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California Franchise Tax Board

California Franchise Tax Board

California Franchise Tax Board headquarters building in Sacramento, California
Board overview
Formed	1929 (1929)
Jurisdiction	Government of California
Headquarters	Sacramento, California 38°34′00″N 121°20′46″W / 38.5665310°N 121.3462307°W / 38.5665310; -121.3462307
Board executives	Malia Cohen, California State Controller Sally Lieber, Chair of the California State Board of Equalization Joe Stephenshaw, Director of Finance
Parent Agency	California Government Operations Agency
Website	ftb.ca.gov

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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 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.

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:

• 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

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.

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]

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]

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.

• State income tax
• State tax levels
• Taxation in the United States

• California Franchise Tax Board website
• Franchise Tax Board in the California Code of Regulations
• Revenue and Tax Code