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Board of Equalization Seeing ‘STARS’ With Call for New Tax System

One of the state’s premier tax authorities is looking for a vendor to modernize its tax administration record system in a new solicitation released late last week. The project is valued at an estimated $16.2 million.

An aerial view of large houses and palm trees on a hillside.
The State Board of Equalization (BOE), the entity that oversees the collection of booze and property taxes, needs a new records system.

In a request for proposals published Friday, the agency outlined its call for a vendor capable of delivering a comprehensive, cloud-based tax records system. The project is being called the State Tax Administration Records System (STARS).

This new system must be able to efficiently compute $167.2 billion in property value annually across the state’s 58 counties. The tax revenue from those computations equates to nearly $3 billion each year for counties, cities, schools and special districts.

The vendor selected for this procurement is expected to deliver a system that not only meets the current need, but is also capable of adapting to future needs as well. STARS will be an enterprise hybrid cloud consisting of modified off-the-shelf, commercial off-the-shelf and custom software.

As for the timeline for the STARS implementation, the state has mapped out an 18-month timeline from contractor onboarding and training to handoff, though specifics of the timeline are subject to vendor project manager adjustment.

For the uninitiated, the BOE’s mission is focused on the collection of three types of taxes — property, alcohol and those levied against insurers — while also serving as a regulatory body for regional property tax collection offices. It’s governed by a five-member board.

According to the latest data in Industry Navigator*, the BOE has an estimated budget of $33.3 million, while its IT budget stands somewhere in the vicinity of $1.2 million.

In January, the BOE asked the Legislature to approve a budget change proposal (BCP) for this project to the tune of $3.2 million in 2026–27 and $3.1 million in 2027-28. The overall project cost was listed at around $16.2 million.

“The consequences of a complete failure would be catastrophic to both the state and local governments,” the BCP notes. “Failure of the system would result in the BOE’s inability to produce the constitutionally required State Assessment Roll.”

In addition to this project, the BOE is also seeking $154,000 in 2026-27 to comply with the impacts of Senate Bill 293, which deals with generational transfers and wildfire-related property reassessments.

*Industry Navigator is a product of e.Republic, the parent company of Industry Insider — California.
Eyragon is the Managing Editor for Industry Insider — California. He previously served as the Daily News Editor for Government Technology. He lives in Sacramento, Calif.