What Is the CDTFA and Its Registration Process?
Gain clarity on the CDTFA's role for California businesses and the procedural requirements for successful registration and ongoing tax compliance.
The California Department of Tax and Fee Administration (CDTFA) is a state agency responsible for administering and collecting various taxes and fees. Established in 2017, the CDTFA took over most duties previously handled by the State Board of Equalization (BOE). The agency’s function is to collect revenue that funds public services, overseeing programs that generate over $96 billion in annual revenue for the state.
Taxes and Fees Administered by the CDTFA
The most significant program managed by the CDTFA is California’s sales and use tax. Sales tax applies to the retail sale of tangible personal property, while use tax is levied on items purchased from an out-of-state vendor for use in California without paying state sales tax. The statewide base sales tax rate is 7.25%, but district taxes can increase the total rate to 9.5% or higher in some areas. Retailers are responsible for collecting this tax and remitting it to the CDTFA.
Beyond sales and use tax, the CDTFA’s authority extends to more than 30 other special tax and fee programs. These programs cover a wide range of industries and include fuel taxes, which fund transportation infrastructure. The agency also administers taxes on cannabis, alcoholic beverages, and tobacco products.
The CDTFA also manages various environmental fees. This includes the Covered Electronic Waste Recycling Fee, collected from consumers on certain electronic devices. Another example is the California Tire Fee, imposed on new tires to fund their recycling and disposal. The agency also oversees the Emergency Telephone Users Surcharge, which helps fund the 911 system.
Information Required for Registration
Before registering with the CDTFA, you will need to provide several key pieces of information. This includes:
- The business’s legal name and physical address
- A Federal Employer Identification Number (EIN) from the IRS; sole proprietors without employees may use their Social Security Number (SSN)
- Your business entity type, such as a sole proprietorship, partnership, corporation, or LLC
- The North American Industry Classification System (NAICS) code that best describes the primary business activity
- Personal identification details for all owners, partners, or corporate officers
- The names and addresses of your primary suppliers
- Projected average monthly sales, which the agency uses to assign a filing frequency
The Registration and Filing Process
The first step to register for a seller’s permit or another tax program is to visit the CDTFA’s online services portal. New users must create an account before starting a new business registration. The online application guides you through a series of questions where you will input the information gathered beforehand, such as your EIN and projected sales.
Upon successful submission of the application, the CDTFA will issue a seller’s permit. This permit must be displayed at the business location, and a separate permit is required for each address. There is no fee to register for a seller’s permit.
After registration, the business must file tax returns according to its assigned frequency—monthly, quarterly, or annually. All filing and payments are managed through the same online services portal used for registration. Businesses must report total sales, taxable sales, and the amount of sales tax collected for the reporting period.