California Department of Tax and Fee Administration (CDTFA)

The Taxpayer Transparency and Fairness Act of 2017, which took effect July 1, 2017, restructured the State Board of Equalization and separated its functions among three separate entities to guarantee impartiality, equity, and efficiency in tax appeals, protect civil service employees, ensure fair tax collection statewide, and uphold the California Taxpayers' Bill of Rights.

The State Board of Equalization (Board, BOE) will continue to perform the duties assigned to it by the state Constitution, while all other duties will be transferred to the newly established California Department of Tax and Fee Administration and the Office of Tax Appeals.

The California Government Operations Agency is coordinating the transition of the restructure of the BOE and the establishment of the California Department of Tax and Fee Administration.

See the CDTFA organizational chart effective July 1, 2017

Beginning July 1, 2017, the CDTFA will assume all previous statutory tasks of the Board, and will perform administrative functions for the Board. The CDTFA will report to the California Government Operations Agency.

The Board, which is headed by a five-member board, will remain independent from any agency, and will retain its constitutional responsibilities, including reviewing, equalizing, or adjusting property tax assessments, assessing taxes on insurers, and assessing/collecting excise taxes on alcoholic beverages. The administration over all other tax and fee programs will be transferred to the California Department of Tax and Fee Administration.

In addition, until December 31, 2017, the Board will continue to hear appeals on all tax and fee matters, including those not related to its constitutional functions. However, beginning January 1, 2018, the Board will only hear appeals related to programs it constitutionally administers, and the independent Office of Tax Appeals will hear appeals on all other tax and fee matters, such as franchise and personal income tax appeals, sales and use tax, and other special taxes and fees.

See the BOE organizational chart effective July 1, 2017

The OTA has been established in state government to serve as a fair and impartial adjudicatory appellate body and, beginning January 1, 2018, will begin conducting appeals on taxes and fees that are not related to the constitutional authority of the Board, such as franchise and personal income tax appeals, sales and use tax, and other special taxes and fees. Each appeal will be heard by a panel of three Administrative Law Judges, who will issue written decisions for each appeal decided. The OTA is an independent body and will not report to the California Government Operations Agency.

Tax and feepayers, who are required to register with, file returns, and pay taxes and fees due, should continue to file and make payments to the Board according to their regular schedule using current processes and forms. There will be no changes to any processes at this time and future changes will be announced as they are determined. There should not be any disruption of services.

Until further notice, tax and feepayers who wish to file an appeal should continue to follow the current State Board of Equalization (BOE) process. Tax and feepayers must comply with all filing deadlines and retain the records thereto. The process for filing appeals with the newly created Office of Tax Appeals will be announced at a later date.

This CDTFA website will be enhanced throughout this transition. Please refer to this website for updates. Generally, information contained on the BOE website prior to July 1, 2017, remains valid until it is replaced.

Your patience is appreciated as the transition continues.