California Franchise Tax Board

The California Franchise Tax Board (FTB) collects state personal income tax and corporate income tax of California. It is part of the California Government Operations Agency.

Logo of the FTB

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.

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 Officer of the Franchise Tax Board is Selvi Stanislaus, the first woman to hold the post. She assumed this position in 2006. The prior FTB Executive Officers were:

John J. Campbell (1950 - 1963)

Martin Huff (1963 - 1979) (During the first eight months of 1980, the department was under the direction of William Mackey, who was named Acting Executive Officer.)

Gerald H. Goldberg (1980 - 2005) (During the last five months of 2005, the department was under the direction Will Bush (William C. Bush), who was appointed Interim Executive Officer by the Board.)

Selvi Stanislaus (2006–present)

Members

The three members are the State Controller, Chair of the Board of Equalization, and the Director of the Department of Finance.

Year	Members
1950	Thomas H. Kuchel (R), George H. Reilly, James S. Dean
1951	Thomas H. Kuchel, J. H. Quinn, James S. Dean
1952	Thomas H. Kuchel, J. L. Seawell, James S. Dean
1953	Thomas H. Kuchel[note 1]/Robert C. Kirkwood (R), Wm. G. Bonelli, James S. Dean
1954	Robert C. Kirkwood, George R. Reilly, John M. Peirce
1955	Robert C. Kirkwood, J. H. Quinn, John M. Peirce
1956	Robert C. Kirkwood, Paul R. Leake, John M. Peirce
1957	Robert C. Kirkwood, Robert E. McDavid, John M. Peirce
1958	Robert C. Kirkwood, George R. Reilly, John M. Peirce/T.H. Mugford[note 2]
1959	Alan K. Cranston (D), Paul R. Leake, Bert W. Levitt
1960	Alan K. Cranston, John W. Lynch, John E. Carr
1961	Alan K. Cranston, John W. Lynch, Hale Champion
1962	Alan K. Cranston, George R. Reilly, Hale Champion
1963	Alan K. Cranston, John W. Lynch, Hale Champion
1964	Alan K. Cranston, Paul R. Leake, Hale Champion
1965	Alan K. Cranston, John W. Lynch, Hale Champion
1966	Alan K. Cranston, George R. Reilly, Hale Champion
1967	Houston I. Flournoy (R), Paul R. Leake, Gordon P. Smith
1968	Houston I. Flournoy, Richard Nevins, Caspar W. Weinberger
1969	Houston I. Flournoy, John W. Lynch, Caspar W. Weinberger
1970	Houston I. Flournoy, George R. Reilly, Verne Orr
1971	Houston I. Flournoy, Richard Nevins, Verne Orr
1972	Houston I. Flournoy, John W. Lynch, Verne Orr
1973	Houston I. Flournoy, William M. Bennett, Verne Orr
1974	Houston I. Flournoy, William M. Bennett, Verne Orr
1975	Ken Cory (D), John W. Lynch, Roy M. Bell
1976	Ken Cory, William M. Bennett, Roy M. Bell
1977	Ken Cory, William M. Bennett, Roy M. Bell
1978	Ken Cory, George R. Reilly, Roy M. Bell
1979	Ken Cory, William M. Bennett, Richard T. Silberman
1980	Ken Cory, Richard Nevins, Mary Ann Graves
1981	Ken Cory, Ernest J. Dronenburg, Jr., Mary Ann Graves
1982	Ken Cory, William M. Bennett, Michael Franchetti
1983	Ken Cory, William M. Bennett, Michael Franchetti
1984	Ken Cory, Richard Nevins, Jesse Huff
1985	Ken Cory, Ernest J. Dronenburg, Jr., Jesse Huff
1986	Ken Cory, Richard Nevins, Jesse Huff
1987	Gray Davis (D), Conway H. Collis, Jesse Huff
1988	Gray Davis, Ernest J. Dronenburg, Jr., Jesse Huff
1989	Gray Davis, Paul Carpenter, Jesse Huff
1990	Gray Davis, Conway Collis, Jesse Huff
1991	Gray Davis, Brad Sherman, Thomas Hayes
1992	Gray Davis, Brad Sherman, Thomas Hayes
1993	Gray Davis, Brad Sherman, Thomas Hayes
1994	Gray Davis, Brad Sherman, Russell Gould
1995	Kathleen Connell (D), Brad Sherman, Russ Gould
1996	Kathleen Connell, Johan Klehs, Craig L. Brown
1997	Kathleen Connell, Ernie Dronenburg, Craig L. Brown
1998	Kathleen Connell, Dean Andal, Craig L. Brown
1999	Kathleen Connell, Johann Klehs, B. Timothy Gage
2000	Kathleen Connell, Dean Andal, B. Timothy Gage
2001	Kathleen Connell, Claude Parrish, B. Timothy Gage
2002	Kathleen Connell, John Chiang, B. Timothy Gage
2003	Steve Westly (D), Carol Migden, Steve Peace/Donna Arduin[note 3]
2004	Steve Westly, Carol Migden, Donna Arudin/Tom Campbell[note 4]
2005	Steve Westly, John Chiang, Tom Campbell/Michael C. Genest[note 5]
2006	Steve Westly, John Chiang, Michael C. Genest
2007	John Chiang (D), Betty T. Yee, Michael C. Genest
2008	John Chiang, Judy Chu, Michael C. Genest
2009	John Chiang, Betty T. Yee, Michael C. Genest/Ana J. Matosantos[note 6]
2010	John Chiang, Betty T. Yee, Ana J. Matosantos/Cynthia Bryant[note 7]
2011	John Chiang, Jerome E. Horton, Ana J. Matosantos
2012	John Chiang, Jerome E. Horton, Ana J. Matosantos
2013	John Chiang, Jerome E. Horton, Ana J. Matosantos/Michael Cohen[note 8]
2014	John Chiang, Jerome E. Horton, Michael Cohen
2015	Betty T. Yee, Jerome E. Horton, Michael Cohen
2016	Betty T. Yee, Fiona Ma, Michael Cohen
2017	Betty T. Yee, Diane L. Harkey, Michael Cohen
2018	Betty T. Yee, George Runner, Keely Bosler
2019	Betty T. Yee, Malia M. Cohen, Keely Bosler
2020	Betty T. Yee, Antonio Vazquez, Keely Bosler

Notes

Thomas H. Kuchel (R) was Controller but resigned office to accept the position of US Senator in January 1953 and was replaced by the appointment of Robert Kirkwood.
John M. Peirce resigned July 1958. Mugford was appointed July 1958.
Gov. Arnold Schwarzenegger appointed Arduin as director of finance after the recall election of 2004 and replaced Steve Peace, Gov. Gray Davis' finance director.
Donna Arduin resigned to accept an appointment to the board of directors of a private firm and was replaced by the appointment of Tom Campbell.
Tom Campbell resigned 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.
Michael C. Genest resigned in November 2009 and was replaced by the appointment of Ana J. Matosantos.
Ana J. Matosantos resigned in December 2010 to accept Gov-elect Jerry Brown's appointment as Director Of Finance under his new administration. Cythina Bryant served as interim DOF Director from December 7, 2010, to January 3, 2011, when Ana J. Matosantos' appointment by Governor Brown was effective.
Ana J. Matosantos resigned in July 2013. She was replaced by the appointment of Michael Cohen effective Sept 15, 2013.

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.

References

Publication: Franchise Tax Board at a Glance, page 2
Publication: Franchise Tax Board at a Glance, page 4
State Controller's Office: State Finances 101: State Taxes Archived 2014-07-05 at the Wayback Machine

External links

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[2] Thomas H. Kuchel (R) was Controller but resigned office to accept the position of US Senator in January 1953 and was replaced by the appointment of Robert Kirkwood.

[3] John M. Peirce resigned July 1958. Mugford was appointed July 1958.

[4] Gov. Arnold Schwarzenegger appointed Arduin as director of finance after the recall election of 2004 and replaced Steve Peace, Gov. Gray Davis' finance director.

[5] Donna Arduin resigned to accept an appointment to the board of directors of a private firm and was replaced by the appointment of Tom Campbell.

[6] Tom Campbell resigned 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.

[7] Michael C. Genest resigned in November 2009 and was replaced by the appointment of Ana J. Matosantos.

[8] Ana J. Matosantos resigned in December 2010 to accept Gov-elect Jerry Brown's appointment as Director Of Finance under his new administration. Cythina Bryant served as interim DOF Director from December 7, 2010, to January 3, 2011, when Ana J. Matosantos' appointment by Governor Brown was effective.

[9] Ana J. Matosantos resigned in July 2013. She was replaced by the appointment of Michael Cohen effective Sept 15, 2013.

[FTB_2-1] Publication: Franchise Tax Board at a Glance, page 2

[FTB_4-10] Publication: Franchise Tax Board at a Glance, page 4

[SCO-11] State Controller's Office: State Finances 101: State Taxes Archived 2014-07-05 at the Wayback Machine