California State Board of Equalization

Tax administration agency of California, United States

The California State Board of Equalization (BOE) is a public agency charged with tax administration and fee collection in the state of California in the United States. The authorities of the Board attempt to ensure that counties fairly assess property taxes, collect excises taxes on alcoholic beverages, administer the insurance tax program, and other tax collection related activities. The BOE is the only publicly elected tax commission in the United States. It is made up of four directly elected members, each representing a district for four year terms, along with the State Controller, who is elected on a statewide basis, serving as the fifth member. In June 2017, Governor Jerry Brown signed legislation stripping the Board of many of its powers, returning the agency to its original core responsibilities (originating in the State Constitution in 1879).

The State Board of Equalization was created in 1879 by the ratification of the second Constitution of California. Its original mandate was to ensure that property tax assessments were uniform and equal across all counties in the state. Efforts to reform the Board were made in the 1940s, 1950s, 1960s, 1990s, and 2000s. In 1994, Governor Pete Wilson vetoed a plan by the legislature to abolish the Franchise Tax Board and give its responsibilities to the Board of Equalization, explaining in his veto message that the state should have done the opposite. In 2004, Governor Arnold Schwarzenegger released a 2,500 page report seeking to merge the Board with other agencies and then promoted a bill by Assemblywoman Lois Wolk to do just that. The effort failed. By 2017, the Board had expanded to collecting $60 billion a year. It collected sales and use taxes, hazardous waste fees, jet fuel taxes, marijuana taxes, and over 30 additional taxes. That year, the Board had 4,700 employees and a $617 million annual budget. Board members are paid a $137,000 annual salary and are each allowed to hire a 12 member staff. Each year, the Board spends at least $3 million on education events where elected members appear before their constituents. In June 2017, the California Department of Justice began a criminal investigation into the members of the Board. On June 27, 2017, Governor Jerry Brown signed into law legislation stripping the Board of many of its powers. The legislation created two new departments controlled by the governor responsible for the Board’s statutory duties, the California Department of Tax and Fee Administration and the California Office of Tax Appeals. The Board still has its constitutional powers to review property tax assessments and insurer tax assessments, and its role in the collection of alcohol excise and pipeline taxes. It retained 400 employees, with the rest of its 4,800 workers being shifted to the new departments. District boundaries are redrawn following the decennial census. The latest boundaries were drawn following the 2010 census and have been in effect since January 1, 2015.

The First Equalization District is made up of the following counties: Alpine, Amador, Butte, Calaveras, El Dorado, Fresno, Inyo, Kern, Kings, Lassen, Madera, Mariposa, Merced, Modoc, Mono, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Stanislaus, Sutter, Tulare, Tuolumne and Yuba; a portion of Los Angeles County including the cities of Azusa, Bradbury, Claremont, Duarte, Irwindale, La Verne, Lancaster, Palmdale, Pomona, San Dimas, San Fernando and Santa Clarita; and most of San Bernardino County, the portion not included in the Third and Fourth districts. From 2003 until 2015 most of this area was the Second District.

The Second Equalization District is made up of the following counties: Alameda, Colusa, Contra Costa, Del Norte, Glenn, Humboldt, Lake, Marin, Mendocino, Monterey, Napa, San Benito, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Tehama, Trinity and Yolo. From 2003 until 2015 most of this area was the First District.

The Third Equalization District is made up of Ventura County; most of Los Angeles County, the portion not included in the First District; and the city of Chino Hills in San Bernardino County. From 2003 until 2015 most of this area was the Fourth District.

The Fourth Equalization District is made up of the following counties: Imperial, Orange, Riverside and San Diego; and a portion of San Bernardino County including the cities of Colton, Fontana, Grand Terrace, Highland, Loma Linda, Redlands, Rialto, San Bernardino, Twentynine Palms, Yucaipa and Yucca Valley. From 2003 until 2015 most of this area was the Third District.

Year1st District2nd District3rd District4th DistrictState Controller(ex officio)1879James L. KingMoses M. DrewWarren DuttonTyler D. HeiskelDaniel M. Kenfield1880188118821883Charles GildeaL. C. MorehouseC. E. WilcoxonJohn Markley John P. Dunn1884188518861887Gordon E. SlossJohn T. Gaffey1888188918901891J. S. SwanRichard H. BeamerJames R. HebbronEdward P. Colgan1892189318941895A. ChesebroughGeorge L. Arnold1896189718981899J. G. EdwardsAlexander BrownThomas O. Toland1900190119021903William H. AlfordFrank Mattison190419051906 A. B. Nye1907Joseph H. ScottRichard E. CollinsJeff McElvaine1908190919101911Edward M. RolkinJohn Mitchell19121913John S. Chambers19141915John C. Corbett1916191719181919Phillip D. Wilson19201921Ray L. Riley19221923Harvey G. Cattell1924192519261927John C. CorbettFred E. Stewart19281929193019311932193319341935Orfa Jean Shontz19361937Harry B. Riley19381939George R. ReillyWilliam G. Bonelli1940194119421943James H. Quinn194419451946Thomas Kuchel1947Jerrold L. Seawell194819491950195119521953Robert C. Kirkwood1954Paul R. Leake1955Robert E. McDavid1956195719581959John W. LynchRichard NevinsAlan Cranston19601961196219631964196519661967Houston I. Flournoy1968196919701971William M. Bennett1972197319741975Kenneth Cory1976Iris G. Sankey197719781979Ernest J. Dronenburg Jr.1980198119821983Conway H. Collis1984198519861987William M. BennettConway H. CollisErnest J. Dronenburg, Jr. Paul B. CarpenterGray Davis1988198919901991Brad ShermanMatt Fong1992199319941995Johan KlehsDean AndalBrad ShermanKathleen Connell19961997John Chiang19981999Claude Parrish2000200120022003Carole MigdenBill LeonardSteve Westly20042005Betty Yee20062007Michelle SteelJudy ChuJohn Chiang200820092010Barbara Alby / Sean WallentineSteve Shea / Jerome Horton2011George RunnerJerome Horton2012201320142015George RunnerFiona MaJerome HortonDiane HarkeyBetty Yee2016201720182019Ted GainesMalia CohenTony VazquezMike Schaefer2020202120222023Sally LieberMalia Cohen

After being reduced to its constitutional responsibilities in 2017, the Board retained almost none of its tax and fee responsibilities. The only property taxes it actively administers in its entirety are state assessed properties and the Private Railroad Car Tax; the Board acts only in an appellate role in collecting the Alcoholic Beverage Tax and Insurance Tax, reviewing appeals of denials of claims for refund. However, the Board does continue to appraise and audit public utilities, railroad companies and properties owned by counties outside of their own jurisdictions, known as 'state assessed properties', and hear appeals from its own staff appraisals.