California Franchise Tax Board

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California Franchise Tax Board
CA-FTB logo.svg
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

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