Responses to the Audit
California Government Operations Agency
November 3, 2017
Elaine M. Howle, State Auditor
California State Auditors
621 Capitol Mall, Suite 1200
Sacramento, CA 95814
Re: CALIFORNIA STATE AUDITOR’S REPORT 2017-106 – BOARD OF EQUALIZATION – LOCAL TRANSPORTATION FUND ASSESSMENT AND DISTRIBUTION
Pursuant to the above audit report, enclosed are the California Department of Tax and Fee Administration’s comments pertaining to the results of the audit.
The Government Operations Agency would like to thank the state auditor for its comprehensive review. The results provide us with the opportunity to better serve our clients and protect the public.
Sincerely,
Marybel Batjer, Secretary
Government Operations Agency
California Department of Tax and Fee Administration
November 3, 2017
Marybel Batjer, Secretary
Government Operations Agency
915 Capitol Mall, Suite 200
Sacramento, CA 95814
Re: The Bradley-Burns Tax and Local Transportation Fund Review-November 2017
Dear Secretary Batjer:
The California Department of Tax and Fee Administration (CDTFA) received a draft report on the CSA’s recent review of the Bradley-Burns Tax and Local Transportation Funds that requires a response by 5:00 PM Friday November 3, 2017. The report is comprised of two recommendations. The first recommendation is for the CDTFA the second recommendation is for the legislature.
We appreciate CSA’s review of our records and the related positive review comments about our administration of the Bradley-Burns and Local Transportation Funds (LTF) that improve our efforts to close the tax gap by increasing out-of-state retailer’s compliance. The recommendation for the CDTFA and related response is below:
Recommendation:
- CDTFA should implement a two-year pilot of its authorized reward program for information resulting in the identification of unreported sales and use tax.
Response:
- The CDTFA appreciates the recommendation made by the CSA and the related authority to operate a reward program. We are open to piloting a reward program and will explore the feasibility of a pilot program within our existing authority. Please note that the CDTFA currently has a mechanism for stakeholders to provide information of potential non-compliance with tax and fee laws. Since non-compliance results in unfair competition, we often receive such information from law abiding citizens who want to ensure a level playing field.
Sincerely,
Nick Maduros, Director
| Cc: | Ms. Katie Hagen Ms. Karen Caves Ms. Edna Murphy Ms. Julia Findley Ms. Sara Sheikholislam Ms. Susanne Buehler Ms. Karen Hughes Ms. Ester Cabrera-Diaz |