California Code of Regulations › Title 18 - Public Revenues › Division 5 - California Department of Tax and Fee Administration › Chapter 1 - Appeals › Article 5 - Petition for Redistribution of Local or District Tax › Section 35056 - Petition for Redistribution of Local or District Tax

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) General. Notwithstanding any other
				  provision in this chapter, the provisions of this regulation are applicable to
				  a petition for redistribution of local or district tax.
(b) Definitions. The following definitions
				  supplement those in regulation 35002.
(1)
				  "Allocation Group" means the Allocation Group of BTFD.
(2) "Consultant" is any person selected by a
				  jurisdiction to act on its behalf before CDTFA in connection with a petition
				  for redistribution of local or district tax.
(A) CDTFA will recognize as a jurisdiction's
				  consultant any person who is at least 18 years of age for whom the jurisdiction
				  provides its written authorization for that person to act as its
				  consultant.
(B) A jurisdiction's
				  authorized consultant is permitted to receive confidential taxpayer information
				  related to the appeal, but only if the consultant meets the requirements of
				  Revenue and Taxation Code section
				  7056,
				  or receives a waiver from the taxpayer whose tax is in dispute in the
				  appeal.
(3) "Date of
				  knowledge" means the date the Allocation Group receives a valid petition,
				  unless an earlier date is operationally documented by CDTFA staff, in which
				  case that earlier date is the date of knowledge. Where a suspected incorrect
				  distribution that is reasonably covered by the petition is confirmed based on
				  additional facts or evidence supplied by the petitioner or otherwise learned as
				  a direct result of investigating the petition, that incorrect distribution is
				  covered by the petition and the date of knowledge is the date the Allocation
				  Group received the petition.
(4)
				  "District tax" means a transaction and use tax adopted pursuant to Revenue and
				  Taxation Code section
				  7251,
				  et seq., or pursuant to Revenue and Taxation Code section
				  7285,
				  et seq., and administered by CDTFA.
(5) "Jurisdiction" means any city, county,
				  city and county, or special district or other jurisdiction which has adopted a
				  local or district tax.
(6) "Local
				  Revenue Branch" means the Local Revenue Branch of the Financial Management
				  Bureau of CDTFA.
(7) "Local tax"
				  means a local sales and use tax adopted pursuant to Revenue and Taxation Code
				  section
				  7200,
				  et seq., and administered by CDTFA.
(8) "Notified jurisdiction" is a jurisdiction
				  that has been notified as being substantially affected by a decision on a
				  petition.
(9) "Party" means the
				  jurisdiction filing a petition for redistribution, any notified jurisdiction,
				  and the assigned section.
(10)
				  "Petition" means a request made by a jurisdiction for investigation of
				  suspected incorrect distribution of local or district tax submitted in writing
				  to the Allocation Group. The petition must contain sufficient factual data to
				  support the probability that local or district tax have been incorrectly
				  distributed. Sufficient factual data should include, for each business location
				  being questioned:
(A) Taxpayer name,
				  including owner name and fictitious business name or dba (doing business as)
				  designation.
(B) Taxpayer's
				  seller's permit number or a notation stating "No Seller's Permit
				  Number."
(C) Complete business
				  address of the taxpayer.
(D)
				  Complete description of taxpayer's business activity or activities.
(E) Specific reasons and evidence why the
				  taxpayer's allocation is questioned. If the petition alleges that an incorrect
				  distribution occurred because a sale location is unregistered, evidence that
				  the questioned location is a selling location or that it is a place of business
				  as defined by regulation 1802. If the petition alleges that an incorrect
				  distribution occurred because the tax for a sale shipped from an out-of-state
				  location was actually sales tax and not use tax, evidence that there was
				  participation in the sale by an in-state office of the retailer and that title
				  to the goods passed to the purchaser inside California.
(F) Name, title, and telephone number of the
				  contact person.
(G) The tax
				  reporting periods involved.
(11) "Petition" also means a jurisdiction's
				  written objection to a notification from the Local Revenue Branch that local or
				  district tax previously distributed to the jurisdiction was incorrectly
				  allocated and distributed and will be redistributed. The petition must be
				  submitted to the Allocation Group within 30 days of the date of mailing of the
				  notification or within a period of extension described in this subdivision. The
				  petition must include a copy of the notification and specify the reason the
				  jurisdiction disputes it. If a jurisdiction does not submit such a petition
				  within 30 days of the date of mailing of the notification or within a period of
				  extension described in this subdivision, the notification of the Local Revenue
				  Branch is final as to the jurisdiction so notified.
(A) A jurisdiction receiving a notification
				  that local or district tax previously distributed to it will be redistributed
				  may request that the Local Revenue Branch grant it a 30-day extension to submit
				  a petition to dispute the notification. Such request must provide a reasonable
				  explanation for the jurisdiction's inability to submit its petition within 30
				  days and must be received by the Local Revenue Branch within 30 days of the
				  date of mailing of the notification. Within five days of its receipt of a
				  jurisdiction's request for extension, the Local Revenue Branch will mail a
				  letter to the jurisdiction notifying it whether the request is granted or
				  denied.
(B) If a jurisdiction
				  submits a request for extension that is received by the Local Revenue Branch
				  within 30 days of its issuance of the notification to the jurisdiction and that
				  request is denied, the time for the jurisdiction to submit a petition is
				  extended to 10 days after the mailing of the letter notifying the jurisdiction
				  that its extension request is denied. If the Local Revenue Branch grants the
				  request for extension, the time for the jurisdiction to submit a petition is
				  extended to the 60th day after the date of mailing of the notification of
				  incorrect distribution.
(12) "Petitioner" means a jurisdiction that
				  has filed a timely and valid petition. "Petitioner" also means, where
				  appropriate, a jurisdiction's authorized consultant.
(13) "Substantially affected jurisdiction"
				  means a jurisdiction that is substantially affected by a decision on a
				  petition, which is when the decision would result in a decrease in the amount
				  of that jurisdiction's total allocation of 5 percent or more of its average
				  quarterly distribution (generally determined with reference to the prior four
				  calendar quarters) or of $50,000 or more, and, for local tax, includes where
				  the decrease is solely as the result of a reallocation from the statewide or
				  applicable countywide pools.