California Franchise Tax Board
Encyclopedia
The California Franchise Tax Board (FTB) collects state personal income tax and corporate income tax of California
. It is part of the California State and Consumer Services Agency
.
The board is composed of the California State Controller
, the director of the California Department of Finance
, and the chair of the California Board of Equalization. The chief administrative official is the executive officer of the Franchise Tax Board.
which among many other programs created the State Board of Equalization
and the
State Controller
, which administered all tax programs.
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 Executive Officer was Gerald H. Goldberg who held the post from 1980 - 2005.
on businesses for doing business in California.
The corporate tax is imposed on businesses that do business in California and derive income from within California. The FTB applies the unitary method of taxation for businesses that receive income sourced in and out of California.
Annually, the FTB collects more than $10.4 billion from the corporate income tax.
debt collections and with delinquent vehicle registration debt collections on behalf of the Department of Motor Vehicles
.
Starting in 1999, the state legislature allocated responsibility to the FTB for developing and executing the child support automation development project of California.
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. It is part of the California State and Consumer Services Agency
California State and Consumer Services Agency
The California State and Consumer Services Agency is a state cabinet-level agency of the executive branch of the U.S. state of California. The current secretary of the SCSA is former Assembly Member Anna Caballero. Caballero, appointed by Governor Jerry Brown, replaced Governor Arnold...
.
The board is composed of the California State Controller
California State Controller
The State Controller is the Chief Financial Officer of the State of California in the United States. The post has broader responsibilities and authority than the California State Treasurer...
, the director of the California Department of Finance
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 of California is required under the California...
, 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 constitutionCalifornia Constitution
The document that establishes and describes the duties, powers, structure and function of the government of the U.S. state of California. The original constitution, adopted in November 1849 in advance of California attaining U.S. statehood in 1850, was superseded by the current constitution, which...
which among many other programs created the State Board of Equalization
State Board of Equalization (California)
The State Board of Equalization is a public agency charged with tax administration and fee collection in the state of California in the United States. The areas of authority of the Board fall into four broad areas: sales and use taxes, property taxes, special taxes, and acting as an appellate body...
and the
State Controller
California State Controller
The State Controller is the Chief Financial Officer of the State of California in the United States. The post has broader responsibilities and authority than the California State Treasurer...
, which administered all tax programs.
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 Executive Officer was Gerald H. Goldberg who held the post from 1980 - 2005.
Personal Income tax
The FTB collects personal state income taxes. The FTB collects income taxes from California residents on their income from all sources. Meanwhile, non-residents are taxed on their California-based income. In recent years, the FTB income tax collects more than $49.9 billion each year.Corporate income tax
The FTB levies a franchise taxFranchise tax
Franchise tax is a tax charged by some US states to corporations with a nexus with those states. The common feature of a state's franchise tax is that it is not based on income...
on businesses for doing business in California.
The corporate tax is imposed on businesses that do business in California and derive income from within California. The FTB applies the unitary method of taxation for businesses that receive income sourced in and out of California.
Annually, the FTB collects more than $10.4 billion from the corporate income tax.
Non-tax programs
The FTB administers the Homeowner and Renter Assistance (HRA) program, delinquent child supportChild support
In family law and public policy, child support is an ongoing, periodic payment made by a parent for the financial benefit of a child following the end of a marriage or other relationship...
debt collections and with delinquent vehicle registration debt collections on behalf of the Department of Motor Vehicles
Department of Motor Vehicles
In the United States of America, a Department of Motor Vehicles is a state-level government agency that administers vehicle registration and driver licensing. Similar departments exist in Canada...
.
Starting in 1999, the state legislature allocated responsibility to the FTB for developing and executing the child support automation development project of California.