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SellTreez: How Do I Ensure I Am Not Double Paying Excise Tax with the New CA Tax Changes?

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Valerie
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Question:

How do I ensure I am not paying double excise tax with the new CA tax law?

Answer: 

You can claim a credit on your return for any excise tax paid to a distributor before Jan 1, for products sold after Jan 1, 2023. 

Please familiarize yourself with the guidance from CDTFA:  https://www.youtube.com/watch?v=xer0BBH8ZTE 

Treez can help you calculate how much excise tax credit can be claimed based on inventory purchased with excise tax paid to distributors prior to 2023 and sold in 2023: 

  • Navigate to Inventory > Purchasing (Invoices) and confirm the last Invoice # from 2022 (note this down)
  • Navigate to Reports > Sales > Tax
  • Select the 3 dots to CSV Export
  • Open the export and filter the sheet
  • In column titled "Invoice ID", filter by the condition “Less Than or Equal To” and enter the Invoice # from step 1 (This should now show only invoices accepted before 2023)

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  • Use the column titled "Total Excise Tax" (last column) to see the excise tax credit amount for that unit.

Please Note: You can create a pivot table for the sum of excise paid by Distributor for a more granular view if you wish. 

Since this process takes into account the original invoice excise tax, it works for all CA retailers regardless of how excise tax was configured to calculate at the POS. 

 

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