Laws, Regulations and Annotations


Business Taxes Law Guide – Revision 2023

Sales And Use Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 8. Administration

Article 3. The California Taxpayers' Bill of Rights*

Section 7091

7091. Reimbursement to taxpayer. (a) Every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the board if all of the following conditions are met:

(1) The taxpayer files a claim for the fee and expenses with the board within one year of the date the decision of the board becomes final.

(2) The board, in its sole discretion, finds that the action taken by the board staff was unreasonable.

(3) The board decides that the taxpayer be awarded a specific amount of fees and expenses related to the hearing, in an amount determined by the board in its sole discretion.

(b) To determine whether the board staff has been unreasonable, the board shall consider whether the board staff has established that its position was substantially justified.

(c) The amount of reimbursed fees and expenses shall be limited to the following:

(1) Fees and expenses incurred after the date of the notice of determination, jeopardy determination, or a claim for refund.

(2) If the board finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues, the amount of reimbursed fees and expenses shall be limited to those which relate to the issues where the staff was unreasonable.

(d) Any proposed award by the board pursuant to this section shall be available as a public record for at least 10 days prior to the effective date of the award.

(e) The amendments to this section by the act adding this subdivision shall be operative for claims filed on or after January 1, 1999.

History—Stats. 1994, Ch. 726, in effect September 22, 1994, substituted "board" for "State Board of Control" after "expenses with the" in paragraph (1) of subdivision (a); substituted "decides" for "makes a recommendation to the State Board of Control" after "the board", and substituted "that" for "which" after "hearing," in paragraph (2) of subdivision (a); deleted paragraph (4) of subdivision (a) which read, "The State Board of Control concurs with the recommendations and orders the board to provide reimbursement of fees and expenses to the taxpayer."; and added subdivision (d). Stats. 1998, Ch. 612, in effect January 1, 1999, added "within one year … final" after "the board" in paragraph (1), substituted "in an amount" for "that shall be" after "hearing," and added "in its sole discretion" after "board" in paragraph (3) of subdivision (a); substituted "board staff" for "taxpayer" after "whether the", and substituted "its position was" for "the position of the board staff was not" after "established that" in subdivision (b); and added subdivision (e). Stats. 2000, Ch. 1052 (AB 2898), in effect January 1, 2001, substituted "the notice of … a claim" for "filing petitions for redetermination and claims" after "the date of" in paragraph (1) of subdivision (c).

* Article 3 was added by Stats. 1988, Ch. 1574, in effect January 1, 1989.