Bill to eliminate beleaguered tax board introduced
SACRAMENTO — California’s elected tax collection board was troubled by allegations of botched handling of funds, excessive spending on furniture and nepotism before it was stripped of many of its duties last year by Gov. Jerry Brown and the Legislature.
Now, one lawmaker wants to abolish the state Board of Equalization and shift its remaining duties to an agency of civil service employees.
Assemblyman Adrin Nazarian (D-North Hollywood) introduced legislation Dec. 3 that would ask California voters in 2020 to amend the state Constitution to eliminate the elected board, which was created in 1879.
“The Board of Equalization is a redundant, scandalplagued office that can be eliminated to save taxpayers’ money and redirect resources to strengthen the middle class,” Nazarian said Tuesday.
The board is made up of four members elected by districts and are each paid $151,260 annually, with the state controller serving as a fifth member.
As the only elected tax board in the country, the panel was, until last year, responsible for collecting $60 billion in taxes annually for the state.
But state investigators criticized the board for putting $350 million in sales taxes in the wrong accounts and improperly interfering with decisions to open field offices and transfer staff, some of whom were assigned to duties that promoted the elected officials.
An investigation by the state Personnel Board found that the agency suffered from widespread nepotism, with 835 employees, or 17.5% of the office’s workforce, related by blood, adoption or marriage, with several instances of employees living together.
Former Board Chairman Jerome Horton faced criticism in 2016 after the Sacramento Bee reported $118,000 was spent on designer furniture for his office.
Amid various controversies, the governor signed a bill in June 2017 that reduced the state board from 4,800 workers to just 400, transferring most employees to a new California Department of Tax and Fee Administration that collects sales and excise taxes.
The change removed the board’s role of hearing taxpayer appeals and provided it with the narrower job of setting rates for gas taxes and pipeline levies, making sure counties fairly assess property taxes and helping taxpayers with problems.
This year, the board has a budget of $29 million and a staff of 195 people.