Governor Rejects Expansion of California Franchise Tax Board

California Gov. Gavin Newsom (D) vetoed a measure Friday that would have changed the composition of the three-member Franchise Tax Board for the first time since the income tax board was created in 1949.

The bill (A.B. 2238), from Assemblymember Evan Low (D) and sponsored by Treasurer Fiona Ma (D), would have added the treasurer and lieutenant governor to the board. It was meant to address Ma’s concerns that the board’s decisions have an impact on the state’s cash management. For example, the FTB followed the IRS’s decision to delay 2022 state income tax filings by seven months ...