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For the U.S. Supreme Court cases, see Franchise Tax Board of California v. Hyatt.
California Franchise Tax Board

California Franchise Tax Board headquarters building in Sacramento, California
Board overview
Formed1929 (1929)
JurisdictionGovernment of California
HeadquartersSacramento, California
38°34′00″N 121°20′46″W / 38.5665310°N 121.3462307°W / 38.5665310; -121.3462307
Board executives
Parent AgencyCalifornia Government Operations Agency
Websiteftb.ca.gov
This article is part of a series on
Taxation in the United States
Federal taxation
State and local taxation
Federal tax reform
flag United States portal

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.

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:

  • 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 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.

Year Controller BOE Chair Director of Finance
1950 Thomas Kuchel (R) George R. Reilly James S. Dean[note 1]
1951 James H. Quinn
1952 Jerrold L. Seawell
1953 Robert C. Kirkwood (R)[note 2] William G. Bonelli
1954 George R. Reilly John M. Pierce[note 3]
1955 James H. Quinn
1956 Paul R. Leake
1957 Robert E. McDavid
1958 George R. Reilly John M. Peirce
T.H. Mugford
1959 Alan Cranston (D) Paul R. Leake Bert W. Levitt[note 4]
1960 John W. Lynch John E. Carr[note 5]
1961 Hale Champion
1962 George R. Reilly
1963 John W. Lynch
1964 Paul R. Leake
1965 John W. Lynch
1966 George R. Reilly
1967 Houston I. Flournoy (R) Paul R. Leake Gordon P. Smith[note 6]
1968 Richard Nevins Caspar W. Weinberger
1969 John W. Lynch
1970 George R. Reilly Verne Orr
1971 Richard Nevins
1972 John W. Lynch
1973 William M. Bennett
1974
1975 Ken Cory (D) John W. Lynch Roy M. Bell[note 7]
1976 William M. Bennett
1977
1978 George R. Reilly
1979 William M. Bennett Richard Silberman[note 8]
1980 Richard Nevins Mary Ann Graves
1981 Ernest J. Dronenburg, Jr.
1982 William M. Bennett
1983 Michael Franchetti
1984 Richard Nevins Jesse Huff
1985 Ernest J. Dronenburg, Jr.
1986 Richard Nevins
1987 Gray Davis (D) Conway H. Collis
1988 Ernest J. Dronenburg, Jr.
1989 Paul B. Carpenter
1990 Conway Collis
1991 Brad Sherman Thomas W. Hayes
1992
1993
1994 Russell Gould[note 9]
1995 Kathleen Connell (D)
1996 Johan Klehs Craig L. Brown
1997 Ernest Dronenburg, Jr.
1998 Dean Andal
1999 Johann Klehs B. Timothy Gage
2000 Dean Andal
2001 Claude Parrish
2002 John Chiang
2003 Steve Westly (D) Carole Migden Steve Peace[note 10]
Donna Arduin[note 11]
2004
2005 John Chiang Tom Campbell[note 12]
2006 Michael C. Genest[note 13]
2007 John Chiang (D) Betty Yee
2008 Judy Chu
2009 Betty Yee
2010 Ana J. Matosantos[note 14]
Cynthia Bryant
2011 Jerome Horton Ana J. Matosantos[note 15]
2012
2013
2014 Michael 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
2022 Malia Cohen
2023 Malia Cohen (D) Tony Vazquez Joe 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. ^ a b c Publication: Franchise Tax Board at a Glance, page 2
  2. ^ a b c d e Publication: Franchise Tax Board at a Glance, page 4
  3. ^ a b State Controller's Office: State Finances 101: State Taxes Archived 2014-07-05 at the Wayback Machine
source: https://en.wikipedia.org/wiki/Franchise_Tax_Board