Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Transactions And Use Tax Law

CHAPTER 2 IMPOSITION OF TAX

Section 7261

7261. Required provisions of the transactions tax. The transactions tax portion of any transactions and use taxes ordinance adopted under this part shall be imposed for the privilege of selling tangible personal property at retail, and shall include provisions in substance as follows:

(a) A provision imposing a tax for the privilege of selling tangible personal property at retail upon every retailer in the district at a rate of one-eighth of 1 percent, or a multiple thereof, of the gross receipts of the retailer from the sale of all tangible personal property sold by that person at retail in the district.

(b) Provisions identical to those contained in Part 1 (commencing with Section 6001), insofar as they relate to sales taxes and are not inconsistent with this part, except that the name of the district as the taxing agency shall be substituted for that of the state and that an additional transactor's permit shall not be required if a seller's permit has been or is issued to the transactor under Section 6067.

(c) A provision that all amendments subsequent to the effective date of this part to Part 1 (commencing with Section 6001) relating to sales tax and not inconsistent with this part shall automatically become a part of the transactions and use taxes ordinance. However, no amendment shall operate so as to affect the rate of tax imposed by the district's board.

(d) A provision that the amount subject to tax shall not include the amount of sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law, or the amount of any state-administered transactions or use tax.

(e) A provision that there are exempted from the tax the gross receipts from the sale of tangible personal property, other than fuel and petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of the aircraft as common carriers of persons or property under the authority of the laws of this state, the United States, or any foreign government.

(f) A provision that sales of property to be used outside the district which are shipped to a point outside the district, pursuant to the contract of sale, by delivery to that point by the retailer or his or her agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point, are exempt from the tax.

For purposes of this section, "delivery" of vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code shall be satisfied by registration to an out-of-district address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence.

"Delivery" of commercial vehicles shall be satisfied by registration to a place of business out of district and a declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

(g) A provision that the sale of tangible personal property is exempt from tax if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of the ordinance. A lease of tangible personal property which is a continuing sale of that property is exempt from tax for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of the ordinance. For the purposes of this subdivision, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

History.—Added by Stats. 1979, Ch. 5, operative January 1, 1984, Stats. 1984, Ch. 17, effective March 1, 1984, section shall cease to be operative on March 1, 1984, and thereafter this section shall become operative on January 1, 1986, changed paragraph designations, substituted "her" for "him" before "agent" in (a)(6), add (b) at end of section. Stats. 1985, Ch. 838, operative January 1, 1986, substituted "1988" for "1986" in subdivision (b). Stats. 1988, Ch. 1029, in effect January 1, 1989, deleted "of this division" following "(commencing with Section 6001)" in paragraphs (2) and (3) of subdivision (a), deleted "of this code" following "Section 6067" in paragraph (2) of subdivision (a), and substituted "Division 3.5 (commencing with Section 9840) of the Vehicle Code" for "Article 2 (commencing with Section 680 of Chapter 5 of Division 3 of the Harbors and Navigation Code" following "undocumented vessels registered under" and added "or her" following "his" in paragraph (6) of subdivision (a). Stats. 1990, Ch. 74 in effect January 1, 1991, added "his or" to paragraph (6) of subdivision (a). Stats. 1991, Ch. 236, in effect July 29, 1991, substituted "one-quarter" for "one-half" after "at a rate of", added ", or a multiple thereof," after "1 percent" in paragraph (1) of subdivision (a); and added ", other than fuel and petroleum products," after "tangible personal property" in paragraph (5) of subdivision (a). Stats. 1992, Ch. 905, in effect September 25, 1992, operative January 1, 1993, deleted subdivision letter "(a)" in the first paragraph; lettered former paragraphs (1), (2), (3), (4), (5), (6), and (7) as subdivisions (a), (b), (c), (d), (e), (f), and (g), respectively; deleted "; provided," after "taxes ordinance" and created the second sentence from the remainder of the former first sentence, deleted "that" after "However," and "such" before "amendment shall" in the second sentence, of subdivision (c); substituted "the" for "such" after "exclusively in the use of" in subdivision (e); substituted "that" for "such" after "by delivery to" in subdivision (f); substituted "that" for "such " after "continuing sale" in the second sentence of subdivision (g); and deleted former subdivision (b) which stated that "This section shall cease to be operative on March 1, 1984, and thereafter this section shall become operative on January 1, 1988.". Stats. 2012, Ch. 739 (AB 1126), in effect January 1, 2013, substituted "one-eighth" for "one-quarter" after "at a rate of" in subdivision (a).