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 Government Operations Agency (CalGovOps) is the California government agency responsible for administering state operations including procurement, real estate, information technology, and human resources. Amy Tong was appointed Secretary of G ...

. 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 California, government of the U.S. state of California. Thirty-three individuals have held the office of state controller since statehood. T ...

, 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 governo ...

, and the chair of the

California State Board of Equalization The California State Board of Equalization (BOE) is a public agency charged with tax administration and fee collection in the state of California in the United States. The authorities of the Board attempt to ensure that counties fairly assess ...

. 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 The California State Board of Equalization (BOE) is a public agency charged with tax administration and fee collection in the state of California in the United States. The authorities of the Board attempt to ensure that counties fairly assess ...

and the

State Controller A comptroller (pronounced either the same as ''controller'' or as ) is a management-level position responsible for supervising the quality of accounting and financial reporting of an organization. A financial comptroller is a senior-level executi ...

, which administered all tax programs.Publication
Franchise Tax Board at a Glance, page 2
/ref> In 1929, the

state legislature A state legislature is a Legislature, legislative branch or body of a State (country subdivision), political subdivision in a Federalism, federal system. Two federations literally use the term "state legislature": * The legislative branches of ...

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 Officers of the Franchise Tax Board have been: * John J. Campbell (1950–1963) * Martin Huff (1963–1979) * Gerald H. Goldberg (1980–2005) * Selvi Stanislaus (2006–present), the first woman to hold the post

Members

The three members of the Franchise Tax Board are the

, the Chair of the

, and the Director of the

. 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. 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 or cash collection is the process of pursuing payments of money or other agreed-upon value owed to a creditor. The debtors may be individuals or businesses. An organization that specializes in debt collection is known as a coll ...

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