Taxation

Ca. Tax Lawyer 2017, VOLUME 26, NUMBER 3

California Creates New Tax Departments; Limits Roles of Elected Tax Officials

By Chris Micheli1

OVERVIEW

As part of the California state budget adopted on June 152 for the fiscal year that began on July 1,3 the Legislature and Governor stripped almost all authority from the State Board of Equalization (SBE)4 and transferred the SBE’s duties and responsibilities to two new state departments created on July 1, 2017. The SBE and its 5-member elected Board5 have been in existence for almost 140 years.6 There were other efforts to limit the scope of law changes to the SBE and California’s tax system, but those were unsuccessful.7 This bill is the most dramatic change in the California tax system in decades. It represents a significant weakening of an elected body most of whose duties are transferred to the executive branch.

BACKGROUND ON THE SBE

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