Tax Commission:
New Tax Commission Will Hold First Meeting January 22

The 12-member commission appointed by the governor and Democratic legislative leaders to study the state's tax structure has scheduled its first meeting, to be held January 22 on the campus of the University of California at San Diego.

According to the official agenda, the much-anticipated inaugural meeting of the Commission on the 21st Century Economy will open with remarks from commission chairman Gerald Parsky, followed by a public comment period and then presentations on very general topics from several speakers. The listed speakers and topics are:

·         Phil Spilberg, chief of financial research for the California Department of Finance: "Overview of California's Tax and Revenue System."

·         Legislative Analyst Mac Taylor: "Perspectives on California's Revenue Structure."

·         Jed Kolko, associate director and research fellow at the Public Policy Institute of California: "Perspectives on California's Revenue Structure."

·         Scott Pattison, executive director of the National Association of State Budget Officers, and Jim Eads, executive director of the Federation of Tax Administrators: "Overview of Tax and Revenue Systems in Other States."

The meeting is scheduled to begin at 9 a.m. in the Rady School of Management's Otterson Hall Multipurpose Room. An ending time is not listed on the agenda, but the schedule includes a lunch period and a subsequent break, indicating that organizers expect it to be a lengthy affair.

Cal-Tax has learned that the commission will be staffed by Mark Ibele, tax advisor to Board of Equalization Chairwoman Dr. Judy Chu and former tax consultant in the Legislative Analyst's Office.

According to the commission's just-unveiled website, three commission meetings will be held, with "an optional fourth meeting if required." If the commission meets for just three day-long hearings, that would give commissioners roughly 24 hours of total meeting time in which to study and recommend major changes to the state’s tax code. According to Cal-Tax sources, the remaining meetings will be held in February, March and potentially April, at various universities in the state.

Like all commissions created by executive order, the commission is subject to the state's Bagley-Keene Open Meeting Act, which means that the commission must conduct its business in public, with limited exceptions for discussing personnel issues, pending litigation and other such matters. (Cal-Tax: For example, a majority of the commission cannot meet privately to discuss commission business, and members cannot conduct business through serial phone calls or e-mails used to develop consensus among a quorum. Members of the public, however, may contact commissioners without restriction, as long as the communications are not solicited or orchestrated by the commission. The Open Meeting Act also states that the public is entitled to have access to the commission's records. For details on the Open Meeting Act, consult this informative guide published by the Attorney General's Office.)

The commission has been ordered to study the state's tax structure and to make recommendations for improvement, with a report due to the Legislature and governor by Tax Day, April 15. Despite the very short time frame, the commission states on its website that it will "suggest changes to state and local revenues that will result in a revenue stream that is more stable and reflective of the California economy."

Cal-TaxReports, January 12, 2009

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