Taxation

Ca. Tax Lawyer VOLUME 34, 2025 ANNUAL ISSUE

RATIONAL BASIS OR BROAD DISCRETION: LEGAL STANDARDS GOVERNING CDTFA INTERPRETATIONS

AUTHORS1

Aeron Tisdale

Antonio Yaldo

Administrative agencies play a crucial role in interpreting and enforcing statutory provisions through their regulatory authority. Courts often grapple with the appropriate level of deference to afford these agency regulations, balancing the principles of separation of powers with the need for efficient governance. The following examines how courts apply dueling standards of review, particularly in the context of the California Department of Tax and Fee Administration ("CDTFA") and its rulemaking authority.

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