Section 40 Summary Decisions* of the State Board of Equalization

*Please note that Summary Decisions may not be cited as precedent in any appeal or other proceeding before the Board of Equalization (Board). (Cal. Code Regs., tit. 18, §§ 5551, subd. (b)(4), 5511, subd. (u).)

Revenue and Taxation Code section 40 requires the Board to publish on its website written opinions that explain the Board’s decisions for certain matters involving amounts in controversy of $500,000 or more. Each published opinion must contain: (1) findings of fact; (2) the legal issue or issues presented; (3) applicable law; (4) analysis; (5) disposition; and (6) the names of the adopting Board Members. (Revenue and Taxation Code section 40 became effective on January 1, 2013).

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State-assessees who disagree with their assessments, welfare exemption claimants who disagree with determinations of the Property and Special Taxes Department, local governments that own property taxable under section 11, Article XIII of the California Constitution who disagree with a county’s assessment of their property and private railroad car companies that disagree with their assessment by the Board may appeal such actions to the elected members of the Board. When the Board issues nonprecedential Summary Decisions on property tax matters pursuant to Revenue and Taxation Code section 40, those decisions are published on this webpage. To date, the Board has not issued a precedential decision on a property tax matter.

Historically, corporate and individual taxpayers who disputed a final determination by the Franchise Tax Board (FTB) appealed the FTB’s determination to the Board. However, as of January 1, 2018, the authority to adjudicate these cases passed to the Office of Tax Appeals (OTA). Additional information can be found at www.ota.ca.gov.

The Board's historic nonprecedential Summary Decisions on franchise and income tax matters are published on this webpage pursuant to Revenue and Taxation Code section 40.

The term "business taxes" refers to matters involving sales and use taxes, local and district tax reallocations, and the various special taxes and fees formerly administered by the Board. Historically, taxpayers and feepayers who disagreed with denials of claims for refund or deficiency determinations issued by the Sales and Use Tax Department or the Special Taxes Divisions of the Board appealed such actions to the elected members of the Board. Additionally, jurisdictions (e.g., cities and counties) that disagreed with determinations issued by the Sales and Use Tax Department related to reallocations of local or district taxes also historically appealed to the Board.

On July 1, 2017, the administration of business taxes transferred to the California Department of Tax and Fee Administration (CDTFA). In addition, the authority to adjudicate future business tax cases passed to the Office of Tax Appeals (OTA) as of January 1, 2018. Additional information can be found at www.cdtfa.ca.gov or www.ota.ca.gov.

The Board's historic nonprecedential Summary Decisions on business taxes matters are published on this webpage pursuant to Revenue and Taxation Code section 40.