An Eventful Year: 2017 Saw Major Developments--Are More Coming?

• Author: Fox, Jason
• Position: Capitol Beat

As an eventful 2017 comes to a close, we take a moment to look back at the events of the last year--and it has been a busy one.

Just to name a few, this year the Legislature passed one of the largest tax increases in recent memory to fund transportation improvements, dramatically reformed a long-standing constitutional tax agency to create two new tax agencies, created a framework to regulate an illegal drug becoming legal, extended major environmental programs, entertained another professional services tax, created a so-called sanctuary state and clashed with the federal administration on nearly every major policy.

CalCPA navigated this uncertain political arena and ensured the profession's perspective were included in any public policy outcomes.

We began 2017 with one of the largest turnouts for CPA Day at the Capitol in recent years. More than 260 CalCPA members stepped up to represent their profession, meet their elected representatives and discuss issues that affect CPAs, businesses and taxpayers in California. Through these efforts, CalCPA members got ahead of any serious tax on services discussions by talking with legislators about the negative impact of such a complex shift in the tax burden and proactively positioned the CPA profession to be a resources as tax policy and business regulations are discussed.

When the Board of Equalization came under scrutiny and was the subject of major reforms, CalCPA was there to address a unique concern of the profession's regarding the massive shift of tax responsibilities.

CalCPA worked with the Legislature and the administration to make sure that the new California Department of Tax and Fee Administration and Office of Tax Appeals preserved an equitable process for CPAs to assist taxpayers. Specifically, CalCPA helped shape legislation to strengthen key characteristics of the OTA to make clear that an appeal before the OTA is an administrative proceeding and representing an audit client in tax matter with the OTA would not in itself threaten to impair a CPA's independence--just as was the case before it was before the BOE.

As the state raced to create a regulatory framework to oversee the cultivation, distribution and sale of medical and recreational use cannabis, CalCPA monitored conversations by the administration, Treasurer's Office, legislative committees and the Bureau of Medical Cannabis Regulation, among others. Tapping into this evolving issue, CalCPA Education Foundation organized a...