Governor Brown Signs Bill Making Drastic Changes to California Tax Administration

Governor Brown Signs Bill Making Drastic Changes to California Tax Administration

Two new departments will take over much of the BOE’s responsibilities:

– California Department of Tax and Fee Administration, will handle the tax and fee programs now under the BOE. It is scheduled to begin operations July 1, 2017. Its director would be appointed by the governor.

– An Office of Tax Appeals will be created by Jan. 1, 2018. It is intended to be a tax court staffed by administrative law judges who would be appointed from the state’s Office of Administrative Hearings. Taxpayer appeals would be heard by a panel of three judges instead of the elected board members beginning Jan. 1, 2018. Currently, taxpayers who disagree with a Board of Equalization finding about how much they owe in taxes can contest the decision with an appeal, which is heard by the elected board. Taxpayers who want to contest decisions from the administrative judges would have to file lawsuits against the state in civil court.