing with section 30491) to Part 13 of Division 2 of section 30491 to the Revenue and Taxation Code to limit litigation costs, including attorneys’ fees, under the Cigarette and Tobacco Products Tax Law in the same manner that litigation costs are limited under the Sales and Use Tax Law. This same provision would be added to the property tax law, the Franchise and Income Tax Law, and all of the Board-administered special tax and fee programs. In addition, section 7156 of the Sales and Use Tax Law would be moved to its own chapter.
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