California IN BRIEF : SACRAMENTO : Lawsuit Targets State Tax Board

A tax consultant and two businesses are suing the state Board of Equalization, claiming that abolishing its independent appeals divisions violates the 1988 taxpayers’ bill of rights law. The suit, filed in Sacramento County Superior Court, also charges that closing the division denies the plaintiffs due process in tax disputes. The bill of rights, passed by the Legislature, requires among other things a number of changes in the way contested tax appeals are handled by the Board of Equalization, which collects the sales tax. One change was creation of the appeals division. Business representatives who felt they were being taxed unfairly could appeal to the division and get a hearing before an independent officer. The officer would rule, and if either the business person or the board staff disagreed, they could appeal to the board’s five elected members. Last June, however, the board voted to abolish the appeals division in favor of informal conferences rather than hearings.