Business Taxes Committee Unit
The Business Taxes Committee Unit (BTC) considers issues relating to the sales and use tax laws and special taxes and fees laws.
BTC materials may include one or more of the following depending on the stage of development of the topic: Discussion Papers, Memorandum to the Director, and Issue Papers. To receive future distributions of BTC materials, you may request to be added to the BTC All Topics mailing list or indicate a specific topic's mailing list by emailing your contact information to: BTFD-BTC.InformationRequests@cdtfa.ca.gov.
Current Informal Rulemaking Topics
The BTC team address topics via an informal rulemaking process, by providing a forum for interested parties to discuss issues and present any additional suggestions or comments. Below is a listing of the BTC team's current topics.
|“Revisions to Regulation 1620.1, Sales of Certain Vehicles and Trailers for Use in Interstate or Out-of-State Commerce and newly proposed Regulation 1620.15, Sales of Vehicles for Use Exclusively Out-of-State or in Interstate or Foreign Commerce” – Proposed amendments to Regulation 1620.1, Sales of Certain Vehicles and Trailers for Use in Interstate or Out-of-State Commerce, and proposed new Regulation 1620.15, Sales of Vehicles for Use Exclusively Out-of-State or in Interstate or Foreign Commerce, to implement, interpret, and make specific the exemptions from sales and use tax provided by Revenue and Taxation Code (RTC) sections 6388 and 6388.5.||June 8, 2023
|“Proposed Amendments to Regulation 3700 – Cannabis Excise and Cultivation Taxes, and Proposed Regulations 3703 – Excess Cannabis Tax, 3800 – Cannabis Excise Tax and Cannabis Retailer Excise Tax Permit, 3805 – Cannabis Excise Tax Credit, and 3810 – Vendor Compensation” – Proposed emergency regulations to implement, interpret, and make specific the provisions of the Cannabis Tax Law as it was amended by Assembly Bill No. 195.||See Status of Proposed Rules and Regulations|
|“Revisions to Regulation 1684.5, Marketplace Sales” – Proposed amendments and certification of Regulation 1684.5, Marketplace Sales, to implement, interpret, and make specific the Marketplace Facilitator Act.||See Status of Proposed Rules and Regulations|
|“Proposed Regulation 35401, Registration, Reporting, and Reimbursement” – Proposed regulation to implement, interpret, and make specific section 2.3 of article XIII A of the California Constitution (Proposition 19) by providing a timeline for the counties to make their annual determinations and report their gains to the Department for each aggregation period, so that the Department can determine each county’s and local agency’s aggregate gain and provide the necessary reimbursements in a timely manner.||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 parties meeting held
November 5, 2019
A complete copy of Attachment C is available by email at: BTFD-BTC.InformationRequests@cdtfa.ca.gov
|“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|
Completed Informal Rulemaking Topics
Topics have completed the informal rulemaking process when the Director approves the Memorandum to the Director which includes the proposed regulations or regulatory amendments. CDTFA will then begin processing the regulations towards filing with the Office of Administrative Law. Below is a listing of topics that have completed informal rulemaking.
|“Audit Manual Revision – Chapter 13, Statistical Sampling and Chapter 4, General Audit Procedures” – Amendments to the audit manual are to clarify and update the policies and procedures to be followed when using statistical sampling while conducting audits. (Effective April 1, 2023)||Audit Manual: Chapter 13, Statistical Sampling|
|“Revisions to the Emergency Telephone Users Surcharge (ETUS) regulations and Prepaid Mobile Telephony Services (MTS) regulations” – Proposed amendments and regulations conform with the provisions of the ETUS Act as provided by Senate Bill 96. Proposed amendments to the Prepaid MTS regulations are necessary as the Prepaid MTS Surcharge Collection Act was deemed unconstitutional.||Memorandum to the Director|
|“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.)||Memorandum to the Director|