Michelle Steel
In 1879 an amendment to the Constitution of California created the State Board of Equalization (BOE) to ensure that property tax assessments, California’s main source of funding at the time, were uniform across all counties in the state. The impetus behind its creation was that county tax assessors, in order to remain popular with their constituency, were known to undervalue property.
As new taxes were added in the 1930s, the BOE’s areas of authority grew to include sales, use, and special taxes. It also became the appellate body for franchise and income tax appeals.
The election of members to the California State Board of Equalization is likely considered by most voters to be one of the least interesting and most misunderstood races in our state. Yet the BOE impacts our lives daily because it is responsible for tax administration and fee collection to the tune of $50 billion annually. It is the only tax board in the entire United States whose members are elected by a vote of the people.
The state of California is divided into four taxation districts. Each of these districts is represented by one member on the BOE. The fifth member of the BOE is the State Controller, John Chiang. San Bernardino County’s representation is split between District Two and District Three.
There are two reasons that San Bernardino County is not represented by a single district. First, San Bernardino County is the largest county in the contiguous 48 states, encompassing over 20,000 square miles—larger in area than each of the nine smallest states. Politics, however, played an even more significant role, and is the second reason.
During the 2001 redistricting, Republican leadership gerrymandered the boundaries in anticipation of an expected future run by now-former Senator Jim Brulte. However, that run never panned out. Instead Michelle Steel was selected as the Republican nominee and eventual board member.
Steel is one of only two conservatives currently serving on the BOE. All five positions on the BOE are up for election this November, and for the first time in decades, there is a significant potential for Republicans to gain the majority. This would allow Republicans to oversee and write the state’s tax policy.
In addition to Steel, the other Republicans who have a solid chance for election are Senator George Runner, who is running for the Second District, and Senator Tony Strickland, who is the Republican nominee for State Controller. Both will be featured in upcoming articles.
Michelle Steel was born in South Korea. Her parents were diplomats and educators. She holds a degree in Business from Pepperdine University and an Executive MBA from the University of Southern California. Steel is highest ranking Korean-American political officeholder in the United States, and until November 2010, also enjoys the distinction of being the California’s highest ranking Republican woman.
Steel’s interest in tax issues began at an early age. She watched as her mother, an immigrant small business owner, attempted to fight what they believed was an unwarranted Board of Equalization tax bill. However, Steel’s mother lacked the resources to fight the state agency and eventually paid the bill.
Steel went on to involve herself in various community and outreach activities. She was appointed to serve on President George W. Bush’s Advisory Commission on Asian Americans and Pacific Islanders as well as the White House Conference on Aging. Additionally she was a member of the California World Trade Commission and the Los Angeles Airport and Fire commissions.
During her election in 2006, Steel signed the Taxpayer Protection Pledge where she agreed to oppose any new taxes or tax increases, and when adjudicating appeals, assume the tax-payer is innocent until proven guilty. She has been a proven advocate for Califoria’s taxpayers.
Steel has been married to former California Republican Party chairman Shawn Steel for 25 years. They have two grown children and reside in Palos Verdes.
