State and Consumer Services
Franchise Tax Board


TAX GAP INITIATIVES
 The Budget provides $19.3 million General Fund and 228.5 positions for various efforts to reduce the state's estimated $6.5 billion tax gap. The "tax gap" is the difference between the amount of tax owed, and the amount paid. Of the proposed resources, $13.6 million and 180.5 positions are for six existing pilot programs that are being established permanently. These programs concentrate on detecting non-filers and filers of fraudulent returns, and on audit and collections activities. The FTB estimates associated revenues of $64.7 million in 2007-08 and $68.5 million in 2008-09.

The remaining $5.7 million and 48 positions are for new initiatives to educate independent contractors about filing requirements, expand the corporate non-filer program, address out-of-state tax avoidance, and increase investigations of persons who fail to file a return, or who file fraudulent returns. The FTB estimates these initiatives will generate revenues of approximately $15 million in 2007-08 and $32 million in 2008-09.
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CHAPTER HIGHLIGHTS for State and Consumer Services Back to Top

 Office of Information Security and Privacy Protection
 California Science Center
 Department of Consumer Affairs
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 Department of General Services
PRINTABLE BUDGET DOCUMENTS Back to Top
Enacted Budget Summary - State and Consumer Services (pdf * - 4K) -
Provides the entire State and Consumer Services Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Enacted Budget Detail - State and Consumer Services
Displays Enacted Budget Detail information for State and Consumer Services.