The responsibility for collecting and paying the cannabis excise tax to the California Department of Tax and Fee Administration (CDTFA) shifted from cannabis distributors to cannabis retailers effective January 1, 2023. Among other requirements, cannabis retailers now...
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CDTFA
Sales Tax Receipts Up 1.9% First Quarter 2023
The California Department of Tax and Fee Administration (CDTFA) has reported a notable increase in first quarter sales and use tax payments this year. CDTFA received $19.3 billion in sales and use tax payments during the first quarter of 2023, up 1.9 percent, or...
CDTFA Audit Program with Interest Relief
The California Department of Tax and Fee Administration (CDTFA) has updated its long-standing Managed Audit Program (MAP) publication which provides the explanation and benefits available to taxpayers participating in the program. Under the program, certain taxpayers...
Governor Signs Bill Regarding the Cannabis Industry
Assembly Bill No. 195, published July 1, 2022, makes a number of important changes to streamline administration and transparency of California's cannabis industry. One such amendment was made which discontinues cultivation tax beginning on January 1, 2023, and...
Cannabis Property Seized By State Now Up for Sale
Last month the California Department of Tax and Fee Administration (CDTFA) auctioned off two properties seized due to illegal cannabis sales. One of the properties, in Whittier, owes over $850,000 in taxes to the state which the CDTFA hopes to recover from its...
2021 California Main Street Small Business Tax Credit
Qualifying businesses may claim the Main Street Small Business Tax Credit for 2021, equal to $1,000 for each net increase in qualified employees, up to $150,000. The credit may be applied against sales and use taxes, or income taxes. To qualify for the credit, the...
How High is California’s Cannabis Revenue?
The California Department of Tax and Fee Administration (CDTFA) reported today that in the first quarter of 2021, California has already generated $131.9 million in cannabis excise tax, $30.7 million in cannabis cultivation tax, and $82.4 million in cannabis sales...
Governor Newsom’s Terrible Sales Tax Deferral Plan
On its face, deferral from paying over sales tax collected by California businesses may sound like a good idea. As a seasoned tax attorney, I can tell you the many reasons this is a bad idea and I urge businesses not to fall for this “relief” which really is just a...
California Sales and Use Tax Relief
If you owe sales and use tax to California, either because you purchased tangible personal property for use in California, or you are an out-of-state seller that failed to collect use tax on sales to California customers, you may qualify for the California Department...
CDTFA Requests to Formalize Sales and Use Tax Regs for Marketplace Sales
The California Department of Tax & Fee Administration (CDTFA) has requested approval to begin formalizing Sales and Use Tax Regulation 1684.5, Marketplace Sales, which would assist in implementing legislation enacted in 2019 requiring marketplace facilitators and...
