California State Board of Equalization

The State Board of Equalization was created in 1879 by the ratification of the second Constitution of California. Its original mandate was to ensure that property tax assessments were uniform and equal across all counties in the state.

Prior to the creation of the state income tax, sales tax, and fuel taxes in the 1930s, California's state government was almost completely supported by property taxes, which were and still are assessed at the county level by elected tax assessors. Assessors were tempted to boost their popularity with county voters by undervaluing voters' property (and thereby lowering their taxes). This presented the risk of counties with honest assessors paying more than their fair share of the burden of operating the state government, so the Board of Equalization was created to equalize the burden.

The California Franchise Tax Board and the Employment Development Department are separately also responsible for collecting taxes. Some have criticized this as inefficient.[http://digitalcommons.law.scu.edu/cgi/viewcontent.cgi?article=1117&context=lawreview Daniel L. Simmons, California Tax Collection: Time for Reform], 48 Santa Clara L. Rev. 279 (2008). Efforts to reform the Board were made in the 1940s, 1950s, 1960s, 1990s, and 2000s.{{cite news|last1=Ashton|first1=Adam|title=For 90 years, Californians have tried to kill this tax board. This is why they failed|url=http://www.sacbee.com/news/politics-government/the-state-worker/article146100459.html|access-date=25 April 2017|work=The Sacramento Bee|date=23 April 2017|language=en}}

In 1994, Governor Pete Wilson vetoed a plan by the legislature to abolish the Franchise Tax Board and give its responsibilities to the Board of Equalization, explaining in his veto message that the state should have done the opposite. In 2004, Governor Arnold Schwarzenegger released a 2,500-page report seeking to merge the Board with other agencies and then promoted a bill by Assemblywoman Lois Wolk to do just that. The effort failed. In 2008, the agency employed approximately 3,950 people throughout the state.State Board of Equalization, 2007-2008 Annual Report, [http://www.boe.ca.gov/annual/pdf/2008/1-profile08.pdf Profile], "Governance" p. 3.

By 2017, the Board had expanded to collecting $60 billion a year. It collected sales and use taxes, hazardous waste fees, jet fuel taxes, marijuana taxes, and over 30 additional taxes. That year, the Board had 4,700 employees and a $617 million annual budget. Board members are paid a $137,000 annual salary and are each allowed to hire a 12-member staff. Each year, the Board spends at least $3 million on education events where elected members appear before their constituents.

In March 2017, an audit by the California Department of Finance revealed missing funds and signs of nepotism, leading to calls for the governor to put the Board under a public trustee.{{cite news|last1=Ashton|first1=Adam|title=Audit: California tax collectors on 'parking lot duty' for promotional events as politicos push boundaries|url=http://www.sacbee.com/news/politics-government/the-state-worker/article140474853.html|access-date=25 April 2017|work=The Sacramento Bee|date=24 March 2017|language=en}}{{cite news|last1=Ashton|first1=Adam|title=Here's the audit shaking up the Board of Equalization|url=http://www.sacbee.com/news/politics-government/the-state-worker/article142026614.html|access-date=25 April 2017|work=The Sacramento Bee|date=31 March 2017|language=en}} In June 2017, the California Department of Justice began a criminal investigation into the members of the Board.{{cite news|last1=Ashton|first1=Adam|title=Criminal investigation targets California tax board leaders|url=http://www.sacbee.com/news/politics-government/capitol-alert/article157058439.html|access-date=18 July 2017|work=The Sacramento Bee|date=20 June 2017|language=en}}

On June 27, 2017, Governor Jerry Brown signed into law legislation stripping the Board of many of its powers. The legislation created two new departments controlled by the governor responsible for the Board’s statutory duties, the California Department of Tax and Fee Administration and the California Office of Tax Appeals.{{cite news|last1=McGreevy|first1=Patrick|url=http://www.latimes.com/politics/la-pol-ca-tax-board-overhaul-20170627-story.html|title=In massive shakeup, Gov. Jerry Brown breaks up California's scandal-plagued tax collection agency|date=27 June 2017|work=Los Angeles Times|access-date=18 July 2017}}

The Board still has its constitutional powers to review property tax assessments and insurer tax assessments, and its role in the collection of alcohol excise and pipeline taxes.{{cite news|title=California – Bill shifts nearly all tax administration and appeal functions from the BOE to two new tax organizations|url=http://www.pwc.com/us/en/state-local-tax/newsletters/salt-insights/california-bill-shifts-tax-administration-from-boe.html|access-date=18 July 2017|work=PricewaterhouseCoopers|date=June 2017}} It retained 400 employees, with the rest of its 4,800 workers being shifted to the new departments.

In 2023, constitutional amendment ACA-11 was introduced by Phil Ting in the California State Assembly to abolish the board and redistribute its staff and duties to other state tax agencies.{{cite web|url=https://digitaldemocracy.calmatters.org/bills/ca_202320240aca11|title=ACA 11: State tax agency.|access-date=November 23, 2024|website=CalMatters}} The Los Angeles Times editorial board called for ACA-11 and ACA-9, which would abolish the elected position of California State Superintendent of Public Instruction, to pass the legislature and appear before voters as a ballot proposition.{{cite web|url=https://www.latimes.com/opinion/story/2023-03-27/let-californians-decide-whether-to-dump-obscure-and-pointless-elected|title=Editorial: The Board of Equal What? Let California voters decide whether to dump pointless elected positions|date=March 27, 2023|access-date=November 23, 2024|website=Los Angeles Times|author=Editorial Board}}

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{{legend|#008000|First District}}{{legend|#0000ff|Second District}}{{legend|#ffff00|Third District}}{{legend|#ff0000|Fourth District}}

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For the purposes of tax administration, the BOE divides the state into four Equalization districts, each with its own elected board member.{{cite web |url=http://wedrawthelines.ca.gov/maps-final-draft-board-of-equalization-districts.html |title=Maps: Final Draft Board of Equalization Districts | California Citizens Redistricting Commission |website=wedrawthelines.ca.gov |access-date=17 January 2022 |archive-url=https://web.archive.org/web/20110930033345/http://wedrawthelines.ca.gov/maps-final-draft-board-of-equalization-districts.html |archive-date=30 September 2011 |url-status=dead}} District boundaries are redrawn following the decennial census. The latest boundaries were drawn following the 2020 census and have been in effect since January 1, 2023.{{cite web|url=http://www.boe.ca.gov/info/new_boundaries.htm|title=BOE District Boundaries Effective January 5, 2015 - California State Board of Equalization|first=California State Board of|last=Equalization|website=www.boe.ca.gov}}

The First Equalization District is made up of the following counties: Alpine, Amador, Butte, Calaveras, Colusa, El Dorado, Fresno, Glenn, Inyo, Kern, Kings, Lassen, Madera, Mariposa, Merced, Modoc, Mono, Nevada, Placer, Plumas, Sacramento, the portion of San Bernardino outside of the San Bernardino panhandle, San Joaquin, Shasta, Sierra, Siskiyou, Solano, Stanislaus, Sutter, Tehama, Tulare, Tuolumne, Yuba, and Yolo.

The Second Equalization District is made up of the following counties: Alameda, Contra Costa, Del Norte, Humboldt, Lake, Marin, Mendocino, Monterey, Napa, San Benito, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Sonoma, Trinity, and Ventura.

The Third Equalization District is made up of Los Angeles County.

The Fourth Equalization District is made up of the following counties: Imperial, Orange, Riverside and San Diego; and a portion of San Bernardino County including the cities of Colton, Fontana, Grand Terrace, Highland, Loma Linda, Redlands, Rialto, San Bernardino, Twentynine Palms, Yucaipa and Yucca Valley.

File:Ted Gaines, 2019.jpg|Ted Gaines (R)
(First District)

File:Lieber.png|Sally Lieber (D)
(Second District)

File:Tony Vazquez, 2019 (cropped).jpg|Tony Vazquez (D)
(Third District)

File:Mike Schaefer.png|Mike Schaefer (D)
(Fourth District)

File:Malia Cohen State Controller portrait (cropped).jpg|Malia Cohen (D)
(State Controller)

After being reduced to its constitutional responsibilities in 2017, the Board retained almost none of its tax and fee responsibilities.State Board of Equalization, 2007-2008 Annual Report, [http://www.boe.ca.gov/annual/pdf/2008/1-profile08.pdf Profile], "Tax and Fee Programs, 2007-2008" pp. 2.{{cite web|title=Special Taxes|url=http://www.boe.ca.gov/sptaxprog/spprograms.htm|author=State Board of Equalization|access-date=May 21, 2006}}{{Cite web|date=December 2019|title=Summary of Constitutional and Statutory Authorities|url=https://www.boe.ca.gov/pdf/pub72.pdf|url-status=live|website=California State Board of Equalization|archive-url=https://web.archive.org/web/20060923090710/http://www.boe.ca.gov/pdf/pub72.pdf |archive-date=2006-09-23 }} The only property taxes it actively administers in its entirety are state-assessed properties and the Private Railroad Car Tax; the Board acts only in an appellate role in collecting the Alcoholic Beverage Tax and Insurance Tax, reviewing appeals of denials of claims for refund.{{Cite web|title=Fact Sheet|url=https://www.boe.ca.gov/pdf/pub1.pdf|url-status=live|website=California Board of Equalization|archive-url=https://web.archive.org/web/20190425135215/http://www.boe.ca.gov/pdf/pub1.pdf |archive-date=2019-04-25 }}

However, the Board does continue to appraise and audit public utilities, railroad companies and properties owned by counties outside of their own jurisdictions, known as 'state-assessed properties', and hear appeals from its own staff appraisals.

• State-assessed properties
• Private Railroad Car Tax

• County-assessed properties

• Alcoholic Beverage Tax
• Tax on Insurers

{| role="presentation" class="wikitable mw-collapsible mw-collapsed"

| Former responsibilities (as of 2008)

|-

|

• Sales and Use Tax
• Bradley-Burns Uniform Local Sales and Use Tax
• District Transactions (Sales) and Use Tax

• Electronic Waste Recycling Fee
• Environmental Fees
• Hazardous Substances Tax
• Marine Invasive Species Fee (formerly Ballast Water Management Fee)
• Occupational Lead Poisoning Prevention Fee
• Excise Taxes
• Alcoholic Beverages Tax
• Alternative Cigarette Tax Stamp Program (ACTS)
• California Tire Fee
• Cigarette and Tobacco Products Tax
• Cigarette and Tobacco Products Licensing Program
• Emergency Telephone Users Surcharge
• Energy Resources Surcharge
• Insurance Tax
• Integrated Waste Management Fee
• Natural Gas Surcharge
• Fuel Taxes
• Aircraft Jet Fuel Tax
• Childhood Lead Poisoning Prevention Fee
• Diesel Fuel Tax
• International Fuel Tax Agreement (IFTA)
• Interstate User Diesel Fuel Tax
• Motor Vehicle Fuel Tax
• Oil Spill Response, Prevention, and Administration Fees
• Underground Storage Tank Maintenance Fee
• Use Fuel Tax

• County-assessed droperties
• Private Railroad Car Tax
• State-assessed properties
• Timber Yield Tax

• Bank and Corporation Tax Law
• Personal Income Tax
• Homeowner and Renter Property Tax Assistance Law
• Publicly Owned Property Assessment Review Program
• Taxpayers' Bill of Rights Law

|}

{{Commons category}}

• Districts in California

{{Notelist}}

• [http://www.boe.ca.gov Board of Equalization]

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Board of Equalization

Category:Taxation in California

Category:US state tax agencies

Category:Government agencies established in 1879