California Tax Department Overvalued Travel Agency, Panel Rules

The California Franchise Tax Board included unreliable comparisons when determining the fair market value of a travel agency, a state tax tribunal ruled in an opinion released Monday.

The California Office of Tax Appeals removed five companies that were based outside the US or didn’t provide adequate financial data from the 12 that FTB relied on. That dropped the fair market value of Peak Travel Group from the FTB’s determination of $9 million to $5.15 million, Administrative Law Judge Sara A. Hosey wrote for the panel.

The OTA ordered the department to recalculate its $640,000 assessment against the company and ...