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Completely Compliance- California Breakdown of the BOE

by DMA Staff | Jul 03, 2017
DMA_CC_California BOE
The California General Assembly has included language as part of their Budget proposal, pending the Governor’s signature, that would strip the BOE of all but its constitutionally mandated tax functions, and shift them to two newly created departments.

The California Board of Equalization is being split into the Department of Tax and Fee Administration (DTFA) and the Office of Tax Appeals (OTA). The DTFA will functionally assume all duties and power of the BOE with the exception of appeals, which will be handled by the OTA.

These changes come recommended by Governor Brown and stem from multiple state audits and investigations into the long-troubled agency and its governance by multiple state entities (now including the Department of Justice). The newly created agencies will report to the governor’s office, as opposed to a separately elected board, whose member’s actions had increasingly come under scrutiny in recent years. This systemic change brings California in line with the rest of the State’s revenue collection agencies structure and authority.

The overhaul is effective on July 1. This leaves little time but should be accomplished as the new department’s functions and staff are merely being pulled from the existing BOE.
All of this takes place while the agency is in the midst of a $300 million technology update project called the Centralized Revenue Opportunity System’s (CROS). With the reorganization for the departments, the fate of the CROS project has not yet been publicly addressed.