Today, all Californians can rest easy knowing that the State of California’s tax enforcement and administration functions are split between two agencies. The Franchise Tax Board (FTB), who administers the Personal Income and Corporation Tax laws, and the Board of Equalization (BOE), whose responsibilities include the administration of the state’s sales and use taxes, excise tax, special taxes and fees, as well as property valuation.
In addition to the BOE’s regular duties, the Board also serves as adjudicator of personal and corporate income and tax appeals after specific issues have exhausted the FTB’s administrative dispute process. Under current law, if the BOE denies the taxpayer’s appeal, the taxpayer may bring action in state court. However, if the FTB’s original decision is overturned, the taxpayer has prevailed and the issue is considered resolved.