Tech Founder, California Tax Official Spar Over Fundraiser Mixup

An elected California tax official is facing allegations he told tech company founder Palmer Luckey that he’s unable to treat him fairly on California tax matters because Luckey hosted a presidential campaign fundraiser without inviting him.

Luckey called into a State Board of Equalization meeting last week saying that member Mike Schaefer wrote increasingly angry letters and treated Luckey’s staff rudely because he believed Luckey was hosting a 2024 event for then-President Joe Biden. Schaefer also sent him a $1,000 check to attempt to gain entry.

Luckey did in fact host a presidential fundraiser last summer—for Donald Trump.

Schaefer appeared to admit to engaging in the conduct Luckey alleged, both in a response he offered at the board’s Feb. 19 meeting and in emails he sent to Luckey as recently as Feb. 21, when he wrote he would exclude himself from matters before the board involving Luckey, who shared the emails with Bloomberg Tax. Schaefer said by email Monday that if any property tax issues involving Luckey come before the board he will “assure him full and fair valuation.”

‘I Didn’t Even Have the Fundraiser’

In a phone call to the board during last week’s meeting, Luckey said Schaefer sent letters that included his title and the California seal, citing his position as the 12th-highest-ranking Democrat in the California executive branch and demanding he be invited to the event Luckey wasn’t having. Luckey asked the five-member board to discuss the matter at a future meeting because he contacted the board staff about it months ago and hadn’t gotten a response.

“It seems outrageous to me to have someone from the Board of Equalization reach out to a California taxpayer and say that they are not going to treat me fairly specifically with regard to the tax matters that are before you because I’ve been disrespectful to them because I didn’t invite them to a political fundraiser that they wanted to come to, especially given that I didn’t even have the fundraiser,” Luckey told the board.

At the meeting, Schafer said he was confused about what event Luckey was hosting, and thought it was a fundraiser for Biden or then-Vice President Kamala Harris.

“Mr. Luckey is a very well known billionaire and Trumpster, and he won the election, and he should be in a very good mood,” Schaefer said. “If anybody is abusing government facilities and policies I think he is by bringing his rants and raves to this meeting.”

Schaefer then apologized for “any inconvenience.”

Board Chief Counsel Richard Moon and Executive Director Yvette Stowers said at the meeting they would look into the matter and asked Luckey to send relevant documents to them. Bloomberg Tax has filed a request under the California Public Records Act for all related communications.

The board’s governance policy sets standards for avoiding conflicts of interest, stating “the public’s confidence can be maintained only to the extent that the BOE’s official activities and contacts with the public reflect the highest ethical and moral standards.” The California Government Code prohibits use of public resources for campaign activity or personal purposes. The emails to Luckey were from personal accounts.

Luckey said by email that he isn’t sure what event Schaefer had in mind, but it might have been a June 8 luncheon that Luckey co-hosted for Trump in Newport Beach. The event required a minimum $3,300 contribution per person, $35,000 for a photo opportunity, and $100,000 to be on the host committee.

Luckey’s allegations come as some board members work to restore authority that lawmakers and former Gov. Jerry Brown (D) stripped from the board in 2017 following a string of controversies and ethical lapses. The five-member body now mainly oversees property tax administration.

Chair Ted Gaines said in December he wanted to renew legislative attempts to restore the board’s authority to hear taxpayer appeals involving sales and use tax. Member Antonio Vazquez led a failed effort in 2024 to once again place state tax administration and appeals under an elected board .

Luckey founded virtual reality company Oculus VR, which was acquired by Facebook for $2 billion in 2014. He started Anduril Industries in 2017, which develops autonomous military technologies.

‘Comedy of Errors’

In a Feb. 21 message Schaefer sent to Luckey, Stowers, and board chair Ted Gaines, Schaefer said he was excluding himself from participating in any matters that Luckey or his interests may have before the board because Luckey threatened to sue him.

“It was my misjudgment to believe it was an event for our then-President, and as a State Official I felt entitled to purchase a ticket and attend, and in pursuit of that path I sent you $1000 check payable to Biden for President,” Schaefer replied in his email. “If that upset you, I apologize for the comedy of errors. You have every right to expect your representatives (and I am all of Orange County’s representative) to be more informed before they act.”

In an email, Luckey denied threatening to sue Schaefer. Luckey provided emails between himself and Schaefer from July 2024 in which Luckey relayed the same message he shared with the board on Feb. 19 and asked Schaefer to resign. He posted the message on X on July 23.

Schaefer responded at the time that when he saw news that Luckey was hosting an event, he assumed it was for Biden and that someone at his office would know about it.

“If you feel I have violated state or federal law, please know that I disagree as you have nothing pending before me, and my growing wrath from my misperception as to your posture here is unwarranted,” Schaefer wrote in the email.

Schaefer is halfway through his second four-year term on the board representing San Diego, Orange, Imperial, and Riverside counties. He unsuccessfully ran in the Nevada Democratic primary for US Senate in June 2024 while serving on the California tax board.