Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Uniform Local Sales And Use Tax Law

CHAPTER 1 GENERAL PROVISIONS

Section 7202

7202. Required provisions of county sales tax; credit for city tax. The sales tax portion of any sales and use tax 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 county at the rate of 1¼; percent of the gross receipts of the retailer from the sale of all tangible personal property sold by that person at retail in the county.

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

(c) A provision that all amendments subsequent to the effective date of the enactment of Part 1 (commencing with Section 6001) relating to sales tax and not inconsistent with this part, shall automatically become a part of the sales tax ordinance of the county.

(d) A provision that the county shall contract prior to the effective date of the county sales and use tax ordinances with the State Board of Equalization to perform all functions incident to the administration or operation of the sales and use tax ordinance of the county. Any such contract shall contain a provision that the county agrees to comply with the provisions of Article 11 (commencing with Section 29530) of Chapter 2 of Division 3 of Title 3 of the Government Code.

(e) A provision that the ordinance may be made inoperative not less than 60 days, but not earlier than the first day of the calendar quarter, following the county's lack of compliance with Article 11 (commencing with Section 29530) of Chapter 2 of Division 3 of Title 3 of the Government Code or following an increase by any city within the county of the rate of its sales or use tax above the rate in effect at the time the county ordinance was enacted.

(f) A provision that the amount subject to tax shall not include the amount of any sales tax or use tax imposed by the State of California upon a retailer or consumer.

(g) A provision that there is exempted from the sales tax 80 percent, and on and after July 1, 2004, until the rate modifications in subdivision (a) of Section 7203.1 cease to apply, 75 percent, of the gross receipts from the sale of tangible personal property, other than fuel or 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.

(h) A provision that any person subject to a sales and use tax under the county ordinance shall be entitled to credit against the payment of taxes due under that ordinance the amount of sales and use tax due to any city in the county; provided that the city sales and use tax is levied under an ordinance including provisions in substance as follows:

(1) A provision imposing a tax for the privilege of selling tangible personal property at retail upon every retailer in the city at the rate of 1 percent or less of the gross receipts of the retailer from the sale of all tangible personal property sold by that person at retail in the city and a use tax of 1 percent or less of purchase price upon the storage, use or other consumption of tangible personal property purchased from a retailer for storage, use or consumption in the city.

(2) Provisions identical to those contained in Part 1 (commencing with Section 6001), insofar as they relate to sales and use taxes, except that the name of the city as the taxing agency shall be substituted for that of the state (but the name of the city shall not be substituted for the word "state" in the phrase "retailer engaged in business in this state" in Section 6203 nor in the definition of that phrase in Section 6203) and that an additional seller's permit shall not be required if one has been or is issued to the seller under Section 6067.

(3) A provision that all amendments subsequent to the effective date of the enactment of Part 1 (commencing with Section 6001) relating to sales and use tax and not inconsistent with this part, shall automatically become a part of the sales and use tax ordinance of the city.

(4) A provision that the city shall contract prior to the effective date of the city sales and use tax ordinance with the State Board of Equalization to perform all functions incident to the administration or operation of the sales and use tax ordinance of the city which shall continue in effect so long as the county within which the city is located has an operative sales and use tax ordinance enacted pursuant to this part.

(5) A provision that the storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with this part by any city and county, county, or city in this state, shall be exempt from the tax due under this ordinance.

(6) A provision that the amount subject to tax shall not include the amount of any sales tax or use tax imposed by the State of California upon a retailer or consumer.

(7) A provision that there are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the city 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.

(8) A provision that, in addition to the exemptions provided in Sections 6366 and 6366.1, the storage, use, or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by the operators directly and exclusively in the use of the aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government is exempt from the use tax.

History.—Added by Stats. 1979, Ch. 5, operative January 1, 1984. Stats. 1984, Ch. 17, effective March 1, 1984, section ceases to be operative on March 1, 1984, and thereafter this section shall become operative on January 1, 1986, renumbered paragraph designations, in paragraph (A) substituted "that person" for "him" after "sold by," added paragraph (b) at end of section. Stats. 1985, Ch. 838, operative January 1, 1988, substituted "1988" for "1986" in subdivision (b). Stats. 1991, Ch. 236, in effect July 29, 1991, added ", other than fuel or petroleum products," after "tangible personal property" in paragraph (7) 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), (7), and (8) as subdivisions (a), (b), (c), (d), (e), (f), (g), and (h), respectively; numbered former subparagraphs (A), (B), (C), (D), (E), (F), ( G), and (H) as paragraphs (1), (2), (3), (4), (5), (6), (7), and (8), respectively; deleted "of this division" after "(commencing with Section 6001)" in subdivisions (b) and (c) and paragraphs (2) and (3) of subdivision (h); deleted "of this code" after "Section 6067" in subdivision (c) and paragraph (2) of subdivision (h) and after "6366.1" in paragraph (8) of subdivision (h); substituted "the" for "such" after "exclusively in the use of" in paragraphs (7) and (8), and after "consumed by" in paragraph (8), of subdivision (h); 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. 2003, Ch. 13X (AB 7X), in effect August 2, 2003, but operative July 1, 2004, added ", and on and . . . 67 percent" after "80 percent" in subdivision (g) and deleted a comma after "provided" in subdivision (h). Stats. 2003, Ch. 2 (AB X5 9), in effect December 12, 2003, but operative July 1, 2004, substituted "75" for "67" after "Section 7203.1 cease to apply, exempt from" in subdivision (c).

Sale of lottery ticket forms.—Bradley-Burns Law, which required city to contract with the Board to administer its local sales and use tax ordinance, implicitly granted the city standing to challenge the Board's actions under the contract, including the Board's decision that sales of lottery ticket forms, manufactured by seller at a plant located in the city, to the California Lottery Commission were not subject to state or local tax. City of Gilroy v. State Board of Equalization (1989) 212 Cal.App.3d 589.