Annual Report 2011-2012


Regulations

Property Taxes

The Board did not adopt, amend, or repeal any property tax rules during fiscal year 2011-12.

Sales and Use Taxes

Regulation 1532, Teleproduction or Other Postproduction Service Equipment, was amended to reflect the decrease in the partial exemption rate effective July 1, 2011, due to the expiration of the one percent sales and use tax imposed by Revenue and Taxation Code sections 6051.7 and 6201.7.

Title 18, California Code of Regulations, section 1532; effective January 9, 2012

Regulation 1533.1, Farm Equipment and Machinery, was amended to reflect the decrease in the partial exemption rate effective July 1, 2011, due to the expiration of the one percent sales and use tax imposed by Revenue and Taxation Code section 6051.7 and 6201.7.

Title 18, California Code of Regulations, section 1533.1; effective January 9, 2012

Regulation 1533.2, Diesel Fuel Used in Farming Activities or Food Processing, was amended to clarify that the partial exemption for diesel fuel used in farming activities or food processing applies to the additional sales and use tax on diesel fuel imposed by Revenue and Taxation Code sections 6051.8 and 6201.8 and no longer applies to the one percent sales and use tax imposed by Revenue and Taxation Code sections 6051.7 and 6201.7, effective July 1, 2011.

Title 18, California Code of Regulations, section 1533.2; effective October 26, 2011

Regulation 1534, Timber Harvesting Equipment and Machinery, was amended to reflect the decrease in the partial exemption rate effective July 1, 2011, due to the expiration of the one percent sales and use tax imposed by Revenue and Taxation Code sections 6051.7 and 6201.7.

Title 18, California Code of Regulations, section 1534; effective January 9, 2012

Regulation 1535, Racehorse Breeding Stock, was amended to reflect the decrease in the partial exemption rate effective July 1, 2011, due to the expiration of the one percent sales and use tax imposed by Revenue and Taxation Code sections 6051.7 and 6201.7.

Title 18, California Code of Regulations, section 1535; effective January 9, 2012

Regulation 1570, Charitable Organizations, was amended to delete “by March 15” after the word “annually” and to delete “inventory” from the examples of personal property in subdivision (a)(4)(B).

Title 18, California Code of Regulations, section 1570; effective December 27, 2011

Regulation 1598, Motor Vehicle and Aircraft Fuels, was amended to incorporate the additional sales and use tax on diesel fuel imposed by Revenue and Taxation Code sections 6051.8 and 6201.8, effective July 1, 2011, incorporate the exemptions from the additional sales and use tax provided by Revenue and Taxation Code section 6357.3, and prescribe the exemption certificate used with the exemptions.

Title 18, California Code of Regulations, section 1598; effective October 26, 2011

Regulation 1616, Federal Areas, was amended to add a new subdivision (d)(4)(G) to prescribe the additional circumstances under which sales of tangible personal property to and the use of tangible personal property by the governments of federally-recognized Indian tribes are exempt from California sales and use tax because the tax is preempted by federal law.

Title 18, California Code of Regulations, section 1616; effective February 10, 2012

Regulation 1685.5, Calculation of Estimated Use Tax–Use Tax Table, was adopted to implement the new provisions of Revenue and Taxation Code section 6452.1 requiring the BOE to “annually calculate the estimated amount of use tax due according to a person’s adjusted gross income and by July 30 of each calendar year make available to Franchise Tax Board such amounts in the form of a use tax table.”

Title 18, California Code of Regulations, section 1685.5; effective September 15, 2011

Regulation 1685.5, Calculation of Estimated Use Tax–Use Tax Table, was amended to clarify the types of consumers that may elect to use the BOE’s estimated use tax tables, inform consumers about the safe harbor that applies when they report their estimated use tax liabilities in accordance with the BOE’s tables, and update the way the BOE annually calculates consumers’ estimated use tax liabilities and the format of the BOE’s use tax tables.

Title 18, California Code of Regulations, section 1685.5; effective May 31, 2012

Regulation 1807, Petitions for Reallocation of Local Tax, was amended to improve the process for reviewing jurisdictions’ petitions requesting that the BOE investigate suspected misallocations of local tax.

Title 18, California Code of Regulations, section 1807; effective March 8, 2012

Regulation 1828, Petitions for Distribution or Redistribution of Transactions and Use Tax, was amended to improve the process for reviewing districts’ petitions requesting that the BOE investigate suspected improper distributions or nondistributions of district tax.

Title 18, California Code of Regulations, section 1828; effective March 8, 2012

Special Taxes and Fees

Alcoholic Beverage Tax Regulation 2558.1, Wine, was adopted to clarify that for purposes of the Alcoholic Beverage Tax Law the term “wine,” as defined by Business and Professions Code section 23007, does not include any alcoholic beverage containing 0.5 percent or more alcohol by volume obtained from the distillation of fermented agricultural products other than from the particular agricultural product or products of which the wine is made and to establish January 1, 2012, as the prospective date for compliance with the clarified definition of wine.

Title 18, California Code of Regulations, section 2558.1; effective August 7, 2011

Hazardous Substances Tax Regulation 3020, Records, was amended to replace the reference to the Department of Health Services with a reference to the California Department of Public Health.

Title 18, California Code of Regulations, section 3020; effective October 10, 2011

Integrated Waste Management Fee Regulation 3301, Records, was amended to replace the reference to the Integrated Waste Management Board with a reference to the Department of Resources Recycling and Recovery.

Title 18, California Code of Regulations, section 3301; effective October 10, 2011

Cigarette and Tobacco Products Licensing Act Regulation 4500, Definitions, was amended to update the cross-reference to Business and Professions Code section 22971’s definition of “control” and “controlling,” delete the definition for the term “Excise Tax Division Staff,” and add a definition for the term “Special Taxes and Fees Division.”

Title 18, California Code of Regulations, section 4500; effective October 10, 2011

Cigarette and Tobacco Products Licensing Act Regulation 4504, Determination of Arm’s Length Transaction, Regulation 4507, Request for Information and Records, Regulation 4508, Appeal–Denial of License, Regulation 4509, Non-Arm’s Length Transfer–Sales, Regulation 4600, Issuance and Contents of a Notice of Violation or Warning Notice, Regulation 4609, Right to Appeal, and Regulation 4700, Appeal–Excise Taxes Division, were amended to replace the term “Excise Taxes Division” with the term “Special Taxes and Fees Division.”

Title 18, California Code of Regulations, sections 4504, 4507, 4508, 4509, 4600, 4609, and 4700; effective October 10, 2011

Administrative

The Board did not adopt, amend, or repeal any administrative regulations during fiscal year 2011-12.

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