California Franchise Tax Board

The California Franchise Tax Board (FTB) collects state personal income tax and corporate income tax of California. [ [http://www.ftb.ca.gov/individuals/txdlnqnt.html Delinquent Taxpayers with name, city, and zip code] ]

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. [ [http://www.ftb.ca.gov/forms/misc/1041_0207.pdf Franchise Tax Board, page 2] ]

In 1929, the state legislature created the office of theFranchise Tax Commissioner to administer California’sBank and Corporation Franchise Tax Act. [ [http://www.ftb.ca.gov/forms/misc/1041_0207.pdf Franchise Tax Board, page 2] ]

In 1950, California abolished the office of the FranchiseTax Commissioner and created the Franchise TaxBoard as it exists today. [ [http://www.ftb.ca.gov/forms/misc/1041_0207.pdf Franchise Tax Board, page 2] ] Board members are thestate controller, the director of the Departmentof Finance, and the chair of the State Board ofEqualization. The chief administrative official is theexecutive officer of the Franchise Tax Board.

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. [ [http://www.ftb.ca.gov/forms/misc/1041_0207.pdf FTB, page 4] ] Meanwhile, non-residents are taxed on their California-based income. [ [http://www.ftb.ca.gov/forms/misc/1041_0207.pdf FTB, page 4] ] In recent years, the FTB income tax collects more than $49.9 billion each year. [ [http://www.ftb.ca.gov/forms/misc/1041_0207.pdf FTB, page 4] ]

Corporate income tax

The FTB levies a franchise tax on businesses for doing business in California. [ [http://www.ftb.ca.gov/forms/misc/1041_0207.pdf FTB page 4] ]

The corporate tax is imposed on businesses that do business in California and derive income from within California. [ [http://www.ftb.ca.gov/forms/misc/1041_0207.pdf FTB page 4] ] The FTB applies the unitary method of taxation for businesses that receive income sourced in and out of California. [ [http://www.ftb.ca.gov/forms/misc/1041_0207.pdf FTB page 4] ]

Annually, the FTB collects more than $10.4 billion from the corporate income tax. [ [http://www.ftb.ca.gov/forms/misc/1041_0207.pdf FTB page 4] ]

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.

ee also

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

References

External links

* [http://www.ftb.ca.gov/ California Franchise Tax Board website]
* [http://www.leginfo.ca.gov/cgibin/calawquerycodesection=rtc&codebody=&hits=20 California Revenue and Tax Code]