Sacramento, CA — California’s Controller has released a review that details concerns about the state’s Board of Equalization.
California created the Board of Equalization via a constitutional amendment in 1879 to ensure uniformity in property tax assessments across the state. Today, the board collects retail sales and use taxes, property taxes and special taxes. According to California Controller Betty Yee, the audit identified weaknesses in how the board allocates retail sales and use tax. In some cases this has led to state revenue being deposited into wrong accounts. In one case, the state’s General Fund received $47.8-million too much, while other funds were shortchanged that amount.
Yee says, “The board is entrusted with making sure tax dollars get to the right places. I am deeply concerned that the board is falling short in this crucial mission. The board must implement more internal controls, train staff, and break down silos that are detrimental to sound administration.”
George Runner’s Board of Equalization district encompasses the Mother Lode region. He has released a statement reading, “This is the board’s highest priority right now. We are developing a strategy with the executive director and management team to resolve these issues rapidly. California taxpayers should always have confidence that the state is managing their taxes efficiently.”
To see the full audit, click here.