California Code of Regulations Title 18 - Public Revenues
California Code of Regulations – Title 18: Public Revenues
Title 18 of the California Code of Regulations (CCR) governs rules and procedures relating to state taxation and public revenues. It is primarily administered by the California Department of Tax and Fee Administration (CDTFA) and the Franchise Tax Board (FTB).
🔹 Key Regulatory Authorities in Title 18
California Department of Tax and Fee Administration (CDTFA)
Oversees sales and use tax, excise taxes, fuel taxes, cannabis taxes, and other special taxes and fees.
Franchise Tax Board (FTB)
Administers personal income tax and corporate income/franchise tax.
Office of Tax Appeals (OTA)
Handles appeals related to CDTFA and FTB decisions.
State Board of Equalization (BOE) (limited role now, mostly property tax and assessment appeals).
🔹 Major Parts of Title 18
1. Division 1 – State Board of Equalization
Subchapter 1: Sales and Use Tax Regulations
Defines taxable vs. non-taxable transactions
Exemptions (e.g., food, medicine, manufacturing equipment)
Reporting and recordkeeping requirements
Subchapter 2: Property Tax Rules
Property tax assessment practices
Equalization procedures
Valuation methods (e.g., for public utilities, timberland)
Subchapter 4: Special Taxes Administration
Covers alcohol, tobacco, fuel, environmental fees, etc.
2. Division 2 – Franchise Tax Board
Income Tax Regulations
California personal and corporate income tax computation
Deductions, credits, residency rules
Withholding and estimated tax requirements
Procedures for audits, protests, and appeals
3. Division 4 – Office of Tax Appeals (OTA)
Appeals Procedures
Covers the filing, briefing, and hearing processes
Rules of evidence and burden of proof
Decision-making process and publication of precedents
🔹 Common Topics Covered in Title 18
Sales and Use Tax: Taxation of goods/services in CA, exemptions, and nexus rules
Personal Income Tax: Residency rules, income sourcing, and deductions
Corporate Franchise Tax: Apportionment of income, unitary business rules
Property Tax: Valuation, assessment appeals, and exemptions (e.g., welfare exemption)
Taxpayer Rights: Protest and appeal rights, refund claims
Cannabis Taxes: Mark-up and excise tax rules under CDTFA
E-file, Recordkeeping, and Withholding Regulations
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