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Business Taxes Law Guide—Revision 2024

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California Department of Tax and Fee Administration

Title 18. Public Revenues
Division 5. California Department of Tax and Fee Administration

Chapter 1. Appeals

Article 2A. Petitioning Notices of Determination

35005 Persons Who May File a Petition for Redetermination
35006 Successor's Petition For Consideration
35007 Limitation Period for Filing a Petition; Collection Activities
35008 Contents of a Petition for Redetermination
35009 Amendments to a Petition for Redetermination
35010 Accrual of Interest
35011 Scope of a Petition for Redetermination Filed Under Hazardous Substances Tax Law
35012 Scope of a Petition for Redetermination Filed Under Covered Electronic Waste Recycling Fee
35013 Scope of a Petition for Redetermination File Under Water Rights Fee Law
35014 Scope of a Petition for Redetermination Filed Under the Lead-Acid Battery Recycling Act
35015 Filing a Petition for Redetermination
35016 Acknowledgement of a Petition for Redetermination
35017 Review of a Petition by the Assigned Section
35018 Preparation and Mailing of the Summary Analysis

California Department of Tax and Fee Administration

Title 18. Public Revenues
Division 5. California Department of Tax and Fee Administration

Chapter 1. Appeals

35005. Persons Who May File a Petition for Redetermination.

Reference: Sections 6561, 7710, 8851, 30175, 30261, 38441, 40091, 41033, 41085, 43301, 45301, 46351, 50114, 55081 and 60350, Revenue and Taxation Code.

(a) A person who disagrees with any item included in a notice of determination issued to that person may file a petition for redetermination requesting that CDTFA reconsider the notice of determination. CDTFA will not, however, consider any item outside the scope of its review, such as specified in regulations 35011 through 35014.

(b) Any person directly interested in a notice of determination issued by CDTFA may file a petition for redetermination requesting that CDTFA reconsider the notice of determination, but only if the notice of determination was issued under one of the following:

(1) Revenue and Taxation Code section 6481 or 6511 (Sales and Use Tax Law).

(2) Revenue and Taxation Code section 38411 or 38421 (Timber Yield Tax Law).

(3) Revenue and Taxation Code section 43201 (Hazardous Substances Tax Law).

(4) Revenue and Taxation Code section 45201 (Integrated Waste Management Fee Law).

(5) Revenue and Taxation Code section 46201 or 46251 (Oil Spill Response, Prevention, and Administration Fees Law).

(6) Revenue and Taxation Code section 50113 (Underground Storage Tank Maintenance Fee Law).

(7) Revenue and Taxation Code section 55061 (Fee Collection Procedures Law).

(c) A person is directly interested in a notice of determination if Code of Civil Procedure section 387, subdivision (d), would permit the person to intervene in potential litigation regarding the subject matter at issue. Such persons include predecessors, successors, receivers, trustees, executors, administrators, assignees, and guarantors. A person directly interested does not include a consumer who owes or has paid tax reimbursement to a retailer, or persons such as lienholders.

History—New article 2A (regulations 35005-35018) and regulation filed March 19, 2018, as an emergency; effective and operative March 19, 2018. Article and regulation refiled September 17, 2018, as an emergency; effective and operative September 17, 2018. Article and regulation refiled December 17, 2018, as an emergency; effective and operative December 17, 2018. Certificate of Compliance transmitted to OAL on February 20, 2019 and filed March 19, 2019. (The regulation incorporates provisions from regulation 5210 in division 2.1.)

Note.—Authority cited: Sections 15570.40 and 15606, Government Code; Section 25215.74, Health and Safety Code; Sections 7051, 8251, 9251, 30451, 34013, 38701, 40171, 41128, 42020, 42103, 43501, 45851, 46601, 50152, 55301 and 60601, Revenue and Taxation Code.

35006. Successor's Petition For Consideration.

Reference: Sections 6814, 9024, 38564, 46454 and 60474, Revenue and Taxation Code.

A successor served with a notice of successor liability under Revenue and Taxation Code sections 6814, 9024, 38564, 46454, or 60474 may file a petition for reconsideration of successor liability in the manner provided in this article for petitioning any other liability imposed under the Sales and Use Tax Law, Use Fuel Tax Law, Timber Yield Tax Law, Oil Spill Response, Prevention, and Administration Fees Law, or Diesel Fuel Tax Law, respectively. The provisions in this chapter applicable to a petition for redetermination are applicable to a successor's petition for reconsideration.

History—New regulation filed March 19, 2018, as an emergency; effective and operative March 19, 2018. Regulation refiled September 17, 2018, as an emergency; effective and operative September 17, 2018. Regulation refiled December 17, 2018, as an emergency; effective and operative December 17, 2018. Certificate of Compliance transmitted to OAL on February 20, 2019 and filed March 19, 2019. (The regulation incorporates provisions from regulation 5210.5 in division 2.1.)

Note.—Authority cited: Sections 15570.40 and 15606, Government Code; Sections 7051, 9251, 38701, 46601 and 60601, Revenue and Taxation Code.

35007. Limitation Period for Filing a Petition; Collection Activities.

Reference: Sections 6561, 7710, 8851, 30174, 30175, 30261, 38441, 40091, 41033, 41085, 43301, 45301, 46351, 50114, 55081 and 60350, Revenue and Taxation Code.

(a) A petition for redetermination must be filed within 30 days from the date that the notice of determination was mailed to the person against whom the notice was issued.

(b) Notwithstanding subdivision (a), a petition for redetermination of a determination issued under Revenue and Taxation Code section 30173 (Cigarette and Tobacco Products Tax Law) must be filed within 10 days from the date that the notice of determination was mailed.

(c) Notwithstanding subdivision (a), a petition for redetermination of a determination issued under Revenue and Taxation Code section 41033 (Emergency Telephone Users Surcharge Law) must be filed within 60 days from the date that the notice of determination was mailed.

(d) A determination contained within a notice of determination becomes final if a petition for redetermination is not filed within the applicable time period set forth in subdivision (a), (b), or (c).

(e) A petition for redetermination is premature and not valid if it is filed before a notice of determination or notice of successor liability is issued. However, a premature petition for redetermination may be treated as an administrative protest under regulation 35019.

(f) Except for a jeopardy determination, collection activities will not commence until a liability is final. The filing of a timely petition for redetermination will prevent the liability in the notice of determination being petitioned from becoming final, and will prevent the commencement of collection activities with regard to amounts contained in the notice of determination being petitioned, until the petition has been acted upon and the assessed liability becomes final.

35008. Contents of a Petition for Redetermination.

Reference: Sections 6561.5, 7710.5, 8851.5, 30261.5, 38442, 40092, 41033, 41086, 43302, 45302, 46352, 50115, 55082 and 60351, Revenue and Taxation Code.

(a) A petition for redetermination must:

(1) Be in writing.

(2) Identify the amounts the taxpayer wishes to contest (the taxpayer may contest all or a portion of the amount shown on a notice), if known.

(3) State the specific grounds or reasons why the notice of determination should be reconsidered.

(4) Be signed by the taxpayer or the taxpayer's authorized representative.

(b) A petition for redetermination may include a request for an appeals conference.

(c) The filing of a completed form provided by CDTFA for use as a petition for redetermination will satisfy the requirements of subdivision (a).

(d) A taxpayer may submit copies of any supporting written arguments or documentary evidence along with its petition for redetermination.

35009. Amendments to a Petition for Redetermination.

Reference: Sections 6561.5, 7710.5, 8851.5, 30261.5, 38442, 40092, 41033, 41086, 43302, 45302, 46352, 50115, 55082 and 60351, Revenue and Taxation Code.

A petition for redetermination may be amended to state additional grounds or reasons why the notice of determination should be reconsidered at any time prior to the date on which CDTFA issues its order or decision upon the petition for redetermination.

35010. Accrual of Interest.

Reference: Sections 6482, 6513, 7674, 7661, 8777, 8803, 30174, 30202, 30223, 38412, 38423, 40072, 40083, 41033, 41071, 41082, 43201, 45201, 46201, 46253, 50113, 55061, 60302 and 60314, Revenue and Taxation Code.

The filing of a petition for redetermination does not stop the accrual of interest.

35011. Scope of a Petition for Redetermination Filed Under Hazardous Substances Tax Law.

Reference: Section 105310, Health and Safety Code; Section 43301, Revenue and Taxation Code.

(a) Hazardous or Extremely Hazardous Waste. A petition for redetermination filed under Revenue and Taxation Code section 43301 will be acknowledged. However, no determination will be made as to whether any substance is a hazardous or extremely hazardous waste. A petition for redetermination based upon such grounds will be forwarded to the Director of the California Department of Toxic Substances Control for determination in accordance with Revenue and Taxation Code section 43301, and may not be considered until after the Director of the California Department of Toxic Substances Control has made his or her determination.

(b) Childhood Lead Poisoning Prevention Fee.

(1) A petition for redetermination of the Childhood Lead Poisoning Prevention Fee may be founded upon any grounds, including:

(A) The taxpayer's industry did not contribute in any manner to environmental lead contamination;

(B) The taxpayer's lead or lead containing product does not currently or did not historically result in quantifiable persistent lead contamination; or

(2) CDTFA will not act on a petition founded upon grounds described in subdivision (b)(1)(A), (B), or (C) until the California Department of Public Health has acted upon the taxpayer's application for exemption from or reassessment of the fee. Applications for exemption must be submitted to the California Department of Public Health in the manner provided in California Code of Regulations, title 17, section 33040. Applications for reassessment must be submitted to the California Department of Public Health in the manner provided in California Code of Regulations, title 17, section 33050.

Note.—Authority cited: Sections 15570.40 and 15606, Government Code; Section 43501, Revenue and Taxation Code.

35012. Scope of a Petition for Redetermination Filed Under Covered Electronic Waste Recycling Fee.

Reference: Section 42464.6, Public Resources Code.

A petition for redetermination of the Covered Electronic Waste Recycling Fee will be acknowledged. However, no determination will be made as to whether an item is or is not a covered electronic device. A petition for redetermination based upon such grounds will be forwarded to the California Department of Toxic Substances Control for determination in accordance with Public Resources Code section 42464.6.

Note.—Authority cited: Sections 15570.40 and 15606, Government Code; Section 55301, Revenue and Taxation Code.

35013. Scope of a Petition for Redetermination File Under Water Rights Fee Law.

Reference: Section 1537, Water Code.

A determination by the State Water Resources Control Board regarding the amount of the water rights fee or that a person or entity is required to pay such fee is subject to review under chapter 4 of part 1 of division 2 of the Water Code and is not subject to review by CDTFA as part of a petition for redetermination.

Note.—Authority cited: Sections 15570.40 and 15606, Government Code; Section 55301, Revenue and Taxation Code.

35014. Scope of a Petition for Redetermination Filed Under the Lead-Acid Battery Recycling Act.

Reference: Section 25215.45, Health and Safety Code.

A petition for redetermination of the California battery fee or manufacturer battery fee will be acknowledged. However, no determination will be made as to whether an item is or is not a lead-acid battery. A petition for redetermination based on such grounds will be forwarded to the California Department of Toxic Substances Control for determination in accordance with Health and Safety Code section 25215.45.

Note.—Authority cited: Sections 15570.40 and 15606, Government Code; Section 55301, Revenue and Taxation Code.

35015. Filing a Petition for Redetermination.

Reference: Sections 6561, 7710, 8851, 30175, 30261, 38441, 40091, 41085, 43301, 45301, 46351, 50114, 55081 and 60350, Revenue and Taxation Code.

(a) A petition for redetermination under the Sales and Use Tax Law and related documents may be filed as set forth in this subdivision, or as otherwise expressly provided on CDTFA's website at www.cdtfa.ca.gov.

(1) By hand delivery to: Petitions Section, MIC 38, California Department of Tax and Fee Administration, 450 N Street, Sacramento, CA 95814.

(2) By mail addressed to: Petitions Section, MIC 38, California Department of Tax and Fee Administration P.O. Box 942879, Sacramento, CA 94279-0038.

(3) By email sent to: BTFDPetSection@cdtfa.ca.gov.

(4) By facsimile to: (916) 324 0678.

(b) A petition for redetermination under the tax and fee laws listed in this subdivision and related documents may be filed as set forth in this subdivision, or as otherwise expressly provided on CDTFA's website at www.cdtfa.ca.gov.

(1) Hazardous Substances Tax Law, Occupational Lead Poisoning Prevention Fee, Water Rights Fee, Covered Electronic Waste Recycling Fee, Tire Recycling Fee, Integrated Waste Management Fee Law, Marine Invasive Species Fee Collection Law, Cigarette and Tobacco Products Tax Law, Cannabis Tax, Energy Resources Surcharge Law, Emergency Telephone Users Surcharge Act, Natural Gas Surcharge, Motor Vehicle Fuel Tax Law, Use Fuel Tax Law, Oil Spill Response, Prevention, and Administration Fees Law, Underground Storage Tank Maintenance Fee Law, Diesel Fuel Tax Law, Lead-Acid Battery Recycling Act, and Childhood Lead Poisoning Prevention Fee.

(A) By hand delivery to: Appeals and Data Analysis Branch, MIC 33, California Department of Tax and Fee Administration, 450 N Street, Sacramento, CA 95814.

(B) By mail addressed to: Appeals and Data Analysis Branch, MIC 33, California Department of Tax and Fee Administration, P.O. Box 942879, Sacramento, CA 94279-0033.

(D) By facsimile to: (916) 323-9497.

(2) Timber Yield Tax Law.

(A) By hand delivery to: Timber Tax Section, MIC 60, California Department of Tax and Fee Administration, 450 N Street, Sacramento, CA 95814.

(B) By mail addressed to: Timber Tax Section, MIC 60, California Department of Tax and Fee Administration, P.O. Box 942879, Sacramento, CA 94279-0060.

(D) By facsimile sent to: (916) 285-0134.

History—New regulation filed March 19, 2018, as an emergency; effective and operative March 19, 2018. Regulation refiled September 17, 2018, as an emergency; effective and operative September 17, 2018. Regulation refiled December 17, 2018, as an emergency; effective and operative December 17, 2018. Certificate of Compliance transmitted to OAL on February 20, 2019 and filed March 19, 2019. When the regulation was refiled September 17, 2018, "sutdpet@cdtfa.ca.gov" was replaced with "BTFDPetSection@cdtfa.ca.gov" in subdivision (a)(3). (The regulation incorporates provisions from regulation 5216 in division 2.1.)

35016. Acknowledgement of a Petition for Redetermination.

Reference: Sections 6562, 7711, 8852, 30175, 30262, 38443, 40093, 41087, 43303, 45303, 46353, 50116, 55083 and 60352, Revenue and Taxation Code.

After receipt of a petition for redetermination, the assigned section will promptly mail the taxpayer a letter acknowledging receipt of the petition for redetermination and containing the contact information for the applicable staff within the assigned section.

35017. Review of a Petition by the Assigned Section.

Reference: Sections 6562, 6981, 7711, 8191, 8852, 9196, 30175, 30262, 30421, 38443, 38631, 40093, 40121, 41087, 41107, 43303, 43491, 45303, 45801, 46353, 46551, 50116, 50151, 55083, 55281, 60352 and 60581, Revenue and Taxation Code.

(a) The assigned section must review the petition, notice of determination, and all other relevant information available to it in reaching findings on behalf of BTFD, subject to the oversight of the Deputy Director.

(b) The assigned section may refer the petition to the CDTFA office or section that issued the notice being petitioned for further investigation and comment, but any findings resulting from such referral are tentative and subject to review by the assigned section. The assigned section will promptly notify the taxpayer of such a referral, provide assistance needed to complete the investigation, monitor the progress of the CDTFA office or other section to which the petition is referred, and respond to the taxpayer's requests for updates regarding such progress.

(c) Where the assigned section, or the CDTFA office or other section to whom the petition is referred, believes additional documentary evidence is needed as support for the petition for redetermination, it will contact the petitioner and request such information. The failure to provide such information upon request may result in the assigned section's conclusion that the petition for redetermination should be denied.

(d) The assigned section must look for consistency, adequacy of procedures, proper application of law, and consideration of any recent law or regulatory changes or precedential opinions from the Office of Tax Appeals that may affect the audit or investigation findings, where appropriate.

(e) Upon completion of the review, the assigned section will mail the taxpayer a letter to advise the taxpayer of its findings.

(f) Where the findings of the assigned section are that all matters put into dispute by the petition should be resolved in the taxpayer's favor, the assigned section will mail the taxpayer a letter notifying the taxpayer of the assigned section's findings and advising that, except as provided in subdivision (j), the appeal will be resolved in accordance with those findings unless, within 30 days of the date of the letter, the taxpayer advises the assigned section that its findings do not resolve all matters and that some matter remains in dispute.

(g) If, within 30 days of a letter issued pursuant to subdivision (f), the taxpayer responds advising the assigned section that some matter remains in dispute, the assigned section will consider the remaining dispute. If the assigned section's findings are that the dispute should be resolved in the taxpayer's favor, the assigned section will mail a letter notifying the taxpayer of those findings and advising that, except as provided in subdivision (j), the appeal will be resolved in accordance with those findings. Otherwise, the provisions of subdivision (h) are applicable.

(h) Where the findings of the assigned section are that some or all of the matters put into dispute by the petition should not be resolved in the taxpayer's favor and the taxpayer has not previously requested an appeals conference, the assigned section will mail the taxpayer a letter notifying the taxpayer of the assigned section's findings and advising that, except as provided in subdivision (j), the appeal will be resolved in accordance with those findings unless, within 30 days of the date of that letter, the taxpayer makes a written request to the assigned section for an appeals conference. If the taxpayer submits a written request within 30 days for an appeals conference, the appeal will be forwarded to the Appeals Bureau for the scheduling of an appeals conference; otherwise, unless an appeals conference is requested by another party as provided in subdivision (j), the appeal will be resolved in accordance with the assigned section's findings as stated in its letter to the taxpayer. However, the Deputy Director may, in the Deputy Director's sole discretion, reinstate an appeal if, before the taxpayer's Notice of Redetermination is issued, the taxpayer submits a written request for an appeals conference and documentation that establishes that the taxpayer was unavailable (e.g., out of town, hospitalized, or incarcerated) to reply to the assigned section's letter within the 30 days allowed and the taxpayer submitted the request for an appeals conference within 30 days of the date the taxpayer became available.

(i) Where the findings of the assigned section are that some or all of the matters put into dispute by the petition should not be resolved in the taxpayer's favor and the taxpayer had previously requested an appeals conference, the assigned section will mail a letter to the taxpayer either advising the taxpayer that the appeal will be forwarded to the Appeals Bureau for the scheduling of an appeals conference, or requesting the taxpayer to confirm its prior request for an appeals conference.

(1) Reasons for asking for confirmation include that the taxpayer failed to respond to requests for additional supporting information or documentation, or that the assigned section believes that the taxpayer accepts its findings.

(2) If the assigned section asks the taxpayer to confirm its prior request, the assigned section will state the reason it is asking for confirmation, and will also explain that, unless the taxpayer confirms in writing to the assigned section within 30 days of the date of the letter from the assigned section that the taxpayer still wants an appeals conference, the taxpayer's petition will be resolved in accordance with the findings of the assigned section as stated in its letter.

(3) If the taxpayer confirms in writing within 30 days of the date of the letter from the assigned section that the taxpayer still wants an appeals conference, the appeal will be forwarded to the Appeals Bureau for the scheduling of an appeals conference; otherwise, unless an appeals conference is requested by another party as provided in subdivision (j), the appeal will be resolved in accordance with the assigned section's findings as stated in its letter to the taxpayer.

(j) Where a state agency other than CDTFA is a party to the appeal and the findings of the assigned section are in favor of the taxpayer and adverse to the state agency, in whole or in part, the state agency may request an appeals conference. The state agency must submit its written request for appeals conference to the assigned section within 30 days of any letter mailed pursuant to this regulation notifying the taxpayer of the assigned section's findings that the taxpayer's appeal should be granted, in whole or in part. Where a state agency makes such a timely written request for an appeals conference, the assigned section will forward the appeal to the Appeals Bureau for the scheduling of an appeals conference.

(k) If the assigned section determines that a cancellation, including an adjustment, in excess of $50,000 (or $15,000 for Integrated Waste Management Fee) should be granted, the fact that CDTFA will cancel or adjust such amount must be available as a public record for at least 10 days prior to its effective date.

History—New regulation filed March 19, 2018, as an emergency; effective and operative March 19, 2018. Regulation refiled September 17, 2018, as an emergency; effective and operative September 17, 2018. Regulation refiled December 17, 2018, as an emergency; effective and operative December 17, 2018. Certificate of Compliance transmitted to OAL on February 20, 2019 and filed March 19, 2019. The third sentence was added to subdivision (h) when the regulation was refiled September 17, 2018. (The regulation incorporates provisions from regulation 5218 in division 2.1.)

35018. Preparation and Mailing of the Summary Analysis.

Reference: Sections 6562, 7711, 8852, 30175, 30262, 38443, 40093, 41087, 43303, 45303, 46353, 50116, 55083 and 60352, Revenue and Taxation Code.

Before the assigned section forwards an appeal to the Appeals Bureau for the scheduling of an appeals conference, it will first prepare a summary analysis which sets forth the taxpayer's contentions regarding the notice of determination, the position of BTFD, and the reasons the assigned section believes that BTFD's position should be sustained. The assigned section will then mail a copy of the summary analysis to the taxpayer and forward the petition file to the Appeals Bureau for the scheduling of an appeals conference in accordance with article 8 of this chapter.

Laws, Regulations and Annotations

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Business Taxes Law Guide—Revision 2024

California Department of Tax and Fee Administration

Title 18. Public Revenues Division 5. California Department of Tax and Fee Administration

Chapter 1. Appeals

Article 2A. Petitioning Notices of Determination

California Department of Tax and Fee Administration

Title 18. Public Revenues Division 5. California Department of Tax and Fee Administration

Chapter 1. Appeals

35005. Persons Who May File a Petition for Redetermination.

35006. Successor's Petition For Consideration.

35007. Limitation Period for Filing a Petition; Collection Activities.

35008. Contents of a Petition for Redetermination.

35009. Amendments to a Petition for Redetermination.

35010. Accrual of Interest.

35011. Scope of a Petition for Redetermination Filed Under Hazardous Substances Tax Law.

35012. Scope of a Petition for Redetermination Filed Under Covered Electronic Waste Recycling Fee.

35013. Scope of a Petition for Redetermination File Under Water Rights Fee Law.

35014. Scope of a Petition for Redetermination Filed Under the Lead-Acid Battery Recycling Act.

35015. Filing a Petition for Redetermination.

35016. Acknowledgement of a Petition for Redetermination.

35017. Review of a Petition by the Assigned Section.

35018. Preparation and Mailing of the Summary Analysis.

Title 18. Public Revenues
Division 5. California Department of Tax and Fee Administration

Title 18. Public Revenues
Division 5. California Department of Tax and Fee Administration