“Created in 1879 by a constitutional amendment, the California State Board of Equalization (BOE) was initially responsible for ensuring that county property tax assessment practices were equal and uniform throughout California.
The BOE began to levy four new taxes, including insurance and corporate franchise taxes in 1911, to produce revenue for services throughout our state.
The BOE assumed the responsibility for administering the new sales tax in 1933, because of the tremendous drop in property tax revenues caused by the Great Depression, and began collecting the new use tax in 1935. Over the years, the BOE was given the responsibility to administer various special taxes and fees in addition to the sales tax.
Until July 1, 2017, the BOE administered various tax and fee programs, including the sales and use tax; adopted rules and regulations to clarify tax laws; acted as an appellate body for the review of property, business, and income tax assessments; assessed and allocated the property values of railroads and specified utilities and businesses; and oversaw the property tax assessment practices of all 58 county assessors.
On July 1, 2017, Assembly Bill 102 (Stats. 2017, Chapter 16) separated the BOE into three agencies: the California State Board of Equalization, the California Department of Tax and Fee Administration, and the Office of Tax Appeals. The BOE handles the duties assigned to it by the California Constitution, namely the assessment and allocation of the property values of railroads and specified utilities and businesses, and the oversight of the property tax assessment practices of all 58 county assessors. The BOE also administers the state’s alcoholic beverage and insurance tax programs.”
