California – Corporate Close-Up: California Creates Independent Office of Tax Appeals Ending SBOE’s Role In Income And Franchise Tax Appeals

Bloomberg BNA
SALT TALK BLOG
By Chris Bailey
July 3, 2017

As first reported by Laura Mahoney in the Daily Tax Report (subscription required), California Gov. Jerry Brown (D) signed into law A.B. 102, The Taxpayer Transparency and Fairness Act of 2017, on June 27, stripping the State Board of Equalization (SBOE) of its role in administering and hearing tax appeals for many California taxes, including income and franchise taxes.

In place of the SBOE, A.B. 102 creates two separate departments: the California Department of Tax and Fee Administration (CDTFA) and the Office of Tax Appeals (OTA). While the CDTFA will be responsible for California’s sales and use tax and many other excise taxes, the OTA will handle appeals from decisions of the Franchise Tax Board.

Eric Coffill, Senior Counsel with Eversheds Sutherland’s Sacramento, Calif., office and co-author of the California Corporate Income Tax Navigator(subscription required) told Bloomberg BNA by email that “businesses certainly should be optimistic” about the new office, though he believes it will be a challenge for the new agency to be fully functional by the beginning of 2018.


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