On Wednesday, March 8, 2023, ACA 11 was introduced in the state of California with the intent to abolish the State Board of Equalization, the only elected tax board in the country. The proposed constitutional amendment would authorize the Legislature to vest all powers, duties, and responsibilities currently vested in the State Board of Equalization into a newly created state tax agency or separate multiple state tax agencies.
The measure would make conforming changes by deleting various references to the State Board of Equalization throughout the California Constitution, including in those provisions regarding the election, recall, impeachment, filling of vacancies, and salaries and benefits of members of the board, and make other nonsubstantive changes. Organizations such as the California Alliance of Taxpayer Advocates and the California Taxpayers Association have expressed their opposition, noting there will be no taxpayer protections left in the state if ACA 11 is approved.
As a proposed constitutional amendment, ACA 11 needs at least two-thirds vote in each house to be placed on the statewide ballot, which could be as soon as November 2024, and could be approved by voters with a simple-majority vote. The governor’s approval would not be needed.
This measure has not yet been referred to a committee nor set for hearing. The local experts at Ryan will continue to monitor this situation and are available to answer questions.
TECHNICAL INFORMATION CONTACTS:
Scott Donald
Principal
Ryan
972.770.1100
scott.donald@ryan.com
Gina Rodriquez
Principal
Ryan
916.414.0400
gina.rodriquez@ryan.com
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