(Sacramento, CA) Assemblymember Adrin Nazarian introduced ACA 2, a Constitutional Amendment to eliminate the Board of Equalization (BOE). If signed into law, the change to the California Constitution would appear on the ballot in 2020.
“The Board of Equalization is a redundant, scandal-plagued office that can be eliminated to save taxpayer’s money and re-direct resources to strengthen the middle class,” stated Assemblymember Adrin Nazarian.
Following an investigation by the Department of Justice, the California Legislature passed and Governor Brown signed AB 102 in June 2017. AB 102 stripped the BOE of nearly all tax administration and appeal functions, and gave the responsibilities to two new tax departments: the California Department of Tax and Fee Administration (CDTFA) and the Office of Tax Appeals.
The BOE now only handles assessing and allocating the property values of railroads and specified utilities and businesses; adjudicating property tax appeals of taxable government-owned property; overseeing the property tax assessment practices of the 58 county assessors; and adopting rules to clarify property tax laws. The BOE contracts with the CDTFA to administer the alcoholic beverage excise tax and the insurance tax, including appeals.
In 2017 the BOE retained 400 employees, with the rest of its 4,800 workers shifted to the new departments. Their budget went from $550,000,000 in the 2016-2017 fiscal year to $30,000,000 in 2017-2018 and down to $29,000,000 in 2018-2019. According to the budget, the current number of positions in the BOE is 195. By eliminating the BOE, millions of dollars could be re-invested in programs that strengthen the middle class.
ACA 2 must pass the Legislature by a two-thirds vote before it can appear on the 2020 ballot for approval by voters.
Adrin Nazarian represents the 46th Assembly District, serving the San Fernando Valley communities of Hollywood Hills, Lake Balboa, North Hills, North Hollywood, Panorama City, Sherman Oaks, Studio City, Toluca Lake, Valley Glen, Universal City, Van Nuys, and Valley Village.
CONTACT: Brian Stedge, (818) 376-4246, Brian.Stedge@asm.ca.gov