How to Download California Compliance Policy and Procedures Manual PDF

The mission of the California Department of Tax and Fee Administration (CDTFA): We make life better for Californians by fairly and efficiently collecting the revenue that supports our essential public services. The CDTFA is committed to a philosophy of service and accountability to the public, whose interest is best served through sound administration of the tax and fee laws. We believe this can be most effectively accomplished through programs that enable and encourage people to voluntarily comply with the laws. This publication of the CDTFA’s compliance policies and procedures demonstrates the CDTFA’s commitment to 1) providing assistance and information to the public and 2) administering a fair and firm enforcement program to ensure that taxes and fees are reported and paid properly. PURPOSE OF COMPLIANCE MANUAL 105.005 The information in this manual will assist compliance staff in the equitable and uniform administration of the business tax and fee programs administered by the CDTFA. The manual incorporates processes, procedures, and techniques that have evolved over a period of years and that have proven to be effective. HISTORY 105.010 The CDTFA was created by the Taxpayer Transparency and Fairness Act of 2017, which restructured the California State Board of Equalization (BOE) into three separate entities: the BOE, the CDTFA, and the Office of Tax Appeals (OTA). Prior to the existence of the CDTFA, the BOE was the agency responsible for the administration of the tax and fee programs now administered by the CDTFA. The BOE was created under the California Constitution of 1879 and was initially charged with the duty of maintaining a uniform level of property tax assessment between counties. Over time, the legislature expanded the BOE’s responsibilities to include many tax and fee programs, which it administered until the legislature reassigned many of its functions in 2017. The BOE now only performs the duties assigned to it by the state Constitution. The BOE is the oldest board in existence in California and is the only elected board in California State Government. The BOE is comprised of five elected members; one from each of the four equalization districts, and the fifth member is the State Controller. The CDTFA is housed within the California Government Operations Agency. The BOE is responsible for property, alcoholic beverage, and insurance taxes, but the CDTFA administers the alcoholic beverage and insurance tax programs on behalf of the BOE through an interagency agreement. The CDTFA is responsible for the remaining statutory taxes and fees previously collected by the BOE. The OTA conducts appeals hearings between tax/feepayers and the CDTFA and the Franchise Tax Board.