California Franchise Tax Board
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The California Franchise Tax Board (FTB) collects state personal income tax and corporate income tax of California.[1]
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[edit] 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.[2]
In 1929, the state legislature created the office of the Franchise Tax Commissioner to administer California’s Bank and Corporation Franchise Tax Act.[3]
In 1950, California abolished the office of the Franchise Tax Commissioner and created the Franchise Tax Board as it exists today.[4] Board members are the state controller, the director of the Department of Finance, and the chair of the State Board of Equalization. The chief administrative official is the executive officer of the Franchise Tax Board.
[edit] Tax programs
[edit] Personal Income tax
The FTB collects personal state income taxes. The FTB collects income taxes from California residents on their income from all sources.[5] Meanwhile, non-residents are taxed on their California-based income.[6] In recent years, the FTB income tax collects more than $49.9 billion each year.[7]
[edit] Corporate income tax
The FTB levies a franchise tax on businesses for doing business in California.[8]
The corporate tax is imposed on businesses that do business in California and derive income from within California.[9] The FTB applies the unitary method of taxation for businesses that receive income sourced in and out of California.[10]
Annually, the FTB collects more than $10.4 billion from the corporate income tax.[11]
[edit] Non-tax programs
The FTB administers the Homeowner and Renter Assistance (HRA) program, delinquent child support 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.
