Business Taxes Committee Unit

The Business Taxes Committee Unit considers issues relating to the sales and use tax laws and special taxes and fees laws.

Committee Material

Committee materials may include one or more of the following depending on the stage of development of the topic: Initial Discussion Paper, Second Discussion Paper, Memorandum to the Director, Formal Issue Paper and/or Business Taxes Committee Minutes. To receive future distributions of Committee materials, you may add yourself to the interested parties list by emailing your contact information to: BTFD-BTC.InformationRequests@cdtfa.ca.gov.

Interested Parties Meetings

Before the formal rulemaking process, staff provides a forum for interested parties to discuss issues and present any additional suggestions or comments. Below is a listing of current topics.

Topic Upcoming Meetings Notice/Information
“Revisions to Regulation 1685.5, Calculation of Estimated Use Tax – Use Tax Table Proposed amendments to update the use tax table percentage reflecting an entire year under the use tax collection requirements imposed by Assembly Bill No. (AB) 147 (Stats. 2019, ch. 5).   Memorandum to the Director
“Revisions to Regulations 4022, 4027, 4061, 4065, 4066, and 4091” Proposed amendments to Cigarette and Tobacco Products Tax regulations to correct outdated information and make these regulations consistent with current reporting practices.   Memorandum to the Director
“Revisions to Regulation 1525.4, Manufacturing and Research and Development Equipment – Proposed amendments to the regulation to clarify the provisions of AB 398 and AB 131.   Interested parties meeting held March 12, 2020

Discussion Paper
“Regulation 3702, California Cannabis Track-and-Trace” – Request for approval to begin the formal rulemaking process to permanently adopt Cannabis Tax Regulation 3702, California Cannabis Track-and-Trace. Memorandum to the Director
“Amendments to Regulation 1684, Collection of Use Tax by Retailers, and Regulation 1827, Collection of Use Tax by Retailers” – Proposed amendments to clarify when a retailer is engaged in business in this state and/or in a special taxing district and required to collect state or district use tax from their customers. See Status of Proposed Rules and Regulations
“Revisions to Regulation 1507, Technology Transfer Agreements” – Proposed amendments to clarify, make specific, and fill in the gaps in the California Sales and Use Tax Law with respect to the application of Revenue and Taxation Code sections 6011(c)(10) and 6012(c)(10).   Interested party meeting held November 5, 2019

Discussion Paper

A complete copy of Attachment C is available by email at: BTFD-BTC.InformationRequests@cdtfa.ca.gov
“Proposed Regulation 1684.5, Marketplace Sales” – Proposed regulation to interpret, clarify, and make specific the Marketplace Facilitator Act with respect to the registration and tax collection obligations for marketplace facilitators and marketplace sellers.   Memorandum to the Director
“Revisions to Regulation 1435, Tax Paid Twice on Diesel Fuel – Proposed amendments to clarify when diesel fuel suppliers may claim a credit or refund of diesel fuel taxes paid on diesel fuel when it is placed into bulk storage for subsequent removal at the terminal rack. Issue Paper
“Revisions to Regulation 1503, Hospitals and other Medical Service Facilities, Institutions and Homes for the Care of Persons and Regulation 1591, Medicines and Medical Devices – Proposed amendments to clarify the application of tax to property furnished or consumed by medical service facilities in connection with the performance of their services. See Status of Proposed Rules and Regulations
Revisions to Regulation 4011, Distributors Not Engaged in Business in this State” – Proposed amendments to interpret and clarify the application of the tobacco products tax when an out-of-state licensed tobacco products distributor sells tobacco products to a purchaser in this state. For a copy of the October 18, 2018 Discussion Paper, email: BTFD-BTC.InformationRequests@cdtfa.ca.gov
“Revisions to Regulation 1616, Federal Areas – Proposed Amendments to clarify the application of tax to meals, food, and beverages sold or purchased from eating and drinking establishments located on an Indian reservation. Memorandum to the Director
“Proposition 56” – Proposed regulation(s) to clarify the provisions of Proposition 56, the California Healthcare, Research and Prevention Tobacco Tax Act of 2016. See Status of Proposed Rules and Regulations
“Assembly Bill 2153, The Lead-Acid Battery Recycling Act of 2016” – Proposed regulations that interpret, clarify, and make specific the 2016 legislation regarding fees imposed on certain transactions involving lead-acid batteries in California. (Proposed regulations also address the 2019 passage of Assembly Bill 142.) June 10, 2020 Third Discussion Paper