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CALIFORNIA: Governor wants to merge 3 tax agencies under new department
Sacramento Bee ^ | 6/15/9 | Steve Wiegand

Posted on 06/15/2009 7:53:26 AM PDT by SmithL

It's the Holy Grail of reformers and politicians, a seemingly oxymoronic two-word phrase that prompts cynics to sneer and fans the faint hopes of taxpayers:

"Government efficiency."

From the outset of his administration in fall 2003, Gov. Arnold Schwarzenegger's rhetorical arsenal has consistently featured calls for making California's government leaner, more responsive and more citizen-friendly.

...California's tax collection system has evolved as the state has added taxes to its revenue base....

An amendment in the 1879 state constitution created the Board of Equalization (BOE). Its four elected members (plus the state controller) were charged with "equalizing" property assessments. In the 1930s, the board was assigned oversight of the newly created state sales and use taxes.

Currently it also administers fuel, alcohol, tobacco and other taxes, and sits as the appellate body for business and personal income tax appeals.

The Franchise Tax Board (FTB) was created by the Legislature in 1929 to oversee the collection of "franchise" taxes imposed on banks and corporations. When the state income tax was begun in the 1930s, the FTB was assigned oversight of it.

The board, which is governed by a troika consisting of the controller, the director of the governor's Department of Finance and the chairperson of the BOE, also acts as the collection agency for delinquent fees owed other state agencies.

A product of the Great Depression, the Employment Development Department (EDD) was born in 1936 to run California's unemployment programs. It's charged with collecting payroll taxes.

Cumulatively, the three agencies have a work force of more than 18,000, and spend about $2 billion a year in the collection of about $106.5 billion in tax revenue.

In their place, Schwarzenegger has proposed merging the FTB with most of the BOE and part of the EDD to form the DOR: Department of Revenue.

(Excerpt) Read more at sacbee.com ...


TOPICS: Extended News; Government; Politics/Elections; US: California
KEYWORDS: boe; caltaxes; edd; ftb; goldenstate; schwartzenegger; taxes; yourtaxdollarsatwork

1 posted on 06/15/2009 7:53:27 AM PDT by SmithL
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To: SmithL

there were 3 tax departments? :) golly


2 posted on 06/15/2009 7:56:31 AM PDT by 4rcane
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To: 4rcane

there were 3 tax departments? :) golly”

Multiple forms, also.
Payroll- EDD gets filed quarterly, and at year end, along with W-2’s and 1099’s.

Sales taxes get filed monthly or quarterly, depending on the volume of activity your company creates.

Franchise Tax Board forms are annual- income taxes.


3 posted on 06/15/2009 2:23:26 PM PDT by ridesthemiles
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