New California Department of Tax and Fee Administration Begins Operation on July 1
Sacramento –The new California Department of Tax and Fee Administration (CDTFA) will begin operation this Saturday July 1, 2017 following legislation signed into law this week by Governor Edmund G. Brown Jr.
“This newly established department will lead to fair and equal tax administration in our state and will uphold the Taxpayers’ Bill of Rights,” said Government Operations Agency Secretary Marybel Batjer. “We are committed to a seamless transition and ensuring that taxpayers will see no difference in service.” The new law – the Taxpayer Transparency and Fairness Act of 2017 – restructures the State Board of Equalization into three separate entities: The State Board of Equalization, CDTFA and the Office of Tax Appeals. CDTFA will be housed within the Government Operations Agency while the Board will be an independent agency and continue to administer property, alcoholic beverage and insurance taxes. The Office of Tax Appeals is formed as an independent entity starting July 1, 2017, but doesn’t begin full operation and hearing appeals until January 1, 2018.
CDTFA will be led by David Botelho, 59, of San Leandro, has been appointed acting director by Governor Brown. Botelho served as program budget manager at the California Department of Finance from 2013 to 2016, where he was chief of the office of state audits and evaluations from 2008 to 2013. He held several positions at the California Department of Health Care Services from 1993 to 2008, where he was deputy director of audits and investigations, financial audits branch chief and acting assistant division chief of the laboratory science division. This position does not require Senate confirmation and the compensation is $161,040. Botelho is registered without party preference. “We are excited to have someone with David’s background and experience to lead the CDTFA transition,” Batjer said. “I am confident he is the right person and I thank him for taking on this important role.”
CDTFA will handle most of the taxes and fees previously collected by the Board of Equalization, including sales and use tax. Taxpayer and fee payer account information services and deadlines remain as they were until further notice. Additional information can be found at www.cdtfa.ca.gov and www.boe.ca.gov