What is a Board of Equalization
What exactly is a Board of Equalization? Research shows that there are multiple answers to this questions and the actually shape and appearance of the board depend upon where you live. A Board of Equalization is a non-judicial board which sits one or more times per year to specifically hear property tax assessment protest or appeals. This same board may also conduct audits to make sure that the assessments are being delivered fairly across the board. They are also charged with tax administration and fee collection. The duties of these boards are very important due to this being the states main revenue stream in many instances.
The Board of Equalization’s authority falls into four categories which include sales and use tax, property tax, special taxes and listens to appeals for franchise and income tax. These taxes include fuel tax and the special “sin” tax that we hear about from time to time that covers alcohol and tobacco. While many of us understand sales tax and a few of us understand use tax, not many people know and understand a franchise tax. A franchise tax is a special tax charged by some states to US corporations with a nexus or filing obligation, within the states. This tax is not based on income but on the net worth of the person paying the taxes. You can see how this would lead itself to be challenged or appealed.
A Board of Equalization may be known by several other names. In some locations they are called simply a Tax Board, others places know them as the Board of Tax Review, or the Board of Appraiser/Assessors. Still in other areas they may be known as the Tax Commission. No matter what their name is they all have very similar functions.
There are various levels to the Board of Equalization. There may be a board that is on the local level that meets to consider the request locally and there may also be a higher level state board with appellant powers. These boards are individually designed to make sure that they achieve what they were designed to achieve.
