Deputy Director David Young told the Board of Equalization that a November 2024 decision by the California Public Utilities Commission classified many Voice over IP providers as regulated telephone companies, which may shift their property from local to state (central) assessment.

"The PUC has issued a list of several hundred entities that are now formally...VoIP, but now are regulated as telephone," Young said. BOE staff reported an initial list of about 800 entities to review for duplicates and to determine whether each meets the $2,000 de minimis threshold in taxable tangible property that would require them to file with the BOE.

Staff said the change could increase the BOE's central assessment workload; entities that qualify must file and report to the BOE starting Jan. 1, 2026. The board asked about outreach to large VoIP providers and the nexus for California reporting; Young said the agency is reviewing the list and will coordinate with county assessors on screening and assessment decisions.

Members requested follow‑up on who will be contacted and how BOE staff will prioritize review of the list. Young said the screening and coordination effort will take substantial staff time early next year.