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CDTFA, IMPORTANT TAX DUE DATE REMINDER

Sales Tax Penalties

The California Department of Tax and Fee Administration (CDTFA) is sending you an important due date reminder:

  • If you have a Sales and Use Tax or Use Tax quarterly prepayment to pay, your prepayment is due no later than the 24th of the month.

If the due date falls on a weekend or state holiday, the due date is extended to the next business day.

If you have not done so already, please visit our website and Login to make your prepayment prior to the due date shown above.

If you have any questions, please call our Customer Service Center at 1‑800‑400‑7115 (TTY:711). Customer service representatives are available Monday through Friday from 8:00 a.m. to 5:00 p.m. (Pacific time), except state holidays.

To set up a username and password, visit CDTFA’s Online Services page at Sign Up Now.

New Operative Date of April 25, 2019, for District Use Tax Collection Requirement Based on $500,000 Sales Threshold

California Sales Taxes

The California Legislature recently passed Senate Bill (SB) 92 (Stats. 2019, ch. 34), which changes the operative date of the new district use tax collection requirement based on a $500,000 sales threshold from April 1, 2019 to April 25, 2019. As explained in our prior Special Notice L-632, under the new law, all retailers are required to collect and remit the district use tax on all sales made for delivery in any district that imposes a district tax if, during the preceding or current calendar year the total combined sales of tangible personal property in this state or for delivery in this state by the retailer and all persons related to the retailer exceed $500,000.

Assembly Bill (AB) 147 (Stats. 2019, ch. 5) established the new district use tax collection requirement with an operative date of April 1, 2019, and was signed into law on April 25, 2019. Changing the operative date to April 25, 2019, therefore, eliminates the retroactive effect of AB 147 with regard to the new district use tax collection requirement.

Please note that SB 92 does not change the operative date of the new state use tax collection requirement based on $500,000 in combined sales for delivery in California. The operative date of the new state use tax collection requirement is still April 1, 2019.

What are district taxes?

District taxes are voter-approved transactions (sales) and use taxes imposed by cities, counties, and other local jurisdictions. The current statewide California sales and use tax rate is 7.25 percent. In areas where a district tax is imposed (taxing district), the total tax rate includes the statewide rate plus the district tax rate(s).

Who is responsible for paying the district tax?

District sales taxes are due from retailers on their sales of tangible personal property and district use taxes are due from purchasers for their use of tangible personal property in a taxing district. However, a retailer that is “engaged in business” in a taxing district is generally required to collect the district’s use tax and pay it to the California Department of Tax and Fee Administration (CDTFA) on sales of tangible personal property delivered in the district. For more information on being engaged in business in a district, see publication 44, District Taxes (Sales and Use Taxes).

New operative date for new district use tax collection requirement

If you exceeded the $500,000 district use tax collection sales threshold in calendar year 2018 or during the period from January 1, 2019, through April 24, 2019, then starting on April 25, 2019, you were considered engaged in business in every district imposing a district tax and are required to collect, report, and pay the district use tax to the CDTFA on all sales made for delivery in those districts. You are not responsible for collecting, reporting, and paying the district use tax to the CDTFA on sales made for delivery in a taxing district prior to April 25, 2019, unless you were otherwise engaged in business in that district. However, if you have already collected district use tax from your customers on sales made prior to April 25, 2019, either at the time of the sale or at a later date, you must report and pay the collected tax amounts to the CDTFA on your sales and use tax return.

If you are otherwise engaged in business in a district, your responsibility to collect and pay the district use tax is not affected by the new collection requirement or the change in operative date, and you should continue to collect, report, and pay the district tax on all sales made for delivery into that district(s).

Tax rates in California

You may find the tax rates for each district on our website at www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax-rates.htm. This webpage also includes a look-up tool, Find A Sales and Use Tax Rate by Address, located under the Current Tax Rates section

IMPORTANT DUE DATE REMINDER: Sales Taxes

Sales Taxes

The California Department of Tax and Fee Administration (CDTFA) is sending you an important due date reminder:

  • If you have a Sales and Use Tax or Use Tax quarterly prepayment to pay, your prepayment is due no later than the 24th of the month.

If the due date falls on a weekend or state holiday, the due date is extended to the next business day.

If you have not done so already, please visit the website and Login to make your prepayment, prior to the due date shown above.

New Sales and Use Tax rates are operative as of July 1, 2019. For more information, please see the Special Notice on the CDTFA website.

We have also made enhancements to our sales and use tax return. For more information, please see our new tutorial videos How to File Schedule A and How to File Schedule A Using the Upload Feature.

If you have any questions, please call our Customer Service Center at 1–800–400–7115 (TTY:711). Customer service representatives are available Monday through Friday from 8:00 a.m. to 5:00 p.m. (Pacific time), except state holidays.

To set up a username and password, visit CDTFA’s Online Services page at Sign Up Now.

First Quarter 2018 Cannabis Tax Return Is Due April 30, 2018

Cannabis Distributors
The First Quarter 2018 Cannabis
Tax Return Is Due April 30, 2018

Your cannabis tax return and payment of the cannabis taxes for the period January 1, 2018, through March 31, 2018, are due by April 30, 2018. To assist you in preparing the cannabis tax return, watch our Filing a Cannabis Tax Return for Cannabis Distributors video located on the Tax Guide for Cannabis Businesses.

The electronic cannabis returns are now available online. You may access the online return on our website from the Log In page by using your User ID and Password, or your Express Login Code and the Account Number.

As a cannabis distributor, you are responsible for reporting and paying both the cannabis excise tax collected from retailers to whom you sold or transferred cannabis or cannabis products, and the cultivation tax you collected from cultivators and manufacturers. You will report both these cannabis taxes on the same electronic return. Below are general instructions to correctly report the excise and cultivation taxes on the cannabis return.

Cannabis Excise Tax
To report the excise tax, you must enter the average market price of your sales or transfers of cannabis or cannabis products to a retailer during the reporting period in which the sale or transfer occurred. You must separately enter the total average market price on sales of medicinal cannabis and on sales of adult-use cannabis; there is a separate line on the return for each. The cannabis return will automatically compute the excise tax due based on the amounts entered.

The “Add Excess Excise Tax Collected, if any” box is used to report:

  • Any amount of tax that was collected in excess of the amount of tax that is due and was not returned to the retailer and/or retail purchaser.
  • The cannabis excise tax retailers paid to you on cannabis or cannabis products that were not purchased from you prior to January 1, 2018, and sold at retail on or after
    January 1, 2018.

Cultivation Tax
To report the cultivation tax, you must enter the category (flowers, leaves, or fresh cannabis plant) and ounces of cannabis that you acquired from a cultivator or a manufacturer during the reporting period that the cannabis enters the commercial market (that is, passes the required testing and quality assurance review). You must separately enter the weight and category for medicinal cannabis and for adult-use cannabis. The cannabis return will automatically compute the cultivation tax due based on the amounts entered.

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