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 Franchise may refer to: Business and law * Franchising, a business method that involves licensing of trademarks and methods of doing business to franchisees * Franchise, a privilege to operate a type of business such as a cable television p ...

and income tax of

California California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...

. It is part of the California Government Operations Agency. The board is composed of the

California State Controller The state controller of California is a constitutional office in the executive branch of the government of the U.S. state of California. Thirty-two individuals have held the office of state controller since statehood. The incumbent is Betty Yee ...

, the director of the

California Department of Finance The California Department of Finance is a state cabinet-level agency within the government of California. The Department of Finance is responsible for preparing, explaining, and administering the state's annual financial plan, which the Governor o ...

, and the chair of the California 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. In 1950, California abolished the office of the Franchise Tax Commissioner and created the Franchise Tax Board as it exists today. The Executive Officer of the Franchise Tax Board is Selvi Stanislaus, the first woman to hold the post. She assumed this position in 2006. The prior FTB Executive Officers were: John J. Campbell (1950 - 1963) Martin Huff (1963 - 1979) (During the first eight months of 1980, the department was under the direction of Jeffrey Smith who was named Acting Executive Officer.) Gerald H. Goldberg (1980 - 2005) (During the last five months of 2005, the department was under the direction Will Bush who was appointed Interim Executive Officer by the Board.)

Members

The three members are the State Controller, Chair of the Board of Equalization, and the Director of the Department of Finance.

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. In recent years, the FTB collects more than $50 billion each year in personal income taxes.State Controller's Office

Corporate income tax

The FTB levies a

franchise tax A franchise tax is a government levy (tax) charged by some US states to certain business organizations such as corporations and partnerships with a nexus in the state. A franchise tax is not based on income. Rather, the typical franchise tax ca ...

on businesses for doing business in California. The FTB's name reflects the fact that it was originally created to collect this tax. The agency's name was left unchanged even after the state created a personal income tax and added it to the FTB's responsibilities. The corporate tax is imposed on businesses that do business in California and derive income from within California. Over the past decade, the FTB has collected an average of $9.5 billion per year in corporate income taxes.

Non-tax programs

The FTB also collects delinquent vehicle registration

debt collection Debt collection is the process of pursuing payments of debts owed by individuals or businesses. An organization that specializes in debt collection is known as a collection agency or debt collector. Most collection agencies operate as agents of ...

s on behalf of the

California Department of Motor Vehicles The California Department of Motor Vehicles (DMV) is the state agency that registers motor vehicles and boats and issues driver licenses in the U.S. state of California. It regulates new car dealers (through the New Motor Vehicle Board), c ...

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 The Fair Political Practices Commission (FPPC) of California is a five-member independent nonpartisan commission that has primary responsibility for the impartial and effective administration of the Political Reform Act of 1974. The Commission's ...

References

External links

California Franchise Tax Board website

Franchise Tax Board
in the

California Code of Regulations The California Code of Regulations (CCR, Cal. Code Regs.) is the codification of the general and permanent rules and regulations (sometimes called administrative law) announced in the ''California Regulatory Notice Register'' by California state ...

Revenue and Tax Code
{{Authority control

Franchise Tax Board The California Franchise Tax Board (FTB) administers and collects state personal income tax and corporate franchise and income tax of California. It is part of the California Government Operations Agency. The board is composed of the California ...

Taxation in California US state tax agencies Government agencies established in 1950 1950 establishments in California