About BOE
Created in 1879 by a constitutional amendment, the California State Board of Equalization (BOE) was initially responsible for ensuring that county property tax assessment practices are equal and uniform throughout California. Today, the BOE is constitutionally and statutorily responsible for the oversight of California's property tax system, as well as the Alcoholic Beverage Tax and Tax on Insurers.
Property Tax
Property taxes are one of the primary sources of revenue for California's counties, cities, schools, and special districts. While the state does not rely on property taxes as a source of revenue, there are revenue implications for the state if there are any incorrect assessments of real property. State law annually guarantees California schools a minimum amount of funding, and the state is responsible for backfilling shortfalls in education funding under Proposition 98.
County-Assessed Properties
The BOE oversees the assessment practices of the state's 58 County Assessors, who are charged with establishing values for over 13 million assessments each year. In Fiscal Year 2022-23, the net statewide assessed value was $8.3 trillion, contributing $47.6 billion to schools and $41.4 billion to counties, cities, and special districts. Each of the BOE's constitutional and statutory duties is critical to promoting a consistent and uniform property tax system throughout the state.
The BOE's duties include:
- Conducting assessment practices surveys or compliance audits of County Assessors' practices and procedures to determine whether they comply with all statutory and regulatory provisions by utilizing proper appraisal practices.
- Providing guidance to County Assessors to promote uniformity and consistency in assessment practices throughout the state in the form of Property Tax Rules, Letters to Assessors, County Assessors Only Letters, and Assessors' Handbooks.
- Prescribing property tax forms that are used by all County Assessors statewide.
- Providing training and certifying individuals performing the duties of an appraiser or an assessment analyst for property tax purposes, including newly elected County Assessors.
- Acting as a clearinghouse for various claims for property tax relief under Propositions 3 (1982), 19 (2020), 58 (1986), 60 (1986), 110 (2006), and 193 (1996). Exclusions within these propositions have statutory restrictions, such as dollar limitations or once-in-a-lifetime eligibility.
- Monitoring duplicate claims granted under the Homeowners' and Disabled Veterans' Exemptions.
- Acting as an advisory agency on property tax assessment through calls, letters, faxes, and e-mails.
- Co-administering the Welfare Exemption with County Assessors by issuing Organizational Clearance Certificates and Supplemental Clearance Certificates.
- Administering the Legal Entity Ownership Program, which aims to discover any changes in control and ownership of legal entities (such as corporations or LLCs) that hold California real property and inform County Assessors of the need to reappraise real property held by these entities.
- Meeting regularly with County Assessors to discuss issues on the administration of assessment and taxation laws, as well as ways to promote statewide uniformity.
- Holding a Taxpayers' Bill of Rights Hearing annually, allowing taxpayers to share suggestions, comments, or concerns on California's property tax system.
- Publishing educational materials and information for taxpayers and stakeholders to assist with understanding property tax laws and increase awareness of property tax savings that may be available.
State-Assessed Properties
In accordance with Article XIII, section 19, of the California Constitution, the BOE directly assesses certain public utilities and other specified properties and allocates the assessed values among the counties where the properties are physically located.
State-assessed properties include:
- Property (except franchises) owned or used by regulated railway, telegraph, or telephone companies, railroad car companies operating on railways in the state, and companies transmitting or selling gas or electricity.
- Pipelines, flumes, canals, and aqueducts lying within two or more counties.
In 2024, the Board adopted $154.8 billion in assessed property values of 336 companies within California, of which schools and local communities statewide are expected to receive approximately $2.5 billion in property tax revenue.
The BOE's Tax Area Services Section (TASS) maintains the maps of more than 9,700 revenue district boundaries that encompass 61,365 tax rate areas, helping to ensure the proper allocation of local tax revenue to counties, cities, and special tax districts.
Private Railroad Car Tax
Private railcar owners pay the Private Railroad Car Tax on railcars operated in California. The Private Railroad Car Tax is an in-lieu property tax on railroad cars owned by non-railroad companies and operated on California railroads. Railroad company-owned cars are included in the unitary value of railroads adopted by the Board each May. The tax paid is based on values established by the Board and the number of days the cars were physically in the state. This is the only property tax administered and collected by the state.
In 2023, the BOE collected $10.3 million for the state's General Fund.
Alcoholic Beverage Tax and Tax on Insurers
In addition, the BOE is constitutionally responsible for the Alcoholic Beverage Tax and Tax on Insurers. The Tax on Insurers is jointly administered by the BOE, the California Department of Insurance, and the State Controller's Office. By way of agreement, the California Department of Tax and Fee Administration (CDTFA) currently performs billing and audit services for these tax programs on behalf of the BOE. The BOE hears all appeals for claims for refund and petitions for redetermination.
For Fiscal Year 2022-23, the Alcoholic Beverage Tax generated $423 million, and the Tax on Insurers generated $3 billion for the state's General Fund.
The Board Members
The Board consists of five Members who serve concurrent four-year terms. One Member is elected from each of California's four Equalization districts. The State Controller, elected at large, serves as the Board's fifth Member. Each of the four elected Board Members represents approximately 9.5 million constituents in their respective districts.
Members of the Board meet monthly in Sacramento to adopt rules and regulations, and set policy for the direction of BOE staff with regard to the foregoing programs. The Board also sets the taxable value of property owned by California's public utilities and railroads and the assessable value of private railroad cars operated in California. The Board hears and decides specified taxpayer appeals related to the Property Tax, Alcoholic Beverage Tax, and Tax on Insurers Programs. For the Property Tax Program, the Board hears appeals from taxpayers regarding state-assessed property values, Welfare Exemption Organizational and Supplemental Clearance Certificate denials, the Private Railroad Car Tax, and taxable property owned by local governments outside its boundaries. The Board also appoints an Executive Director to head the agency and manage the activities of BOE staff.
The Executive Director
Appointed by the Board Members, directs approximately 200 agency employees.
The Agency and its History
Read about the statutory authority and program descriptions.
Mission
The mission of the State Board of Equalization (BOE) is to serve Californians through fair, effective, and efficient tax administration in support of state and local governments.