Review of the Organization and Operation of the State of California's Major Revenue and Tax Collection Functions and Cash Management Activities (Report #71, April 1986)

In this 1986 study, the Commission reviews the organization and operations of the state departments in charge of revenue collection and management. The report focuses on accountability, increasing revenues and the State's cash management. The Commission concludes that the current organization does not maximize opportunities to increase revenue flow for the State. As a result, the Commission supports the general concept of creating a single revenue and tax collection department, rather than continuing to have these functions split among several agencies. The report contains 37 findings and 35 recommendations, which include consolidating certain revenue and tax collection operations currently performed by state departments. The Commission also makes specific recommendations regarding a state run "lock-box" facility for remittance processing, cashiering operations, and mail collection and processing.

A Review of Selected Taxing and Enforcing Agencies' Programs to Control the Underground Economy (Report #66, August 1985)

The largest segment of California's underground economy involves self-employed persons and employers and employees who pay or receive cash for work performed or for goods sold without reporting to the various taxing agencies. In this study, the Commission finds that the State's organization of taxing and enforcing agencies is a major obstacle to more effectively combatting this rapidly growing underground economy. The Commission makes 22 findings and 20 recommendations which include reorganizing some or all State taxation responsibilities; establishing a Multi-Agency Task Force to conduct complete audits and investigations of blatant tax and cash-pay violations; and creating a standing committee of all appropriate agencies to expand information sharing.