California Appeals Office Finds Taxpayer Warranted Lumber Products Assessments Adjustment for Certain Sales

The California Office of Tax Appeals (OTA) April 28 found Taxpayer, a distributor of lumber and flooring products, established that it warranted an adjustment to the lumber products assessment for excise tax purposes. Taxpayer operated two retail store locations. The Department of Tax and Fee Administration (CDTFA) conducted an audit of transactions, which Taxpayer claimed as exempt, and disallowed certain transactions for which Taxpayer failed to timely obtain resale certificates from its customers. The CDTFA also identified unreported purchases and sales subject to sales and use tax. Taxpayer appealed. The OTA categorized the customers and found: 1) customers with or ...