Tax Glossary

Degree to which a state's income tax base and computation corresponds to federal income tax laws. California utilizes a process of selective federal conformity.

Designated committee in each house of the California Legislature that hears any bill with a fiscal impact on the state. In both the Assembly and the Senate, this committee is the Appropriations Committee.

Twelve-month period for budgeting, accounting or tax collection purposes. May differ from calendar year. The state and local governments' fiscal year is July 1 to June 30. The federal fiscal year is October 1 to September 30.

A special privilege extended by the government to a private enterprise. The corporate franchise tax is levied on the franchise for the privilege of doing business in California and is measured by net income.

State agency responsible for administering the personal income and corporation tax laws. The three Board members include the State Controller, the Chair of the Board of Equalization, and the Director of the Department of Finance.

Franchise Tax Board

The highest amount a willing and knowledgeable seller of a property could obtain from a willing and knowledgeable buyer, neither being under any compulsion to buy or sell. Same as "market value" or "fair market value".