California Franchise Tax Board

Last updated
California Franchise Tax Board
CFTB logo.jpg
California Franchise Tax Board headquarters.jpg
California Franchise Tax Board headquarters building in Sacramento, California
Board overview
Formed1929 (1929)
Jurisdiction Government of California
Headquarters Sacramento, California
38°34′00″N121°20′46″W / 38.5665310°N 121.3462307°W / 38.5665310; -121.3462307
Board executives
Parent Agency California Government Operations Agency
Website ftb.ca.gov

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.

Contents

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. [1]

In 1929, the state legislature created the office of the Franchise Tax Commissioner to administer California's Bank and Corporation Franchise Tax Act. [1]

In 1950, California abolished the office of the Franchise Tax Commissioner and created the Franchise Tax Board as it exists today. [1]

The Executive Officers of the Franchise Tax Board have been:

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 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.

YearControllerBOE ChairDirector of Finance
1950 Thomas Kuchel (R)George R. ReillyJames S. Dean [note 1]
1951James H. Quinn
1952Jerrold L. Seawell
1953 Robert C. Kirkwood (R) [note 2] William G. Bonelli
1954George R. ReillyJohn M. Pierce [note 3]
1955James H. Quinn
1956Paul R. Leake
1957Robert E. McDavid
1958George R. ReillyJohn M. Peirce
T.H. Mugford
1959 Alan Cranston (D)Paul R. LeakeBert W. Levitt [note 4]
1960John W. LynchJohn E. Carr [note 5]
1961 Hale Champion
1962George R. Reilly
1963John W. Lynch
1964Paul R. Leake
1965John W. Lynch
1966George R. Reilly
1967 Houston I. Flournoy (R)Paul R. LeakeGordon P. Smith [note 6]
1968Richard Nevins Caspar W. Weinberger
1969John W. Lynch
1970George R. Reilly Verne Orr
1971Richard Nevins
1972John W. Lynch
1973William M. Bennett
1974
1975Ken Cory (D)John W. LynchRoy M. Bell [note 7]
1976William M. Bennett
1977
1978George R. Reilly
1979William M. Bennett Richard Silberman [note 8]
1980Richard NevinsMary Ann Graves
1981Ernest J. Dronenburg, Jr.
1982William M. Bennett
1983Michael Franchetti
1984Richard NevinsJesse Huff
1985Ernest J. Dronenburg, Jr.
1986Richard Nevins
1987 Gray Davis (D)Conway H. Collis
1988Ernest J. Dronenburg, Jr.
1989 Paul B. Carpenter
1990Conway Collis
1991 Brad Sherman Thomas W. Hayes
1992
1993
1994 Russell Gould [note 9]
1995 Kathleen Connell (D)
1996 Johan Klehs Craig L. Brown
1997Ernest Dronenburg, Jr.
1998 Dean Andal
1999Johann KlehsB. Timothy Gage
2000Dean Andal
2001Claude Parrish
2002 John Chiang
2003 Steve Westly (D) Carole Migden Steve Peace [note 10]
Donna Arduin [note 11]
2004
2005John Chiang Tom Campbell [note 12]
2006Michael C. Genest [note 13]
2007 John Chiang (D) Betty Yee
2008 Judy Chu
2009Betty Yee
2010Ana J. Matosantos [note 14]
Cynthia Bryant
2011 Jerome Horton Ana J. Matosantos [note 15]
2012
2013
2014Michael Cohen [note 16]
2015 Betty Yee (D)
2016 Fiona Ma
2017 Diane Harkey
2018 George Runner
2019 Malia Cohen Keely Bosler [note 17]
2020 Tony Vazquez
2021
2022Malia Cohen
2023 Malia Cohen (D)Tony VazquezJoe Stephenshaw
2024 Sally Lieber

Notes

  1. ↑ James S. Dean resigned, effective October 30, 1953. He was replaced by the appointment of John M. Pierce, effective November 1, 1953.
  2. ↑ Thomas H. Kuchel resigned, effective January 2, 1953, after his election as a US Senator. He was replaced by the appointment of Robert C. Kirkwood, effective January 6, 1953.
  3. ↑ John M. Pierce resigned, effective July 14, 1958. He was replaced by the appointment of T.H. Mugford, effective July 15, 1958.
  4. ↑ Bert W. Levitt resigned, effective July 31, 1959. He was replaced by the appointment of John E. Carr, effective August 1, 1959.
  5. ↑ John E. Carr resigned, effective June 30, 1961. He was replaced by the appointment of Hale Champion, effective July 1, 1961.
  6. ↑ Gordon P. Smith resigned, effective February 29, 1968. He was replaced by the appointment of Caspar W. Weinberger, effective March 1, 1968.
  7. ↑ Roy M. Bell resigned, effective November 30, 1978. He was replaced by the appointment of Richard T. Silberman, effective December 1, 1978.
  8. ↑ Richard T. Silberman resigned, effective August 20, 1979. He was replaced by the appointment of Mary Ann Graves, effective August 21, 1979.
  9. ↑ Russell Gould resigned, effective February 23, 1996. He was replaced by the appointment of Craig L. Brown, effective March 4, 1996.
  10. ↑ Governor Arnold Schwarzenegger appointed Donna Arduin as director of finance on his first day in office after the 2003 recall election to replace Steve Peace, who was finance director under Governor Gray Davis.
  11. ↑ Donna Arduin resigned, effective October 18, 2004, to accept an appointment to the board of directors of a private firm and was replaced by the appointment of Tom Campbell, effective December 1, 2004.
  12. ↑ Tom Campbell resigned, effective November 10, 2005, to return to his post as dean of the Haas School of Business at the University of California at Berkeley and was replaced by the appointment of Michael C. Genest, effective December 1, 2005.
  13. ↑ Michael C. Genest resigned effective December 14, 2009 and was replaced by the appointment of Ana J. Matosantos, effective December 31, 2009.
  14. ↑ Ana J. Matosantos resigned, effective December 7, 2010, to run Governor-elect Jerry Brown's transition team. Cythina Bryant served as interim director of finance from December 7, 2010, to January 3, 2011, when Matosantos returned as director after Brown was sworn in as governor.
  15. ↑ Ana J. Matosantos resigned, effective September 13, 2013. She was replaced by the appointment of Michael Cohen, effective September 14, 2013.
  16. ↑ Michael Cohen resigned, effective August 20, 2018. He was replaced by the appointment of Keely Bosler, effective August 21, 2018.
  17. ↑ Keely Bosler resigned, effective July 31, 2022. She was replaced by the appointment of Joe Stephenshaw, effective August 1, 2022.

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. [2] Meanwhile, non-residents are taxed on their California-based income. [2] In recent years, the FTB collects more than $50 billion each year in personal income taxes. [2] [3]

Corporate income tax

The FTB levies a franchise tax on businesses for doing business in California. [2] 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. [2] Over the past decade, the FTB has collected an average of $9.5 billion per year in corporate income taxes. [3]

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

Related Research Articles

<span class="mw-page-title-main">Steve Westly</span> American businessman and politician

Steven Paul Westly is an American venture capitalist, entrepreneur, educator, and politician. He was the State Controller of California from 2003 to 2007 and was one of the top candidates in the Democratic primary for Governor of California in the 2006 election. He was defeated in the Democratic primary by California State Treasurer Phil Angelides, who later lost to Republican Governor Arnold Schwarzenegger in the November 2006 elections.

<span class="mw-page-title-main">California State Controller</span> Chief financial officer of the U.S. state of California

The state controller of California is a constitutional office in the executive branch of the government of the U.S. state of California. Thirty-three individuals have held the office of state controller since statehood. The incumbent is Malia Cohen, a Democrat. The state controller's main office is located at 300 Capitol Mall in Sacramento.

<span class="mw-page-title-main">Fiona Ma</span> 34th California State Treasurer (born 1966)

Fiona Ma is an American accountant and politician. She has been serving as the California state treasurer since January 7, 2019. She previously served as a member of the California Board of Equalization (2015–2019), the California State Assembly (2006–2012), and the San Francisco Board of Supervisors (2002–2006).

FTB may refer to:

<span class="mw-page-title-main">California State Board of Equalization</span> Tax administration agency of California, United States

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 are making sure counties fairly assess property taxes, collecting excises taxes on alcoholic beverages, and administering the insurance tax program.

California Senate Bill 1827, the State Income Tax Equity Act, established the requirement that couples registered as California domestic partners file their state income taxes as married couples. It was signed into law on September 29, 2006, by Governor Arnold Schwarzenegger. The bill took effect on January 1, 2007, and only applies to tax years 2007 onward.

<span class="mw-page-title-main">Jerome Horton</span> American politician (born 1956)

Jerome Edgar Horton is an American accountant and politician who was the member of the California Board of Equalization from the 3rd district from October 5, 2009 to January 7, 2019. He previously served as a member of the California State Assembly from 2000 until 2006.

California is a Democratic stronghold and considered to be one of the "Big Three" Democratic strongholds alongside New York and Illinois.

<span class="mw-page-title-main">George Runner</span> American politician

George C. Runner Jr. is an American politician from California who served on the California State Board of Equalization, the only publicly elected tax commission in the United States. A Republican, he represented the Board's 2nd District from 2011 to 2015 and the renumbered 1st District from 2015 to 2019.

<span class="mw-page-title-main">Clark Jolley</span> American politician

Clark Jolley is an American Republican politician. He is a former Oklahoma State Senator, Oklahoma Secretary of Finance, Administration and Information Technology, and the former chairman of the Oklahoma Tax Commission.

<span class="mw-page-title-main">California Victim Compensation Board</span>

The Victim Compensation Board (CalVCB) is a state agency of the U.S. state of California that oversees the provision of compensation to victims of violent crime and the collection of restitution from criminal offenders. CalVCB is part of the California Government Operations Agency (CalGovOps). The board consists of three members: the Secretary of CalGovOps, who serves as the chair; the California State Controller; and a member appointed by the Governor, currently vacant.

<span class="mw-page-title-main">California State and Consumer Services Agency</span> State cabinet-level agency of the executive branch of California

The California State and Consumer Services Agency (SCSA) was a state cabinet-level agency of the executive branch of California. It was replaced by the California Business, Consumer Services and Housing Agency (BCSH) effective July 1, 2013. A significant number of the departments were transferred to the California Government Operations Agency when it was formed on July 1, 2013.

Bernie Buescher is an American politician who served as secretary of state of Colorado. A Democrat, he was appointed to the office in 2009 by Governor of Colorado Bill Ritter to fill the vacancy left by the resignation of Republican Mike Coffman.

<span class="mw-page-title-main">Betty Yee</span> American politician (born 1957)

Betty T. Yee is an American politician and member of the Democratic Party who served as California State Controller from 2015 to 2023. She previously served as a member of the California Board of Equalization from 2004 to 2015. She won the open seat for Controller in the 2014 election, with 54% of the vote. Yee won reelection in 2018, defeating Republican Konstantinos Roditis in a landslide, and she served as Controller until January 2, 2023.

<span class="mw-page-title-main">Malia Cohen</span> American politician (born 1977)

Malia M. Cohen is an American politician serving as the 33rd Controller of California since 2023. A member of the Democratic Party, Cohen previously served as Chair of the California State Board of Equalization from the 2nd district from 2019 to 2023 and as President of the San Francisco Board of Supervisors from District 10 from 2011 to 2019.

<span class="mw-page-title-main">Taxation in California</span> Overview of taxation in the U.S. state of California

Taxes in California are collected by state and local governments through a number of tax categories.

CalFile is the current tax preparation program/service of the California Franchise Tax Board (FTB).

The California Department of Tax and Fee Administration (CDTFA) is the public agency charged with assessing and collecting sales and use taxes, as well as a variety of excise fees and taxes, for the U.S. state of California. The department has several other ancillary functions, such as ensuring that sellers comply with permit requirements. The department was formed on January 1, 2018, by the Taxpayer Transparency and Fairness Act of 2017, which reduced the California State Board of Equalization to its constitutional functions of supervising county tax assessors and assessing certain specified types of property.

<span class="mw-page-title-main">2022 California State Board of Equalization elections</span>

The 2022 California State Board of Equalization elections took place on November 8, 2022, to elect all four seats of the State Board of Equalization, with the non-partisan blanket primary election taking place on June 7, 2022.

References

  1. 1 2 3 Publication: Franchise Tax Board at a Glance, page 2
  2. 1 2 3 4 5 Publication: Franchise Tax Board at a Glance, page 4
  3. 1 2 State Controller's Office: State Finances 101: State Taxes Archived 2014-07-05 at the Wayback Machine
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.