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, 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. Currently available materials may be accessed through the appropriate yearly list of topics.

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 Date and Time Notice/Information
"Proposition 56" – Proposed regulation(s) to clarify the provisions of Proposition 56, the California Healthcare, Research and Prevention Tobacco Tax Act of 2016.   Issue Paper

Current as of January 25, 2018

Topic Date and Time Notice and/or Information
"Proposition 64" – Proposed emergency regulation(s) to clarify the provisions of Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act. August 2, 2017,
10 a.m.
November 20, 2017 Issue Paper
July 21, 2017 Discussion Paper
"AB 2153, the Lead-Acid Battery Recycling Act of 2017" – Proposed regulation(s) to clarify the provision of AB 2153, the Lead-Acid Battery Recycling Act of 2016 June 8, 2017,
10 a.m.
May 26, 2017 Second Discussion Paper
"Proposition 56" – Proposed regulation(s) to clarify the provisions of Proposition 56, the California Healthcare, Research and Prevention Tobacco Tax Act of 2016. June 6, 2017,
10 a.m.
Issue Paper
"Proposition 1616, Federal Areas" – Proposed amendments to Regulation 1616, Federal Areas, to clarify the application of tax to meals, food, and beverages sold by restaurants leasing tribal lands. March 23, 2017,
10 a.m.
Revised Agenda
June 9, 2017 Issue Paper
Minutes
"Technology Transfer Agreements" – Proposed amendments to clarify the application of tax to software technology transfer agreements. TBD Initial Discussion Paper

Current as of February 14, 2017

2016 Calendar

Topic Material or Minutes Available BTC Meeting Date
Proposed regulations to clarify the definitions of "wholesale cost" and "retail stock" with regard to tobacco products. Issue Paper
Minutes
1/26/16
Proposed amendments to clarify the application of tax to bundled subscriptions of newspapers. Issue Paper
Minutes
1/26/16
Proposed Regulation 4001 to clarify the definition of "retail stock" with regard to tobacco products. Issue Paper
Minutes
(Continued to June)
3/30/16
Proposed amendments to Regulation 1702.5, Responsible Person Liability, to clarify the terms "responsible person" and "willful." Issue Paper
Minutes
3/30/16
Proposed amendments to Regulation 1703, Interest and Penalties, regarding negligence penalties on first-time audits. Issue Paper
Minutes
3/30/16
Proposed amendments to Regulation 1616, Federal Areas, to clarify the application of tax to meals, food, and beverages sold by restaurants leasing tribal lands. Issue Paper-5/13/16 Postponed to 6/20-22/17
Proposed regulation to clarify the definition of "retail stock" with regard to tobacco products. Proposed amendments
Minutes
6/14/16
Proposed amendments regarding permanently implanted medical devices. Issue Paper
Minutes
8/30/16
Proposed amendments to clarify the application of tax to alterations of new garments. Issue Paper
Minutes
10/25/16
Proposed amendments to clarify the application of tax to software technology transfer agreements. Initial Discussion Paper Postponed

Current as of December 21, 2015

2015 Calendar

Meeting Date Topic Material or Minutes Available
04/28/15 Proposed amendments to Regulation 1505, Morticians, to update the tax rates and dollar amounts used in the examples. Issue Paper
Minutes
Removed from BTC Calendar Proposed regulation regarding the annual reporting threshold of $25,000 in sales of qualified lumber products. Second Discussion Paper
Removed from BTC Calendar Proposed regulation to incorporate the provisions of SB 270 regarding fees charged for reusable grocery bags.  
7/28/15 Proposed amendments to Regulation 1619 to make specific reference to sales to a foreign government/consulate. Issue Paper
Minutes
09/16/15 Proposed rulemaking to incorporate the provisions of AB 1717 regarding prepaid mobile telephony services. Issue Paper
Minutes
09/16/15 Proposed amendments to clarify the definition of highway use and provide examples when diesel fuel is not used to operate vehicles upon the public highway. Issue Paper
Minutes
10/27/15 Proposed amendments to clarify sales of counterfeit goods as retail sales when made by individuals convicted of counterfeit goods trafficking crimes. Issue Paper
Minutes
10/27/15 Proposed amendments to include and define electronic cash register, computerized point of sale systems, and electronic records. Issue Paper
Minutes
Postponed to 1/26/16 Proposed amendments to clarify the application of tax to bundled subscriptions of newspapers.  

Current as of January 29, 2015

2014 Calendar

Meeting Date Topic Material or Minutes Available
04/22/14 Proposed Regulation to incorporate the provisions of the Revenue and Taxation code section 6377.1 providing a sales tax exemption for qualified TPP used in Manufacturing Issue Paper
Minutes
Draft regulation approved 04/22/14
04/22/14 Lumber Products Assessment – Retailer Reimbursement Retention Update
Minutes
05/22/14 Proposed amendments to clarify the application of tax to mandatory tips, gratuities, or service charges Issue Paper
Minutes
09/23/14 Proposed amendments to clarify when CO2 may qualify as a fertilizer Issue Paper
Minutes
11/19/14 Proposed revisions to clarify the application of tax to devices implanted to mark the location of a medical condition Issue Paper
Minutes
11/19/14 Proposed amendments to clarify the definition of diesel fuel with respect to farming activities or food processing and the diesel fuel prepayment exemption Issue Paper
Minutes
(Removed from agenda) Proposed amendments to update the tax rates and provide consistent rounding of the cold food factor percentage Issue Paper
11/19/14 Proposed amendments to update the definition of the “average state, local, and district sales and use tax rate.” Issue Paper
Minutes

Current as of December 23, 2013

2013 Calendar

Meeting Date Topic Material or Minutes Available
01/15/13 Proposed amendments to Regulation 1507 to clarify when sales or purchases of software qualify as Technology Transfer Agreements and how tax applies to sales of qualifying software media Issue paper
Tax Topic Webpage
Minutes
01/15/13 Proposed Regulation 4801, Transfers of Cigarettes and Tobacco Products between Retail Stores Owned by the Same Person Issue paper
Minutes
01/15/13 Proposed amendments to Regulation 1685.5, Calculation of Estimated Use Tax – Use Tax Table to account for the new registration requirements imposed on certain retailers Proposed amendments
Minutes
03/12/13 Proposed regulation regarding the presumption of retail sale for vehicles sold at auction or by a dismantler Issue Paper
Minutes
06/11/13 Proposed regulation regarding the amount of the Lumber Products Assessment a retailer can retain for cost reimbursement Issue Paper
Minutes
08/13/13 Proposed amendments regarding optional software maintenance contracts that include a back-up copy of prewritten software on tangible storage media Issue Paper
Minutes
08/13/13 Proposed amendments to clarify the application of tax to site license transactions involving prewritten software Issue Paper
Minutes
08/13/13 Proposed amendments to clarify when relief may be extended to a person related to the party who has been granted relief under Section 6596 Issue Paper
Minutes
11/19/13 Proposed amendments regarding issuing and revoking a new seller's permit to a person with an outstanding BOE liability who enters into an installment payment agreement to pay that liability Issue Paper
Minutes
11/19/13 Regulatory change to provide that mobile food vendors' sales of items subject to tax are presumed to be made on a tax-included basis Revised Issue Paper
Minutes
Postponed Proposed Regulation 4801, Transfers of Cigarettes and Tobacco Products between Retail Stores Owned by the Same Person Issue Paper
12/17/13 Proposed amendments to incorporate the provisions of AB 242 which extended the provisions of the Lemon Law to use tax transactions Issue Paper
Minutes
12/17/13 Proposed amendments to Regulation 4902 to extend relief due to reliance on written advice if the liability was due to reliance on erroneous advice provided in the prior audit of another person Issue Paper
Minutes

Current as of November 27, 2012

2012 Calendar

Meeting Date Topic Material or Minutes Available
02/28/12 Proposed amendments to Regulation 1684 to incorporate the provisions of amended Revenue and Taxation Code section 6203 regarding "engaged in business in this state" Issue Paper
Minutes
03/20/12 Proposed amendments to Regulation 1618 to update its provisions with changes to the Federal Acquisition Regulations Issue Paper
Minutes
03/20/12 Proposed updates to manuals to incorporate guidelines and procedures related to petitions for reallocation of local tax Issue Paper
Second discussion paper
Minutes
03/20/12 Technology Transfer Agreements: Project update and request to initiate an interested parties process Project Update
Minutes
  Develop a proposal to initiate a reward program for unreported tax information - Revenue and Taxation Code section 7060
Note: This item was removed from the BTC calendar.
Initial discussion paper
05/30/12 Proposed revisions to Audit Manual Chapter 4 regarding US Government Supply Contracts and the Federal Acquisition Regulation (FAR) Issue Paper
Minutes
06/26/12 Proposed new regulation and amendments to Regulations 4601, 4603, 4604, and 4605 under the cigarette and Tobacco Products Licensing Act of 2003. Issue paper
Minutes
8/21/12 Proposed amendments to Regulation 1507, Technology Transfer Agreements: Staff will provide an update on the interested parties process and seek Board directions on this issue. Minutes
Rescheduled to 1/15/13 Proposed Regulation 4801, Transfers of Cigarettes and Tobacco Products between Retail Stores Owned by the Same Person
Rescheduled to 1/15/13 Proposed amendments to Regulation 1507 to clarify when sales or purchases of software qualify as Technology Transfer Agreements and how tax applies to sales of qualifying software media Second Discussion Paper
Tax Topic Webpage

Current as of December 16, 2011

2011 Calendar

Meeting Date Topic Material or Minutes Available
Postponed indefinitely Proposed changes to Regulation 1507, Technology Transfer Agreements  
2/23/2011 Discussion of a proposed regulation to clarify, for tax classification purposes, what is and what is not wine as defined by BPC 23007 Issue paper
Minutes
2/23/2011 Diesel fuel tax rate Increase Issue paper
Minutes
4/26/2011 Petitions for Reallocation of local tax Issue Paper
Second discussion paper
Minutes
4/26/2011 Proposed Regulation 1685.5, Calculation of Estimated Use Tax – Use Tax Table Proposed regulation
Minutes
7/26/2011
(10 A.M.)
Limited exemption from sales and use tax for sales to officially recognized landless Indian tribes Issue paper
Minutes
7/26/2011 Amend Regulation 1684, Collection of Use Tax by Retailers. Request approval to begin interested parties process to discuss the need for rulemaking to implement, interpret, and make specific the provisions of ABx1 28 (Stats. 2011, Ch. 7). ABx1 28 amended Revenue and Taxation Code section 6203, which requires retailers that are engaged in business in California to collect use tax and remit it to the Board. Informal issue paper
Minutes
8/23/2011 Proposed amendments to Regulation 1807, Petitions for Reallocation of Local Tax, and 1828, Petitions for Distribution or Redistribution of Transactions and Use Tax Filing and Processing Local Tax Petitions Issue paper
Minutes
8/23/2011 Technology Transfer Agreements – Regulation 1507
Approval sought to conduct a study that would evaluate the feasibility of developing an optional percentage to reasonably estimate the fair market value of tangible personal property in technology transfer agreements involving prewritten software transferred on tangible storage media pursuant to subdivision (c)(10)(C) of sections 6011 and 6012 of the Revenue and Taxation Code.
Informal issue paper
Minutes
8/23/2011 Amendments to the Cigarette and Tobacco Products Licensing Act Regulations
Approval sought to begin the process with interested parties to discuss the need for amendments to the Cigarette and Tobacco Products Licensing Act’s penalties and fines regulations, and promulgate a new regulation regarding cigarette and tobacco product transfers
Informal issue paper
Minutes
9/20/2011 Implementation of ABxl 28 -Expanded Nexus Project Update Project Update
Minutes
12/14/2011 Discussion of the look-up table used to estimate use tax reported on the CA income tax returns Issue paper
Minutes
(Postponed until March 2012) Proposed amendments to Regulation 1618 to update its provisions with changes to the Federal Acquisition Regulation

This item was rescheduled for discussion at the March 2012 BTC meeting
Initial discussion paper

Current as of December 15, 2010

2010 Calendar

Meeting Date Topic Material or Minutes Available
5/26/2010 Proposed regulation for wholesale cost of tobacco products Issue paper
Minutes
09/15/2010 Proposed changes to Regulation 1506, Miscellaneous Service Enterprises, regarding sales of meals at summer camps
Suggested revisions to Regulation 1807, Petitions for Reallocation of Local Tax
Issue paper
Minutes
11/16/2010 Classifying Wine-Based Products for Taxation Purposes: Approval sought to begin an interested parties process to discuss the need for rulemaking to clarify the alcoholic beverage tax treatment for wine-based products containing distilled alcohol Informal issue paper
Minutes
12/14/2010 Sales to Landless Tribes
Approval sought to begin a process with tribal leaders and interested parties to discuss the need for rulemaking to clarify whether a limited exemption from sales and use taxes exists for sales to and purchases by officially recognized landless Indian tribes of tangible personal property for use by their tribal governments in the governance of tribal members or for the acquisition of trust land.
Informal issue paper
Minutes

Current as of November 20, 2009

2009 Calendar

Meeting Date Topic Material or Minutes Available
2/3/09 Proposed revisions to Regulation 1668, Sales for Resale, to clarify the use of a qualified resale certificate Issue paper
Minutes
11/17/09 Proposed regulation for audit procedures in general Issue paper
Minutes