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 Material
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.
| Topic | Upcoming Meetings | Notice/Information |
|---|---|---|
| "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 and Assembly Bill 988. Proposed amendments to the Prepaid MTS regulations are necessary as the Prepaid MTS Surcharge Collection Act was repealed on January 1, 2020, and the Local Prepaid MTS Collection Act was amended by Senate Bill 1441. | November 30, 2023 Agenda |
Discussion Paper |
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"Proposed certification of emergency amendments to Cannabis Tax Regulation 3700, Cannabis Excise and Cultivation Taxes; Proposed certification of emergency Cannabis Tax Regulations 3703, Excess Cannabis Tax, 3800, Cannabis Excise Tax and Cannabis Retailer Excise Tax Permit, renumbered as Regulation 3801 with amendments, 3805, Cannabis Excise Tax Credit, 3810, Vendor Compensation with amendments; Proposed Cannabis Tax Regulations 3800, Application of Chapter and Definitions, and 3820, Responsible Person Liability; and Proposed amendments to Fee Collection Procedures Law Regulation 3501, Records" – Proposed rulemaking to implement, interpret, and make specific the provisions of the Cannabis Tax Law as it was amended by Assembly Bill No. 195. |
November 16, 2023 Agenda |
Discussion Paper |
| “Proposed Regulation 3802, Gross Receipts from Sales of Cannabis and Cannabis Products” – Proposed emergency regulation to clarify what is included in gross receipts subject to the cannabis excise tax as provided in Revenue and Taxation Code section 34011.2 | Interested parties meeting held October 12, 2023 Discussion Paper |
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| “Revisions to Regulation 1685.5, Calculation of Estimated Use Tax – Use Tax Table” – Proposed amendments are to clarify the regulation, delete outdated provisions, and update the data sources used to compute the percentage of income spent on taxable purchases. | Interested parties meeting held August 23, 2023 Discussion Paper |
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| “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. | Interested parties meeting held June 8, 2023 Discussion Paper |
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| “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 Discussion Paper A complete copy of Attachment C is available by email at: BTFD-BTC.InformationRequests@cdtfa.ca.gov |
Completed Informal Rulemaking Topics
Topics have completed the informal rulemaking process when the Director approves moving the proposed regulations or regulatory amendments into formal rulemaking. 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.
| Topic | Upcoming Meetings | Notice/Information |
|---|---|---|
| “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.) | 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. | 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. | Status of Proposed Rules and Regulations |