Cannabis Markup to Remain the 80%

The CDTFA (California Department of Tax and Fee Administration) is charged with determining the California excise markup amount every six months.

Earlier this year it was raised from 60% to 80%. The CDTFA has now released its determination for what the markup will be for June-December 2020 and it will remain 80%.

Distributors of cannabis products are responsible to calculate and collect the excise tax from retailers. You can find out more about cannabis tax rates and calculations at CDTFA.ca.gov

Sales and Use Tax Relief

Last month Governor Newsom gave small businesses a small bit of relief from remitting quarter end Sales and Use tax normally due April 30.

Sales and Use tax deadline automatically extended – if you need it.

The order extended the due date to July 31, 2020. There is no need to request an extension, it is automatically extended to all businesses who regularly file in California with sales and use tax less that $1million.

However, the CDTFA is still accepting returns and payments. So, if your business is still in a position to file and remit please do. Counties still need to collect and distribute tax payments to local municipalities.

IMPORTANT DUE DATE REMINDER

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 24^th 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.

New Sales and Use Tax rates are operative as of January 1, 2020. For more information, please see the Special Notice on the CDTFA website.

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

The CDTFA will be transitioning online users to create a username and password. If you have not already done so, visit the CDTFA’s online services page and Sign Up Now.

Annual Privacy Notice – No Action Needed

Your account records are covered by state laws that protect your privacy. The Information Practices Act (Civil Code §1798.17) requires the California Department of Tax and Fee Administration (CDTFA) to notify you each year of your privacy rights.

The CDTFA administers many of the state’s tax and fee laws. We ask you for your information (when you apply for your permit, certificate, license or renewal, relief request, payment plan, offer in compromise, settlement, or other applications) that is either required by law, or is used for our registration records. We will use the information to determine whether you are paying the correct amount of taxes and fees, or to collect any amounts you owe. You must provide all information requested, including your social security number (used for identification purposes [see Title 42 U.S. Code section 405(c)(2)(C)(i)]). A complete list of the California Revenue and Taxation Codes authorizing the CDTFA to maintain your information for the administration of its programs is printed below.

What happens if I don’t provide the information?
Your application for a permit, certificate, license, relief request, payment plan, or other programs may not be processed if your information is incomplete. If you are not able to file your required returns, you may have to pay penalties and interest. You may owe more taxes or fees, or receive a smaller refund, if you do not provide the requested information to support your exemptions, credits, exclusions, or adjustments.

If you provide fraudulent information, civil penalties may apply, and you may be subject to criminal prosecution.

Can anyone else see my information?
Yes; while your records are covered by state laws that protect your privacy, the CDTFA may share information regarding your account with specific local, state, and federal government agencies, or companies contracted and authorized to represent those government agencies.

We may release the information printed on your permit, certificate, or license, such as your account type, start and closeout dates, and the names of business owners or partners (unless otherwise protected from disclosure), to the public. When you sell a business, we may give the buyer or other involved parties information regarding any of your outstanding tax liabilities.

With your written permission, we can release some or all of the information regarding your account to anyone you designate.

Can I review my records?
Yes. Requests should be made in writing to your closest CDTFA office or responsible official listed below. For a complete listing of our locations or a copy of publication 58A, How to Inspect and Correct Your Records, visit us at www.cdtfa.ca.gov, or call our Customer Service Center at 1-800-400-7115 (CRS:711), Monday through Friday, 8:00 a.m. to 5:00 p.m. (Pacific time), except state holidays. You may contact the CDTFA’s Disclosure Office at:

Disclosure Office, MIC:82
California Department of Tax and Fee Administration
PO Box 942879
Sacramento, CA 94279-0082
1-916-445-2918

Who is responsible for maintaining my records?
The officials listed below are responsible for maintaining your records.

Field Operations Division, MIC:47
Deputy Director
California Department of Tax and Fee Administration
PO Box 942879
Sacramento, CA 94279-0047
1-916-322-4889

Business Tax and Fee Division, MIC:43
Deputy Director
California Department of Tax and Fee Administration
PO Box 942879
Sacramento, CA 94279-0043
1-916-309-5200

The CDTFA may disclose information to authorized officials of the following contracted agencies, among others:

United States government agencies State of California government agencies and officials State agencies outside of California for tax enforcement purposes

City and County attorneys, prosecutors and law enforcement departments Any agency authorized to enforce local tobacco control ordinances

The CDTFA must collect information in order to administer the state laws listed below. Code sections are from the California Revenue and Taxation Code unless otherwise noted.

Business Tax and Fee Division
Sales and Use Tax (SUT)

Sales and Use Tax (sections 6001-7176, 7200-7226, 7251-7279.6, 7285-7288.6) Fee Collection Procedures (sections 55001-55381)

Lumber Products Assessment Fee (Public Resources Code section 4629-4629.13) Prepaid Mobile Telephony Services Surcharge (sections 55001-55381, 42001-42024, 42100-42111)

Special Taxes and Fees (STF)

Alcoholic Beverage Tax (sections 32001-32557) California Tire Fee (sections 55001-55381, Public Resources Code section 42860-42895) Cannabis Tax (sections 34010-34021.5, 55001-55381) Childhood Lead Poisoning Prevention Fee (sections 43001-43651, Health and Safety Code section 105310) Cigarette and Tobacco Products Tax (sections 30001-30483, Health and Safety Code sections 104555-104558) Cigarette and Tobacco Products Licensing Act of 2003 (Business and Professions Code sections 22970-22991, Government Code section 15618.5, Penal Code section 830.11) Covered Electronic Waste Recycling Fee (sections 55001-55381, Health and Safety Code sections 25214.10-25214.10.2, Public Resources Code sections 42460-42486) Diesel Fuel Tax (sections 60001-60709) Emergency Telephone Users Surcharge (sections 41001-41176) Energy Resources Surcharge (sections 40001-40216) Fee Collection Procedures (sections 55001-55381) Hazardous Substances Tax (sections 43001-43651, Health and Safety Code sections 25174-25174.11, 25205.1-25205.23)

Integrated Waste Management Fee (sections 45001-45984, Public Resources Code sections 48000-48008) International Fuel Tax Agreement (sections 9401-9433) Marine Invasive Species (Ballast Water) Fee (sections 44000-44008, 55001-55381, Public Resources Code sections 71200-71271) Motor Vehicle Fuel Tax, including Aircraft Jet Fuel Tax (sections 7301-8526) Natural Gas Surcharge (sections 55001-55381, Public Utilities Code sections 890-900) Occupational Lead Poisoning Prevention Fee (sections 43001-43651, Health and Safety Code sections 105190, 105195) Oil Spill Response, Prevention, and Administrative Fees (sections 46001-46751, Government Code sections 8670.40, 8670.48) Regional Railroad Accident Preparedness and Immediate Response Fee (sections 55001-55381, Government Code sections 8574.30-8574.48) Tax on Insurers (sections 12001-13170) Timber Yield Tax (sections 38101-38908) Underground Storage Tank Maintenance Fee (sections 50101-50162, Health and Safety Code sections 25299.10-25299.51) Use Fuel Tax (sections 8601-9355) Water Rights Fee (sections 55001-55381, Water Code sections 1525-1560)

Introducing Our New Online Tax Guide for Local and District Taxes

The California Department of Tax and Fee Administration (CDTFA) has created a new online tax guide, Local and District Tax Guide for Retailers. The guide helps to assure you collect, report, and pay the correct tax rate for each transaction.

New online guide overview

The CDTFA understands that allocating local tax and determining whether district tax applies to your sales or use tax transactions can be complicated. This new online guide is intended to help you properly allocate local tax and determine how district taxes apply to your business transactions. The guide contains helpful examples and important local tax and district tax information for retailers such as lessors, construction contractors, those with multiple locations, those making sales over the Internet, those making sales into California from out‑of‑state, and more.

What is local tax?

Local taxes are imposed by local jurisdictions, usually cities or counties. Sales and use tax transactions are allocated to the city or county where the sale or use occurs. The one (1.00) percent “Local Jurisdiction” portion goes to the city or county where the sale or use occurs. The one quarter (.25) percent “Local Transportation Fund” portion always goes to the county where the sale or use occurs.

What is district tax?

District taxes are voter-approved transactions (sales) and use taxes imposed by cities, counties, and other local jurisdictions (district). District tax rates are added to the current 7.25 percent statewide sales and use tax rate making the tax rate higher in some districts.

Find your tax rate

You can find all the tax rates in the state on our website. Please see our California City and County Sales and Use Tax Rates. To find a sales and use tax rate by address, select the link Look up the current sales and use tax rate by address. Be sure the address information you input is the address you intended. The tax rate given will reflect the current rate of tax for the address entered.

CDTFA, IMPORTANT TAX DUE DATE REMINDER

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 24^th 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

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

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 24^th 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.

CDTFA Taxes Due

IMPORTANT DUE DATE REMINDER

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.

CALIFORNIA SALES TAX IMPORTANT DUE DATE REMINDER

IMPORTANT DUE DATE REMINDER

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 quarterly prepayment to pay, your prepayment is due no later than the 24^th of the month.
If you have a Sales and Use Tax or eWaste return to file, your return is due on the last day of the month.

As part of our ongoing effort to improve the online services experience for you, we have modified the prepayment process. Please visit the online Tutorials page to view an updated video on How To Make a Prepayment Using a Limited Access Code by clicking Payments.

Cannabis Markup to Remain the 80%

Sales and Use Tax Relief

IMPORTANT DUE DATE REMINDER

Annual Privacy Notice – No Action Needed

Introducing Our New Online Tax Guide for Local and District Taxes

New online guide overview

What is local tax?

What is district tax?

Find your tax rate

CDTFA, IMPORTANT TAX DUE DATE REMINDER

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

What are district taxes?

Who is responsible for paying the district tax?

New operative date for new district use tax collection requirement

Tax rates in California

IMPORTANT DUE DATE REMINDER: Sales Taxes

CDTFA Taxes Due

CALIFORNIA SALES TAX IMPORTANT DUE DATE REMINDER

IMPORTANT DUE DATE REMINDER

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