TAX NEWS - JUNE 2009

California tax: Release of 2007-08 Annual Report

State Board of Equalization collected over $53 billion in revenue

Betty T. Yee., Chair of the State Board of Equalization (BOE), today announced the release of the State Board of Equalization's 2007-08 Annual Report describing $53.1 billion in revenue collected by the BOE in 2007-08.

In 2007-08, BOE programs collected approximately $700 million less than the previous fiscal year, a decrease of 1.3 percent. The state's share of collections was $40.1 billion, nearly 32 percent of all state revenue for the fiscal year. Revenues collected by the BOE provide funding at the state and local level for public service programs related to health care, education, transportation, and public safety.

Noteworthy facts in the report:

Taxable sales in the state totaled $552.9 billion during the fiscal year. This is a decrease of $11.9 billion or 2.1 percent from taxable sales in 2006-07.

Sales and use tax revenues dropped 1.5 percent in fiscal year 2007-08 to $44.4 billion. Out of the $44.4 billion, $29.2 billion is distributed to state programs and services and $15.2 billion is distributed to cities, counties, and special districts.

Collections from the state's tobacco-related taxes totaled $1 billion. Alcoholic beverage tax revenues fell 2.0 percent to $327.3 million.

Statewide property tax levies for 2007-08 totaled $47.2 billion, an increase of 9.4 percent. County-assessed property values grew by $200 billion during 2007-08 to reach $4.5 trillion for the 2008-09 tax year.

Chairwoman Betty T. Yee was elected to her post in November 2006. Her district includes many of California's coastal counties, from Del Norte to Santa Barbara, and includes the entire San Francisco Bay Area.

The five-member California State Board of Equalization is a publicly elected tax board. In addition to collecting more than $53 billion in taxes and fees, the BOE hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes.