The Taxpayer Transparency and Fairness Act of 2017: California Department of Tax and Fee Administration: Office of Tax Appeals: State Board of Equalization.
The implementation of SB86 is set to significantly alter the framework within which tax appeals are handled in California, aiming to improve the taxpayer experience by providing an impartial and expert panel for tax appeals. This is expected to enhance the overall trust in tax administration processes, ensuring that decisions are made based on consistent legal standards and precedents. Additionally, the bill allocates $5 million from the General Fund to support the administrative needs of the new Office of Tax Appeals, highlighting the state's commitment to effective tax governance.
SB86, known as the Taxpayer Transparency and Fairness Act of 2017, aims to reform California's tax administration processes by establishing the California Department of Tax and Fee Administration and the Office of Tax Appeals. This restructuring is intended to create a more efficient and equitable system that enhances the transparency and fairness of tax appeals. Under this bill, various duties and responsibilities currently held by the State Board of Equalization would be transferred to the newly established Department, streamlining operations and reducing potential conflicts of interest within tax administration.
The sentiment surrounding SB86 appears to be mixed, reflecting a recognition of the need for reform within the tax administration system. Proponents argue that creating an independent department for tax appeals will safeguard taxpayer rights and foster a more transparent process. However, there may be concerns from constituencies that feel the changes would dilute the power of local oversight, potentially leading to a one-size-fits-all approach that may not address the unique needs of different communities.
Notable points of contention regarding SB86 include the potential impacts on the authority of the State Board of Equalization. Critics may argue that shifting responsibilities could undermine local control over tax assessments and appeals, which historically have allowed for regional nuances to be considered. Furthermore, the bill's provisions to restrict ex parte communications aim to curb undue influence in tax proceedings, although some may see this as a reduction in the accessibility of dialogue between taxpayers and officials.