The California Department of Tax and Fee Administration (CDTFA) is the public agency charged with assessing and collecting

sales Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. The seller, or the provider of the goods or services, completes a sale in ...

and

use tax A use tax is a type of tax levied in the United States by numerous state governments. It is essentially the same as a sales tax but is applied not where a product or service was sold but where a merchant bought a product or service and then conv ...

es, as well as a variety of

excise file:Lincoln Beer Stamp 1871.JPG, upright=1.2, 1871 U.S. Revenue stamp for 1/6 barrel of beer. Brewers would receive the stamp sheets, cut them into individual stamps, cancel them, and paste them over the Bunghole, bung of the beer barrel so when ...

fees and taxes, for the

U.S. state In the United States, a state is a constituent political entity, of which there are 50. Bound together in a political union, each state holds governmental jurisdiction over a separate and defined geographic territory where it shares its sove ...

California California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...

. The department has several other ancillary functions, such as ensuring that sellers comply with permit requirements. The department was formed on January 1, 2018, by the Taxpayer Transparency and Fairness Act of 2017, which reduced the California State Board of Equalization to its constitutional functions of supervising county tax assessors and assessing certain specified types of property. The department is one of the State of California's three primary state taxing agencies, collecting over 70 billion dollars annually in revenue for the State. The other two are the

Employment Development Department In California, the Employment Development Department (EDD) is a department of government that administers the Unemployment Insurance (UI), Disability Insurance (DI), and Paid Family Leave (PFL) programs. The department also provides employment ...

and the

Franchise Tax Board The California Franchise Tax Board (FTB) administers and collects state personal income tax and corporate franchise and income tax of California. It is part of the California Government Operations Agency. The board is composed of the California ...

History

The collection of almost all state sales taxes and special fees, prior to the formation of the Administration, was handled by the California State Board of Equalization, a constitutional body composed of constitutional offices; despite almost a century of attempts to reform the Board, owing to various corruption-related concerns, these efforts were not successful for most of its history. However, in 2017, a Department of Finance audit revealed missing funds and signs of nepotism by the Board's members, including the misuse of state time by requiring Compliance Representatives and other administrative workers to do menial work for promotional events. In June 2017, the California Department of Justice began a criminal investigation into the members of the Board. On June 27, 2017, the

legislature A legislature is an assembly with the authority to make law Law is a set of rules that are created and are enforceable by social or governmental institutions to regulate behavior,Robertson, ''Crimes against humanity'', 90. with its p ...

stripped the Board of most of its powers; its collection and assessment functions were transferred to the Administration, while its appeal powers were transferred to the

California Office of Tax Appeals California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...

. This constituted the shift of 90% of workers into the new departments.

Appeals

Appeals from tax and fee decisions made by the department go to the Office of Tax Appeals, as with the Franchise Tax Board. This excludes appeals from matters concerning the Alcoholic Beverage Tax and the Tax on Insurers, as the department is only contracted to collect those taxes on behalf of the Board of Equalization.

Tax and fee programs

The department handles the vast majority of California's sales, use and excise tax assessment, auditing and collection. It also collects the 1.25% Bradley-Burns Uniform Local Sales and Use Tax and various 'district taxes'. * Sales & use tax * Alcoholic Beverage Tax (contracted to administer on behalf of the Board of Equalization) * California Tire Fee * Cannabis Taxes * Childhood Lead Poisoning Prevention Fee * Cigarette & Tobacco Products Licensing Program * Cigarette & Tobacco Products Tax * Cigarette Tax Stamp Program * Covered Electronic Waste Recycling Fee * Diesel Fuel Tax * Emergency Telephone Users (911) Surcharge and Local Charges * Energy Resources (Electrical) Surcharge * Fire Prevention Fee * Hazardous Waste Disposal Fee * Hazardous Waste Environmental Fee * Hazardous Waste Facility Fee * Hazardous Waste Generator Fee * Integrated Waste Management Fee (Solid Waste & Wood Waste) * International Fuel Tax Agreement (IFTA) and Interstate User Diesel Fuel Tax * Interstate User Diesel Fuel Tax * Jet Fuel Tax * Lead-Acid Battery Fees * Lumber Products Assessment * Marine Invasive Species (Ballast Water) Fee * Motor Vehicle Fuel Tax * Natural Gas Surcharge * Occupational Lead Poisoning Prevention Fee * Oil Spill Response, Prevention, and Administration Fees * Tax on Insurers (contracted to administer on behalf of the Board of Equalization) * Timber Yield Tax * Underground Storage Tank Maintenance Fee * Use Fuel Tax * Water Rights Fee

Former programs

* Hazardous Waste Activity Fee (transferred to the

California Department of Toxic Substance Control The California Department of Toxic Substances Control (or DTSC) is an agency of the government of the state of California. The mission of the DTSC is to protect public health and the environment from toxic harm. DTSC is part of the California En ...

effective September 13, 2016)

References

{{Authority control Tax and Fee Administration Taxation in California US state tax agencies Government agencies established in 2018

History

Appeals

Tax and fee programs

Former programs

See also

References