IE11 Not Supported

For optimal browsing, we recommend Chrome, Firefox or Safari browsers.

California Gains New Tax Departments, Keeps New Software

While California lawmakers work to break the state Board of Equalization into two new agencies, the cohesive technology built for it will still exist.

While California lawmakers are working out ways to break the state’s Board of Equalization into two new agencies, the cohesive technology built for it will still exist.

The Centralized Revenue Opportunity System, or CROS, will function under the Tax and Fee Administration department, replacing the two-decade-old legacy system in which the Board of Equalization listed all taxpayer accounts. The new system is based on GenTax software, owned by FAST Enterprises. It will act as a data warehouse infrastructure and improve billing processes.

The state entered an $85 million contract with FAST in 2016. FAST is adjusting the system to meet California’s tax needs, which could bring in up to $200 million in extra revenue annually. The new program will help with business permitting and tax filing.

Most of the 39 kinds of tax programs supervised by the Board of Equalization will pass to the Tax and Fee Administration. CROS will not handle property, alcohol or insurance taxes currently, said Venus Stromberg, a spokesperson for the Board of Equalization. Dan Elliott, a spokesperson for the Board of Equalization, has said that some fee programs could be withheld from the accounting software rollouts due to the department's reorganization.

The first rollout began in April, and the rest will continue for two more years. The second rollout will focus on sales tax programs.  

Kayla Nick-Kearney was a staff writer for Techwire from March 2017 through January 2019.