Board of Tax Appeals seeks modest salary and operating increases to stay staffed

A representative for the Board of Tax Appeals told the committee the office is fully funded by legislative appropriation and is seeking modest increases to keep pace with market pressures and operating needs. The panel's staff includes six employees, three governor-appointed board members, an executive director, an in-house attorney and a hearing officer; the board hears appeals of Department of Revenue actions but does not collect taxes.

The presenter said salary progressions were the largest single request and proposed a 3% across-the-board progression for the six positions to maintain staff and move closer to market rates. "We're actually asking for 3% across the 6 positions," the presenter said. The request, described by the presenter as primarily progression rather than reclassifications, was presented as necessary to retain licensed and experienced staff.

Beyond pay, the request included modest increases for travel, contractual services and commodities. The presenter noted travel reimbursement for board members and said the $7,000 travel line in the recommendation did not cover actual outlays experienced last year. Contractual and IT services also rose, the presenter said, and an equipment ask for $4,500 was included to replace aging desktop computers and a printer.

Committee members pressed on staffing and hiring challenges. The presenter said classification changes (referred to in the hearing as SEC 2) helped retention: "We have our attorney . . . she does have her LLM and tax, her expertise in tax law," the presenter said. The board also said contracting had been used to fill investigation work when recruitments drew no applicants.

The board representative closed by inviting follow-up contact with committee members and emphasized the office's desire to maintain experienced staff to handle a range of cases costing from small-dollar disputes to matters involving six- or seven-figure tax determinations.

The committee did not take a formal vote on the request at the hearing; the presentation concluded after members asked clarifying questions about specific line items, hiring challenges and travel reimbursement practices.