June 29, 2017
Gov. Jerry Brown signed legislation to break up the California Board of Equalization. The move strips the 138-year-old state tax collection agency of most of most of its powers and duties. A new Department of Tax and Fee Administration will be formed.
Brown said a recent audit revealed the board failed to “serve the public.” The board is under investigation for mismanagement by the Department of Justice.
It was the only elected tax board in the country, and was responsible for collecting $60 billion in taxes annually.
The board’s 4,800 workers will be reduced to 400, with some staff engaged in the collection of sales and excise taxes shifted to the new department. The board’s narrower responsibilities include setting rates for gas taxes and pipeline levies, as well as ensuring counties fairly assess property taxes.
A new Office of Tax Appeals will be set up to hear taxpayer appeals.
For comments, questions or concerns, please contact Dennis Kaiser