Taxation Duplication

California is the only state with two separate agencies that collect sales and income taxes--the State Board of Equalization and the Franchise Tax Board. And either one is bigger than the departments of revenue in any other state. Here are profiles of each agency:

THE STATE BOARD OF EQUALIZATION

* Origin: In 1870, the Legislature established the agency to deal with abuses by county assessors. In 1879, the board was written into the California Constitution. It wasn’t until the state enacted its first sales tax in 1933 that the agency began to expand and become so powerful.

* Headquarters: Sacramento

* What It Does: Collects sales and use, insurance, business franchise, cigarette and alcohol taxes, as well as environmental fees; sets the property assessments on railroads and utilities; verifies practices of county assessors; hears appeals stemming from its staff and the tax board.

* Structure: Run by a five-member board consisting of state Controller Gray Davis and four members elected from geographic districts.

* Board: Board of Equalization Chairman Brad Sherman, Ernest J. Dronenburg, Jr., Matthew K. Fong, Davis and one vacancy.

* Executive officer: Burton W. Oliver, executive director.

* Employees: 3,000 in 59 field offices, including New York, Chicago and Houston.

* Budget: $232 million

THE FRANCHISE TAX BOARD

* Origin: In 1929, the Legislature established the Office of the Franchise Tax Commissioner to handle taxes on corporations; the office had 33 employees and a budget of $68,000; in 1935, it took over the new income tax on individuals; in 1950, the current three-member board was established.

* Headquarters: Sacramento.

* What It Does: Collects personal income, bank and corporation taxes; administers a homeowner and renter rebate program for the elderly, blind and disabled; audits political campaigns.

* Structure: Three-member board sets policy, but it also technically reports to the Department of Consumer Affairs for funding and procurement of property.

* Board: Davis, Sherman and Finance Director Russell Gould.

* Executive Officer: Gerald H. Goldberg, executive director.

* Employees: 4,000 in 16 branch offices, including New York, Chicago and Houston.

* Budget: $202 million.