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.
|“Cigarette and Tobacco Products Licensing Act” – Proposed Regulation 4801 will clarify for licensed retailers, the scope and duration records should be maintained. The regulation also explains the requirements for transferring cigarettes and other tobacco products between retail locations operated by the same licensed retailer.||Interested parties meeting held October 28, 2020
|“Revisions to Regulation 1706, Drop Shipments” – Proposed amendments to clarify that certain marketplace sales are not drop shipment transactions, clarify when drop shippers may calculate the retail selling price of their drop shipments based on their selling price of the property to the true retailer plus a mark-up, and provide more guidance about how a person can overcome the presumption they are a drop shipper.||Interested parties meeting held September 15, 2020
|“Revisions to Regulation 1590, Newspapers and Periodicals” – Proposed amendments to clarify the application of tax to mixed newspaper subscriptions.||Discussion Paper
Interested parties meeting held
July 30, 2020
|“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.
|“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|
|“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.||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|
|“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.||See Status of Proposed Rules and Regulations|
|“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|
|“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|
|“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 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|
|“Proposition 56” – Proposed amendments to Regulation 4076 and proposed Regulation 4077 clarify the provisions of Proposition 56, the California Healthcare, Research and Prevention Tobacco Tax Act of 2016.||See Status of Proposed Rules and Regulations|