Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2012
 

Sales And Use Tax Law

CHAPTER 9. DISPOSITION OF PROCEEDS

Section 7102

7102. Disposition of fund. The money in the fund shall, upon order of the Controller, be drawn therefrom for refunds under this part, credits or refunds pursuant to Section 60202, and refunds pursuant to Section 1793.25 of the Civil Code, or be transferred in the following manner:

(a) (1) All revenues, less refunds, derived under this part at the 4¾-percent rate, including the imposition of sales and use taxes with respect to the sale, storage, use, or other consumption of motor vehicle fuel which would not have been received if the sales and use tax rate had been 5 percent and if motor vehicle fuel, as defined for purposes of the Motor Vehicle Fuel License Tax Law (Part 2 (commencing with Section 7301)), had been exempt from sales and use taxes, shall be estimated by the State Board of Equalization, with the concurrence of the Department of Finance, and shall be transferred quarterly to the Public Transportation Account, a trust fund in the State Transportation Fund, except as modified as follows:

(A) For the 2001–02 fiscal year, those transfers may not be more than eighty-one million dollars ($81,000,000) plus one-half of the amount computed pursuant to this paragraph that exceeds eighty-one million dollars ($81,000,000).

(B) For the 2002–03 fiscal year, those transfers may not be more than thirty-seven million dollars ($37,000,000) plus one-half of the amount computed pursuant to this paragraph that exceeds thirty-seven million dollars ($37,000,000).

(C) For the 2003–04 fiscal year, no transfers shall be made pursuant to this paragraph, except that if the amount to be otherwise transferred pursuant to this paragraph is in excess of eighty-seven million four hundred fifty thousand dollars ($87,450,000), then the amount of that excess shall be transferred.

(D) For the 2004–05 fiscal year, no transfers shall be made pursuant to this paragraph, and of the amount that would otherwise have been transferred, one hundred forty million dollars ($140,000,000) shall instead be transferred to the Traffic Congestion Relief Fund as partial repayment of amounts owed by the General Fund pursuant to Item 2600-011-3007 of the Budget Act of 2002 (Chapter 379 of the Statutes of 2002).

(E) For the 2005–06 fiscal year, no transfers shall be made pursuant to this paragraph.

(F) For the 2006–07 fiscal year, the revenues estimated pursuant to this paragraph shall, notwithstanding any other provision of this paragraph or any other provision of law, be transferred and allocated as follows:

(i) The first two hundred million dollars ($200,000,000) shall be transferred to the Transportation Deferred Investment Fund as partial repayment of the amounts owed by the General Fund to that fund pursuant to Section 7106.

(ii) The next one hundred twenty-five million dollars ($125,000,000) shall be transferred to the Bay Area Toll Account for expenditure pursuant to Section 188.6 of the Streets and Highways Code.

(iii) Of the remaining revenues, thirty-three million dollars ($33,000,000) shall be transferred to the Public Transportation Account to support appropriations from that account in the Budget Act of 2006.

(iv) The remaining revenues shall be transferred to the Public Transportation Account for allocation as follows:

(I) Twenty percent to the Department of Transportation for purposes of Section 99315 of the Public Utilities Code.

(II) Forty percent to the Controller, for allocation pursuant to Section 99314 of the Public Utilities Code.

(III) Forty percent to the Controller, for allocation pursuant to Section 99313 of the Public Utilities Code.

(G) For the 2007–08 fiscal year, the first one hundred fifty-five million four hundred ninety-one thousand eight hundred thirty-seven dollars ($155,491,837) in revenue estimated pursuant to this paragraph each quarter shall, notwithstanding any other provision of this paragraph or any other provision of law, be transferred quarterly to the Mass Transportation Fund. If revenue in any quarter is less than that amount, the transfer in the subsequent quarter or quarters shall be increased so that the total transferred for the fiscal year is six hundred twenty-one million nine hundred sixty-seven thousand three hundred forty-eight dollars ($621,967,348).

(H) For the 2008–09 fiscal year and every fiscal year thereafter, 50 percent of the revenue estimated pursuant to this paragraph each quarter shall, notwithstanding any other provision of this paragraph or any other provision of law, be transferred to the Mass Transportation Fund. Notwithstanding this requirement, for the 2008–09 fiscal year, the amount of three hundred eight million seven hundred thirty-five thousand dollars ($308,735,000) for each of the first three quarters, and the amount of one hundred fifteen million twenty-nine thousand dollars ($115,029,000) for the fourth quarter, shall be transferred to the Mass Transportation Fund. If revenue for any quarter is less than the specified amount, the transfer in the subsequent quarter or quarters shall be increased so that the total transfer for the fiscal year is one billion forty-one million two hundred thirty-four thousand dollars ($1,041,234,000).

(2) All revenues, less refunds, derived under this part at the 4¾-percent rate, resulting from increasing, after December 31, 1989, the rate of tax imposed pursuant to the Motor Vehicle Fuel License Tax Law on motor vehicle fuel, as defined for purposes of that law, shall be transferred quarterly to the Public Transportation Account, a trust fund in the State Transportation Fund.

(3) All revenues, less refunds, derived under this part at the 4¾-percent rate from the imposition of sales and use taxes on fuel, as defined for purposes of the Use Fuel Tax Law (Part 3 (commencing with Section 8601)) and the Diesel Fuel Tax Law (Part 31 (commencing with Section 60001)), shall be estimated by the State Board of Equalization, with the concurrence of the Department of Finance, and shall be transferred quarterly to the Public Transportation Account, a trust fund in the State Transportation Fund.

(4) All revenues, less refunds, derived under this part from the taxes imposed pursuant to Sections 6051.2 and 6201.2 shall be transferred to the Sales Tax Account of the Local Revenue Fund for allocation to cities and counties as prescribed by statute.

(5) All revenues, less refunds, derived from the taxes imposed pursuant to Section 35 of Article XIII of the California Constitution shall be transferred to the Public Safety Account in the Local Public Safety Fund created in Section 30051 of the Government Code for allocation to counties as prescribed by statute.

(b) The balance shall be transferred to the General Fund.

(c) The estimates required by subdivision (a) shall be based on taxable transactions occurring during a calendar year, and the transfers required by subdivision (a) shall be made during the fiscal year that commences during that same calendar year. Transfers required by paragraphs (1), (2), and (3) of subdivision (a) shall be estimated by the State Board of Equalization, with the concurrence of the Department of Finance, and shall be made quarterly.

(d) Notwithstanding the designation of the Public Transportation Account as a trust fund pursuant to subdivision (a), the Controller may use the Public Transportation Account for loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code. The loans shall be repaid with interest from the General Fund at the Pooled Money Investment Account rate.

(e) The Legislature may amend this section, by statute passed in each house of the Legislature by rollcall vote entered in the journal, two-thirds of the membership concurring, if the statute is consistent with, and furthers the purposes of this section.

History.—Stats. 1971, p. 2785, operative July 1, 1972, provided for transfers to the State Transportation Fund according to estimates by the State Board of Equalization. Stats. 1972, Ch. 1406, effective December 26, 1972, repealed and reenacted the section on June 1, 1973, changing the percentage rates to 4¾ and 5 percent and deleting the words, "the Transportation Planning and Research Account in." Stats. 1972, Ch. 1408, effective December 27, 1972, deleted "shall be transferred monthly to the State Transportation Fund." which followed "State Board of Equalization" in (a) and inserted the present language. Stats. 1975, Ch. 1130, in effect January 1, 1976, substituted "1972–73 fiscal year and ending with the first six months of the 1975–76 fiscal year on December 31, 1975. Effective January 1, 1976," for "fiscal year 1972–73" and "calendar" for "fiscal." Stats. 1979, Ch. 161, effective June 28, 1979, in (a), changed "3¾" to "4¾" and "4" to "5", deleted references to past fiscal years, deleted "as soon as practicable after the close of each claendar year" following "shall be made", changed "Research" to "Development" following "Transportation Planning and", added "each calendar quarter" following "shall be transferred", added wording following "State Transportation Fund." Stats. 1981, Ch. 541, in effect September 17, 1982, substituted "been" for "remained at" before "5 percent" in the first sentence of, and deleted the balance of the first paragraph in, and substituted a new second paragraph in, subdivision (a); and added a new subdivision "(c)" and "(d)". Stats. 1985, Ch. 1600, effective October 2, 1985, added "(1)" and substituted "if motor . . . Finance" for "Section 6357 . . . Finance", deleted "(1) One hundred . . . base year" and added "for appropriation . . . Code" in paragraph (1), added paragraph (2) and deleted former paragraph (2), deleted "and (3)" before "of subdivision" in subdivision (c), and deleted subdivision (d). Stats. 1986, Ch. 41, effective March 31, 1986, amended (b) and (c) to specify that the deficiency in the 1987–88 budget be transferred from the sales and use tax on fuel as defined under the Use Fuel Tax Law. Stats. 1987, Ch. 1280, effective January 1, 1988, added to first paragraph "and pursuant to Section 1793.25 of the Civil Code" following "refunds under this part", added hyphen after "4¾". Stats. 1989, Ch. 14 (1X), in effect November 8, 1989, added "and" after "Finance" in paragraph (1) of subdivision (a), deleted former paragraph (2) and added paragraph (2) of subdivision (a), added subdivisions (b) and (c), changed previous subdivisions (b) and (c) to (d) and (e), substituted "subdivisions (a) and (b)" for "subdivision (a)" in subdivision (e). Stats. 1990, Ch. 174, in effect June 22, 1990, added a comma after "Finance," substituted "quarterly" for "during each fiscal year", added ", a trust fund" after "Account" and deleted "for appropriation pursuant to Section 99312 of the Public Utilities Code." after "Fund" in paragraph (1) of subdivision (a); renumbered former paragraph (2) as paragraph (3); renumbered former subdivision (b) as paragraph (2); substituted "quarterly" for "during each fiscal year" and substituted ", a trust fund in the State Transportation Fund" for "for appropriation pursuant to Section 99312 of the Public Utilities Code." in paragraph (2) of subdivision (a); substituted "derived under this part at the 4¾-percent rate" for "due to", deleted "at the 4¾-percent rate" after "Section 8601))," added "estimated by . . . and shall be" before "transferred", substituted "quarterly" for "during each fiscal year", and substituted ", a trust fund in the State Transportation Fund" for "for appropriation pursuant to Section 99312 of the Public Utilities Code" in paragraph (2) of subdivision (a); renumbered former subdivision (c) as paragraph (4); added "for the period . . . inclusive" after "6201.1" in paragraph (4) of subdivision (a); added paragraphs (5) and (6) to subdivision (a); relettered former subdivision (d) as (b) and (e) as (c); substituted "estimates" for "estimate", "subdivision" for "subdivisions", deleted "and (b)" before "shall be based" twice, substituted a comma for "and" before "(2)", added ", and (3)" after "(2)", substituted "subdivision" for "subdivisions", deleted "and (b)" in the second sentence of subdivision (c); and added subdivision (d). Stats. 1991, Ch. 85, in effect June 30, 1991, operative July 1, 1991, added paragraph (7) to subdivision (a). Stats. 1993, Ch. 73, in effect June 30, 1993, added paragraphs (8) and (9) to subdivision (a). Stats. 1993, Ch. 866, in effect January 1, 1994, added paragraph (10) to subdivision (a). Stats. 1994, Ch. 136, in effect July 5, 1994, added subdivision (d) and relettered former subdivision (d) as (e). Stats. 1997, Ch. 620 (SB 1102), substituted "credits and refunds pursuant to Section 60202, and refunds" for "and" after "under this part" in the first paragraph, and added "and the Diesel Fuel Tax Law (Part 31 (commencing with Section 60001))" after "Section 8601))" in paragraph (3) of subdivision (a). Stats. 2000, Ch. 91 (AB 2928), in effect July 7, 2000, added a comma after "from increasing" in paragraph (2), and deleted former paragraphs (11), (12), and (13), of subdivision (a) which provided, "(11) All revenues, less refunds, derived under this part at the 5-percent rate, resulting from the rate of tax imposed pursuant to the Motor Vehicle Fuel License Tax Law (Part 2 (commencing with Section 7301)) on motor vehicle fuel, less the amount transferred pursuant to paragraph (2) of subdivision (a), shall be transferred quarterly to the Traffic Congestion Relief Fund. (12) All revenue, less refunds, derived under this part at the 5-percent rate, resulting from the rate of federal motor vehicle fuel tax imposed pursuant to Section 4081 of Title 26 of the Internal Revenue Code, shall be transferred quarterly to the Traffic Congestion Relief Fund. (13) All revenue, less refunds, derived under this part at the 5-percent rate, with respect to the sale, storage, use, or other consumption of motor vehicle fuel, as defined for purposes of the Motor Vehicle Fuel License Tax Law (Part 2 (commencing with Section 7301)), other than that transferred pursuant to paragraph (1), (2), (11), or (12) of subdivision (a), shall be transferred quarterly to the Traffic Congestion Relief Fund. In no event shall the transfer to the Traffic Congestion Relief Fund pursuant to paragraph (11), (12), and (13) of subdivision (a) of this section, exceed one hundred twenty-five million dollars ($125,000,000) in any quarter."; added "and" after "(1), (2)," and deleted "(11), (12), and (13)" before "subdivision (a)" in subdivision (c); deleted former subdivision (f) which provided, "The transfers authorized by paragraphs (11), (12), and (13) of subdivision (a) shall be operative for the 2000–01 fiscal year only."; relettered former subdivision (g) as (f) and substituted "become operative on June 30, 2001" for "remain in effect only until June 30, 2001, and as of that date is repealed, unless a later enacted statute that is enacted before June 30, 2001, deletes or extends that date." therein. Stats. 2001, Ch. 113 (AB 438), in effect July 30, 2001, substituted "Public Transportation Account" for "Transportation Planning and Development Account" after "quarterly to the" in paragraphs (1), (2), and (3), and added subparagraph (A) to paragraph (1) in subdivision (a); and substituted "Public Transportation Account" for "Transportation Planning and Development Account" after "designation of the" and after "may use the" in subdivision (d). Stats. 2003, Ch. 224 (AB 1751), in effect August 11, 2003, added subparagraph (C) of paragraph (1) of subdivision (a), substituted "the taxes imposed . . . by statute" for "a rate of more than 4¾ percent pursuant to Sections 6051.1 and 6201.1 for the period December 1, 1989, to June 5, 1990, inclusive, shall be transferred to the Disaster Relief Fund created by Section 16419 of the Government Code" after "this part from" in subparagraph (4) of subdivision (a); deleted former paragraphs (5) through (10) which provided for the disposition of funds pursuant to 6051.1, 6201.1, 6051.2, 6201.2, 6051.6, 6201.6 and the increase in the revenues attributable to the increase in the rate of federal motor vehicle fuel tax between January 1, 1993 and the rate in effect on January 1, 1994; and deleted former subdivision (f) which read, "This section shall become operative on June 30, 2001.". Stats. 2004, Ch. 212 (SB 1098), in effect August 11, 2004, added subparagraph (D) to paragraph (1) of subdivision (a). Stats. 2005, Ch. 76 (SB 62), in effect July 19, 2005, added subparagraphs (E) and (F) to paragraph (1) of subdivision (a). Stats. 2006, Ch. 56 (SB 1132), in effect July 7, 2006, substituted ", except as modified as follows:" for a period after "Transportation Fund" in paragraph (1) of subdivision (a), substituted "the revenues estimated . . . and allocated as follows:" for "no transfers shall be made pursuant to this paragraph, except that if the amount to be otherwise transferred pursuant to this paragraph is in excess of two hundred million dollars ($200,000,000), then the amount of that excess shall be transferred" in, and added subparagraphs (i), (ii), (iii), and (iv) to, subparagraph (F) of paragraph (1) of subdivision (a). Stats. 2007, Ch. 173 (SB 79) in effect August 24, 2007, added subparagraphs (G) and (H) to paragraph (1) of subdivision (a). Stats. 2008, Ch. 756 (AB 268), in effect September 30, 2008, added last two sentences in subparagraph (H) of paragraph (1) of subdivision (a). Stats. 2009, Ch. 10XXXX (AB 10XXXX), in effect July 29, 2009, substituted "three hundred … ($1,041,234,000)" for "two hundred thirty-four million eight hundred fifty-two thousand dollars ($234,852,000) each quarter shall be transferred to the Mass Transportation Fund. If revenue for any quarter is less than that amount, the transfer in the subsequent quarter or quarters shall be increased so that the total transfer for the fiscal year is nine hundred thirty-nine million four hundred eight thousand dollars ($939,408,000)" after "the amount of" in subparagraph (H) of paragraph (1) of subdivision (a).