$350,263.00 (92% Reduction)
California Department of Tax and Fee Administration Issues Special Notice L-778 and Revokes Special Notice L-698
In September 2020, the California Department of Tax and Fee Administration (CDTFA) revoked previously issued Special Notice L-698 by issuing Special Notice L-778. Special Notice L-698 was issued in August 2019 and it attempted to impose an excise tax collection requirement on licensed out-of-state tobacco distributors making sales to licensed tobacco wholesalers located in California.
Special Notice L-698 was controversial when it was issued because the imposition of excise tax on out-of-state distributors required them to collect the excise tax on the non-discounted selling price to its wholesaler customers, contrary to historical […]
In September 2017, the California Department of Tax and Fee Administration (CDTFA) issued Special Notice L-506 which provides guidance on the application of excise tax on sales from out-of-state licensed tobacco distributors to in-state licensed tobacco distributors. In summary, Special Notice L-506 states that the sale from an out-of-state licensed tobacco distributor to an in-state licensed tobacco distributor is not a distribution and therefore does not constitute a taxable transaction for the out-of-state licensed distributor.
According to discussions we held with representatives from the CDTFA, the special notice was intended to clarify the long-standing interpretation […]
How Sales Tax Applies to Cloud Based Software Service Offerings
Once widely considered to be a niche segment of the market, cloud-based software services are now the norm, not the exception. Virtually everyone, whether personal or business related, uses some sort of cloud-based service on a consistent basis, potentially without even realizing it.
With respect to sales and use tax compliance, keeping up with changes in the law and the correct application of tax within this industry has been challenging. Most business owners consider online software applications to be exempt from tax […]