Taxation

Ca. Tax Lawyer 2017, VOLUME 26, NUMBER 4

New Bill Clarifies California Tax Agency Administration

By Chris Micheli1

I previously wrote on the creation of the new California Department of Tax and Fee Administration ("CDTFA") and the Office of Tax Appeals ("OTA") that were done as part of the state budget accord adopted in June and which took effect on July 1, 2017.2 In early September, the Legislature passed and the Governor signed a late budget trailer bill3 that made a number of changes to clarify certain provisions of existing law and to address concerns from the tax practitioner community that had been expressed when the original trailer bill4 was adopted.

As introduced on January 10, 2017, Assembly Bill ("AB") 131 was a budget trailer bill expressing legislative intent.5 Eight months later, on September 6, 2017, AB 131 was amended to contain a number of substantive law changes.6 The bill was signed into law7 on September 16, 2017 by Governor Brown and took effect immediately.8 It makes an initial statement of legislative intent regarding combatting the state’s underground economy.9

Thereafter, AB 13110 makes the following findings and declarations:

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