BILL ANALYSIS Ó
SB 582
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Date of Hearing: August 21, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 582 (Knight) - As Amended: August 13, 2013
Policy Committee: Revenue and
Taxation Vote: 9-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the Franchise Tax Board (FTB), the State
Board of Equalization (BOE) and the Employment Development
Department (EDD) to collaborate on a feasibility study to create
a single Internet website portal. Provides that the Internet
web-based portal shall allow online, self-service access for
taxpayers to file returns, remit amounts due and obtain other
tax information from each of the agencies.
FISCAL EFFECT
Minor and absorbable costs to the respective affected agencies
for planning.
The affected agencies point out they already work to identify
opportunities to coordinate and collaborate. However as these
efforts progress, there are likely to be costs to prepare a
feasibility study and this could cost several hundred thousand
dollars. In the future there are unknown, likely major cost
pressures to FTB, BOE and EDD, potentially in the range of $10
million, to make coordinated IT improvements to each agency's
independent systems to virtually consolidate the agencies,
providing self-service access with a single logon. The bill
states the work will be done within existing resources, but that
merely shifts cost pressure to other areas of the agencies'
budgets.
COMMENTS
1)Purpose . SB 582 directs BOE, FTB and EDD to conduct a
feasibility study to consolidate tax services into a single
SB 582
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website. The author intends the study to investigate the most
cost-efficient manner to develop a web-based portal that
virtually consolidates the agencies to enable online,
self-service access through a single logon for taxpayers and
will also investigate the consolidation of forms, applications
and other documents. The author contends the goal is to
streamline filing requirements by providing taxpayers with
up-to-date integrated access to accounts with all three tax
agencies.
2)The California Tax Service Center (CTSC) Website . In response
to a proposal of the LAO, services were partially consolidated
through the development of the CTSC website, www.taxes.ca.gov.
The website is a result of a partnership, consisting of BOE,
EDD FTB and the Internal Revenue Service. The website
includes information on income, payroll, sales and use tax and
other taxes and fees. Although the website provides links to
the appropriate forms, information, requirements and payment
options on each agencies individual website, it does not allow
a taxpayer to access their records with one single logon.
3)Related legislation . AB 833 (Harkey) is similar to SB 582.
AB 833 is on the Suspense File of the Senate Appropriations
Committee.
4)Previous legislation . SB 1326 (Harman), 2012, is also similar
to this bill. SB 1326 was held on the Suspense File of the
Senate Appropriations Committee.
5)There is no registered opposition to this bill.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081