History & Milestones of the State Board of Equalization

The history and milestones page provides an overview of significant events affecting the Board of Equalization's (BOE) roles and responsibilities since its creation in 1870. Categories of events include:

Significant Tax Law/Regulation Changes – Actions by the Legislature or the Courts that either create new administrative responsibilities for the BOE (not including a new tax or fee program) or result in significant changes in current tax programs, and actions by the BOE that result in significant changes to BOE regulations. Examples include creation of the Board, changes in allocation or tax rates, and addition or deletion of administrative or regulatory responsibilities.
Tax and Fee Programs – The addition or deletion of tax or fee programs, including those programs that make up part of the statewide Sales and Use Tax rate.
Tax Rate Changes – Significant increases or decreases in rates imposed by a tax or fee program.
Procedural/Administrative Improvements – Actions undertaken by BOE to improve taxpayer services, including the implementation of eservices.
Board/Employee Recognition – Awards presented to the BOE and individual BOE employees for projects that significantly enhance customer service and agency operation.
Refund Programs – Instances requiring the refund of significant tax dollars such as court decisions that find taxes or the application of tax unconstitutional or contrary to statute.

Board Members Past and Present

Complete listing of every Board Member going back to 1879.

Milestones

2014

Significant Tax Law/Regulation Change:

Effective January 1, 2014, Assembly Bill No. 576 (Stats. 2013, ch. 614) creates the Revenue Recovery and Collaborative Enforcement (RRACE) Team comprised of the BOE, Franchise Tax Board, Employment Development Department, and the Department of Justice to exchange information for the purpose of and investigating criminal tax evasion associated with the underground economy.
Effective January 1, 2014, Assembly Bill No. 781 (Stats. 2013, ch. 532) makes it a crime for anyone to purchase, install or use software programs or other electronic devices with the intent to defeat or evade sales or use tax or amounts collected under the Fee Collection Procedures Law (Rev. & Tax. Code, § 55001 et seq.). The bill also makes it a crime for any person to knowingly sell, purchase, install, transfer or possess for commercial gain software programs or other electronic devices that are used solely for the purpose of defeating or evading sales or use tax or amounts collected under the Fee Collection Procedures Law.
Effective January 1, 2014, Assembly Bill No. 551 (Stats. 2013, ch. 406) allows cities and counties to create Urban Agriculture Incentive Zones and authorizes cities and counties, under specified conditions and until January 1, 2019, to enter into contracts to enforceably restrict the use of vacant, unimproved, or otherwise blighted land within these zones to "small-scale agriculture." The bill also requires county assessors to value property that is enforceably restricted by such a contract at the rate based on the average per-acre value of irrigated cropland in California, adjusted proportionally to reflect the acreage of the property under contract, as most recently published by the National Agricultural Statistics Service of the United States Department of Agriculture, and requires the BOE to post the applicable rate on its website with 30 days of publication.
Effective April 29, 2014, and retroactively applicable to the January 1, 2014 lien date for the 2014-15 fiscal year, Assembly Bill 777 (Stats. 2014, ch. 13) provides a property tax exemption for qualified property for use in space flight. The qualified property is eligible for the exemption regardless of whether the property will ultimately be returned to California. The exemption does not apply to any material that is not intended to be launched into space.
Effective July 1, 2014, Assembly Bill No. 93 (Stats. 2013, ch. 69), as amended by Senate Bill No. 90 (Stats. 2013, ch. 70), grants a partial sales and use tax exemption until July 1, 2022, for qualified tangible personal property used in manufacturing and research and development, including research and development in biotechnology, and the physical, engineering, and life sciences. The rate of the partial exemption is 4.1875 percent from July 1, 2014, until January 1, 2017, and 3.9375 percent from January 1, 2017, through June 30, 2022.
Regulation 1525.4 Manufacturing and Research & Development Equipment was adopted, which clarifies provisions related to the new partial exemption for sales of property used in manufacturing or research and development.
Effective July 1, 2014, Senate Bill No. 861 (Stats. 2014, ch. 35) caps the amount a retailer of lumber products may retain as reimbursement for administration of the Lumber Products Assessment at the amounts specified in BOE regulations 2000 and 2001. This limits the amount of reimbursement a retailer may claim to $735 per retail location.
Effective September 18, 2014, Senate Bill 861 (Stats. 2014, ch 35) also expands the current marine water oil spill program to a state-wide program imposing the fee on a person owning crude oil or petroleum products at the time the crude oil or petroleum products are received at a refinery, by any mode of delivery that passed over, across, under, or through waters of the state. The bill also deletes the provision that would reduce the fee beginning on January 1, 2015 and creates a rebuttable presumption that crude oil or petroleum products received at a marine terminal or refinery passed over, across, under, or through waters of the state.
Regulation 1603, Taxable Sales of Food Products, was amended to provide that mobile food vendors' sales of taxable items are presumed to be made on a tax-included basis, unless a separate amount for sales tax reimbursement is added to the charged price. The presumption does not apply when mobile food vendors make sales as caterers to provide food and/or drinks on the customer's premises or premises supplied by the customer.

Tax Rate Changes:

Effective July 1, 2014, the excise tax rate on gasoline decreases from $0.395 to $0.36 per gallon. For diesel fuel, the excise tax rate increases from $0.10 to $0.11 per gallon and the sales and use tax rate decreases from 9.44% to 9.25%. The adjustments were made in order to maintain revenue neutrality, as required by the 2010 "fuel tax swap" (AB x8 6 and SB 70).

Procedural/Administrative Improvements:

BOE:

Opens a new office in Santa Clarita on March 10, serving approximately 41,000 taxpayer accounts. The new office features self-service kiosks that allow taxpayers to conveniently register for a permit or license, file a return, and make payments; and offers a state-of-the-art electronic queue system.
Launches the Open BOE Data Portal, presenting a range of statistical data, such as taxable sales in California and information for tax and fee programs, in one uniform view.
Enables cigarette and tobacco products wholesalers, distributors, manufacturers, and importers, as well as International Fuel Tax Agreement (IFTA) licensees, to renew their licenses online.
Implements the "no cash" policy in all its field offices. Exceptions are allowed when a taxpayer can document that they are unable to obtain a bank account.

Board/Employee Recognition:

The BOE receives statewide awards from the California Association of Public Information Officials (CAPIO) and the State Information Officers Council (SIOC) for the following efforts:
- Redesigned BOE Website
- Use Tax Informational Video Series
- BOE Recruitment Campaign
- BOE Annual Report

2013

Significant Tax Law/Regulation Change:

Effective January 1, 2013, Assembly Bill No. 1492 (Stats. 2012, ch. 289) imposes an assessment on the sale of lumber products and engineered wood products in California at the rate of one percent (1%) of the retail sales price, in addition to the existing sales and use tax rate.
Regulations 2000 Retailer Reimbursement Retention and 2001 Additional Retailer Reimbursement Retention were adopted specifying the amount a retailer of lumber products may retain as reimbursement for administration of the Lumber Products Assessment. Regulation 2000 allows a retailer to retain $250 per retail location. Regulation 2001 allows a retailer to retain an additional $485 per retail location on or after January 1, 2014.
Senate Bill 78 (Stats. 2013, ch. 33), imposes a sales tax on the sale of Medi-Cal Managed Health Care services at the rate of 3.9375 percent. Sales tax revenue from this program is allocated to the Children's Health and Human Services Special Fund.
Effective January 1, 2013, Assembly Bill No. 2323 (Stats. 2012, ch. 788) requires the BOE to publish on its Internet website a written formal opinion, memorandum opinion, or summary decision for each decision of the Board in which the amount in controversy is $500,000 or more, within 120 days of the date the Board rendered its decision.

Tax and Fee Programs:

The Board voted in December to release more than $95.4 million in security deposits to its taxpayers who have good reporting and payment histories. The Board's action also eliminates the automatic security requirement upon registration for a seller's permit. The BOE may still require taxpayers with a history of late payments or delinquencies to post a security deposit.

Tax Rate Changes:

BOE:

The passage of Proposition 30 increases the statewide sales and use tax rate one quarter of one percent (0.25%) from January 1, 2013 through December 31, 2016.
Effective July 1, 2013, the excise tax rate on gasoline increases from $0.36 to $0.395 per gallon. Also, the sales and use tax rate for diesel fuel decreases from 9.67% to 9.44%. The adjustments were made in order to maintain revenue neutrality, as required by the 2010 "fuel tax swap" (AB x8 6 and SB 70).

Procedural/Administrative Improvements:

BOE:

Launches a re-designed website, offering enhanced features, a convenient way for customers to log in and obtain easy access to their accounts and tax and fee information.
Implements online installment payment arrangements, allowing taxpayers to submit their payment proposals twenty-four hours a day, seven days a week.
Unveils an easy-to-use online mapping tool to find the correct sales and use tax rate at any given street address.
Transitions to a system that electronically transfers check data and images to BOE's eight partner banks, eliminating the need to send paper checks. The new system also creates the functionality to electronically retrieve check images.
Implements use of automated phone calls reminding taxpayers of the upcoming return filing due date. In October, approximately 40,000 taxpayers with a recent history of late filings received an automated phone call that played a pre-recorded message reminding them to file their return by October 31.
Upgrades its computer operating systems and applications to Windows 7 and Microsoft Office 2010 respectively.
Opens the Southern California Customer Service Center in Culver City.
Converts taxpayer files in district offices from paper to digital format.
Expands the electronic payments mobile application to allow taxpayers to make use tax payments.

Board/Employee Recognition:

The BOE earned the 2013 Best IT Collaboration Among Organizations Project Excellence Award from the Center for Digital Government for its role in the Financial Institution Record Match Project (FIRM).
The BOE's online registration system (eReg) earned the 2013 Digital Government Achievement – Government-to-Business Award from the Center for Digital Government, and its Electronic Services Expansion Project earned the State IT Recognition Award from the National Association of State Chief Information Officers.
BOE's contracting and procurement efforts with small businesses and disabled veteran business enterprises earned State Agency Recognition Awards (SARA) in the following categories:
- Secretary's Special Achievement Award
- Silver Award – Advocate of the Year (Linda Fergurson)
- Most Notable Improvement for Disabled Veteran Business Enterprise

2012

Procedural/Administrative Improvements:

BOE:

Implements eReg, a secure, fast and easy way to register for an account, permit, or license online.
Implements eRelief Requests, a convenient way to electronically submit requests for relief of penalty, interest, and collection cost recovery fee, and to request extension of time to file a tax or fee return.
Transitions to digital auditing, including electronic access to audit workpapers.
Moves the San Diego district office to new location and introduces automated self-check-in and self-service kiosks for the taxpayers' convenience. Also, the Suisun City Branch office moves to Fairfield and has similar features.

Significant Tax Law/Regulation Change:

In accordance with Assembly Bill No. 155 (Stats. 2011, ch. 313), on and after September 15, 2012, an out-of-state retailer will be considered engaged in business in California and required to register with the State Board of Equalization (BOE) to collect and remit California use tax if the retailer has a substantial nexus with California. This includes, but is not limited to an out-of-state retailer that:

Has an affiliate operating in California that refers potential customers to the retailer by an Internet-based link, Internet website, or otherwise, under specified circumstances, or
Is a member of a commonly-controlled group and combined reporting group and has a member of the retailer's combined reporting group and commonly-controlled group performing services for the retailer in California that help the retailer establish or maintain a California market for sales of tangible personal property, or
Maintains, occupies, or uses a place of business in California, has persons operating in California under its authority for the purpose of selling, delivering, installing, assembling, or the taking of orders for tangible personal property, or derives rentals from a lease of tangible personal property situated in California.

New legislation expands the disclosure of BOE's Top 250 largest delinquent accounts to the Top 500 and provides that state agencies that issue licenses (including driver licenses and occupational licenses), are required to suspend, revoke, and deny issuance of such licenses if the delinquent taxpayer's name appears on the Top 500 certified list.
Regulation 1684, Collection of Use Tax by Retailers, amended to incorporate, clarify, and implement the expanded use tax registration requirements imposed by Assembly Bill No. 155.
Regulation 1616, Federal Areas, amended to prescribe the additional circumstances under which sales of tangible personal property to and the use of tangible personal property by the governments of federally-recognized Indian tribes are exempt from California sales and use tax.

Tax or Fee Program:

New legislation imposes a fire prevention fee to be assessed on owners of habitable structures located on a parcel within a State Responsibility Area, beginning with Fiscal Year 2011. BOE issues first billings on behalf of CAL FIRE in August 2012.

Board/Employee Recognition:

Cynthia Bridges, Executive Director of BOE, named 2012 Tax Administrator of the Year by State Tax Notes, a publication of Tax Analysts.
BOE receives the California State Information Officers Council Gold Award for its Ethics publication and the Silver Award for the Appeals publication.

2011

Procedural/Administrative Improvements:

BOE:

Implements ePay, a new method for taxpayers to submit payments electronically. ePay allows tax and fee payers (except Timber Tax) to make online payments for current and past due taxes and fees for returns or prepayments, as well as accounts receivables, including audit liabilities. The payments are submitted on the BOE's website (www.boe.ca.gov) using the Automated Clearing House Debit (ACH Debit) process.
Completes establishment of Settlement and Appeals Units in Southern California to accelerate the resolution of appeals for Southern California taxpayers.
Expands the Tax Appeals Assistance Program (TAAP) to assist taxpayers appealing Cigarette and Tobacco Licensing Act violation appeals.
Completes Functional Reorganization of the Property and Special Taxes Department.
Initiates the electronic recording of liens and lien releases with the County Recorders.
Enables secure wireless access in BOE's headquarters building and field offices.

Significant Tax Law/Regulation Change:

New legislation imposes collection cost recovery fee on past due liabilities effective January 1, 2011. As provided by Senate Bill No. 858 (Stats. 2010, ch.721), this fee is imposed on any person that fails to pay amounts due and owing within 90 days.
Regulation 1685.5, Calculation of Estimated Use Tax – Use Tax Table, adopted to prescribe the manner in which the Board annually calculates the estimated amount of use tax due according to a person's adjusted gross income and prepares an estimated use tax table for use by eligible consumers, as required by Senate Bill No. 86 (Stats. 2011, ch.14).
Regulation 1507, Technology Transfer Agreements, amended to delete a provision excluding the transfer of prewritten software from the definition of the term "technology transfer agreement." This provision was declared invalid by the Court of Appeal in Nortel Networks, Inc., v. State Board of Equalization (2011) 191 Cal.App.4th 1259.
The temporary 1% sales and use tax increase sunset on June 30, 2011.

Tax Rate Change:

Effective July 1, 2011, in place of the additional 1.75% sales and use tax rate imposed by the 2010 fuel tax swap legislation on sales of diesel fuel, the rate increases to 1.87%. This rate will change annually for the years 2012 thru 2014. Also, effective July 1, 2011, the excise tax rate on diesel fuel decreases from 13.6 cents per gallon to 13 cents per gallon.

Board/Employee Recognition:

The BOE wins the Center for Digital Government's Green IT Award for implementing the BOE's eFiling Transition Project.
BOE receives the California State Information Officers Council Gold Award for its Annual Report quadfold publication and the Silver Award for the Media Resources webpage.

2010

Procedural/Administrative Improvements:

BOE:

Develops new mobile applications to allow access to tax information from mobile devices, including the location and phone numbers for BOE offices and the verification of seller's permits.
Publishes new Strategic Plan for 2010-2015 and a supporting 3 Year Business Plan.
Begins taxpayer updates through Twitter.
Implements efiling for Sales and Use Tax filings by gas distributors and retailers. With the initiation of this program, all Sales and Use Tax registrants are given the ability to efile.

Significant Tax Law/Regulation Change:

Effective July 1, 2010, the rate of Sales and Use Tax on motor vehicle fuel decreases to 2.25% from 8.25%, while the corresponding Motor Vehicle Fuel Tax rate increases by $0.173 per gallon (to $0.353).

Board/Employee Recognition:

BOE receives Communication Awards from the California State Information Officers Council for BOE's:

Online Seminars Website,
Resource Guide to Free Tax Products, Services, and Publications,
Building Assessment Website, and
Multilingual Outreach and Education Services Website.

2009

Procedural/Administrative Improvements:

BOE:

PublishesThe 2020 Plan: Roadmap to the Future, which describes the strategic concepts and goals that need to be achieved for BOE to conduct business effectively in the year 2020. More…
Starts phase-out of paper tax returns and continues to encourage taxpayers to file electronically. The efiling program increases BOE's efiling participation rate from under 100,000 efiled returns/prepayments in fiscal year 2007-08 to over 1.13 million in fiscal year 2008-09. Increased efiling results in cost savings, increases government efficiencies and provides taxpayers an easy, quick, and accurate method to file a return.
Redesigns its internet site to be more user-friendly for taxpayers and staff, following a professional website usability study.
Integrates the temporary 1% sales tax increase in the Sales and Use Tax rate the into eFiling and ePayment programs.
Expands the Tax Appeals Assistance Program (TAAP) to assist taxpayers appealing BOE consumer Use Tax billings.

Significant Tax Law/Regulation Change:

Enactment of a temporary Sales and Use Tax rate of 1%. The increase is effective April 1, 2009, and will sunset on June 30, 2011.
Enactment of "qualified purchaser" provisions for Use Tax reporting. These provisions require businesses receiving gross receipts of $100,000 or more per year to register with BOE and annually report use tax on their untaxed purchases of tangible personal property for use in California. The provisions require qualified purchasers to file annual use tax returns by April 15 of each year, beginning with the returns for calendar year 2009, which are due April 15, 2010. More…

Board/Employee Recognition:

BOE receives Federation of Tax Administrators' (FTA) Leon Rothenberg Award for Taxpayer Service and Education. The award is given for implementation of the Tax Appeals Assistance Program (TAAP), which provides free legal assistance to qualifying taxpayers.

2008

Procedural/Administrative Improvements:

BOE:

Continues implementation of eServices through adoption of Express Login, simplification of the eClient Registration Process, introduction of a "Pay by Check" option, and expansion of efiling options to sales and use tax accounts with both multiple business locations and the requirement to use electronic funds transfer.
Streamlines process for release of taxpayers' security deposits.
Implements the ePayment program for pre-payment accounts and eService functions to process delinquent prepayments.
Installs dedicated credit card processing equipment in all field offices and establishes procedures for taxpayers to make credit cards payments for all BOE tax and fee program accounts receivable, including audits and return liabilities.
Establishes the Disability Advisory Committee (DAC) to advise the Executive Director about issues of concern to BOE employees with disabilities.
Airs online instructional video to assist taxpayers with assessment appeals. More…
Implements Statewide Compliance and Outreach Program (SCOP), which uses door-to-door contacts to verify that businesses are properly registered for Sales and Use Tax and other BOE administered tax programs.

Significant Tax Law/Regulation Change:

Effective February 6, 2008, the Board adopts new Rules for Tax Appeals and repeals its old Rules of Practice. The Rules for Tax Appeals codify all of the procedures applicable to the BOE's appeals processes in one place, organize them by tax and fee program, and provide common procedures for taxpayers to follow where practicable. More…
Effective October 1, 2008, statutory provisions reestablish a rebuttable presumption that a vehicle, vessel or aircraft purchased outside California and brought into the state within 12 months has been purchased for use in the state.
Effective October 1, 2008, BOE adopts new regulations that presume each flavored malt beverage qualifies as a distilled spirit rather than a beer because it contains alcohol derived from the distillation of agricultural products. Manufacturers may counter the presumption by certifying that the product does not contain more than 0.5% alcohol by volume from distillation. The alcoholic beverage tax rate is $3.30 per gallon for distilled spirits and $0.20 per gallon for beer. More… (See Regulations 2558-2559.5)

2007

Procedural/Administrative Improvements:

BOE:

Begins broadcasting streaming audio of Board Meetings via the Internet.
Implements eFiling for returns filed without a full payment of taxes due.

Significant Tax Law/Regulation Change:

Enactment of property tax laws that add new streamlined procedures:

Enabling counties to coordinate their assessment of fractionally owned aircraft through a lead county assessor's office, and
Allowing taxpayers to file a single property statement with the lead county assessor's office. More…
Beginning in 2007, BOE implements 2006 legislation requiring the public disclosure of the top 250 largest Sales and Use Tax delinquencies.
Effective July 1, 2007, statutory provisions revert to the rebuttable presumption that a vehicle, vessel or aircraft purchased outside California and brought into the state within 90 days has been purchased for use in the state.

2006

Procedural/Administrative Improvements:

BOE:

Implements eFiling for taxpayers filing single location Sales and Use Tax returns on a quarterly basis and on a quarterly basis with prepayments.
Establishes procedures authorizing the acceptance of credit card payments for all tax program accounts, efiled tax returns, and Special Taxes returns.
Implements the Alternative Cigarette Tax Stamp (ACTS) program to minimize cigarette tax evasion. The stamp is machine-readable and incorporates encrypted data to prevent counterfeiting.
Airs on-line instructional video to assist taxpayers in preparing, submitting, and presenting information for Board Hearings. More…
Establishes Tax Appeals Assistance Program (TAAP) to assist low-income taxpayers with tax appeals, using qualified law students under BOE supervision. Program initiated with specified Franchise Tax Board appellants. More…
Initiates two projects to discover unreported taxes. The agricultural Inspection Station Project identifies untaxed property brought into California through border inspection and weigh stations operated by the Department of Food and Agriculture. The Retail Licensing Enforcement Program uses door-to-door visits to verify that businesses in the San Francisco and Norwalk areas are properly registered.

Significant Tax Law/Regulation Change:

Amendment of the Cigarette and Tobacco Products Licensing Act of 2003 to require manufacturers and importers of tobacco products to obtain and maintain BOE licenses to sell tobacco products in California. More…
On December 12, 2006, BOE adopts regulations for the administration and enforcement of the Cigarette and Tobacco Products Licensing Act of 2003. Regulations 4500-4703 are effective on April 21, 2007. More…
Legislation imposes a 40% penalty on retailers who collect sales tax reimbursement and use tax from their customers, but fail to pay it to the state in a timely manner.
Effective January 1, 2007, legislation authorizes the BOE and Franchise Tax Board to publicly disclose the 250 largest sales and use tax and income tax delinquencies above $100,000, respectively.

Board/Employee Recognition:

BOE employees were recognized in April 2006 for collectively donating the largest amount of food of all state agencies during California State Employees Food Drive in December 2005, over 128,000 pounds.

2005

Procedural/Administrative Improvements:

BOE initiates program to match U.S. Customs electronic import records against BOE registrations.

Significant Tax Law/Regulation Change:

From February 1 through March 31, 2005, a Tax Amnesty Program is in effect for delinquent Sales and Use Tax payments.

Tax or Fee Program:

Effective January 1, 2005, retailers are required to collect the Covered Electronic Waste Recycling Fee in accordance with amendments made by Senate Bill 50 (Stats. 2004, Ch. 863), which postponed the effective date from November 1, 2004, until January 1, 2005. More…

Board/Employee Recognition:

The Taxation Section of the California State Bar Association honors Deputy Controller Marcy Jo Mandel with the V. Judson Klein Award for excellence in the field of tax law.

2004

Procedural/Administrative Improvements:

BOE completes the Revenue Database Consolidation (RDC) project to integrate all computerized Special Taxes tax administration systems into IRIS.

Significant Tax Law/Regulation Change:

Effective January 1, 2004,

Legislation renames the Ballast Water Management Fee as the Marine Invasive Species Fee and extends the sunset date from January 1, 2004 to January 1, 2010. More…
A line is added to Franchise Tax Returns to enable consumers to report use tax.
A limit is placed on the period during which BOE can recover past use tax obligations when voluntarily reported by certain qualified purchasers.
A rebuttable presumption is enacted that a vehicle, vessel or aircraft purchased outside California on or after October 2, 2004 and brought into the state within 12 months is purchased for use in the state. This presumption expires on July 1, 2007.

Tax or Fee Program:

Effective January 1, 2004, the following tax or fee measures take effect:

Assembly Bill 71 (Stats. 2003, Ch. 890) creates the California Cigarette and Tobacco Products Licensing Act of 2003, which requires licensing of all California distributors, wholesalers, and retailers of cigarettes and tobacco products, as well as manufacturers and importers of cigarettes. In addition, the Act mandates new recordkeeping requirements, enables inspection and seizure of any untaxed cigarettes or tobacco products, and imposes civil and criminal penalties for violations. More…
Senate Bill 1016 (Stats. 2003, Ch. 741) enacts the Water Rights Fee Law. BOE is required to assess and collect various water-related fees on behalf of the State Water Resources Control Board. More…

2003

Significant Tax Law/Regulation Change:

Effective January 1, 2003, Assembly Bill 1458 (Stats. 2002, Ch. 152) authorizes the Board to accept offers in compromise of a tax or fee debt. More…
On February 5, 2003, the Board adopts and amends several regulations prescribing the records that must be maintained to verify the payment of various taxes and fees, including the Integrated Waste Management Fee, and adopts and amends several regulations prescribing the requirements for relief from liability from specified Special Taxes, including the Integrated Waste Management Fee, for reasonable reliance on written advice from the BOE. The regulations become effective on May 28, 2003. More…

2002

Significant Tax Law/Regulation Change:

Effective January 1, 2002, Assembly Bill 2114 (Stats. 2000, Ch. 1053) enacts a Motor Vehicle Fuel Tax Law that moves the taxation point of fuel from the first distribution to the point of removal from the terminal rack. The same bill repeals the prior Motor Vehicle Fuel License Tax Law, effective December 31. 2001. More…

Tax Rate Change:

Effective January 1, 2002, the statewide Sales and Use Tax rate increases by .25%.

2001

Procedural/Administrative Improvements:

BOE implements efiling for the simplest Sales and Use Tax returns, specifically single location returns and EZ returns

Significant Tax Law/Regulation Change:

Effective January 1, 2001, lenders authorized to obtain refund of sales and use tax on certain uncollectible accounts.
On March 28, 2001, the Board adopts regulations for the Oil Spill Response, Prevention, and Administration Fee. The regulations become effective on July 6, 2001. More…
Effective July 19, 2001, regulations setting the California Lead Poisoning Prevention (Childhood Lead Poisoning Prevention) Fees on lead paint and leaded gasoline are repealed by the Department of Health Services and replaced with newly adopted regulations. The new regulations address the change in the basis for the application of the fees from gallons distributed by the feepayers to the feepayers market share. The fees are collected by BOE.
Operative September 1, 2001, legislation authorizes exemptions from the state portion of the sales and use tax for specified farm equipment and machinery, specified uses of liquefied petroleum gas, diesel fuel used in farming activities or food processing, racehorse breeding stock, and timber harvesting machinery and equipment. More… (See Regulations 1533-1535.)

Tax or Fee Program:

Effective January 1, 2001, the following new fee programs take effect:

The Natural Gas Surcharge. More…

Tax Rate Change:

Effective January 1, 2001, state portion of sales and use tax drops by .25%.

2000

Procedural/Administrative Improvements:

BOE:

Extends EFT payments to Special Taxes taxpayers.
Modifies the Automated Compliance Management System (ACMS), an electronic collection management database, to interface with the Integrated Revenue Information System (IRIS), BOE's electronic tax administration system.

Significant Tax Law/Regulation Change:

Effective January 1, 2000, the BOE is authorized to prescribe the requirements for the acceptance of electronically filed tax returns.
Underground Storage Tank Maintenance Fee regulations become effective on January 8, 2000. More…

Tax or Fee Program:

The Ballast Water Management Fee Law was enacted and became effective on January 10, 2000. More…

1999

Procedural/Administrative Improvements:

BOE introduces Publication 54, Tax Collection Procedures, providing taxpayers an overview of the collection process. More…

Significant Tax Law/Regulation Change:

Effective January 1, 1999:

The 1998 passage Proposition 10 increases the Cigarette Tax from $0.37 to $0.87 per pack.
Property used in teleproduction and post-production activities is exempt from the state portion of the sales and use tax. More… (See Regulation 1532)
Diesel Fuel Tax regulations become effective on March 31, 1999. More…
Hazardous Substances Tax regulations become effective October 8, 1999. More…
Legislation authorizes BOE to prescribe requirements for the electronic filing of Sales and Use Tax returns.

1998

Procedural/Administrative Improvements:

BOE implements Phases I and II of the Integrated Revenue Information System (IRIS). Phase I consolidates all Sales and Use Tax computer-based functions into a single enterprise system. Phase II addresses the processing of Sales and Use Tax returns and related financial functions.

Significant Tax Law/Regulation Change:

Counties authorized to levy transactions and use taxes for local library programs
Sunset date of the Tire Recycling Fee extended to January 1, 2001. More…
Local sales tax allocation methods for pooled revenues and sales of jet fuel changed.

1997

Procedural/Administrative Improvements:

In cooperation with the Franchise Tax Board, the Employment Development Department, and the Alcoholic Beverage Control Board, BOE opens its first one-stop Tax Service Centers in Bakersfield, Stockton, and Bakersfield. Additional centers are opened in subsequent years in a number of other cities.

Refund Programs:

On March 31, 1997, the refund program for the unconstitutional Fresno Metropolitan Projects Authority Tax ends.

Significant Tax Law/Regulation Change:

On July 1, 1997, administration of the Oil Recycling Fee transfers to the Integrated Waste Management Board.
California Supreme Court upholds the constitutionality of the Childhood Lead Poisoning Prevention Fee in the case Sinclair Paint Company vs. State Board of Equalization, (1997) 15 Cal 4th 866.

1996

Interstate Agreements:

California implements the International Fuel Tax Agreement. More…

Procedural/Administrative Improvements:

BOE:

Starts migration of main-frame functions from BOE-based computers to centralized main-frame computer at the state computer center.
Implements the Automated Compliance Management System (ACMS) to aid in the automation of tax collection activities and other compliance functions.

Refund Programs:

The Fresno Metropolitan Projects Authority Tax is declared unconstitutional and a program is begun to refund the unconstitutional tax.
Sales and Use Tax rate rollbacks used to partially refund unconstitutional district taxes are ended in San Diego and Monterey counties.

Significant Tax Law/Regulation Change:

Effective January 1, 1996, the method of allocating local tax on automobile leases is modified.

Tax or Fee Program:

Effective January 1, 1996, the prior Health and Safety Code provisions related to the Childhood Lead Poisoning Prevention Fee and the Occupational Health and Disease Prevention Fee are repealed and replaced with new Health and Safety Code provisions.

1995

Refund Programs:

BOE begins program to refund unconstitutional Monterey County Sales and Use Tax. The program includes direct refunds and a rollback of tax rates and of credits on purchases made within Monterey County.

Tax or Fee Program:

On July 1, 1995, the Diesel Fuel Tax became operative. More…
Hazardous Spill Prevention Fee expires effective December 31, 1995.

1994

Significant Tax Law/Regulation Change:

The Morgan Property Taxpayers' Bill of Rights enacted in 1993 becomes effective for the benefit of property taxpayers on January 1, 1994. More…

Refund Programs:

San Diego County Regional Justice Facility Tax and Monterey Public Repair and Improvement Authority Tax refund programs begins.
San Diego County Sales and Use Tax rollback/credit program begins.

1993

Significant Tax Law/Regulation Change:

The Fee Collection Procedures Law, Revenue and Taxation Code Sections 55001 through 55381, enacted in 1992 becomes effective January 1, 1993. More…
Effective January 1, 1993, the Taxpayers' Bill of Rights is extended to taxpayers in Special Taxes programs. More…
Regulations are adopted under the Health and Safety Code on February 1, 1993, which also become effective the same day.
On November 3, 1993, voters approve Proposition 172. This constitutional amendment makes permanent an additional sales and use tax to fund local public safety programs.

Tax or Fee Programs:

New Childhood Lead Poisoning Prevention Fee and Hazardous Spill Prevention Fee take effect. More…

1992

Refund Programs:

February – Collections ended for San Diego County Regional Justice Facility Tax.
September – Monterey County Public Repair and Improvement Authority Tax found unconstitutional and collections ended.

Significant Tax Law/Regulation Change:

1991 legislation enacting Revenue and Tax Code sections requiring the largest taxpayers to remit sales and use taxes via electronic funds transfers becomes effective January 1, 1992.
Electronic payments for taxpayers averaging over $50,000 per month are scheduled to begin on January 1, 1993. More…
Operative December 1, 1992, voters passage of Proposition 163 repeals "Snack Tax" and tax on certain periodical subscriptions.

Tax or Fee Programs:

California Oil Recycling Enhancement Act takes effect.
On January 1, 1992, the Childhood Lead Poisoning Prevention Fee and Occupational Health and Disease Prevention Fee become effective.

1991

Significant Tax Law/Regulation Change:

Operative July 1, 1991, legislation repeals sales tax exemption related to certain food products resulting in the so-called "Snack Tax." Also repealed were exemptions applicable to bottled water, newspapers, and periodicals.

Tax or Fee Programs:

The Oil Spill Response, Prevention and Administration Fees Law, Revenue and Taxation code sections 46001 through 46751, is enacted and becomes effective August 1, 1991. More… on the Oil Spill Response Fee More… on the Oil Spill Prevention and Administration Fee

1990

Procedural/Administrative Improvements:

BOE publishes A Vision for Technological Achievement (VISTA), describing the strategic goals and technical model required for BOE to conduct business effectively in the new millennium.

Significant Tax Law/Regulation Change:

Effective August 1, 1990, Motor Vehicle Fuel License Tax increases $0.05 per gallon due to voter approval of Proposition 111 on the June 5, 1990, ballot. This Proposition also increases the tax by $0.01 per year over the following four years.

Tax or Fee Programs:

The California Tire Fee, Public Resources code sections 42860 through 42895, is enacted and becomes effective on March 30, 1990.
On December 31, 1990, the annual Hazardous Substance Tax expires.

1989

Significant Tax Law/Regulation Change:

Effective January 1, 1989, Proposition 99 increases the tax on cigarettes from $0.10 to $0.25 per pack and creates a tobacco products tax that applies to non-cigarette tobacco products.
On January 1, 1989, the Harris-Katz California Taxpayers' Bill of Rights becomes effective. This bill ensures that the rights, privacy, and property of California taxpayers are adequately protected in the assessment and collection of sales and use taxes. More…

Tax or Fee Programs:

The Underground Storage Tank maintenance Fee Law, Revenue and Tax Code sections 50101 through 50162, is enacted and becomes effective on October 2, 1989.

1987

Significant Tax Law/Regulation Change:

The legislature repeals the Moore Universal Telephone Service Act. Simultaneously, the law is reenacted and administration is transferred to the Public Utilities Commission.

Tax or Fee Programs:

The Integrated Wasted Management Fee Law, Revenue and Tax Code sections 45001 through 45984, is enacted and becomes effective on September 28, 1987.

1984

Tax or Fee Programs:

The Moore Universal Telephone Service Act imposes a tax on certain intrastate telecommunications to subsidize basic telephone service for those who cannot afford it. The Public Utilities Commission determines tax rates, eligibility, and service systems while the Board collects the tax.

1981

Tax or Fee Programs:

The Hazardous Substances Tax Law is enacted and becomes effective on September 25, 1981.

1979

Significant Tax Law/Regulation Change:

Litter Control, Recycling, and Resources Recovery Act amended to end the assessment on persons holding seller's permits and to appropriate funding from the state's general fund.

1978

Significant Tax Law/Regulation Change:

Proposition 13 is approved by voters. This proposition establishes the base year value concept, which rolls back assessed real property values to their fair market value on the 1975 lien day, limits assessment to 1% of the base year value of real property, and limits increases in base year values to no more than 2% per year. It also prohibits the establishment of a new base year value for real property, except upon: (a) change in ownership, or (b) completion of new construction.
Proposition 8 is approved by voter. This proposition amends Article XIIIA of the California Constitution to require county assessors to assess real property at the lower of its adjusted base year value or fair market value on the lien date. More…

1977

Significant Tax Law/Regulation Change:

On April 6, 1977, BOE adopts regulations for the Emergency Telephone Users Surcharge. Regulations become effective July 1, 1977. More…

Tax or Fee Programs:

BOE begins to impose the Timber Yield Tax on every timber owner who harvests timber or causes it to be harvested on or after April, 1 1977.
On July 1, 1977, the Emergency Telephone Users Surcharge Law becomes operative. More…

1976

Tax or Fee Programs:

Timber Yield Tax Law and Emergency Telephone Users Surcharge Law take effect.

1975

Tax or Fee Programs:

Effective January 1, 1975, the Energy Resource Surcharge tax begins. More…

Significant Tax Law/Regulation Change:

BOE adopts regulations for the Energy Resource Surcharge, which become effective on January 26, 1975. More…

1974

Significant Tax Law/Regulation Change:

The Waxman-Dymally Campaign Disclosure Act is enacted to provide for the audit of campaign statements. The Act is terminated after voters approve Proposition 9, the Political Reform Act, in November 1974.

1973

Significant Tax Law/Regulation Change:

Motor Vehicle Transportation License Tax repealed.

1970

Significant Tax Law/Regulation Change:

On January 6, 1970, the Board adopts regulations for the Transactions and Use Tax. The regulations became effective February 25, 1970. More… (See Regulations 1821-1828.)
On April 1, 1970, the Bay Area Rapid Transit (BART) District Transportation and Use Tax becomes effective.

1969

Significant Tax Law/Regulation Change:

BOE starts process to completely revise and restructure its Sales and Use Tax Regulations.

Tax or Fee Programs:

On November 10, 1969, the Transaction and Use Tax Law becomes effective. More… See Publication 44, District Taxes (Sales and Use Taxes).
Aircraft Jet Fuel Tax takes effect. More…

1967

Significant Tax Law/Regulation Change:

Legislation increases the Cigarette Tax rate and provides that 30% of the receipts from the Cigarette Tax be distributed to cities and counties based on local sales tax allocations.

1966

Significant Tax Law/Regulation Change:

Legislature enacts the Property Tax Assessment Reform Law, which mandates certification and training of appraisers, surveys of county assessors' offices, and development of property tax rules and regulations by BOE. The Law also adds an appeal procedure at the staff level to the sample property appraisal process. More…

1959

Significant Tax Law/Regulation Change:

On June 24, 1959, BOE adopts the first Cigarette Tax Regulations. More…

Tax or Fee Programs:

Effective July 1, 1959, the Cigarette Tax takes effect and imposes tax at a rate of $0.03 per pack of cigarettes.

1956

Significant Tax Law/Regulation Change:

On March 27, 1956, the Board adopts regulations for the Bradley-Burns Uniform Local Sales and Use Tax Law. Regulations are effective April 1, 1956. More… See Regulations 1802-1807

Tax or Fee Programs:

On April 1, 1956, the Bradley-Burns Uniform Local Sales and Use Tax Law becomes operative. By 1962, all state cities and counties are included in the Board-Administered local Sales and Use Tax program. More…

1955

Significant Tax Law/Regulation Change:

Constitutional Amendment transfers licensing and control of alcoholic beverages from the BOE to a new Alcoholic Beverage Control Department and created the Alcoholic Beverage Control Appeals Board to review appeals of the new department's decisions. The BOE retains taxing functions related to alcoholic beverages.
On April 17, 1955, Alcoholic Beverage Tax Regulations become effective. More…

1949

Significant Tax Law/Regulation Change:

On January 1, 1949, BOE's first Use Fuel Tax Regulations become effective. More…

1948

Significant Tax Law/Regulation Change:

On March 15, 1948, the BOE's first Motor Vehicle Fuel Tax Regulations are adopted and become effective.

1945

Significant Tax Law/Regulation Change:

As of January 1, 1945, BOE adopts Sales and Use Tax Regulations, which are restatements of previously effective Board and Court rulings on the application of the tax.

1943

Tax or Fee Programs:

On July 1, 1943, the Tax on Insurer's Law, Motor Vehicle Fuel Tax Law, and Use Fuel Tax Law become effective.

1937

Tax or Fee Programs:

On July 1, 1937, the Use Fuel Tax on diesel and other non-gasoline vehicle fuels takes effect as a supplement to the gasoline tax. More…
Private Railroad Car Tax is enacted. More…

1935

Tax or Fee Programs:

On July 1, 1935, the Use Tax becomes effective to provide further revenue and to protect California retailers from tax-free competition from out-of-state retailers. Use Tax is imposed on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer. More…
Personal income tax becomes effective. The Office of the Franchise Tax Commissioner, which was subsequently replaced with the Franchise Tax Board in 1950, was assigned to administer the new tax. The BOE hears appeals from the Franchise Tax Board decisions regarding the Personal Income Tax.

1933

Tax or Fee Programs:

Effective August 1, 1933, Sales Tax is imposed on retailers for the privilege of selling tangible personal property at retail. The tax rate is assessed on the sales price of tangible personal property sold for use or consumption in California. More…
On August 1, 1933, the Motor Vehicle Transportation License Tax and Alcoholic Beverage Tax take effect. More… on the Alcoholic Beverage Tax.
Riley-Stewart Plan for tax relief abandons the in-lieu gross receipts tax on public utilities and once again made public utility properties subject to ad valorem taxation and required the BOE to centrally assess public utility properties for local tax purposes.

1929

Tax or Fee Programs:

Bank and corporation franchise tax enacted. The Office of the Franchise Tax Commissioner is created to assess and administer the new taxes. The Office of the Franchise Tax Commissioner is replaced by the Franchise Tax Board in 1950. The BOE hears appeals from the Franchise Tax Board's decisions under the Bank and Corporation Tax Law.

1923

Tax or Fee Programs:

Motor Vehicle Fuel (gasoline) Tax takes effect. These Motor Vehicle Fuel Tax provisions are ultimately superseded by the Motor Vehicle Fuel Tax Law that is effective August 1, 1933.

1911

Tax or Fee Programs:

Constitutional amendment provides for BOE assessment of Corporation Franchise Taxes, Bank Share Tax, Gross Receipts Taxes on public service corporations (utilities), and Insurance Taxes.

1879

Significant Tax Law/Regulation Change:

The State Board of Equalization (BOE) is established under the California Constitution to regulate county assessment practices, equalize county assessment ratios, and assess properties of interconnected railroads. The BOE consists of four members elected by district and the State Controller.

1870

Significant Tax Law/Regulation Change:

Legislature creates the original State Board of Equalization, which consists of the State Controller and two gubernatorial appointees, to address property assessment abuses among counties.