State Board of Equalization: California Department of Tax and Fee Administration: Franchise Tax Board: Office of Tax Appeals: transfer of duties.
The implications of AB 2330 are substantial, as it aims to streamline tax administration processes by consolidating tax collection and appeals functions within more specialized agencies. This restructuring could potentially improve efficiency and clarity in tax administration, benefiting both taxpayers and the state. By transferring specific powers to the Franchise Tax Board and the Department of Tax and Fee Administration, advocates believe it will simplify taxpayer interactions with government tax offices and consolidate expertise within these agencies, hence potentially leading to improved compliance and enforcement of tax laws.
Assembly Bill No. 2330, introduced by Assembly Member Nazarian, aims to reorganize the structure of tax administration within California by transferring various duties from the State Board of Equalization to the California Department of Tax and Fee Administration, the Franchise Tax Board, and the Office of Tax Appeals. Starting from January 1, 2023, the bill stipulates that the powers and responsibilities of the State Board of Equalization concerning the administration of taxes on insurance and alcoholic beverages will be vested in the Department of Tax and Fee Administration. Concurrently, the Franchise Tax Board will take on responsibilities related to property taxes.
Despite the potential benefits, the bill may also face contention regarding the loss of oversight and authority previously held by the State Board of Equalization. Critics might argue that the restructuring undermines the independence of the tax administration system, concentrating too much power within fewer agencies and thereby reducing public accountability. Additionally, concerns may arise regarding how these changes could affect civil service employees and whether the transition will adequately maintain taxpayer rights and protections under existing tax law.