The California Franchise Tax Board (FTB) administers and collects state personal
income tax
An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...
and corporate
franchise and income tax of
California
California () is a U.S. state, state in the Western United States that lies on the West Coast of the United States, Pacific Coast. It borders Oregon to the north, Nevada and Arizona to the east, and shares Mexico–United States border, an ...
. It is part of the
California Government Operations Agency.
The board is composed of the
California State Controller, the director of the
California Department of Finance, and the chair of the
California State Board of Equalization. The chief administrative official is the executive officer of the Franchise Tax Board.
History
In 1879, California adopted its
state constitution which among many other programs created the
State Board of Equalization and the
State Controller, which administered all tax programs.
[Publication]
Franchise Tax Board at a Glance, page 2
/ref>
In 1929, the state legislature created the office of the Franchise Tax Commissioner to administer California's Bank and Corporation Franchise Tax Act.
Members
The three members of the Franchise Tax Board are the California State Controller, the Chair of the California State Board of Equalization, and the Director of the California Department of Finance. The State Controller and the Chair of the Board of Equalization are elected officials, while the Director of the Department of Finance is appointed by the Governor of California
The governor of California is the head of government of the U.S. state of California. The Governor (United States), governor is the commander-in-chief of the California National Guard and the California State Guard.
Established in the Constit ...
. The State Controller is elected to a four-year term, and the Director of the Department of Finance serves at the pleasure of the Governor, who is elected to a four-year term. The four members of the State Board of Equalization typically take a one-year turn acting as Chair during their four-year elected term.
Notes
Tax programs
Personal income tax
The FTB collects personal state income taxes. The FTB collects income taxes from California residents on their income from all sources.[Publication]
Franchise Tax Board at a Glance, page 4
/ref> Meanwhile, non-residents are taxed on their California-based income.[State Controller's Office]
Corporate income tax
The FTB levies a franchise tax on businesses for doing business in California.
Non-tax programs
The FTB also collects delinquent vehicle registration debt collections on behalf of the California Department of Motor Vehicles and delinquent court ordered debt. The FTB also does financial audits of certain candidates for state office, ballot proposition committees, and lobbyists, according to a random selection process by the California Fair Political Practices Commission.
See also
*State income tax
In addition to Federal government of the United States, federal Income tax in the United States, income tax collected by the United States, most individual U.S. states collect a state income tax. Some local governments also impose an income tax, ...
* State tax levels
*Taxation in the United States
The United States has separate Federal government of the United States, federal, U.S. state, state, and Local government in the United States, local governments with taxes imposed at each of these levels. Taxes are levied on income, payroll, ...
References
External links
California Franchise Tax Board website
Franchise Tax Board
in the California Code of Regulations
Revenue and Tax Code
{{Authority control
Franchise Tax Board
Taxation in California
US state tax agencies
Government agencies established in 1950
1950 establishments in California