A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 14 of Article II thereof, by amending Section 8 of Article III thereof, by amending Section 18 of Article IV thereof, by amending Sections 5 and 14 of Article V thereof, by amending Section 10 of Article VII thereof, by amending Sections 3, 11, 18, 19, and 28 of, and amending, repealing, and adding Section 17 of, Article XIII thereof, by amending Section 2.1 of Article XIII A thereof, by amending Section 10 of Article XVI thereof, by amending Section 22 of Article XX thereof, and by amending Sections 1 and 2 of, and by amending the heading of, Article XXI thereof, relating to taxation.

The California Constitution establishes the State Board of Equalization, consisting of the Controller and 4 other members elected from districts, and provides for the election, recall, impeachment, filling of vacancies, and salaries and benefits of those board members elected from districts. The California Constitution vests the board with various powers, duties, and responsibilities related to the administration of taxes imposed on property, insurance, and alcoholic beverages. This measure would abolish the State Board of Equalization and instead require the Legislature to create a state tax agency by statute for purposes of carrying out those powers, duties, and responsibilities previously vested in the State Board of Equalization by the California Constitution and by statute. The bill would authorize the Legislature to vest all powers, duties, and responsibilities in a single state tax agency or separately in multiple state tax agencies. The measure would deem the California Department of Tax and Fee Administration and the Office of Tax Appeals to be state tax agencies for purposes of these provisions and vest in those entities specified powers, duties, and responsibilities currently vested in the State Board of Equalization. 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. The measure would provide that these changes are operative as of January 1, 2027.